|Fastest Growing Market:||North America|
|Largest Market:||North America|
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The military simulator market is estimated to register a CAGR of more than 3.5% during the forecast period (2022 - 2027).
Despite the economic impacts of the COVID-19 pandemic, global military spending continued to increase in 2020 and 2021. According to the Stockholm International Peace Research Institute (SIPRI), global military spending increased by 0.7% to reach USD 2,113 billion in 2021. The continued growth in global defense spending is expected to propel the growth of the military simulators market during the forecast period.
The growth in demand for military vehicles across the land, sea, and aerial platforms is the main driver of the market growth. Several countries are modernizing their military fleets by inducting newer generation vehicle platforms, generating a simultaneous demand for simulation-based training for the military personnel on these platforms, thereby propelling the market prospects of the related military simulators.
The training of pilots and military personnel in real aircraft, land vehicles, and ships involves many risks and sometimes may lead to hazardous situations and loss of lives. Simulators provide a realistic experience and safety training for beginners. This need for safe and efficient training is also driving the simulator market.
Scope of the Report
The market covers the procurement of simulators for training personnel on military vehicle platforms used across the land, sea, and air. The simulators used to train the UAV operators are excluded from the purview of the report. The military simulator market is segmented by the platform into air, land, and sea. The report also offers the market sizes and forecast for the military simulators market in major countries across all the regions in the world. For each segment, the market sizes and forecasts are done based on value (USD billion).
Key Market Trends
The Air Segment is Expected to Experience the Highest Growth During the Forecast Period
The Air segment of the market held the largest market share in 2021. The segment is also expected to register the highest CAGR during the forecast period, majorly due to the complexity and risk involved in operating the aircraft compared to the other end users. For example, a single mistake by pilots on board a military aircraft while landing or take-off will cost the lives of people on board and result in the loss of sophisticated military property and compromise the mission. Such complexity has forced the military authorities to incorporate simulator-based training for pilots. Moreover, the increasing adoption of newer aircraft that incorporate complex technologies in the military may require pilots to familiarize themselves with the latest equipment and systems. In such situations, providing hands-on experience may be difficult due to high-cost involvement. In such cases, the simulators act as the preferred option. For instance, the operating cost of the USAF’s F-35A is estimated to be about USD 44,000 per flight hour. In this regard, the F-35 pilots are first trained on simulators instead of the actual aircraft, which helps in cost-cutting. Pilots are typically trained for about 30 hours on the F-35 full-mission simulators before getting airborne on their first sortie in the F-35. Lockheed Martin is also planning to connect full-mission simulators in the United States and the United Kingdom through a software upgrade, allowing the Air Force pilots in these countries to virtually train with one another across international borders. Furthermore, the USAF aims to deploy and connect more full-mission simulators in the years to come. Such initiatives also help the militaries increase interoperability without conducting joint military exercises on actual aircraft. With the interest of the defense departments of major countries in utilizing flight simulator training, the demand for simulators that cater to the needs of aircraft and military pilot training is skyrocketing. As a result, new purchases and product innovations to supply the most advanced military aircraft training activities have been taking place in the market. For instance, Lockheed Martin is planning to connect full-mission simulators- in the United States and the United Kingdom through a software upgrade, allowing the Air Force pilots in these countries to virtually train with one another across international borders. Furthermore, the USAF aims to deploy and connect more full-mission simulators in the years to come. Such initiatives also help the militaries in enhancing interoperability without conducting joint military exercises on actual aircraft, which is expected to drive the market growth during the forecast period.
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North America Held the Largest Market Share in 2021
The United States had a total military expenditure of USD 801 Billion in 2021. The Armed Forces of the country are procuring several newer generation military vehicles across the land, air, and sea-based platforms, amidst the ongoing race for technological superiority. Simultaneously, the country is investing in the development and procurement of related simulator solutions, which is expected to drive market growth in the region. Although the US Air Force has been procuring simulators on a large scale for several years, the US Navy is investing heavily in simulation to improve its navigation training, and it budgeted for new integrated bridge simulators to fill the capacity gaps. The efforts to increase ship simulator capacity are further supported by constructing new buildings in San Diego and Norfolk to house multiple simulation facilities. The Royal Canadian Air Force plans to combine two training programs under a single, multibillion-dollar project, the Future Aircrew Training program, or FAcT, where the number of pilots trained annually will increase.
Furthermore, the government of Canada, with plans to implement fire training simulators for military uses, has offered to stand offered to VirTra, Inc. in December 2021. As per the offer, the company is expected to supply advanced military training simulators to the country’s land, marine, and air force divisions of the military. Such developments are expected to drive the growth of the market in the North American region during the forecast period.
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Some of the prominent players in the military simulator market in 2021 were Collins Aerospace (Raytheon Technologies Company), CAE Inc., Rheinmetall AG, FlightSafety International (Berkshire Hathaway Inc.), and Thales Group. Simulator manufacturers are required to build a brand and reach out to geographical extremes to get customers. Manufacturers may have the first-mover advantage if they can attract customers for the simulators for new vehicle platforms, as simulators tend to be reconfigured or upgraded to support newer variants, providing the players to enjoy continuous revenue inflow. Mergers and acquisitions are expected to help the players by increasing their addressable market. For instance, in 2020, CAE announced that it acquired TRU Simulation + Training Canada Inc. Furthermore, in 2021, the company also announced the acquisition of L3Harris Technologies' Military Training business for USD 1.05 billion. Such acquisitions are expected to help the companies expand their market presence and their revenue share in the market during the forecast period. In the coming future, growing demand from end-users is expected to create some intense competitive rivalry where the companies offering the best products for a limited budget, along with other affiliate services, will reap the most benefits.
- In January 2022, the Indian Air Force announced its plans to increase the use of simulation for military aviation. With the absence of adequate Advanced Jet Trainer (AJT) aircraft, India is looking to reduce live equipment usage with the enhanced use of simulators.
- In December 2021, Lockheed Martin introduced its new state-of-the-art training simulator for the F-35 aircraft. The new simulator dubbed the Mission Rehearsal Trainer – Lightning Integrated Training Environment (MRT-LITE), reportedly has better features than the F-35 full-mission simulator. The system features three screens, glass cockpit handles, touchscreen devices, and other add-ons necessary to simulate F-35 mission and rehearsal tasks.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2027)
5.2.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.2.4 Latin America
126.96.36.199 Rest of Latin America
5.2.5 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 United Arab Emirates
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Collins Aerospace (Raytheon Technologies Corporation)
6.2.2 CAE Inc.
6.2.3 FlightSafety International (Berkshire Hathaway Inc.)
6.2.4 FRASCA International Inc.
6.2.5 Thales Group
6.2.6 VSTEP BV
6.2.7 Rheinmetall AG
6.2.8 Zen Technologies Limited
6.2.9 Ruag AG
6.2.10 Krauss-Maffei Wegmann GmbH & Co. KG
6.2.11 FAAC Incorporated
6.2.12 ECA Group
6.2.13 General Dynamics Corporation
6.2.14 Kongsberg Gruppen ASA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Military Simulator Market market is studied from 2018 - 2027.
What is the growth rate of Military Simulator Market?
The Military Simulator Market is growing at a CAGR of >3.5% over the next 5 years.
Which region has highest growth rate in Military Simulator Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Military Simulator Market?
North America holds highest share in 2021.
Who are the key players in Military Simulator Market?
Thales Group, CAE Inc., Collins Aerospace (Raytheon Technologies Company), FlightSafety International (Berkshire Hathaway Inc.), Rheinmetall AG are the major companies operating in Military Simulator Market.