Training and Simulation: An Expanding Frontier in Defence Investment

Training and simulation have moved from being supplementary elements of military preparation to becoming structural drivers of defence spending. Modern combat, shaped by urban environments, digital integration, and drone proliferation, demands preparation that cannot be delivered through traditional drills alone. Armed forces increasingly require immersive environments that replicate the friction, uncertainty, and psychological strain of real battle. For the defence industry, this shift translates into a durable market for virtual reality, augmented reality, and mixed simulation technologies. For finance, the significance lies in the recurring and scalable nature of this demand: unlike large platforms, simulation systems evolve rapidly and require constant updates. Defence investors should recognize that training is no longer a fixed cost but a dynamic growth sector, sustaining innovation and ensuring stable procurement flows over time.