Virtual Reality (VR) in Aerospace and Defense Market Size, Share & Industry Analysis, By Mode of Implementation (Head-mounted displays/Helmet-Mounted Displays, Head-up Devices, VR Simulators, Apps, and Others), By Application (Design & Manufacturing, Simulation & Training, Maintenance Assistance, Remote Collaboration, and Others), By End-user (Civil/Commercial and Defense), and Regional Forecast, 2024-2032

The global Virtual Reality (VR) in aerospace and defense market size was valued at USD 920.2 million in 2023. The market is projected to grow from USD 1,035.8 million in 2024 to USD 3,632.9 million by 2032, exhibiting a CAGR of 17.0% during the forecast period.

Virtual reality in aerospace and defense is transforming aerospace and defense by delivering interactive and immersive experiences that enhance operational proficiency, professional training, design and development, and more.

There are numerous potential applications for VR in the military, defense, and law enforcement sectors. Defense, military, and law enforcement enterprises make use of immersive technologies for various purposes, such as situational awareness, impressive demonstrations, realistic training, deeper visualizations, and intelligence gathering. For instance,

• Various aviation enterprises, including Airbus, TAE Aerospace, Qatar Airways, and Bell Helicopter, among others, have implemented virtual reality (VR) training platforms. These platforms empower pilots to operate proficiently, upskill cabin crew training, and provide personalized experiences to improve pilot readiness.

The COVID-19 pandemic accelerated the adoption of virtual reality in aerospace and defense with the offering of remote training for pilots, distant collaboration, and design of 3D models in aviation, and enhanced user experience.

Impact of Generative AI

Combined Usage of Generative AI and Virtual Reality in Aerospace and Defense to Fuel Market Progress

Generative AI is making substantial progress in aerospace and defense, particularly in the production of images and movies. Designers and engineers can use it to create precise and detailed 3D models of aircraft fragments, accelerating the production process. Moreover, generative AI can empower virtual reality training simulations, enhancing the competency and well-being of crew members and pilots. For instance,

• According to industry experts, 41% of aerospace and defense enterprises are directing generative AI to design aerodynamically enhanced parts, create 3D modeling to fast-track the design process, and reduce costs.

With the usage of AI-driven simulators with VR systems can upgrade pilot training amenities. Pilots can get a more actual-world simulation experience. These simulators can be used to collect and calculate various training-associated data to design customized training data that makes use of biometrics to evaluate a user’s performance.

Such usage of generative AI and virtual reality combined across aerospace and defense fuels Virtual Reality (VR) in aerospace and defense market growth.

Virtual Reality (VR) in Aerospace and Defense Market Trends

Adoption of Metaverse Mechanisms across Aerospace and Defense to be a Key Trend

Metaverse has opened up numerous opportunities for digital transformation, particularly through virtual, augmented, and mixed realities. Aerospace and defense enterprises are indulged in exploring the complete potential of the metaverse by simulating realistic combat scenarios. They are investing a huge amount of time into offering AR/VR solutions for aircraft repair, maintenance, and refurbishment and flight training.

The VR metaverse in aerospace enables the supervising of trainees through user instructions offered by virtual avatar. In these virtual environments, users can explore emergencies, buildings, process stages, and other repairs and can minimize the time needed for training in the actual world. VR avatars in the metaverse can offer real-time feedback on performance, contributing to improved training outcomes.

Such various implementations of metaverse to upsurge the virtual reality in aerospace and defense market progress.

Virtual Reality (VR) in Aerospace and Defense Market Growth Factors

Growing Digital Transformation within the Military and Defense and Increased Investment in Technology to Propel Market Progress

Digital transformation in the military refers to implementing modernized technologies to improve processes and overall set-ups. It comes in several forms, such as automating a time-consuming process, using VR and AR to create lively experiences, using AI to make informed decisions, utilizing cloud services to simplify data management.

Digital transformation in defense is essential as it can help in enhancing the productivity and efficiency of military operations. Moreover, digital technologies can be used to enhance military training, supply chain management, logistics, and the development of new arms and defense systems. Digital transformation in defense aims to develop a more capable and agile military force that can reply to an extensive range of threats. Hence, various countries' governments are investing in and adopting these technologies for military and defense. For instance,

• In May 2024, Sigma Defense announced to develop a virtual reality system for army intelligence training in the U.S. Sigma Defense Systems secured a USD 4.7 million contract to construct a virtual reality intelligence training network system for the U.S. Army.

Such investments and adoption of advanced technologies within the military drive the growth of virtual reality in aerospace and defense market.

RESTRAINING FACTORS

Inability to Maintain Data Security and Safety can Hamper Usage of VR Solutions

Data security is one of the most significant issues and challenges in the aerospace and defense market, with the growing usage of digital technologies such as virtual reality. Sensitive and critical information regarding weapons, missions, aircraft, and other analytics needs to be protected at all levels.

Other issues include the highly private nature of the composed data, that is, biometric data, including iris or retina scans, handprints, fingerprints, face geometry, voiceprints, and many more. The collection of user data in VR environments poses a risk, as it can be vulnerable to breaches, potentially compromising overall security.

Virtual Reality (VR) in Aerospace and Defense Market Segmentation Analysis

By Mode of Implementation Analysis

Head-mounted displays/Helmet-mounted Displays Segment Led due to Innovations and Advancements

By mode of implementation, the market is classified into head-mounted displays/helmet-mounted displays, head-up devices, VR simulators, apps, and others (handheld devices).

Head-mounted displays/helmet-mounted displays accounted for the highest market share in 2023, as they are increasingly being incorporated into the cockpits of fighter aircraft and modernized cockpits. Additionally, new innovations and advancements in these devices are contributing to the VR in aerospace and defense market growth. For instance,

• In September 2023, CEVS (an alliance between Elbit Systems of America and RTX’s business Collins Aerospace) announced the launch of Zero-G HMDS+ as part of the U.S. Navy’s helmet-mounted signaling system expansion contract.

Head-up devices are projected to grow with the highest CAGR during the study period, due to high-tech benefits across aerospace and defense. It helps professionals to enhance situational awareness, improve flight safety, and increase mission efficiency.

By Application Analysis

Increasing Usage of VR Solutions for Simulation and Training to Surge Market Development

Based on application, the market is categorized into design & manufacturing, simulation & training, maintenance assistance, remote collaboration, and others (passengers’ entertainment)

The application of VR in simulation and training accounted for the highest market share in 2023. VR allows Special Forces to train for extremely specialized missions, such as covert operations and hostage rescues. These simulated scenarios permit Special Forces to improve their skills in a repeatable and organized environment. For instance,

• As per HTC Vive’s report, 80% of active military trainers using VR for training recorded a rise in their crew's confidence, attributed to the development of cognitive muscle memory for effective application.

Design and manufacturing are anticipated to grow with the highest CAGR during the forecast period, owing to the rising usage of these immersive technologies for creating virtual models of aircraft, weapons, and other equipment.

By End-user Analysis

Defense Segment to Showcase Highest CAGR owing to Growing Implementation of VR Solutions

In terms of end-user, the market is divided into civil/commercial and defense.

Defense is anticipated to grow with the highest CAGR during the forecasted period. Implementation of VR in defense enhances realism, allowing military workforces to gain expertise in operating various weapons and vehicle systems without the need for physical resources. Such benefits contribute to the growing usage and investments in VR technology by different national governments. For instance,

• In July 2024, the Canadian government announced funding for virtual reality-driven military training. The announcement will be followed by demonstrations of VR and AR (Virtual Reality and Augmented Reality) simulation solutions.

Civil/commercial held the highest market share in 2023 owing to the growing usage of VR applications across aerospace to scale manufacturing projects. It also helps engineers to interact and visualize digital models of airplanes. By delivering flexible, immersive, and cost-effective solutions, VR is poised to redefine how cabin crew, pilots, and maintenance teams prepare for their roles.

REGIONAL INSIGHTS

Based on geography, the market is analyzed across North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America held the highest market share in 2023, owing to the early adoption and widespread use of immersive technologies across aerospace and defense within the region. Increased spending on VR mechanisms for defense across the U.S. and Canada has further contributed to the Virtual Reality (VR) in aerospace and defense market share. The region’s substantial defense budget, strong technological infrastructure, and technological advancements drive the growth of the market. For instance,

• According to industry experts, the U.S. Defense Department allocates over USD 14 billion yearly to digital training, with approximately USD 6.4 billion of this amount dedicated to VR. The spending represents 2% of the total U.S. military budget.

Asia Pacific is estimated to grow with the highest CAGR during the forecast period, owing to growing expenditure for defense across India, Australia, South Korea, and China fuels market growth. Additionally, partnerships and collaborations among military and civilian sectors for technological advancements contribute to the region’s market progress. For instance,

• In June 2024, Tecknotrove Systems secured an order for modernized simulators for military training from the Indian Army and Airforce. These military simulators are developed and designed to enhance practical training for the Indian Armed Forces using the newest simulation technology.

Europe is anticipated to progress with a substantial market share during the forecast period. France, the U.K., and Germany are among the top countries with VR applications, such as design and manufacturing of aircraft, maintenance and repair, and others. Advancement in research and development, along with investment and funding by governments of various countries, support the region’s market growth. For instance,

• In April 2024, the Ministry of Defense of the U.K. issued a DASA (Defence and Security Accelerator) loan of USD 681,000 (EUR 544K) to VRAI to enhance pilot training. VRAI aims to offer personalized training experiences and objective response, potentially minimizing the time and cost linked with training upcoming military pilots.

The Middle East & Africa, and South America are predicted to grow with considerable growth rates during the forecast period owing to growing technologies and VR developments in GCC countries and Brazil. The increasing adoption of immersive technologies drives the development of VR in aerospace and defense market in the region. Additionally, several key players are escalating into Brazil and Mexico to increase their business revenues and market presence.

KEY INDUSTRY PLAYERS

Growing Product Innovations and Alliances to Aid Business Expansion

Prominent market players in the aerospace and defense sector, such as Collins Aerospace, Vuzix Corporation, Collins Aerospace, ESI Group, Vection Technologies, AIRBUS, BAE Systems, CAE Inc., EON Reality, and WorldViz, Inc. These companies are attentive on delivering progressive and innovative VR solutions. Market players are implementing several business strategies, such as product introductions, product offering enhancements, and partnerships, to extend their businesses across the globe.

List of Top Virtual Reality (VR) in Aerospace and Defense Companies:

• Vuzix Corporation (U.S.)


• Collins Aerospace (U.S.)


• Tecknotrove (India)


• ESI Group (France)


• Vection Technologies (Australia)


• AIRBUS (France)


• BAE Systems (U.K.)


• CAE Inc. (Canada)


• EON Reality (U.S.)


• WorldViz, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• August 2024: Jeh Aerospace and GridRaster collaborated to introduce XR and AI mechanisms in the manufacturing of aerospace. The alliance aims to enhance Spatial AI, Virtual Reality (VR), and Augmented Reality (AR) proficiencies to inspect, train, and work-associate custom cases in aerospace manufacturing. Jeh Aerospace would use the Spatial AI of GridRaster and the Dynamic XR platform to improve several characteristics of its aerospace module manufacturing set-ups.


• May 2024: ESI Group announced a collaboration with Aberdeen Strategy and Research to introduce “Shift Left” insights for virtual prototyping. This initiative focuses on exploring how virtual prototyping can transform industries such as aerospace, automotive, and heavy machinery.


• November 2023: Collins Aerospace announced the launch of Arcus, a training image generator that combines modern rendering and processing tools with gaming mechanisms to offer immersive and modular aircrew training.


• August 2023: Vection Technologies entered a partnership with Thales Alenia Space, ALTEC, and Next One Film Group to develop Lunar City, a space-determined VR metaverse platform. This platform aimed to promote space travel and encourage future space explorers as part of NASA's Artemis Program, which is preparing to return astronauts to the lunar surface.


• April 2023: BAE Systems, in alliance with AMRC, announced the enhancement of digital innovations, such as data visualization, digital inspection, and automation, to enhance aircraft maintenance. These innovations aim to minimize costs, increase productivity, and lesser carbon emissions.

REPORT COVERAGE

The report highlights leading regions to offer a better understanding to the user. Additionally, the report provides insights into the latest industry growth trends and analyzes technologies deployed rapidly globally. It further highlights some drivers and restraints, helping the reader gain in-depth knowledge about the market analysis.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 17.0% from 2024 to 2032
Unit	Value (USD Million)
Segmentation	By Mode of Implementation Head-mounted displays/Helmet-mounted Displays Head-up Devices VR Simulators Apps Others (Handheld Devices) By Application Design & Manufacturing Simulation & Training Maintenance Assistance Remote Collaboration Others (Passengers' Entertainment) By End-user Civil/Commercial Defense By Region North America (By Mode of Implementation, Application, End-user, and Country)   U.S. Canada Mexico Europe (By Mode of Implementation, Application, End-user, and Country) Germany U.K. France Italy Spain Russia Benelux Nordics Rest of Europe Asia Pacific (By Mode of Implementation, Application, End-user, and Country) China India Japan South Korea ASEAN Oceania Rest of Asia Pacific Middle East & Africa (By Mode of Implementation, Application, End-user, and Country) Turkey Israel GCC North Africa South Africa Rest of the Middle East & Africa South America (By Mode of Implementation, Application, End-user, and Country) Brazil Argentina Rest of South America