Market Trends of UAV Flight Training And Simulation Industry
This section covers the major market trends shaping the UAV Flight Training & Simulation Market according to our research experts:
Civil and Commercial Segment is Projected to Show Remarkable Growth During the Forecast Period
The civil and commercial segment will showcase significant growth during the forecast period. Increased adoption of drones for various commercial and civil applications such as aerial photography, agriculture, surveying, aerial imaging, and others drive the growth of the market. The growing applications of UAVs, like the delivery of parcels, medicines, and other commercial applications, along with the stringent rules for flying a UAV or drone in the city or state, demand better-trained remote pilots.
According to Federal Aviation Administration (FAA), there were 855,860 drones registered in the US by May 2022. out of the total registered drones, 63% of registrations (536,183) were for recreational purposes while 37% of registrations (316,075) were for commercial operations. For instance, in March 2023, The Atlantic County Economic Alliance (ACEA) announced that it has received directed funding of USD 150,000 for a training program intended to assist veterans to become commercial drone pilots. The funding will cover the cost of training veterans to receive their Part 107 commercial drone pilot's license.
In addition to that, increased use of drones by e-commerce companies to deliver products and growing expenditure on the introduction of advanced technologies for drone training and simulation drive the market growth. In December 2022, Amazon started delivering orders by drones in California and Texas with the aim to ultimately fly out packages to customers' homes within an hour. In September 2022, MORAI, a developer of autonomous vehicle simulation technology in Korea launched a new simulation platform for aircraft, MORAI SIM Air at the Commercial UAV Expo 2022. MORAI SIM Air is a simulation solution designed for UAVs (unmanned aerial vehicles) and UAM to verify the system safety of aircraft in realistic virtual spaces.
Thus, the growing use of drones for civil and commercial use and rising spending on the procurement of commercial drones creates demand for UAV flight simulators which drive the market growth during the forecast period.
North America Expected to Lead the Market During the Forecast Period
North America is the largest defense expenditure considering all continents across the globe. In North America, US military spending amounted to $801 billion in 2021, a drop of 1.4 percent from 2020. The US military burden decreased slightly from 3.7 percent of GDP in 2020 to 3.5 percent in 2021.
The North American segment is currently dominating the market and is expected to continue to dominate the market during the forecast period. This growth is primarily due to the increasing use of UAVs for military operations like intelligence, surveillance, and reconnaissance (ISR) mission, combat, and other missions by the US. Also, ongoing tests and trials by US companies for the use of drones for deliveries of medical equipment and packages are expected to drive growth in North America during the forecast period. For instance, in September 2022, the US Deputy Secretary of Defense signed into effect updated guidance for the procurement and operation of its Unmanned Aircraft Systems (UAS). In support of the National Defense Strategy, this updated policy provides expanded department-wide guidance on the use of all UAS, regardless of size, weight, or capability.
