The Business Research Company’s report on the Immersive Reality For Defense Market provides insights into the global market size, growth rate, regional distribution, competitive landscape, key segments, emerging trends, and strategic opportunities.
How are market drivers shaping the future growth trajectory of the immersive reality for defense industry?
The growth of synthetic training environments is expected to propel the growth of immersive reality for the defense market going forward. Synthetic training environments are computer-generated simulations designed to replicate real-world scenarios for training purposes. Synthetic training environments are increasing due to advancements in immersive technologies, which enhance realism, cost-effectiveness, and scalability for military training while reducing the need for live exercises. Immersive reality in synthetic training environments enhances defense training by simulating realistic combat scenarios, improving decision-making, and reducing operational risks. For instance, in September 2022, according to Teal Group Corporation, a US-based aerospace and defense market analysis firm, unmanned aerial systems procurement spending is expected to rise from nearly $12.1 billion annually in 2023 to $16.4 billion in 2032, reflecting an increase of $4.3 billion per year. Additionally, over the next ten years, this growth will total $162.2 billion. Therefore, the growth of synthetic training environments is driving the growth of immersive reality for defense market.
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What is the estimated market size of the immersive reality for defense sector by 2029, based on current forecasts?
The immersive reality for defense market size has grown rapidly in recent years. It will grow from $2.33 billion in 2024 to $2.71 billion in 2025 at a compound annual growth rate (CAGR) of 16.2%. The growth in the historic period can be attributed to training and simulation, situational awareness enhancement, remote operations and maintenance, battlefield planning and strategy, and medical training and rehabilitation.
The immersive reality for defense market size is expected to see rapid growth in the next few years. It will grow to $4.91 billion in 2029 at a compound annual growth rate (CAGR) of 16.0%. The growth in the forecast period can be attributed to advancements in AI and machine learning, increasing defense budgets for AR/VR training, rising demand for remote warfare solutions, integration with IoT and wearable technology, and enhanced cybersecurity for virtual environments. Major trends in the forecast period include AI-driven virtual simulations, AI-powered battlefield visualization, haptic feedback, and tactile interfaces, cloud-based immersive training platforms, and 5g-enabled real-time collaboration.
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Who are the top players in the immersive reality for defense market?
Major companies operating in the immersive reality for defense market are EON Reality Inc., Lockheed Martin Corporation, Honeywell International Inc., Thales Group, HCL Technologies Limited, CAE Inc., AVEVA Group PLC, Barco NV, Vertex Solutions LLC, Magic Leap Inc., Varjo Technologies Oy, Bohemia Interactive Simulations s.r.o., Vection Technologies Ltd, Indra Sistemas S.A., HTX Labs Inc., Red Six Aerospace Inc., VRgineers Inc., Blippar Ltd., SimX Inc., Imagine 4D Inc., VRMADA LLC.
What are the major trends in the immersive reality for defense market?
Major companies operating in the immersive reality for defense market are focusing on technological advancements, such as mixed reality cockpits, to enhance pilot training, improve situational awareness, optimize mission planning, and enable realistic combat simulations. Mixed reality cockpits are advanced simulation environments that integrate virtual and augmented reality to provide pilots with immersive, interactive, and real-time operational training experiences. For instance, in January 2025, Vertex Solutions LLC, a US-based technology company, delivered its first upgraded reconfigurable enhanced immersive training device (eITD), configured as a T-38, to the U.S. Air Force’s Detachment 24 (DET 24) at the 19th Air Force (19AF). This milestone marks the integration of mixed reality (MR) cockpits into the Air Force’s Fighter Bomber Fundamentals curriculum, revolutionizing advanced pilot training with immersive and adaptive simulation technology.
Which geography holds the highest immersive reality for defense market share?
North America was the largest region in the immersive reality for defense market in 2024. The regions covered in the immersive reality for defense market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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How do different segments contribute to the overall expansion of the immersive reality for defense market?
The immersive reality for defense market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Technology: Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR)
3) By Application: Training And Simulation, Medical Training And Healthcare Support, Maintenance And Repair, Combat Operations
Subsegments:
1) By Hardware: Head-Mounted Displays, Simulators, Sensors, Cameras, Wearables
2) By Software: Simulation Software, Immersive Applications, Three-Dimensional Visualization Tools, Artificial Intelligence/Machine Learning Integration, Data Integration Software, Collaboration Tools
3) By Service: Training And Simulation Services, System Integration Services, Maintenance And Support Services, Consulting And Customization, Content Creation, Cybersecurity Services
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How is the immersive reality for defense market defined?
The immersive reality for defense refers to the use of advanced virtual, augmented, and mixed reality technologies to enhance military training, operations, and decision-making. It enables realistic simulations, mission planning, situational awareness, and remote collaboration by immersing personnel in interactive, data-rich environments.
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