Military Simulation, Modelling and Virtual Training Market Research Report 2026-2036: Multi-Domain Operations and Joint Readiness Requirements Are Forcing LVC Convergence at Scale

The military simulation market offers opportunities in LVC convergence driven by multi-domain operations, presenting structural demand for integrated training systems. Challenges include cybersecurity risks and US trade tariffs affecting costs and timelines. Companies are shifting to software-centric solutions to mitigate these impacts.


Dublin, Feb. 18, 2026 (GLOBE NEWSWIRE) -- The "Military Simulation, Modelling and Virtual Training Market Report 2026-2036" report has been added to ResearchAndMarkets.com's offering.

Overall world revenue for the Military Simulation, Modelling and Virtual Training Market will surpass US$18.81 billion in 2026

This report will prove invaluable to leading firms striving for new revenue pockets if they wish to better understand the industry and its underlying dynamics. It will be useful for companies that would like to expand into different industries or to expand their existing operations in a new region.

Multi-Domain Operations and Joint Readiness Requirements Are Forcing LVC Convergence at Scale

Modern force design is increasingly 'multi-domain by default,' which means training must synchronise air, land, maritime, space, cyber, and information effects in one exercise construct rather than as separate stovepipes. This is a structural demand signal for Live-Virtual-Constructive (LVC) integration, because only LVC can credibly inject contested EW, cyber, space-denial, and dense threat laydowns into otherwise live training without prohibitive cost and safety constraints.

Real-world impact is visible in programs that explicitly aim to create single, shared synthetic environments where multiple domains can 'plug in' together, as well as in the growth of distributed mission training networks that let geographically separated units rehearse the same scenario. Industry response has included expanded work on joint synthetic environments (for example, BAE Systems'Project OdySSEy ecosystem initiatives) and constructive/synthetic training environments adopted for major naval programs (such as synthetic environments selected for modern frigate test and training contexts), reflecting how joint interoperability has moved from 'nice-to-have' to a procurement requirement.

Cybersecurity, Cross-Domain Security, and Accreditation Timelines Are Becoming the Primary Schedule Risk

As training moves from standalone devices to enterprise networks-and increasingly touches mission data, threat libraries, and operational TTPs-the cybersecurity burden grows sharply.

Programs must meet strict information assurance requirements, handle cross-domain solutions, and prove that federated training environments will not leak sensitive data or create lateral movement pathways into operational networks. In practice, this extends procurement cycles, increases cost of compliance, and can force capability compromises (e.g., reduced scenario fidelity or disconnected modes) until approvals are secured.

The restraint is structural: every step toward more realism and connectivity increases the security surface area. Suppliers acknowledge this by emphasizing system security updates and hardened architectures in new deliveries (for example, instrumentation pods and ground systems upgraded to meet tighter security requirements), but accreditation timelines often remain outside vendor control and can delay fielding even when hardware/software is ready.

Key Questions Answered

  • How is the military simulation, modelling and virtual training market evolving?
  • What is driving and restraining the military simulation, modelling and virtual training market?
  • How will each military simulation, modelling and virtual training submarket segment grow over the forecast period and how much revenue will these submarkets account for in 2036?
  • How will the market shares for each military simulation, modelling and virtual training submarket develop from 2026 to 2036?
  • What will be the main driver for the overall market from 2026 to 2036?
  • Will leading military simulation, modelling and virtual training markets broadly follow the macroeconomic dynamics, or will individual national markets outperform others?
  • How will the market shares of the national markets change by 2036 and which geographical region will lead the market in 2036?
  • Who are the leading players and what are their prospects over the forecast period?
  • What are the military simulation, modelling and virtual training projects for these leading companies?
  • How will the industry evolve during the period between 2026 and 2036? What are the implications of military simulation, modelling and virtual training projects taking place now and over the next 10 years?
  • Is there a greater need for product commercialisation to further scale the military simulation, modelling and virtual training market?
  • Where is the military simulation, modelling and virtual training market heading and how can you ensure you are at the forefront of the market?
  • What are the best investment options for new product and service lines?
  • What are the key prospects for moving companies into a new growth path and C-suite?

Market Dynamics

Market Driving Factors

  • AI-Driven Military Training Simulation Software Enhances Efficiency and Reduces Operational Costs
  • Increased Defence Spending Across Countries Concentrated on Adoption of Modern Technologies
  • The Mature Adoption of Flight Simulators for Training Combat Pilots

Market Restraining Factors

  • Bandwidth and Infrastructure Limitations Restrain the Market Growth
  • Insufficient Data Availability Hampers the Assessment of Proficiency Gains Achieved Through Training in Simulators.

Market Opportunities

  • Increasing Acquisition of Military UAV Expected to Drive Demand for Drone Simulators
  • Development of Cloud-Based Simulation Platforms Opportunities for Market Growth
  • Growing Preference for Training-as-a-Service and Managed Training Models, Allowing Defence Organisations

Leading Companies Profiled in the Report

  • 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.
  • Varjo Technologies Oy.

Segments Covered in the Report

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 End-Users

By Simulation Type

  • Live (L)
  • Virtual (V)
  • Constructive (C)
  • LVC Integration
  • Other Simulation Types

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 Technologies

For more information about this report visit https://www.researchandmarkets.com/r/gx11fe

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