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The military simulation and virtual training market size is estimated to grow at a CAGR of 5.8% between 2023 and 2028. The market size is forecast to increase by USD 6.04 billion.
The report includes a comprehensive outlook on the military simulation and virtual training market offering forecasts for the industry segmented by Product, which comprises flight simulators, maritime simulators, and combat simulators. Additionally, it categorizes Environment into synthetic and gaming and covers Geography regions, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Increasing investments in simulation activities are notably driving market growth. Simulations are realistic computerized scenarios that can be used to depict a real-time scenario and train prospective soldiers. As a result, armed forces across the world are readily shifting to simulation-based and virtual training. Defense ministries are increasingly opting for simulation-based games consisting of cloud computing, artificial intelligence (AI), and big data. In June 2021, the Department of Defense in the US spent USD 874 million on AI-related projects. For instance, as of March 2022, the Department of Defense in the US invested in 685 projects involving data science, AI, and cloud computing. In addition to this, the increasing popularity, as well as the adoption of LVC further, spurs the growth of the market. These increasing investments in technologically advanced yet cost-effective training modules will drive the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BAE Systems Plc - The company offers military simulation and virtual training which provides performance insights using machine learning and the huge datasets generated by synthetic training to assist people working in hazardous environments, including military forces preparing for operations.
The military simulation and virtual training market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Europe is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Another region offering significant growth opportunities to companies is North America. The military simulation and virtual training market in North America is expected to record a steady growth rate due to the rising investments by defence ministries in military training. The US and Canada dominate the market in the region. The US Department of Defense (DOD) is increasingly entering into strategic collaborations with training and simulation vendors. The vendors are continuously opting for inorganic growth as a result of increased demand for military simulation and virtual training in the region. For instance, in March 2021, CAE Inc. purchased an L3Harris military training unit with eyes on US programs. Such expansions will drive the growth of the regional military simulation and virtual training market during the forecast period.
The market share growth by the flight simulators segment will be significant during the forecast period. The flight simulators segment of the market is expected to record a rapid growth rate during the forecast period. Major factors that promote the growth of the market segment are the rising demand for synthetic training environments and an increased emphasis on virtual boot camps.
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The flight simulators segment was the largest and was valued at USD 9.26 billion in 2018. Companies in the global market are extensively collaborating with technological partners to enhance their product offerings, such as multiple simulations and virtual training modules for the military. For instance, Rockwell Collins, a portfolio of United Technologies Corp., has partnered with Zen Technologies to offer a Full Mission Rotary Wing Simulator. The Indian Armed Forces use this product for ab initio training, conversion training, mission training, and high-fidelity level-D training. This simulator includes features such as a Mix of Flight-worthy Hardware, Avionics Components, and Simulated Instruments with training capabilities such as basic flying, advanced mission training, and full-flight mission training. The above-mentioned factors are likely to drive the demand for flight simulators across the world during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising use of AI in military simulation and virtual training is an emerging trend shaping market growth. Another major factor that is gaining prominence in the market is the use of AI in military simulations and combat training. AI has become one of the major technologies that can be used to make decisions owing to the advent of big data and data analytics. AI can be used to integrate Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance systems (C4ISR) capabilities. It can be extensively used in the fields of computational military reasoning and can be used to create realistic, immersive simulations enabling armies to incorporate the train-as-you-fight principles.
Moreover, AI and big data can also be used to understand the nature of training required along with effective modelling of simulations, resulting in an improved AI experience. It also helps soldiers with better knowledge retention and improves their performance. Such factors are expected to drive the market growth during the forecast period.
The high cost of simulation training is a significant challenge hindering market growth. One of the major factors that are hindering the growth of the market includes the high cost of military simulation training products and software. An increase in the number of investments by defense ministries in military training, along with a significant cost reduction by simulations and virtual training modules, drives the growth of the market. The cost of military simulations is very high, as they are more innovative and advanced. Also, military simulators need a variety of peripheral products such as TV screens and various controlling equipment along with virtual private networks (VPN) and networking infrastructure, thereby raising the overall cost of operation.
Further, this is coupled with the high cost of certifications and the adherence to various training standards issued by the IMO. Though most of the time, certifications are passed on from the OEMs, at other times, the training academy must apply for them individually. This adds up to the high cost of operations, which hinders the growth of the military simulation and virtual training market during the forecast period.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Military Simulation and Virtual Training Market Customer Landscape
The military simulation and virtual training market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2022
Military Simulation And Virtual Training Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.8% |
Market Growth 2024-2028 |
USD 6.04 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.54 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
Europe at 49% |
Key countries |
US, China, Russia, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BAE Systems Plc, Bohemia Interactive Simulations ks, CAE Inc., Cubic Corp., Fidelity Technologies Corp., Groupe Gorge, HAVELSAN Inc., Inveris Training Solutions, Kratos Defense and Security Solutions Inc., L3Harris Technologies Inc., Lockheed Martin Corp., Northrop Grumman Corp., Parker Hannifin Corp., Raytheon Technologies Corp., Rheinmetall AG, Saab AB, Teledyne Technologies Inc., Textron Inc., Thales Group, and The Boeing Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Environment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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