I set up a battle between two conventional empires. One used 15 formations of 1,000 medium vehicles with support vehicles and HQ attached, and the other used 3 formations of 5,000 medium vehicles with equal numbers of support vehicles and HQ attached.
1,000 Tank Unit
Transport Size: 64.600 tons
Build Cost: 5.216 BP
1000x MBT (M/M/MAV/CAP)
40x Local Logistic Unit (I/LI/LOG-NCC)
2x HQ (MV/MVA/HQ-65k/MAV-NCC)
5,000 Tank Unit
Transport Size: 323.000 tons
Build Cost: 30.640 BP
5000x MBT (M/M/MAV/CAP)
200x Local Logistic Unit
10x HQ (MV/MVA/HQ-350k/MAV-NCC)
Both sides have the same starting forces:
15.000x MBT (M/M/MAV/CAP)
600x Local Logistic Unit
30x HQ (MV/MVA/HQ-xk/MAV-NCC)
Round 1
OPFOR BLUE
8 of 15 units acheive breakthrough
Casualties Believed Inflicted: 3893x MBT, 41x LLU, 6x HQ
Casualties Taken: 5418x MBT, 102x LLU, 11x HQ
OPFOR RED
5 of 3 units achieved breakthrough (1st 2x, 2nd 1x, 3rd 2x)
Casualties Believed Inflicted: 6883x MBT, 102x LLU, 23x HQ
Casualties Taken: 3893x MBT, 41x LLU, 6x HQ
Round Summary:
OPFOR BLUE has 9 formations intact, 1 formations shattered (1 HQ unit still present, formation at 13% strength), and 5 formations destroyed. Survivors merged into shattered formation.
OPFOR RED has 3 damaged formations at 76%, 80% and 66% strength.
OPFOR BLUE took 1,525x MBT, 61x LLU and 5x HQ more casualties in combat.
Round 2
OPFOR BLUE
8 of 10 units achieve breakthrough
Casualties Believed Inflicted: 3928x MBT, 40x LLU, 4x HQ
Casualties Taken: 3631x MBT, 55x LLU, 6x HQ
OPFOR RED
4 of 3 units achieve breakthrough (1st 2x, 2nd 1x, 3rd 1x)
Casualties Believed Inflicted: 3916x MBT, 55x LLU, 7x HQ
Casualties Taken: 2928x MBT, 40x LLU, 4x HQ
Round Summary:
OPFOR BLUE has 4 formations intact, 1 formation at 52%, 1 formation at 58%, 1 formation at 38%, and 3 formations destroyed. Survivors merged into the remaining units.
OPFOR RED has 3 damaged formations at 42%, 62% and 59% strength.
OPFOR BLUE took 703x MBT, 15x LLU and 2x HQ more casualties in combat.
Round 3
OPFOR BLUE
5* of 7 units achieved breakthrough (2 units achieved breakthrough twice) - total breakthroughs: 7
Casualties Believed Inflicted: 1863x MBT, 14x LLU, 5x HQ
Casualties Taken: 2867x MBT, 32x LLU, 5x HQ
OPFOR RED
5 of 3 units achieve breakthrough (1st 2x, 2nd 2x, 3rd 1x)
Casualties Believed Inflicted: 3867x MBT, 32x LLU, 5x HQ
Casualties Taken: 1863x MBT, 14x LLU, 5x HQ
Round Summary:
OPFOR BLUE has no intact formations, 3 formations above 50%, 2 formations between 34-47%, one formation at 14x, and 1 destroyed formation. Survivors merged into the remaining units.
-- After merging, OPFOR BLUE has 4 formations at 84%, 40%, 100% and 84% strength remaining.
OPFOR RED has 3 damaged formations at 30%, 55%, and 41% strength.
OPFOR BLUE took 1004x MBT and 18x LLU more casualties in combat.
Round 4
OPFOR BLUE
No breakthroughs were achieved.
Casualties Believed Inflicted: 352x MBT, 4x LLU, 1x HQ
Casualties Taken: 1362x MBT, 51x LLU, 2x HQ
OPFOR RED
2 of 3 units achieved breakthroughs
Casualties Believed Inflicted: 1362x MBT, 51x LLU, 3x HQ
Casualties Taken: 352x MBT, 4x LLU, 1x HQ
Round Summary:
OPFOR BLUE has 3 intact formations at 26%, 40% and 84% strength and 1 destroyed formation.
-- After merging, OPFOR BLUE has 3 formations at 48%, 40% and 84% strength.
OPFOR RED has 3 formations at 27%, 55% and 36%
OPFOR BLUE took 1010x MBT, 47x LLU and 1x HQ more casualties in combat.
Round 5
OPFOR BLUE
No breakthroughs were achieved
Casualties Believed Inflicted: 174x MBT
Casualties Taken: 711x MBT, 36x LLU, 5x HQ
OPFOR RED
2 of 3 units achieved breakthroughs
Casualties Believed Inflicted: 979x MBT, 36x LLU, 8x HQ
Casualties Taken: 174x MBT
Round Summary:
OPFOR BLUE has 1 intact formation at 71% strength and 2 destroyed formations. After merger, the 9th is the only surviving formation at 101% strength.
OPFOR RED has 3 intact formations at 26%, 55% and 35% strength.
OPFOR BLUE took 805x MBT, 36x LLU and 8x HQ more casualties in combat.
Round 6 (Final Round)
OPFOR BLUE
No breakthroughs were achieved
Casualties Believed Inflicted: 110x MBT, 1x LLU
Casualties Taken: 707x MBT, 13x LLU, 1x HQ
OPFOR RED
3 of 3 units achieved breakthroughs
Casualties Believed Inflicted: 707x MBT, 13x LLU, 1x HQ
Casualties Taken: 110x MBT, 1x LLU
Round Summary:
OPFOR BLUE's 9th has shattered, with no remaining HQ units.
OPFOR RED has 3 intact formations at 26%, 55% and 32% strength.
OPFOR BLUE took 597x MBT, 12x LLU and 1x HQ more casualties in combat.
My analysis is that all things being equal, its far better to bring fewer, larger formations to combat then more small formations. Throughout the rounds, OPFOR BLUE consistently took far worse casualties, despite both sides having exactly equal numbers for types and quality of units.
Of course for play against player factions, you can simulate battles down to the company level, but if you are mostly looking to fight the AI and it brings larger formations to the table, mechanically speaking you have to do the same or suffer disproportionate casualties, even in standup fights.