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Aviation & Aerospace Virtual Reality Aerospace

PUBLISHER: Aviation & Defense Market Reports (A&D) | PRODUCT CODE: 1930535

PUBLISHER: Aviation & Defense Market Reports (A&D) | PRODUCT CODE: 1930535

Global AR & VR Defense Market 2026-2036

PUBLISHED: February 4, 2026

PAGES: 150+ Pages

DELIVERY TIME: 3 business days

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The Global AR and VR market is estimated at USD 2.84 billion in 2026, projected to grow to USD 8.89 billion by 2036 at a Compound Annual Growth Rate (CAGR) of 12.09% over the forecast period 2026-2036.

Introduction

Augmented reality and virtual reality technologies are increasingly reshaping how defense forces train, plan, and operate across modern military environments. These immersive technologies enable realistic simulation of combat scenarios, mission rehearsal, and skill development without exposing personnel to real-world risk. In defense applications, augmented reality enhances live operations by overlaying digital information onto physical environments, while virtual reality creates fully immersive training and planning spaces. The adoption of these technologies reflects a broader shift toward digital transformation and data-driven decision-making within armed forces. As operational complexity increases, defense organizations seek tools that improve preparedness, reduce training costs, and enhance cognitive performance. AR and VR solutions are being integrated across individual soldier training, command staff planning, maintenance support, and mission simulation. Their ability to replicate diverse environments and scenarios supports consistent training standards across geographically dispersed forces. These technologies are increasingly recognized as essential enablers of readiness and operational effectiveness in both peacetime and combat contexts.

Technology Impact in AR and VR Defense

Technological advancements are rapidly expanding the capabilities and realism of AR and VR defense applications. Improvements in display resolution, motion tracking, and spatial mapping create highly immersive and accurate training environments. Advances in processing power enable real-time rendering of complex scenarios and dynamic interactions. Artificial intelligence enhances adaptive training modules by responding to user behavior and performance. Cloud-based architectures support scalable deployment and remote collaboration across units. Integration with sensor data and operational systems allows augmented reality to deliver real-time situational awareness during exercises and live missions. Haptic feedback technologies improve realism by simulating physical interactions. Lightweight and ergonomic hardware designs increase user comfort and accessibility. These technological developments enable AR and VR systems to support a wide range of defense functions, from tactical training to strategic planning.

Key Drivers in AR and VR Defense

Several factors are driving the adoption of AR and VR technologies within defense organizations. The need for cost-effective and repeatable training solutions encourages investment in virtual environments that reduce reliance on live exercises. Increasing operational complexity requires tools that enhance decision-making and cognitive readiness. Defense forces seek to improve training realism while minimizing safety risks. Rapid technology evolution and digital-native personnel further support adoption. Maintenance and logistics training benefit from augmented reality guidance, improving efficiency and reducing errors. Interoperability and joint training requirements also drive demand for standardized immersive solutions. Additionally, the emphasis on continuous readiness and rapid skill development sustains long-term interest in AR and VR technologies. These drivers collectively position immersive technologies as integral components of modern defense capability development.

Regional Trends in AR and VR Defense

Regional defense priorities influence the pace and focus of AR and VR adoption. North American defense organizations lead in integrating immersive technologies into advanced training and mission planning systems. European forces emphasize collaborative training platforms that support multinational operations. Asia-Pacific countries focus on scalable solutions to support expanding force structures and diverse operational environments. Middle Eastern defense organizations invest in immersive technologies to enhance readiness and specialized training. African forces increasingly explore cost-efficient virtual training solutions to improve preparedness. Across regions, partnerships with technology providers and local development initiatives are expanding. These trends highlight the growing global recognition of AR and VR as transformative tools for defense readiness.

Key AR and VR Program:

Anduril Industries received a $159 million U.S. Army contract in September 2025 to prototype next-generation mixed-reality headsets combining night vision, augmented reality overlays, and artificial intelligence processing. This award followed Anduril's takeover of Microsoft's troubled $22 billion Integrated Visual Augmentation System program earlier that year. The helmet-mounted display system aims to provide soldiers with real-time battlefield data, navigation cues, and target identification while maintaining situational awareness during day/night operations.

Product Code: AND148

AR & VR in Defense Market - Table of Contents

AR & VR in Defense Market Report Definition

AR & VR in Defense Market Segmentation

By Region

By Component

AR & VR in Defense Market Analysis for next 10 Years

The 10-year AR & VR in defense market analysis would give a detailed overview of AR & VR in Defense Market growth, changing dynamics, technology adoption overviews and the overall market attractiveness is covered in this chapter.

Market Technologies of AR & VR in Defense Market

This segment covers the top 10 technologies that is expected to impact this market and the possible implications these technologies would have on the overall market.

Global AR & VR in Defense Market Forecast

The 10-year AR & VR in Defense Market forecast of this market is covered in detailed across the segments which are mentioned above.

Regional AR & VR in Defense Market Trends & Forecast

The regional AR & VR in Defense Market trends, drivers, restraints and Challenges of this market, the Political, Economic, Social and Technology aspects are covered in this segment. The market forecast and scenario analysis across regions are also covered in detailed in this segment. The last part of the regional analysis includes profiling of the key companies, supplier landscape and company benchmarking. The current market size is estimated based on the normal scenario.

North America

Drivers, Restraints and Challenges

PEST

Market Forecast & Scenario Analysis

Key Companies

Supplier Tier Landscape

Company Benchmarking

Europe

Middle East

APAC

South America

Country Analysis of AR & VR in Defense Market

This chapter deals with the key defense programs in this market, it also covers the latest news and patents which have been filed in this market. Country level 10 year market forecast and scenario analysis are also covered in this chapter.

Defense Programs

Market Forecast & Scenario Analysis

Canada

Italy

France

Germany

Netherlands

Belgium

Spain

Sweden

Greece

Australia

South Africa

India

China

Russia

South Korea

Japan

Malaysia

Singapore

Brazil

Opportunity Matrix for AR & VR in Defense Market

The opportunity matrix helps the readers understand the high opportunity segments in this market.

Expert Opinions on AR & VR in Defense Market Report

Hear from our experts their opinion of the possible analysis for this market.

Conclusions

About Aviation and Defense Market Reports

Product Code: AND148

List of Tables

Table 1: 10 Year Market Outlook, 2026-2036
Table 2: Drivers, Impact Analysis, North America
Table 3: Restraints, Impact Analysis, North America
Table 4: Challenges, Impact Analysis, North America
Table 5: Drivers, Impact Analysis, Europe
Table 6: Restraints, Impact Analysis, Europe
Table 7: Challenges, Impact Analysis, Europe
Table 8: Drivers, Impact Analysis, Middle East
Table 9: Restraints, Impact Analysis, Middle East
Table 10: Challenges, Impact Analysis, Middle East
Table 11: Drivers, Impact Analysis, APAC
Table 12: Restraints, Impact Analysis, APAC
Table 13: Challenges, Impact Analysis, APAC
Table 14: Drivers, Impact Analysis, South America
Table 15: Restraints, Impact Analysis, South America
Table 16: Challenges, Impact Analysis, South America
Table 17: Scenario Analysis, Scenario 1, By Region, 2026-2036
Table 18: Scenario Analysis, Scenario 1, By Component, 2026-2036
Table 20: Scenario Analysis, Scenario 2, By Region, 2026-2036
Table 21: Scenario Analysis, Scenario 2, By Component, 2026-2036

List of Figures

Figure 1: Global AR & VR in Defense Market Forecast, 2026-2036
Figure 2: Global AR & VR in Defense Market Forecast, By Region, 2026-2036
Figure 3: Global AR & VR in Defense Market Forecast, By Component, 2026-2036
Figure 5: North America, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 6: Europe, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 7: Middle East, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 8: APAC, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 9: South America, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 10: United States, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 11: United States, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 12: Canada, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 13: Canada, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 14: Italy, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 15: Italy, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 16: France, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 17: France, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 18: Germany, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 19: Germany, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 20: Netherlands, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 21: Netherlands, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 22: Belgium, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 23: Belgium, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 24: Spain, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 25: Spain, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 26: Sweden, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 27: Sweden, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 28: Brazil, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 29: Brazil, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 30: Australia, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 31: Australia, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 32: India, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 33: India, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 34: China, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 35: China, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 36: Saudi Arabia, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 37: Saudi Arabia, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 38: South Korea, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 39: South Korea, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 40: Japan, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 41: Japan, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 42: Malaysia, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 43: Malaysia, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 44: Singapore, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 45: Singapore, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 46: United Kingdom, AR & VR in Defense Market, Technology Maturation, 2026-2036
Figure 47: United Kingdom, AR & VR in Defense Market, Market Forecast, 2026-2036
Figure 48: Opportunity Analysis, AR & VR in Defense Market, By Region (Cumulative Market), 2026-2036
Figure 49: Opportunity Analysis, AR & VR in Defense Market, By Region (CAGR), 2026-2036
Figure 50: Opportunity Analysis, AR & VR in Defense Market, By Component (Cumulative Market), 2026-2036
Figure 51: Opportunity Analysis, AR & VR in Defense Market, By Component (CAGR), 2026-2036
Figure 54: Scenario Analysis, AR & VR in Defense Market, Cumulative Market, 2026-2036
Figure 55: Scenario Analysis, AR & VR in Defense Market, Global Market, 2026-2036
Figure 56: Scenario 1, AR & VR in Defense Market, Total Market, 2026-2036
Figure 57: Scenario 1, AR & VR in Defense Market, By Region, 2026-2036
Figure 58: Scenario 1, AR & VR in Defense Market, By Component, 2026-2036
Figure 60: Scenario 2, AR & VR in Defense Market, Total Market, 2026-2036
Figure 61: Scenario 2, AR & VR in Defense Market, By Region, 2026-2036
Figure 62: Scenario 2, AR & VR in Defense Market, By Component, 2026-2036
Figure 64: Company Benchmark, AR & VR in Defense Market, 2026-2036