Market Snapshot
| Study Period: | 2018 -2030 |
| Base Year: | 2020 |
| Fastest Growing Market: | North America |
| Largest Market: | North America |
| CAGR: | >3.5 % |
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Market Overview
The military simulator market is estimated to register a CAGR of more than 3.5% during the forecast period (2021-2030).
The global GDP witnessed a decline by more than 4% in 2020 due to the economic impacts of the COVID-19 pandemic. However, according to the Stockholm International Peace Research Institute (SIPRI), global military spending increased by 2.6% to reach USD 1981 billion in 2020. Nevertheless, defense spending might come down in the near future due to the global economic crisis triggered by the pandemic. This factor is expected to challenge 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 for 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 end user into air, land, and sea. The report also offers the market sizes and forecast for the military simulators market across the major regions in the world. For each segment, the market sizes and forecasts are done based on value (USD billion).
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Key Market Trends
The Air Segment is Expected to Experience the Highest Growth During the Forecast Period
The air segment of the market studied held the highest market share in 2020. The segment is also expected to register the highest CAGR during the forecast period, majorly due to the complexity and risk involved in 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, as of 2020, 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, which is expected to drive the market growth during the forecast period.
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North America Held the Largest Market Share in 2020
North America held the largest market share in 2020, and the region is also expected to exhibit the highest growth rate during the forecast period. The US has been the largest military spender in the world over the years. According to SIPRI, in 2020, the military expenditure of the country grew by 4.4% to reach USD 778 billion, accounting for 39% of the global military expenditure in 2020. 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 with the construction of 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, under which the number of pilots trained annually will increase. Such developments are expected to drive the growth of the market in the North American region during the forecast period.
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Competitive Landscape
Some of the prominent players in the military simulator market in 2020 were Collins Aerospace (Raytheon Technologies Company), CAE Inc., L3Harris Technologies Inc., 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. In 2021, the company also announced plans to acquire L3Harris Technologies' Military Training business. Such acquisitions are expected to help the companies expand their market presence and their revenue share in the market during the forecast period.
Recent Developments
- In March 2021, CAE announced that it entered a definitive agreement with L3Harris Technologies to acquire L3Harris’ Military Training business for USD 1.05 billion. The acquisition is expected to complete in the second half of 2021, subject to regulatory approvals and other customary closing conditions.
- In March 2021, Thales UK and Aeralis announced that they entered into a Teaming Agreement to develop transformational AERALIS platforms. As part of the agreement, Thales will develop the required simulation-based training systems required to teach pilots to fly the modular aircraft system.
- In December 2020, Indra announced that it delivered the latest FMS (Full Mission Simulator) to the NH90 Simulator Center, which has been in operation at the Spanish Army’s Aviation Academy (ACAVIET) CESIHEL Center in Spain.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
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 by Value - USD billion)
5.1 Platform
5.1.1 Air
5.1.2 Land
5.1.3 Sea
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 France
5.2.2.3 Germany
5.2.2.4 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 South Korea
5.2.3.5 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Rest of Latin America
5.2.5 Middle-East and Africa
5.2.5.1 Saudi Arabia
5.2.5.2 United Arab Emirates
5.2.5.3 Turkey
5.2.5.4 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 L3Harris Technologies Inc.
6.2.4 FlightSafety International (Berkshire Hathaway Inc.)
6.2.5 FRASCA International Inc.
6.2.6 Thales Group
6.2.7 VSTEP BV
6.2.8 Rheinmetall AG
6.2.9 Zen Technologies Limited
6.2.10 Ruag AG
6.2.11 Krauss-Maffei Wegmann GmbH & Co. KG
6.2.12 FAAC Incorporated
6.2.13 ECA Group
6.2.14 General Dynamics Information Technology Inc.
6.2.15 Kongsberg Digital
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 - 2030.
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 2020.
Who are the key players in Military Simulator Market?
Thales Group, CAE Inc., Collins Aerospace (Raytheon Technologies Company), L3Harris Technologies, Inc., FlightSafety International (Berkshire Hathaway Inc.) are the major companies operating in Military Simulator Market.
