Top 50 Companies in Immersive Technology in Military and Defense Market: Statistics Report Till 2035
RELEASE DATE: Aug 2025 Author: Spherical InsightsRequest Free Sample Speak to Analyst
Description
According to a research report published by Spherical Insights & Consulting, The Global Immersive Technology in Military & Defense Market Size is projected to Grow from USD 10.28 Billion in 2024 to USD 110.78 Billion by 2035, at a CAGR of 24.13% during the forecast period 2025–2035. The market for immersive technology in military & defense is growing demand due to several key factors, including the rising need for advanced training solutions, technological advancements in AR and VR, and increased defence spending. This growth is driven by the desire to enhance operational readiness, improve training effectiveness, and reduce costs associated with traditional training methods.
Introduction
Immersive technology is made up of virtual reality and other hardware and software products that can do things like build simulation or virtual world to show the realism of the battleground, which train soldiers to get ready and improve their skills in a safe and realistic environment. Global immersive technology presents important opportunities in the military and defense market, driven by the training, simulation and increasing adoption of training, simulation and increased operational capabilities of virtual reality (VR), enhanced reality (AR), and mixed reality (MR) technologies. Major drivers of the global immersive technology market in military and defense include increased military readiness, cost-affect training solutions and progress in AI and AR/VR technologies. In particular, immersive technologies provide realistic and adaptable training environment, adapt to the mission plan, and increase all important, status able awareness in modern war.
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Immersive Technology in Military & Defense Market Size & Statistics
- The Market Size for Immersive Technology in Military & Defense Was Estimated to be worth USD 10.28 Billion in 2024.
- The Market Size is going to Expand at a CAGR of 24.52% between 2025 and 2035.
- The Global Immersive Technology in Military & Defense Market Size is anticipated to reach USD 110.78 Billion by 2035.
- The United States Immersive Technology in Military & Defense Market Size is Expected to Grow at a CAGR of around 22.18% from 2025 to 2035
- The United States Immersive Technology in Military & Defense Market Size is Expected to Reach USD 31.62 Billion by 2035
- North America is expected to generate the highest demand during the forecast period in the Immersive Technology in Military & Defense Market
- Asia Pacific is expected to grow the fastest during the forecast period in the Immersive Technology in Military & Defense Market.
Regional growth and demand
Asia Pacific is expected to grow the fastest during the forecast period in the Immersive Technology in Military & Defense market. This growth is fuelled by increasing military budgets, a focus on modernizing defence capabilities, and a rising adoption of simulation and training technologies.
North America is expected to generate the highest demand during the forecast period in the Immersive Technology in Military & Defense market. This dominance is primarily due to the region's strong technological infrastructure, early adoption of immersive technologies, and significant investments in research and development. Furthermore, the presence of major defence contractors and technology companies, coupled with government initiatives focused on modernization, further solidifies North America's leading position.
Top 10 Trends in the Immersive Technology in Military & Defense Market
- VR/AR for Training and Simulation
- AI-Powered Simulations
- Generative AI in Design and Prototyping
- Digital Avatars and Metaverse Applications
- Helmet-Mounted Displays
- Component Ecosystem Expansion
- 5G Connectivity
- Multi-Sensory Technology
- Additive Manufacturing
- Cybersecurity
1. VR/AR for Training and Simulation
Immersive technologies are revolutionizing training by providing realistic, cost-effective, and safe environments for practicing complex maneuvers and procedures.
2. AI-Powered Simulations
AI is being integrated into simulations to create more dynamic and adaptive scenarios, enhancing the realism and effectiveness of training exercises.
3. Generative AI in Design and Prototyping
Immersive technologies, combined with generative AI, are enabling faster and more efficient design and prototyping of military equipment.
4. Digital Avatars and Metaverse Applications
Virtual environments and digital avatars are being used for mission rehearsal, strategic planning, and collaborative problem-solving.
5. Helmet-Mounted Displays
Head-mounted and helmet-mounted VR displays are becoming increasingly popular in military applications, particularly in cockpits and pilot interfaces.
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Stay informed with the latest industry insights and market trends to identify new opportunities and drive growth in the Immersive Technology in Military & Defense market. To explore more in-depth trends, insights, and forecasts, please refer to our detailed report.
Top 10 Companies Leading the Immersive Technology in Military & Defense Market
- Lockheed Martin
- BAE Systems
- Northrop Grumman
- hales Group
- CAE
- EON Reality
- Microsoft
- Magic Leap
- Unity Software Inc.
- Varjo
- Others
1. Lockheed Martin
Headquarters: United States
Lockheed Martin plays a significant role in the military and defense market for immersive technologies, particularly in areas like AI-powered training simulations and situational awareness systems. They are actively integrating technologies like virtual reality (VR) and augmented reality (AR) to enhance training, improve platform operations, and advance decision-making in complex, multi-domain operations.
2. BAE Systems
Headquarters: United Kingdom
BAE Systems is actively involved in developing and implementing immersive technologies like virtual reality (VR) and augmented reality (AR) within the military and defense market. They are leveraging these technologies for training, simulation, and enhancing situational awareness for armed forces. BAE Systems collaborates with various partners, including startups and research institutions, to integrate these technologies into their defense solutions.
3. Northrop Grumman
Headquarters: U.S.
Northrop Grumman plays a significant role in the military and defense market's adoption of immersive technologies, particularly in areas like training, mission rehearsal, and digital engineering. They utilize technologies such as virtual reality (VR) and augmented reality (AR) to enhance training, improve design processes, and foster innovation.
4. Thales Group
Headquarters: France
Thales Group plays a significant role in the military and defense market, particularly in immersive technologies. They provide a range of solutions for training, simulation, and operational support, leveraging technologies like virtual reality (VR) and augmented reality (AR) to enhance military capabilities and decision-making.
5. CAE
Headquarters: Canada
CAE plays a significant role in the military and defence market by leveraging immersive technologies, particularly in simulation-based training and mission support. They are a leading provider of training and simulation solutions, offering a comprehensive portfolio of products and services that utilize digital and immersive technologies to enhance mission readiness and operational proficiency across various domains like air, naval, land, and public safety.
Are you ready to discover more about the Immersive Technology in Military & Defense market?
The report provides an in-depth analysis of the leading companies operating in the global Immersive Technology in Military & Defense market. It includes a comparative assessment based on their product portfolios, business overviews, geographical footprint, strategic initiatives, market segment share, and SWOT analysis. Each company is profiled using a standardized format that includes:
Company Profiles
- Lockheed Martin
- Business Overview
- Company Snapshot
- Products Overview
- Company Market Share Analysis
- Company Coverage Portfolio
- Financial Analysis
- Recent Developments
- Merger and Acquisitions
- SWOT Analysis
- BAE Systems
- Northrop Grumman
- hales Group
- CAE
- EON Reality
- Microsoft
- Magic Leap
- Unity Software Inc.
- Varjo
- Others
Conclusion
Global immersive technology in the Military and Defense Market is set to view the exponential growth, increased from USD 10.28 billion in 2024 to US $ 110.78 billion by 2035 in a notable CAGR of 24.13%. This boom is inspired by the increasing need of rapid progress in advanced training solutions, growing defense budget and AR, VR, MR, and AI-operated simulation. North America is expected to dominate due to its strong technical infrastructure and the presence of major defense contractors, while Asia Pacific will grow fastest due to modernization initiative and growing military investments. Major trends such as AI-Interested Simulation, Helmet-Mounted Display, Digital Avatar, and 5G-Saksham Emerging System are changing defense operations, training and mission readiness. Leading companies, including Lockheed Martin, BAE Systems, Northrop Grumman, Thales Group, and CAE, are at the forefront, which integrate immersive solutions to increase status able awareness, training efficiency and operational effectiveness. Overall, immersive technologies are ready to redefine modern defense strategies, providing safe, cost-affect and highly realistic environment that strengthen military preparations and global security.
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