BAE Systems Unveils ‘OneArc’ to Accelerate Global Defense Simulation and AI Capabilities

BAE Systems has launched a major new business division, OneArc, consolidating its simulation, synthetic training, data analytics, geospatial tools and artificial intelligence expertise to better serve the U.S. military, NATO, and allied partners. The establishment of this unit marks a significant strategic expansion of BAE Systems’ role in the fast-growing defense digitalization market, where military forces are rapidly adopting advanced virtual environments and AI-enabled tools to prepare for future conflicts.

A Unified Digital Ecosystem for Modern Warfare

OneArc brings together several key acquisitions BAE Systems has made in recent years—Bohemia Interactive Simulations (BISim), TerraSim, and Pitch Technologies—creating a single ecosystem capable of delivering “ready-now” commercial solutions across land, air, maritime, cyber, and space domains.

The new division is designed around NATO interoperability standards, ensuring its products integrate seamlessly with coalition systems used for mission rehearsal, training, and multi-domain operations. The approach reflects a global trend: militaries are increasingly relying on synthetic environments, modular software, and data-driven tools to counter rapidly evolving threats—from drone swarms and electronic warfare to dispersed operations and urban combat.

Leadership Vision: Integration and Interoperability

Rahul Thakkar, president of OneArc, said the unit’s mission is rooted in integration, collaboration, and collective advancement across the defense industry. He highlighted that modern defense challenges require unified efforts among government, technology providers, and international partners—especially as simulation and AI become critical components of force readiness.

BISim Secures Major International Contracts

Bohemia Interactive Simulations, now operating under OneArc, recently won a five-year enterprise license with the Canadian Department of National Defence for its Digital Virtual Trainer (DVT). The platform enables large-scale, immersive virtual environments for the Canadian Army, underlining the rising demand for high-fidelity training systems capable of replicating complex battlefield conditions.

BISim has also expanded its footprint in Europe through a strategic partnership with Rheinmetall AG. Under this arrangement, BISim’s VBS4 and Blue IG simulation technologies will be integrated into Rheinmetall’s Heavy Infantry Weapons Carrier project for the German Army’s medium forces. The collaboration aims to develop realistic combat simulators that support advanced weapons, sensor suites, and tactical scenarios.

New Partnerships Expand Multi-Domain Training

OneArc’s broader vision is further reflected in its agreement with PLEXSYS, combining PLEXSYS’ Advanced Simulation Combat Operations Trainer (ASCOT) environment generator with OneArc’s VBS4 platform. This integration aims to create fully unified live-virtual-constructive (LVC) training systems, a capability that allows militaries to simultaneously train real operators, virtual participants, and AI-driven constructive forces.

The partnership supports multi-domain training across air, land, maritime, space, and cyber, an area of escalating focus for NATO and allied militaries preparing for high-intensity, networked warfare.

Strengthening a Growing Global Market

The defense simulation and training sector has experienced rapid growth, driven by rising geopolitical tensions, manpower shortages, and the need for cost-effective training solutions that reduce wear on real equipment. Synthetic environments now support:

• Joint and coalition mission rehearsal

• Urban operations simulation

• Electronic warfare and cyber training

• Artificial intelligence experimentation

• Autonomous systems testing

Analysts note that BAE Systems’ consolidation of simulation capabilities under OneArc positions it as one of the major players in a market valued at more than $12–15 billion annually, with continued expansion expected.

A Strategic Step in Future Military Readiness

With OneArc, BAE Systems aims to create an interoperable digital backbone that allows allied forces to train together, share data, and respond faster to emerging threats. As AI, autonomy, and multi-domain integration reshape modern warfare, the new division represents a long-term investment in the technologies that will define the next generation of global defense readiness.

By combining advanced simulation platforms, real-time analytics, and cross-domain integration, OneArc is set to become a central pillar in how Western militaries prepare for increasingly complex operational environments.