Military Vehicle Simulations Global Market Report 2025

Military Vehicle Simulations Market Overview

• Military Vehicle Simulations market size has reached to $4.82 billion in 2024

• Expected to grow to $7.11 billion in 2029 at a compound annual growth rate (CAGR) of 8%

• Growth Driver: Growing Geopolitical Tensions Fueling The Growth Of The Market Due To Increasing Demand For Combat Readiness And Training Efficiency

• Market Trend: Strategic Partnership Between Rheinmetall And BISim To Enhance Military Vehicle Simulation Capabilities

• Asia-Pacific was the largest region in 2024 and  is the fastest growing region.

What Is Covered Under Military Vehicle Simulations Market?

Military vehicle simulations refer to digital or virtual representations created to mimic the functions, behaviors, and operational environments of defense-related transport systems. These simulations are developed using advanced modeling techniques to replicate realistic scenarios, enabling accurate analysis of performance and responses under varying conditions.

The main types of military vehicle simulations include military vehicle simulation platforms, military vehicle simulation systems, military vehicle simulation maintenance, and others. Military vehicle simulation platforms are comprehensive environments designed to deliver immersive simulation experiences for military vehicle operations. These are categorized by vehicle type into armored vehicles, trucks and transport vehicles, tanks, light tactical vehicles, and reconnaissance vehicles and use various technologies, including artificial intelligence, augmented reality, virtual reality, cloud-based simulation, and data analytics and big data. These are applied for training and education, mission planning, operational support, research and development, and testing and evaluation, serving a range of end users, including defense forces, government agencies, private contractors, educational institutions, and research organizations.

What Is The Military Vehicle Simulations Market Size 2025 And Growth Rate?

The military vehicle simulations market size has grown strongly in recent years. It will grow from $4.82 billion in 2024 to $5.22 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to increasing defense budgets, early adoption of simulation, military modernization programs, improvements in computing power, and post-conflict reconstruction efforts.

What’s The Trade War Impact On Aerospace And Defense Industry?

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

How is the Military Vehicle Simulations Market Segmented?

1) By Type: Military Vehicles Simulations Platforms, Military Vehicles Simulations Systems, Military Vehicles Simulations Maintenances, Other Types

2) By Vehicle Type: Armored Vehicles, Trucks and Transport Vehicles, Tanks, Light Tactical Vehicles, Reconnaissance Vehicles

3) By Technology: Artificial Intelligence, Augmented Reality, Virtual Reality, Cloud-Based Simulation, Data Analytics And Big Data

4) By Application: Training And Education, Mission Planning, Operational Support, Research And Development, Testing And Evaluation

5) By End User: Defense Forces, Government Agencies, Private Contractors, Educational Institutions, Research Organizations

Subsegments:

1) By Military Vehicles Simulations Platforms: Desktop-Based Simulation Platforms, Full Mission Simulators, Mobile Training Units, Cloud-Based Simulation Platforms

2) By Military Vehicles Simulations Systems: Driver Training Systems, Gunnery Training Systems, Command And Control Simulators, Navigation And Convoy Training Systems

3) By Military Vehicles Simulations Maintenances: Predictive Maintenance Simulation, Virtual Maintenance Trainers (VMT), Diagnostics And Repair Simulation, Troubleshooting Training Systems

4) By Other Types: Mixed Reality Simulators, Artificial Intelligence (AI)-Integrated Simulation Systems, Logistics And Supply Chain Simulators, Multi-Domain Integration Simulators

What Is Driving The Military Vehicle Simulations Market? Growing Geopolitical Tensions Fueling The Growth Of The Market Due To Increasing Demand For Combat Readiness And Training Efficiency

The growing geopolitical tensions are expected to propel the growth of the military vehicle simulation market going forward. Geopolitical tensions refer to conflicts or strained relations between nations that may escalate into military confrontations or prolonged defense posturing. Geopolitical tensions are rising due to growing competition over critical resources such as energy, rare earth minerals, and water as nations seek to secure strategic advantages amid global supply chain vulnerabilities. Military vehicle simulation enhances strategic preparedness by enabling realistic training and scenario planning, helping nations navigate geopolitical tensions with reduced risk of direct conflict. For instance, in December 2024, according to a report published by the International Institute for Strategic Studies (IISS), a UK-based international research institute focusing on defense and security issues, the number of deaths caused by violent events worldwide surged by 37% from July 2023 to June 2024 with the total approaching 200,000. Therefore, the growing geopolitical tensions are driving the growth of the military vehicle simulation market.

What Is Driving The Military Vehicle Simulations Market? Growing Geopolitical Tensions Fueling The Growth Of The Market Due To Increasing Demand For Combat Readiness And Training Efficiency

The growing geopolitical tensions are expected to propel the growth of the military vehicle simulation market going forward. Geopolitical tensions refer to conflicts or strained relations between nations that may escalate into military confrontations or prolonged defense posturing. Geopolitical tensions are rising due to growing competition over critical resources such as energy, rare earth minerals, and water as nations seek to secure strategic advantages amid global supply chain vulnerabilities. Military vehicle simulation enhances strategic preparedness by enabling realistic training and scenario planning, helping nations navigate geopolitical tensions with reduced risk of direct conflict. For instance, in December 2024, according to a report published by the International Institute for Strategic Studies (IISS), a UK-based international research institute focusing on defense and security issues, the number of deaths caused by violent events worldwide surged by 37% from July 2023 to June 2024 with the total approaching 200,000. Therefore, the growing geopolitical tensions are driving the growth of the military vehicle simulation industry.

Who Are The Major Players In The Global Military Vehicle Simulations Market?

Major Companies operating in the military vehicle simulations market are Raytheon Technologies Corp., Boeing Co., Lockheed Martin Corporation, General Dynamics Corp., Northrop Grumman Corp., Collins Aerospace Companies, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., ST Engineering Ltd., Rheinmetall AG, Israel Aerospace Industries Ltd., Saab AB, CAE Inc., FlightSafety International Inc., Arotech Corporation, FAAC Incorporated, Frasca International Inc., AVT Simulation Inc.

Who Are The Major Players In The Global Military Vehicle Simulations Market?

Major Companies operating in the military vehicle simulations market are Raytheon Technologies Corp., Boeing Co., Lockheed Martin Corporation, General Dynamics Corp., Northrop Grumman Corp., Collins Aerospace Companies, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., ST Engineering Ltd., Rheinmetall AG, Israel Aerospace Industries Ltd., Saab AB, CAE Inc., FlightSafety International Inc., Arotech Corporation, FAAC Incorporated, Frasca International Inc., AVT Simulation Inc.

What Are The Key Trends Of The Global Military Vehicle Simulations Market? Strategic Partnership Between Rheinmetall And BISim To Enhance Military Vehicle Simulation Capabilities

Major companies operating in the military vehicle simulation market are focusing on developing strategic partnerships to reduce operational costs. Strategic partnerships are long-term collaborations between two or more organizations formed to achieve shared objectives by leveraging each other’s strengths and resources. For instance, in January 2025, Rheinmetall AG, a Germany-based technology company, partnered with Bohemia Interactive Simulations (BISim), a Czech Republic-based provider of military vehicle simulations, to advance technologies used in defense simulations. The collaboration aims to deliver hyper-realistic, scalable, and interoperable training environments that support a wide range of mission scenarios, from individual soldier training to large-scale joint force exercises. Leveraging BISim’s modular simulation software and Rheinmetall’s real-world defense systems, the partnership is set to accelerate innovation in synthetic training, enabling armed forces to train more effectively, safely, and cost-efficiently in complex, multi-domain operations.

What Are The Key Trends Of The Global Military Vehicle Simulations Market? Strategic Partnership Between Rheinmetall And BISim To Enhance Military Vehicle Simulation Capabilities

Major companies operating in the military vehicle simulation market are focusing on developing strategic partnerships to reduce operational costs. Strategic partnerships are long-term collaborations between two or more organizations formed to achieve shared objectives by leveraging each other’s strengths and resources. For instance, in January 2025, Rheinmetall AG, a Germany-based technology company, partnered with Bohemia Interactive Simulations (BISim), a Czech Republic-based provider of military vehicle simulations, to advance technologies used in defense simulations. The collaboration aims to deliver hyper-realistic, scalable, and interoperable training environments that support a wide range of mission scenarios, from individual soldier training to large-scale joint force exercises. Leveraging BISim’s modular simulation software and Rheinmetall’s real-world defense systems, the partnership is set to accelerate innovation in synthetic training, enabling armed forces to train more effectively, safely, and cost-efficiently in complex, multi-domain operations.

What Are Latest Mergers And Acquisitions In The Military Vehicle Simulations Market? BAE Systems Acquires BISim To Boost Military Simulation And Digital Transformation Capabilities

In March 2022, BAE Systems, a UK-based company specializing in aerospace, military, and information security, acquired Bohemia Interactive Simulations (BISim) for $200 million. With this acquisition, BAE Systems aims to strengthen its capabilities in advanced military training and simulation by integrating Bohemia Interactive Simulations' cutting-edge virtual training technologies into its defense portfolio. Bohemia Interactive Simulations (BISim) is a Czech Republic-based provider of military vehicle simulations.

What Are Latest Mergers And Acquisitions In The Military Vehicle Simulations Market? BAE Systems Acquires BISim To Boost Military Simulation And Digital Transformation Capabilities

In March 2022, BAE Systems, a UK-based company specializing in aerospace, military, and information security, acquired Bohemia Interactive Simulations (BISim) for $200 million. With this acquisition, BAE Systems aims to strengthen its capabilities in advanced military training and simulation by integrating Bohemia Interactive Simulations' cutting-edge virtual training technologies into its defense portfolio. Bohemia Interactive Simulations (BISim) is a Czech Republic-based provider of military vehicle simulations.

What Is The Regional Outlook For The Global Military Vehicle Simulations Market?

Asia-Pacific was the largest region in the military vehicle simulations market in 2024. The regions covered in the military vehicle simulations market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the military vehicle simulations market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Is The Regional Outlook For The Global Military Vehicle Simulations Market?

Asia-Pacific was the largest region in the military vehicle simulations market in 2024. The regions covered in this market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Military Vehicle Simulations Market?

The military vehicle simulations market consists of revenues earned by entities by providing services such as training systems integration, scenario generation, performance analysis, and consulting. The market value includes the value of related goods sold by the service provider or included within the service offering. The military vehicle simulations market also includes sales of visual display systems, vehicle cabin replicas, tracking devices, and audio systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

What Defines the Military Vehicle Simulations Market?

The military vehicle simulations market consists of revenues earned by entities by providing services such as training systems integration, scenario generation, performance analysis, and consulting. The market value includes the value of related goods sold by the service provider or included within the service offering. The military vehicle simulations market also includes sales of visual display systems, vehicle cabin replicas, tracking devices, and audio systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What is the Market Assessment and Strategic Outlook for the Military Vehicle Simulations Industry?

The military vehicle simulations market research report is one of a series of new reports from The Business Research Company that provides military vehicle simulations market statistics, including military vehicle simulations industry global market size, regional shares, competitors with a military vehicle simulations market share, detailed military vehicle simulations market segments, market trends and opportunities, and any further data you may need to thrive in the military vehicle simulations industry. This military vehicle simulations market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

What is the Market Assessment and Strategic Outlook for the Military Vehicle Simulations Industry?

The military vehicle simulations market research report is one of a series of new reports from The Business Research Company that provides market statistics, including military vehicle simulations industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the military vehicle simulations industry. This military vehicle simulations market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.