Cost efficiency is one of the main factors that will support stable growth in the military training and simulation (T&S) market. Ministries of Defence (MoDs) are trying to make military T&S more efficient, and balance cost savings with the availability of simulators.
New analysis from Frost & Sullivan (aerospace.frost.com), Global Military Training & Simulation Market Assessment, finds that the market earned revenues of $6,689.2 million in 2011 and estimates this to reach $7,272.4 million by 2020. The research covers fifteen countries including the United States, the United Kingdom, France, Germany, India, South Korea, Australia, Brazil, Turkey, Saudi Arabia and the United Arab Emirates.
Despite defence budget reductions in many of the fifteen countries analysed, Frost & Sullivan still projects the military T&S market to expand during the forecast period. Stable market revenue will be mainly due to the need to maintain highly professional armies in these countries.
"Troops of these countries need permanent and customised training," notes Frost & Sullivan Industry Analyst Dominik Kimla. "The significant growth of the market at the end of the forecast period will be driven primarily by the introduction of new, advanced defence platforms such as F-35 combat aircraft."
The entry into service of sophisticated defence platforms such as F-35s or FREMM frigates will generate significant demand for training pilots and crews in the use of advanced, complex defence systems. In addition, it is expected that MoDs will increase demand for the provision of comprehensive T&S products and services for their professional armies.
The rapid development of unmanned systems, particularly unmanned aerial vehicles (UAVs), will also trigger an increase in demand for training of pilots of UAVs and operators of other unmanned systems. In technologically advanced countries, such as the United States, the number of UAV pilots is set to outstrip the number of manned aircraft pilots at the end of the forecast period.
"The fast growing UAV segment has created a new market for the T&S industry," remarks Kimla. "However, the control of UAVs is easier than manned aircrafts; consequently, the T&S revenue per pilot/operator of UAVs compared to pilots of manned platforms will keep decreasing."
Budget cuts have forced MoDs to either cancel or postpone some T&S projects. In addition, budget cuts have resulted in reduced troop size. This will have a direct impact on military T&S revenue.
It is anticipated that defence contractors will provide a complex T&S package as a part of the main contract for the supply of modern weapons. Additionally, the industry will need to demonstrate the cost efficiency of military T&S solutions for end users.
"Defence suppliers must also demonstrate how their solutions can lead to reduced operational costs in the long term," concludes Kimla. "Especially during the current post-recession period, MoDs are looking for a way to both reduce costs and improve the readiness of their forces."
If you are interested in more information on this study, please send an e-mail with your contact details to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com.
Global Military Training & Simulation Market Assessment is part of the Defence Growth Partnership Services program, which also includes research in the following markets: Revenue Opportunities and Stakeholder Mapping in the Middle East Defence Market, The Netherlands Air Market - Revenue Opportunities and Stakeholder Mapping and Global Civil and Military Biometrics Market Assessment. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion | Join Us: Join our community | Subscribe: Newsletter on "the next big thing" | Register: Gain access to visionary innovation.
Global Military Training & Simulation Market Assessment / M7C5-16