From USD 4.4 Bn to 8.1 Bn: DSS Market Set for Rapid Expansion by 2031

 

The global dismounted soldier systems (DSS) market, valued at US$ 4.4 billion in 2022, is projected to grow at a robust CAGR of 7.3% from 2023 to 2031, reaching US$ 8.1 billion by the end of the forecast period, according to a comprehensive market analysis. The increasing need for real-time situational awareness, enhanced communication systems, and soldier survivability in combat operations are primary factors propelling market growth.

 

Market Overview: Dismounted soldier systems encompass a suite of technologies designed to enhance the operational effectiveness, safety, and situational awareness of foot soldiers. These systems integrate devices such as augmented reality (AR) head-mounted displays, smart ballistic glasses, GPS-denied navigation aids, laser target acquisition tools, and tactical communication devices. With the ongoing digitization of military operations, modern defense forces are rapidly adopting DSS to support soldiers operating in complex and dynamic battlefield environments.

 

Market Drivers & Trends

One of the primary market drivers is the increased adoption of communication networks that link battlefield data with command and control units, ensuring seamless flow of information and decision-making support. Another major factor is the growing threat of asymmetric warfare, which requires mobility, intelligence, and flexible combat capabilities for soldiers operating independently or in small units.

Rise in defense modernization programs across various countries, particularly in North America, Europe, and Asia Pacific, is also contributing significantly to the growth. Government focus on investing in next-generation soldier technologies, such as wearable computing and lightweight exoskeletons, is creating a strong demand base.

 

Latest Market Trends

• Smart eyewear and augmented reality (AR) are emerging as critical components of DSS, offering combat and training enhancements. For instance, the U.S. Army awarded Microsoft a $21.88 billion contract for over 120,000 AR headsets based on HoloLens technology.
• Increased focus on laser target acquisition systems is revolutionizing target tracking and identification, enabling improved precision and minimizing collateral damage.
• Integration of Live, Virtual, and Constructive (LVC) training via AR/VR-enabled platforms allows for cost-effective and high-fidelity simulation training in various combat scenarios.

 

Key Players and Industry Leaders

The dismounted soldier systems market is consolidated, with key players focusing on R&D, product innovation, and strategic partnerships. Notable companies include:

• ASELSAN A.Ş.
• Atos SE
• Blackned GmbH
• Collins Aerospace
• Elbit Systems Ltd.
• Excelitas Technologies Corp.
• Instro Precision Limited
• L3Harris Technologies, Inc.
• Rheinmetall AG
• Roke
• Rolta India Limited
• Safran Electronics & Defense
• SAVOX Communications Oy Ab (Ltd.)
• Senop Oy
• TELDAT Sp. z o.o. sp.k.
• Teledyne FLIR LLC
• Thales Group
• Viettel High Technology Industries Corporation

 These industry leaders are consistently enhancing their product offerings through contracts with military organizations and collaborations with defense technology start-ups.

 

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Recent Developments

• In May 2022, Elbit Systems received a $49 million delivery order from the U.S. Marine Corps for its Squad Binocular Night Vision Goggle (SBNVG) systems.
• In December 2019, Raytheon Company introduced the Synthetic Training Environment Soldier Virtual Trainer (STE SVT), an immersive VR-based training tool for soldiers.
• In January 2023, Elbit Systems Sweden AB signed a $48 million contract with the Swedish Defence Materiel Administration (FMV) to deliver Technical High Mobility Shelters (THMS).

 

Market Opportunities

Several opportunities are emerging within the global DSS landscape:

• Development of second-generation embedded military systems focused on enhancing command and control capabilities.
• Growing adoption in homeland security applications, beyond traditional defense operations.
• Expansion in developing regions, including parts of Asia and South America, where defense modernization is gaining momentum.
• Miniaturization and integration of multifunctional systems into soldier gear without compromising on weight or agility.

 

Future Outlook

Looking ahead, the dismounted soldier systems market is expected to witness sustained innovation, driven by advancements in artificial intelligence, machine learning, and edge computing. As cyber-physical integration deepens, soldiers will benefit from real-time data analysis, remote battlefield coordination, and intelligent threat detection.

Additionally, interoperability among allied forces, enhanced by DSS technologies, will be critical in multinational defense operations. Countries are expected to prioritize flexible, modular systems that can be easily upgraded or customized based on mission requirements.

 

Market Segmentation

By Type:

• Augmented Reality (AR) Head Mounted Display (HMD)
• Smart Ballistic Glasses
• Pre-Shot Threat Detection (PTD) System
• Command and Control Information Systems (C2IS)
• Tactical Terminal Tablet
• Laser Target Acquisition System
• IP Radios
• Blue Force Tracking (BFT) Device
• Smartwatch
• Others (drone systems, load carriage & protection gear)

By Application:

• Mission Planning
• Enemy Tracking
• Navigation
• Reports and Analysis
• 3D Visualization

By End-user:

• Defense
• Homeland Security

 

Regional Insights

North America led the market with a 40.3% share in 2022, fueled by its dominant defense spending and extensive investments in soldier modernization. The U.S. Department of Defense’s integration of commercial technologies via entities like the Defense Innovation Unit (DIU) has accelerated product adoption.

Europe remains a key region with countries like France, Germany, and the U.K. actively investing in digitized soldier platforms. Initiatives such as France’s SCORPION program and Germany’s digital moving map displays highlight the focus on real-time troop coordination and enhanced battlefield transparency.

Asia Pacific is rapidly catching up due to military advancements in China, India, South Korea, and Japan, driven by rising geopolitical tensions and defense budget increments.

 

Why Buy This Report?

• Comprehensive Market Coverage: Includes historical data, current market dynamics, and forward-looking projections to 2031.
• Competitive Landscape: In-depth profiling of major market players with insights into their strategies, financials, product portfolios, and regional footprints.
• Strategic Insights: Detailed evaluation of market drivers, restraints, opportunities, and competitive strategies to support investment and expansion decisions.
• Segmentation & Regional Analysis: Extensive breakdown by type, application, end-user, and region to enable precise targeting and product development.
• Industry Trends and Innovations: Keep pace with disruptive technologies and battlefield applications shaping the DSS ecosystem.