Visiongain has published a new report entitled Military Simulation, Modelling and Virtual Training Market Report 2026-2036(Including Impact of U.S. Trade Tariffs): Forecasts by Deployment (Classified Training Networks, Cloud-based & Hybrid Enterprise Platforms), by Platform Type (Vehicle Simulation, Battlefield & Weapons Simulation, Flight Simulation), by End-User (Army/Land Forces, Air force, Navy/Marines/Coast Guard, Other), by Simulation Type (Live (L), Virtual (V), Constructive (C), LVC Integration, Other), by Technology (Simulator Hardware Systems, Modelling & Simulation Software Platforms, Virtual Reality (VR) Training Systems, Augmented Reality (AR) Training Systems, Mixed Reality (MR) Training Systems, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global military simulation, modelling and virtual training market is estimated at US$18.81 billion in 2026 and is projected to grow at a CAGR of 7.5% during the forecast period 2026-2036.

Impact of US Trade Tariffs on the Global Military Simulation, Modelling and Virtual Training Market   

U.S. tariffs on defence-related components, advanced electronics, semiconductors and dual-use technologies have introduced cost and supply-chain uncertainty across the global military simulation, modelling and virtual training market. While simulation systems are less material-intensive than traditional weapons platforms, they remain dependent on imported hardware, high-performance computing, sensors, displays and specialised networking equipment. Tariffs have increased procurement costs, extended delivery timelines and encouraged defence ministries and suppliers to reassess sourcing strategies. In response, many market participants are accelerating localisation, diversifying suppliers and shifting toward software-centric and cloud-enabled training solutions to reduce exposure to tariff-driven volatility.

5th/6th-Generation Platform Complexity Is Expanding High-Fidelity Simulator Demand Faster Than Aircraft/Vehicle Deliveries

As platforms become software-defined (sensor fusion, mission systems, data links, autonomy, electronic attack/defensive aids), the training burden shifts from “learning to fly/drive” to “learning to fight the system” across a dynamic kill chain. Live training hours remain constrained by cost, airspace/range availability, and the practical impossibility of safely replicating modern threats, so high-fidelity simulators and mission rehearsal environments become the primary venue for exposing crews to advanced tactics, degraded modes, and emissions control disciplines. This is evident in continued investment in advanced aviation training ecosystems—Leonardo’s recent advanced trainer exports that bundle aircraft with pilot and maintainer simulation systems is a direct example of how simulators are now packaged as core deliverables, not accessories. On the supplier side, the market is also seeing rapid iteration of simulator software baselines (including next-generation image generators and game-engine-derived visual stacks) to keep pace with platform upgrade cycles rather than the slower refresh cadence of legacy training devices.

How will this Report Benefit you?

Visiongain’s 450-page report provides 128 tables and 208 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the military simulation, modelling and virtual training market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for military simulation, modelling and virtual training. Get financial analysis of the overall market and different segments including deployment, platform type, end-user, simulation type, and technology, and capture higher market share. We believe that there are strong opportunities in this fast-growing military simulation, modelling and virtual training market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

“Train-as-You-Fight” Under Budget, Safety, and Range Constraints Is Accelerating Synthetic Substitution for Live Events

Even when budgets rise, live training is bounded by fuel, maintenance, munitions expenditure, environmental restrictions, safety risks, and finite range capacity, constraints that intensify during high operational tempo. As a result, defense organizations increasingly use simulation to replace (not just supplement) specific training objectives: high-end threat replication, large-force employment, and complex weapons effects adjudication. The driver here is economic and operational: synthetic training can run more repetitions, capture more telemetry, and deliver consistent grading without burning scarce readiness resources. This is visible in procurement behavior such as the U.S. Air Force’s ongoing investment in training instrumentation (for example, recent orders for new combat training pods with security and capability upgrades), and in European modernization of major land training centers (for example, upgrades to armored vehicle indoor simulation complexes). The net effect is that simulation is no longer “a cheaper alternative”; it is increasingly the only feasible way to rehearse high-end missions at the frequency required.

Data-Centric Training, After-Action Review, and AI Analytics Are Becoming Core Performance Infrastructure

Modern training value is measured less by “time in device” and more by measurable improvement in mission outcomes, requiring standardized telemetry capture, objective scoring, and analytics that link behaviors to results. This turns after-action review (AAR) into a data engineering problem and makes AI-assisted pattern detection (e.g., identifying habitual procedural deviations, timeline compression issues, or sensor-employment errors) commercially and operationally decisive. A clear real-world signal is the emergence of AI-driven training analysis applications showcased by leading training houses, such as Saab’s launch of AI-based training data analysis for live-training ecosystems, which reflects a shift toward continuous performance management rather than episodic debriefs. The same logic is pushing customers to demand open data schemas, event logs that can be mined across exercises, and analytics layers that work across simulator brands, creating a durable demand driver for software, middleware, and services on top of “hardware devices.”.

Where are the Market Opportunities?

Enterprise Synthetic Training Environments for Land Forces: Scalable “Common World” Platforms That Replace Multiple Point Solutions

One of the largest whitespace opportunities is replacing fragmented land training tools (procedural trainers, C2 trainers, gunnery trainers, mission rehearsal tools) with an enterprise synthetic training environment that uses a common terrain, entity behavior models, and data instrumentation across echelons. This reduces integration pain, improves reusability of scenarios, and enables “crawl-walk-run” progression from individual to brigade-level training within a single ecosystem. The commercial opportunity spans software platforms, content production, terrain pipelines, and integration services. Real-world momentum is visible where nations are modernizing combat training centers and indoor armoured vehicle training complexes, and where primes and specialist simulation firms are selected to build unified synthetic environments for major programs. Vendors that can deliver open architecture, rapid scenario authoring, and validated behaviors stand to capture recurring revenues through content and updates rather than only upfront device sales.

Maritime Training Modernisation: From Platform Simulators to Fleet-Level Synthetic Environments and Digital Twins

Navies are increasingly focused on readiness for anti-submarine warfare, air and missile defense, and contested littoral operations, all of which benefit from high-fidelity synthetic sensors and cooperative engagement constructs that are difficult to replicate live. This creates opportunity for integrated bridge/engineering/CIC simulation suites, fleet synthetic environments, and digital-twin concepts that mirror ship configuration and combat system baselines. Recent procurement patterns, such as Rheinmetall’s awards to deliver multiple naval training simulators and continued upgrades across maritime training infrastructure, demonstrate active demand. Vendors can differentiate by offering end-to-end suites that connect shore-based simulators, onboard training, and fleet exercise federation, enabling navies to train as task groups with credible threat and environment modeling.

Competitive Landscape

The major players operating in the military simulation, modelling and virtual training market are Anduril Industries, BAE Systems, Bohemia Interactive Simulations, CAE Inc., Cubic Corporation, Elbit Systems Ltd, HTC, Kongsberg Defence & Aerospace, Lenovo Group Limited, Lockheed Martin Corporation, Microsoft Corporation, RealWear, Inc., Thales SA, TRU Simulation + Training Inc., and Varjo Technologies Oy. These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.

Recent Developments

• 1-Mar-25, HTC VIVE and Virtualware inaugurated their first Enterprise Simulation Lab at HTC VIVE Americas HQ. The lab showcases enterprise and industrial simulation using VIVE XR hardware and Virtualware’s VIROO platform for immersive learning and workforce training.
• 04-Dec-25, Cubic and Palantir Technologies formed a strategic alliance to deploy Palantir’s Artificial Intelligence Platform (AIP) across Cubic’s defence value chain. The partnership strengthens data-driven optimisation of training systems, supply chains, and operational readiness for U.S. Army and allied customers.
• 19-Nov-25, Cubic joined SNC’s Freedom Trainer team for the U.S. Navy Undergraduate Jet Training System (UJTS) competition. The collaboration supports next-generation naval aviation training using digitally designed, cost-efficient aircraft integrated with advanced simulation and mission rehearsal capabilities.
• 30-Oct-25, Cubic was awarded a multi-year contract by Canada’s Department of National Defence to provide in-service support for the Weapon Effects Simulation (WES) program. The contract enhances force-on-force realism across four major Canadian training bases using live simulation technologies.
• 08-Oct-25, Varjo introduced the refreshed XR-4 Series, optimized for advanced simulation systems. Designed for mission-ready training across air, land, and sea domains. The new XR-4 supports cockpit trainers, vehicle simulators, and ground systems. Compact and portable for global deployment.
• 23-Sep-25, CAE awarded a contract by SNC to deliver a next-gen training system for U.S. Air Force aircrews and maintainers using high-fidelity devices and VR tools.
• 16-Sep-25, Lockheed Martin will upgrade Republic of Korea Air Force’s F-16 Block 52 flight simulators to the advanced F-16V configuration. The six-year contract includes enhanced equipment and software to deliver high-fidelity, realistic pilot training environments.

About Visiongain

Established in 1998, Visiongain is an independent publisher of analyst-led market intelligence, delivering data-driven research, forecasts, and strategic insight across global industries and emerging markets. Visiongain supports evidence-based decision-making for investment, procurement, and long-term strategic planning.

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