Key Points
- Saab has secured a Skr350m ($35m) order from Denmark's Defence Acquisition and Logistics Organisation for live training equipment, including the Instrumented Laser Duel System for the CV90.
- The package adds drone and non-line-of-sight training capabilities, reflecting Denmark's push to prepare soldiers for modern threats like UAVs and long-range precision effects.
- The order extends Saab's growing footprint in Denmark's training infrastructure and positions the company within a global military simulation market projected to reach $56.1bn by 2036.
Denmark's $35M Bet on Realistic Live Training for Its CV90 Fleet
Saab has received a Skr350m ($35m) order from Denmark's Defence Acquisition and Logistics Organisation (DALO) for additional live training equipment. The package includes Saab's Instrumented Laser Duel System (ILDS) for the CV90 infantry fighting vehicle, along with new capabilities for drone and non-line-of-sight training. Deliveries are scheduled between 2026 and 2028.
The ILDS is used to instrument exercises and simulate engagements between participating forces. In practical terms, it allows soldiers to train against realistic threats — including drones and long-range precision effects — without live fire. Saab's training and simulation business unit head, Joakim Alhbin, said the goal is for soldiers to "train as they will operate and build confidence before facing these situations for real."
The order follows a Skr680m contract placed by DALO in June 2025 for Saab's Combat Training Centre, under which four training sites were established. It also follows Denmark's November 2025 decision to acquire 44 additional CV90MkIIIC vehicles from BAE Systems in a package valued at approximately $450m, including spares, support, logistics and training.
Saab reports that its training and simulation solutions are used in over 40 countries. The contract comes as land-based simulation and training is expected to account for 62.4% of the global military simulation and training market, according to GlobalData, which values that market at $29bn in 2026 and forecasts a 6.8% compound annual growth rate to $56.1bn by 2036.
At a Glance
| Main Company | Saab Swedish defense and security company supplying the training systems. |
| Customer | Denmark's Defence Acquisition and Logistics Organisation (DALO) Danish state procurement agency placing the order. |
| Key Product | Instrumented Laser Duel System (ILDS) Laser-based system for simulating engagements during live exercises. |
| Key Platform | CV90 infantry fighting vehicle Combat vehicle for which the ILDS training capability is being supplied. |
| Key Financial Figure | Skr350m ($35m) Value of the order received by Saab. |
| Delivery Timeline | 2026–2028 Scheduled period for delivery of the training equipment. |
| Prior Contract | Skr680m DALO order (June 2025) Earlier Combat Training Centre contract under which four training sites were established. |
| Related Procurement | 44 CV90MkIIIC vehicles (~$450m, Nov 2025) Denmark's separate purchase from BAE Systems, including spares, support and training. |
| Market Context | $29bn in 2026, 6.8% CAGR to $56.1bn by 2036 Global military simulation and training market forecast by GlobalData. |
| Key Executive | Joakim Alhbin Head of Saab's training and simulation business unit, quoted on the contract's purpose. |
Why Saab's Danish Order Is a Signal, Not Just a Sale
Saab's Expanding Role in Denmark's Training Architecture
This order is not an isolated sale. It builds directly on the Skr680m Combat Training Centre contract DALO placed in June 2025, which established four training sites. By adding ILDS for the CV90 plus drone and non-line-of-sight capabilities, Saab is deepening its position as the supplier of the underlying training infrastructure — not just a vendor of individual systems. That matters because training systems tend to be sticky: once a customer's exercises, instrumentation and simulation software are built around a supplier's architecture, switching costs rise.
Why Drone and Long-Range Training Matters Now
The inclusion of drone and non-line-of-sight training capabilities reflects a broader shift in land warfare. Recent conflicts have shown that small drones and long-range precision weapons are among the most consequential threats to armored vehicles and infantry. Saab's framing — that soldiers should "train as they will operate" — suggests Denmark is treating realistic threat simulation as a core requirement rather than an add-on. For Saab, this is a commercially useful narrative: it positions its training portfolio as directly responsive to observed battlefield trends, which can support demand from other CV90 operators and NATO members modernizing their training estates.
The CV90 Ecosystem and BAE Systems
Denmark's November 2025 decision to buy 44 additional CV90MkIIIC vehicles from BAE Systems, valued at roughly $450m, is a separate but related procurement. Saab's training order complements that vehicle purchase: more CV90s in service create more demand for instrumented training on the platform. This illustrates a division of labor in the defense supply chain — BAE Systems supplies the vehicle, Saab supplies the training layer — and it means Saab can benefit from vehicle sales it does not make itself. For context, Saab's training and simulation solutions are used in over 40 countries, giving the company a broad installed base to which it can sell follow-on capabilities.
Market Context: Simulation Spending Is Rising
GlobalData's forecast — a $29bn market in 2026 growing at 6.8% annually to $56.1bn by 2036, with land-based simulation and training expected to represent 62.4% of it — provides the backdrop. For context, this growth reflects rising defense budgets and the cost advantage of simulated training over live exercises. Saab's Danish order is a small but concrete data point within that trend. The main uncertainty is execution: deliveries stretch to 2028, and the article does not specify payment terms, options for expansion, or whether the drone and non-line-of-sight capabilities are already fielded or still in development.
What This Order Means for Defense Suppliers and Buyers
Saab's Danish order is a small contract with a larger strategic signal: training and simulation is becoming a stickier, higher-growth part of the defense market as armies adapt to drone and long-range threats.
For defense suppliers and procurement officials, the practical implications are:
- For Saab and its competitors: The order reinforces the value of bundling training systems with platform ecosystems. Saab's ILDS is tied to the CV90, a vehicle BAE Systems sells — meaning Saab can capture training demand from vehicle sales it does not control. Suppliers should watch whether Saab extends similar packages to other CV90 operators.
- For DALO and other NATO buyers: Denmark's approach — layering drone and non-line-of-sight training onto an existing Combat Training Centre — is a template. Buyers evaluating training upgrades should assess whether their current instrumentation can simulate these threat categories before committing to new platforms.
- For investors: The order is modest at $35m against Saab's overall business, but it supports the narrative of sustained demand in military simulation. The GlobalData forecast of 6.8% CAGR to $56.1bn by 2036 is the relevant medium-term benchmark.
- Metrics to watch: Saab's quarterly order intake and backlog in its training and simulation unit; follow-on DALO orders tied to the four existing training sites; and any expansion of drone/non-line-of-sight training to other CV90 user nations.
Risk & Opportunity Assessment
| Commercial Risk | Low | The order is a firm contract from a government customer, extending an existing relationship; delivery risk is limited to execution over 2026–2028. |
| Competitive Risk | Medium | The training and simulation market is growing and attracting competitors; Saab's incumbency in Denmark is an advantage, but rivals could contest future DALO requirements. |
| Regulatory Risk | Low | The article does not identify regulatory hurdles; the sale is between a Swedish supplier and a NATO member state. |
| Reputation Risk | Low | No negative reputational angle is present; the contract is framed as enhancing Denmark's training capabilities. |
| Technology Disruption | Medium | The addition of drone and non-line-of-sight training reflects evolving threats; if Saab's simulation capabilities lag real-world drone and precision-weapon tactics, its value proposition weakens. |
| Commercial Opportunity | Medium | The order deepens Saab's footprint in Denmark and demonstrates a repeatable model of attaching training packages to platform purchases, with potential follow-on sales to other CV90 operators. |
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