Simulators Market - Forecast(2021 - 2026)

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Simulator Market Overview

The Simulator Market is projected to be $22.4 billion by 2026 and is analyzed to grow at a CAGR of 3.6% during forecast period 2021-2026. Based on end-user, the military and defense training segment is anticipated to grow at the highest CAGR during the forecast period. With continuous advancements in technologies related to simulation, operational costs of military training have reduced, thereby leading to the increased use of simulators in military training. Increasing demand for virtual training environment for both commercial and military purposes and growing need for cost effective training, especially for flights are expected to accelerate the Simulator market during forecast period. Similarly, rising spending in aerospace training sectors are creating opportunity for flight simulator market. For instance, recently a Canadian company CAE, which is engaged in training for the civil aviation proposed to invest $288.75 million for the development and training activities. These kind of investments are likely to bring demand for Simulator market. Growing collaborations between OEMs and governments in providing efficient training and rising number of contracts for procuring advanced simulators is analysed to drive the market growth in the forecast period 2021-2026.

Report Coverage

The report: “ Simulator Industry Outlook – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Simulator Market.

By Type - Flight (Full Flight Simulator(FFS), Full Mission Simulator (FMS), Flight Training Devices (FTD), Fixed Base Simulator (FBS), Cockpit Procedure Training, UAV Simulator and Others), Marine (Bridge Simulator, ROV Simulators, Engine Room Simulator, Ship/Cargo Handling Simulator, GMDSS/Communication Simulators, Vessel Traffic Control Simulator and Others), Land (Driving Simulator, Land Force Training Simulator and Others).
By End Use Industry - Military Defense, Civil, Commercial, Others.
By Solution - New Solutions (Hardware, Software, Services), Current Solution (Hardware Software, Services).
By Technique - Live, Virtual, Game Based, Constructive.
By Vehicle Type - Flight (Military Aircraft, Commercial Aircraft, Helicopters and UAVs), Maritime (Commercial, Military, Unmanned Vehicles) and Land (Commercial, Military, Unmanned Vehicles).
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, Russia, Netherlands and Others), APAC (China, Japan, South Korea, India, Australia, Indonesia, Malaysia and Others), South America (Brazil, Argentina, Chile, Colombia and Others),RoW (Middle East, Africa).

Key Takeaways

  • With continuous advancements in technologies related to simulation, operational costs of military training has reduced, thereby leading to the increased use of simulators in military training.
  • The commercial sector is one of the major end user of simulator market, owing to the significant growth in the aviation sector across the globe. Moreover airline companies are using innovative simulators to provide cost-effective airborne training experience to pilots in a safe environment.
  • Rising partnerships between manufacturers and other end-users is analysed to drive the market growth. In addition, growing investments by several companies for expansion of training facilities is also analysed to drive the market growth in the forecast period.

    Simulator Market, By Region, 2020

     Simulator Market

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Simulator Market Segment Analysis - By Type

Flight Simulators dominate the market with a share of over 48% in 2020. Increasing demand for new commercial and military pilots, adoption of virtual flight training to ensure aviation safety, and the need for cost-cutting of pilot training are expected to drive the market. The industry is witnessing unprecedented R&D efforts in aerospace technology coupled with technological advancements resulting in development of highly advanced flight simulators. Among these Full Flight Simulators hold the largest share. The full flight simulator provides airlines and training centers with the ultimate high fidelity pilot training experience while maintaining high degrees of reliability, maintainability, and supportability. In addition FFS is a high fidelity full size replica of a specific type or make, model and series airplane flight deck which can represent the airplane in ground and flight operations. It also have a visual system providing an out of the flight deck view, and a force cueing motion system. Owing to these features several end users are replacing Flight training devices with FFS.

Simulator Market Segment Analysis - By End Use Industry

Flight simulator for military and defense application is likely to register a CAGR of 4.2% during forecast period 2021-2026. Globally, training budgets for defense organizations and armed forces are tightening, while requirements to deliver cost-effective, high-quality training are increasing. Governments across the world are reducing military costs due to reduced financial resources. The defense ministries of many countries are reducing their training budgets and are downscaling the militaries. This has increased the focus of the military in attaining cheaper and effective solutions for their requirement. In addition, military simulation and virtual training are progressively getting adopted by the armed forces of many countries across the globe. They help reduce training costs as they are based on Commercial-off-the-Shelf (COTS) components. These factors are significant for the armed forces to invent massive innovation in simulation-based training technologies. Moreover, increasing need for modification of existing equipment and order for new advanced equipment is anticipated to drive the growth of the military simulation and virtual training market. For instance, Bohemia Interactive Simulation developed an Augmented Reality (AR) visual systems for Textron, Inc. These systems support a trainee’s interactions with the real world using VR/AR technologies and offers a synthetically generated visual scene.

Simulator Market Segment Analysis - By Geography

In 2020, North America dominated the Flight Simulator industry market size for about 38.1% market share, followed by APAC and Europe. Early adoption of advanced technologies has been driving the simulator in this region. Rising adoption of smart technologies in aerospace, defense and other has been increasing the demand for simulators In U.S. strict guidelines imposed by the Federal Aviation Administration (FAA) and Federal Aviation Regulations (FARs) regarding use of simulators for training purpose. According to new FAR regulations, Air carriers must compulsory develop training programs using simulators that meet the upgraded requirements. Stringent regulations as such will drive the usage of simulators in this region. Similarly high demand for air travel in U.S. is also one of the major reason for flight simulator market as it increases the need for pilot training. For instance according to the report given by International Air Transport Association (IATA), in 2019, global passenger traffic in North America increased by 6.5%. By 2022, U.S Military had committed to invest more than $11 billion for virtual, augmented and mixed reality training systems and simulator which will drive market growth.

Simulator Market Drivers

Rising Collaboration between Companies and Governments

Rising collaborations between OEMs to OEMs or governments to OEMs for advancements, expansions and contracts is analysed to drive the market growth in the forecast period. In 2019, CAE partnered with JetBlue airways to provide 2 CAE 500XR flight training devices and 2 Airbus A220- 300 CAE 7000XR series full flight simulators. Similarly In 2019, CAE and EasyJet partnered and inaugurated a new training center in Milan, the CAE Milan training center, which is expected to train 2000 pilots annually on CAE’s 600XR FTD. In 2019, Rockwell Collins Simulation & Training Solutions awarded with $40.2 million contract for the E-8 aircrew training device sustainment to contractor logistics support for the JSTARS (Joint Surveillance Target Attack Radar Systems) simulators. In January 2019, Fidelity technologies delivered UH-60A flight training devices to the Afghanistan air force special mission wing by end of 2020. In March 2019, Thales received a contract from Caverton Helicopters (Africa) to provide Thales’ Reality-H Full Flight Simulator to train the pilots of Caverton helicopters for the AW139 aircraft platform. This helped the company in expanding its customer base in Africa. In 2020, L3 Harris Technologies Inc. had been awarded with $900 million contract to design and deploy common platforms and standards across the Air Force’s array of training simulators until 2030. Such collaborations propel adoption of simulators

Need for Cost Cutting in Military Training

Simulation-based military training is gaining popularity amongst defence organizations as it offers the dual benefit of boosting operational effectiveness while reducing costs. In addition this type of training also takes away the costs associated with running vehicles, operating weapons and maintaining an environment, making it a highly cost-effective solution for the armed forces. Moreover, commercial technologies such as advanced simulators are transforming the global market and have the potential to bring down military training costs. Further, governments of several countries have been collaborating with several simulator OEM for efficient training. In 2019, Saab has signed a three-year contract with the UK Ministry of Defence for the provision of support and services to the Direct Fire Weapon Effects Simulator (DFWES) capability. In 2020, Aviation manufacturer CAE USA is authorized to proceed on the US Army contract to provide advanced helicopter flight training support services. Similarly other countries such as India, U.K, and so on are adopting these simulators in order to reduce cost of training and also to ensure safety. Hence these factors drive the market growth in the forecast period 2021-2026.

Simulator Market Challenges

High cost involved in the making of flight simulator and complexities in acquiring License

COVID-19 situation have created a negative impact on the growth of the global simulator market. As it has been noticed that due to the pandemic most of the activities, training modules and various operational activities have been stopped which has created a negative impact on the global market. Moreover the aviation industry has suffered more as the pandemic destroyed ticket due to which the revenue of the companies declined. As a result, many companies will look to limit the spending especially on purchasing new simulators. Hence this factor hampers the market in the short term.

Market Landscape

Partnership and acquisitions are key strategies adopted by players in the Flight Simulator market. In 2018, flight Simulator market industry outlook was consolidated with the top five players accounting for more than 52.45% of the share. Flight Simulator top 10 companies include CAE, Boeing, FlightSafety Inc., L3 Harris Technology, Thales, Airbus, Kongsberg, General Dynamics, Raytheon and Northrop Grumman among others.

Acquisitions/Technology Launches

  •  In June 2019, Rockwell Collins Simulation & Training Solutions awarded with $40.2 million contract for the E-8 aircrew training device sustainment to contractor logistics support for the JSTARS (Joint Surveillance Target Attack Radar Systems) simulators.
  • In March 2019, Thales received a contract from Caverton Helicopters (Africa) to provide Thales’ Reality-H Full Flight Simulator to train the pilots of Caverton helicopters for the AW139 aircraft platform. This helped the company in expanding its customer base in Africa.

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1. Simulator Market Overview
    1.1 Definitions and Scope
2. Simulator Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Type
    2.3 Key trends By End Use Industry
    2.4 Key trends segmented by Geography
3. Simulator Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price of Industry Solutions)
4. Simulator Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies
    4.4 Customer Analysis
5. Simulator Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. Simulator Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Simulator Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. Simulator Market – By Type (Market Size -$Million/Billion)
    8.1 Flight
        8.1.1 Full Flight Simulator (FFS)
        8.1.2 Full Mission Simulator (FMS)
        8.1.3 Flight Training Devices (FTD)
        8.1.4 Fixed Base Simulator (FBS)
        8.1.5 Cockpit Procedure Training (CPT)
        8.1.6 UAV Simulator
        8.1.7 Others
    8.2 Maritime
        8.2.1 Bridge Simulator
        8.2.2 ROV Simulators
        8.2.3 Engine Room Simulator
        8.2.4 Ship/Cargo Handling Simulator
        8.2.5 GMDSS/Communication Simulators
        8.2.6 Vessel Traffic Control Simulator
        8.2.7 Others
    8.3 Land
        8.3.1 Driving Simulator
        8.3.2 Ground Forces Training Simulator
        8.3.3 Others
9. Simulator Market – By Solution (Market Size -$Million/Billion)
    9.1 New Solutions
        9.1.1 Hardware
        9.1.2 Software
        9.1.3 Services
    9.2 Current Solutions
        9.2.1 Hardware
        9.2.2 Software
        9.2.3 Services
10. Simulator Market – By Technique (Market Size -$Million/Billion)
    10.1 Live
    10.2 Virtual
    10.3 Game Based
    10.4 Constructive
11. Simulator Market – By Vehicle Type (Market Size -$Million/Billion)
    11.1 Flight
        11.1.1 Military Aircraft
        11.1.2 Commercial Aircraft
        11.1.3 Unmanned Vehicles
        11.1.4 Helicopters
    11.2 Maritime
        11.2.1 Commercial
        11.2.2 Military
        11.2.3 Unmanned Vehicles
    11.3 Land
        11.3.1 Commercial
        11.3.2 Military
        11.3.3 Unmanned Vehicles
12. Simulator Market – By End Use Industry (Market Size -$Million/Billion)
    12.1 Commercial
    12.2 Military
    12.3 Civil
    12.4 Others
13. Simulator Market - By Geography (Market Size -$Million/Billion)
    13.1 North America
        13.1.1 U.S
        13.1.2 Canada
        13.1.3 Mexico
    13.2 South America
        13.2.1 Brazil
        13.2.2 Argentina
        13.2.3 Chile
        13.2.4 Colombia
        13.2.5 Others
    13.3 Europe
        13.3.1 Germany
        13.3.2 France
        13.3.3 UK
        13.3.4 Italy
        13.3.5 Spain
        13.3.6 Russia
        13.3.7 Netherlands
        13.3.8 Others
    13.4 APAC
        13.4.1 China
        13.4.2 Japan
        13.4.3 South Korea
        13.4.4 India
        13.4.5 Australia
        13.4.6 Indonesia
        13.4.7 Malaysia
        13.4.8 Others
    13.5 RoW
        13.5.1 Middle East
        13.5.2 Africa
14. Simulator Market - Market Entropy
    14.1 New product launches
    14.2 M&A's, collaborations, JVs and partnerships
15. Simulator Market – Industry Competitive Landscape (Premium)
    15.1 Market Share – Global
    15.2 Market Share by Region
    15.3 Market Share By Type
    15.4 Market Share By End Use Industry
16. Simulator Market – Key Company List by Country Premium (Premium)
17. Simulator Market - Company Analysis
    17.1 Company 1
    17.2 Company 2
    17.3 Company 3
    17.4 Company 4
    17.5 Company 5
    17.6 Company 6
    17.7 Company 7
    17.8 Company 8
    17.9 Company 9
    17.10 Company 10