Military Augmented Reality Market Report by Trends, Drivers, and Challenges - 2025

In our research, we have categorized the military augmented reality sector based on components, product types, and functionalities. The components category encompasses lenses, displays, cameras, sensors, memory & processors/controllers, and additional elements. Military augmented reality systems serve various purposes, including navigation, situational awareness, night vision, and asset management. Geographically, the military augmented reality market is divided into North America, Europe, Asia Pacific, the Middle East and Africa, and South America.

The military augmented reality market is projected to reach approximately US$ 1,797.5 million by the conclusion of 2025, growing at a compound annual growth rate (CAGR) of 17.4% during the forecast period from 2018 to 2025, up from US$ 511.8 million in 2017. The expansion of the military augmented reality market is primarily fueled by the rising demand for situational awareness technologies among defense forces worldwide, as well as the necessity for hands-free navigation solutions. Augmented reality systems offer numerous benefits on the battlefield, equipping users with critical information about their environment, assisting in position tracking, and enabling the identification of allies versus adversaries, thereby enhancing safety. Due to these advantages, defense forces in developed nations are making significant investments in acquiring augmented reality technologies and advancing innovations in this domain. Additionally, emerging economies such as Mexico, India, Japan, Saudi Arabia, the UAE, and Brazil are also allocating substantial resources towards the acquisition of advanced technologies, including augmented reality systems for military operations. The U.S. Department of Defense is making considerable investments in augmented reality systems to enable soldiers to navigate without relying on handheld GPS devices, allowing them to maintain focus in one direction while simultaneously accessing weapon viewpoints. The Advanced Information Technology division of the Naval Research Laboratory, in partnership with Columbia University, is working on the Battlefield Augmented Reality Systems (BARS) project, aimed at enhancing situational awareness and asset management for armed forces during combat.

In 2017, North America dominated the military augmented reality market, accounting for nearly 70% of the total market share. A key driver of this market growth in North America is the substantial funding from the United States Department of Defense towards the innovation, development, and production of advanced technologies for its military and allied forces. This investment is propelling the military augmented reality market in the North American region. Furthermore, Canada and Mexico are also demonstrating effective procurement strategies for various defense technologies, contributing to the region's growth over the years. Major technology firms and emerging companies in the United States, such as Google, Honeywell International Inc., Applied Research Associates Inc., Six15 Technologies, and Osterhout Design Group, are dedicating significant resources and time to the development of battlefield augmented reality solutions, aimed at providing soldiers with improved situational awareness and the ability to operate without handheld GPS devices or night vision goggles. The U.S. Department of Defense collaborates closely with these companies to design and produce technologies that meet military specifications, thereby enhancing the capabilities of armed forces in combat scenarios. Given these factors, the North American region is expected to demonstrate a leading growth trajectory throughout the forecast period from 2018 to 2025.

The military augmented reality market features a mix of established corporations and emerging players, including BAE Systems (United Kingdom), Google LLC (United States), Applied Research Associates Inc. (United States), Osterhout Design Group (United States), and Six15 Technologies (United States).