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2021

Military Simulation and Training Market

Military Simulation and Training Market Size, Share, Competitive Landscape and Trend Analysis Report by Application and Training Type : Global Opportunity Analysis and Industry Forecast, 2021-2030

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Author's: Omkar Bachal | Sonia Mutreja
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Military Simulation and Training Market Statistics 2030 -

The global military simulation and training market was valued at $11.56 billion in 2020, and is projected to reach $20.58 billion by 2030, registering a CAGR of 6.2%. North America was the highest revenue contributor, accounting for $4.24 billion in 2020, and is estimated to reach $8.03 billion by 2030, with a CAGR of 6.9%. 

Military simulation and training are a series of activities for developing the battlefield environment without actual hostilities. For effective training activities of the military personal without involving high cost for training, military simulation and training solution serves as an effective approach, which is highly adopted by military forces across the globe. Military simulation and training involve the use of high-end technology-enabled platforms that provide the military personnel with effective operational capability. Military simulation and training solutions reduce the live equipment utilization, thus increasing cost-effectiveness. The military simulation and training solutions find their major application in armed forces, naval forces, and air military forces.

Military-Simulation-and-Training-Market

Factors such as increase in territorial conflicts worldwide and rise in defense expenditure are expected to drive the growth of the military simulation and training market. However, high costs associated with military simulation and training services & products restrain the market growth. On the contrary, contracts & agreements with military forces and defense modernization are projected to offer lucrative growth opportunities for the market players.

The global military simulation and training market is segmented into application, training type, and region. Depending on application, the market is segregated into airborne simulation, naval simulation, and ground simulation. On the basis of training type, it is fragmented into live training, virtual training, constructive training, and gaming simulation training. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Military Simulation and Training Market
By Application
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Airborne Simulation segment is projected as the most lucrative segments

Increase in territorial conflicts worldwide

In recent years, numerous nations have been witnessing increased risks of wars and conflicts. The recent political upheaval that happened in Afghanistan in August 2021 has brought the country in a permanent state of chaos. Moreover, rise in terrorist attacks and violent conflicts in the country is expected to lead to more unfavorable situations across neighboring nations.  Furthermore, numerous wars and minor conflicts are ongoing in several countries globally, most of which are in the Middle East, Northwest Asia, and sub-Saharan Africa. Thus, nations across the world are investing in simulation and training technologies to train the military force for upcoming possible threats. Thus, all these factors are anticipated to propel the growth of the global small arms market during the forecast period

Rise in defense expenditure

The global defense expenditure has seen exponential growth in recent years. According to the Stockholm International Peace Research Institute (SIPRI), the global military expenditure has reached $1,981 billion in 2020 with a 2.6% year-on-year increase. To modernize the defense forces to tackle the rise in threats of wars and other internal conflicts, many nations are continuously increasing their defense spending to purchase and manufacture advanced security solutions. The military expenditure accounted for 2.4% of the global gross domestic product in 2020. Thus, increase in global military expenditure has augmented the adoption of simulation and training technology. Furthermore, advancements of weapons and attacking capabilities worldwide have fostered the demand for modernization and installation of sophisticated defense infrastructure by governments to be prepared for any unprecedented threats and offensive attacks from foreign countries. Militaries across the globe are investing in the simulation and training solutions for effective operations of advanced security systems and handle the activities. Hence, increase in defense expenditure is expected to open new avenues for the growth of the military simulation and training market during the forecast period  

Military Simulation and Training Market
By Training Type
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Live Training segment is projected as the most lucrative segments

Contracts and agreements with military forces

Military agencies are the key consumers of simulation and training solutions & services. Procurement activities of these simulation and training solutions are planned by considering the budget allocations and security severity. The commencement of the simulation and training solutions is likely to be carried out through long-term agreements and contracts between defense department and solution suppliers of simulation and training solutions. These agreements mention a set of requirements that must be met in a certain timeframe. These contracts and agreements are associated with long-term business opportunities with these military agencies as well. Thus, market participants need to focus on winning the contracts and agreements to gain a competitive advantage in the global market.

COVID-19 impact analysis 

The outbreak of the COVID-19 pandemic has negatively impacted the global military simulation and training market, owing to commute restrictions, and is expected to weaken the financial performance of the market players in 2020. It has impacted the overall economy, and contributors such as market participants are formulating strategic cost-saving plans. The major risk factors of the military simulation and training market participants are regulatory & policy changes, dependency on labor, working capital management, and liquidity & solvency management. Majority of the developing facilities of military simulation and training have been shut down during the pandemic due to commute restrictions, workforce unavailability, and supply chain disturbance.

Military Simulation and Training Market
By Region
2030
North America 
Europe
Asia-Pacific
LAMEA

North America would exhibit the highest CAGR of 6.9% during 2021-2030.

Key Benefits For Stakeholders

  • This study presents analytical depiction of the market analysis along with the current trends and future estimations to depict imminent investment pockets.
  • The overall market opportunity is determined by understanding profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
  • The military simulation and training market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Military Simulation and Training Market Report Highlights

Aspects Details
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By Application
  • Airborne Simulation
  • Naval Simulation
  • Ground Simulation
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By Training Type
  • Live Training
  • Virtual Training
  • Constructive Training
  • Gaming Simulation Training
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By Region
  • North America  (U.S, Canada, Mexico)
  • Europe  (UK, Spain, France, Germany, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Textron Inc., Rheinmetall AG, Lockheed Martin Corporation, Meggitt PLC, Northrop Grumman Corporation, Thales Group, CAE, Inc., SAAB AB, Raytheon Technologies, Israel Aerospace Industries Ltd.

Analyst Review

Military training is a crucial component for every military forces to ensure operational effectiveness of the forces on the battlefield situations. The global military simulation and training market is expected to witness significant growth, owing to rise in defense spending related to the development of military system & weaponries as well as lower casualties of military personnel on the usage of military simulation and training activities. Changing geopolitical situations and increasing defense modernization activities are creating operational efficient simulation and training activities. North America is a leader in the military simulation and training market, owing to adoption of smart technologies in military forces.

The global military simulation and training market is a fairly consolidated market in which limited market participants are operating in the global market. Market participants are focused to develop their sales footprints by entering into long-term contracts and agreements with the military forces. Moreover, market players are expanding the company facilities, and focused in the product development activities to gain competitive advantage. Numerous developments have been carried out by top companies, such as CAE Inc., Lockheed Martin, Northrop Grumman, Raytheon Technologies, Rheinmetall AG, SAAB AB, Textron Inc., and Thales Group, which strengthen the growth of the global military simulation and training market. The impact of COVID-19 significantly affected the global military simulation and training market in 2020. Furthermore, the market witnessed negative growth or significant downfall in 2020. However, this situation is expected to improve as government has started relaxing norms around the world for resuming business activities.

Author Name(s) : Omkar Bachal | Sonia Mutreja
Frequently Asked Questions?

Airborne Simulation, Naval Simulation, and Ground Simulation are the different types of military simulation & training

The global military simulation and training market was valued at $11,564.18 million in 2020, and is projected to reach $20,576.15 million by 2030, registering a CAGR of 6.2%.

The report sample for global Military Simulation and Training market report can be obtained on demand from the website.

Adoption of the smart technology enabled live training and simultion technology is the key trend in the global market

Increase in territorial conflicts worldwide, Growth in defense expenditure are the key factors support the growth of the market

The company profiles of the top players of the market can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the industry along with their last three-year revenue, segmental revenue, product offerings, key strategies adopted, and geographical revenue generated

CAE, Inc., Northrop Grumman Corporation , Thales Group are key market players operting in the global market

The U.S., Germany and China are the key matured markets growing in the Military Simulation and Training industry

High costs associated with military simulation and training services & products, Contracts and agreements with military forces, and Defense modernization are known and unknown adjacencies impacting the Military Simulation and Training market

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Military Simulation and Training Market

Global Opportunity Analysis and Industry Forecast, 2021-2030