PUBLISHER: The Business Research Company | PRODUCT CODE: 1751170
PUBLISHER: The Business Research Company | PRODUCT CODE: 1751170
Virtual training and simulation involve the use of computer-generated environments and digital tools to replicate real-world scenarios for training and skill development. It enables users to engage with realistic simulations in a safe, controlled, and immersive environment, providing hands-on learning opportunities without the risks or expenses of real-world practice.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The main components of virtual training and simulation include hardware, software, and services. Hardware consists of physical devices such as VR headsets, motion sensors, and consoles that facilitate immersive and interactive user experiences. The technologies employed include virtual reality (VR), augmented reality (AR), mixed reality (MR), and artificial intelligence (AI). These technologies are utilized across a wide range of sectors, including corporate training, military training, aviation, healthcare, and education. Key end-users of virtual training and simulation systems include enterprises, government and defense organizations, educational institutions, and healthcare providers.
The virtual training and simulation market research report is one of a series of new reports from The Business Research Company that provides virtual training and simulation market statistics, including the virtual training and simulation industry global market size, regional shares, competitors with the virtual training and simulation market share, detailed virtual training and simulation market segments, market trends, and opportunities, and any further data you may need to thrive in the virtual training and simulation industry. This virtual training and simulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The virtual training and simulation market size has grown rapidly in recent years. It will grow from$464.62 billion in 2024 to $544.35 billion in 2025 at a compound annual growth rate (CAGR) of 17.2%. The growth during the historic period can be attributed to the rising popularity of immersive gaming, increasing demand for remote training solutions, advancements in computing power, a growing focus on military training, and the need for safe, risk-free training environments.
The virtual training and simulation market size is expected to see rapid growth in the next few years. It will grow to$1,012.22 billion in 2029 at a compound annual growth rate (CAGR) of 16.8%. The growth during the forecast period can be attributed to the rising adoption of artificial intelligence, increasing demand for immersive training experiences, growing use of virtual and augmented reality, the need for scalable training solutions, and the expanding use of technology-enabled teaching methods. Key trends expected in the forecast period include advancements in technology, innovations in immersive technologies, developments in artificial intelligence integration, research and development in virtual environments, and advancements in data analytics for training performance.
The growing adoption of cloud-based solutions is expected to drive the expansion of the virtual training and simulation market. Cloud-based solutions refer to services, software, or systems that are hosted on remote servers and accessed over the internet, rather than being installed locally on individual devices. The increased adoption of cloud-based solutions is primarily attributed to their scalability, allowing businesses to adjust resources according to demand, while also reducing operational costs and improving efficiency. Virtual training and simulation enhance cloud-based solutions by providing scalable, real-time access to immersive learning environments, which improve performance, lower costs, and enable remote collaboration. For example, in December 2023, Eurostat, a Luxembourg-based government agency, reported that the share of enterprises using cloud computing services in the European Union grew by 4.2 percentage points in 2023 compared to 2021. Consequently, the growing adoption of cloud-based solutions is fueling the growth of the virtual training and simulation market.
Leading companies in the virtual training and simulation market are focusing on integrating advanced technologies such as augmented reality (AR) and virtual reality (VR) to improve training effectiveness, boost user engagement, and offer immersive, realistic environments that enhance learning outcomes and skill retention. Augmented reality (AR) and virtual reality (VR) are immersive tools that enhance or replicate real-world environments, supporting virtual training and simulation by creating interactive, realistic scenarios for safe and effective skill development in sectors such as healthcare, aviation, and defense. For instance, in April 2022, Wartsila, a Finland-based manufacturing company, launched "Smart Realities," an immersive and scalable extended reality (XR) training solution using virtual and augmented reality technologies to enhance maritime simulation and training experiences for ship handling, bridge operations, and marine engineering. Smart Realities offers realistic, cost-effective, and portable training environments that improve learning retention, accessibility, and collaboration in both co-located and remote training settings.
In March 2024, Cornerstone OnDemand Inc., a U.S.-based workforce management solutions provider, acquired Talespin for an undisclosed amount. Through this acquisition, Cornerstone aims to strengthen its immersive learning and workforce development solutions by incorporating Talespin's advanced extended reality (XR) and artificial intelligence-driven training technologies. Talespin, a U.S.-based company, specializes in virtual and augmented reality-based training and simulation platforms designed to enhance workforce development.
Major players in the virtual training and simulation market are Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, International Business Machines Corporation (IBM), Oracle Corporation, BAE Systems, Thales Group, L3Harris Technologies Inc. (L3 Link Simulation & Training - Subsidiary), Rockwell Collins Inc., Rheinmetall AG, Elbit Systems Ltd., Saab AB, CAE Inc., QinetiQ Group plc, FlightSafety International Inc., Kratos Defense & Security Solutions Inc., Laerdal Medical Corporation, ON24 Inc., BMC Software Inc., The DiSTI Corporation, Cubic Corporation.
North America was the largest region in the virtual training and simulation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in virtual training and simulation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the virtual training and simulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The virtual training and simulation market includes of revenues earned by entities by providing services such as consulting services, custom development, implementation services. The market value includes the value of related goods sold by the service provider or included within the service offering. The virtual training and simulation market also consists of sales of simulation software, virtual reality (VR) systems, training management systems, and augmented reality (AR) tools. 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.
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.
Virtual Training And Simulation Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on virtual training and simulation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for virtual training and simulation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The virtual training and simulation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.