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2020

Virtual Training and Simulation Market

Virtual Training and Simulation Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component and End User : Global Opportunity Analysis and Industry Forecast, 2020-2027

IC : High Tech, Enterprise & Consumer IT

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Author's: Shadaab Khan| Pramod Borasi | Onkar Sumant
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Virtual Training and Simulation Market Insights - 2027

The virtual training and simulation market size was valued at $204.41 billion in 2019, and is projected to reach $601.85 billion by 2027, growing at a CAGR of 13.7% from 2020 to 2027. Virtual training is a training method in which a simulated virtual environment is created to test certain abilities of a trainee that can contribute to the learning process. It is widely applicable in-flight simulation, simulation-based gaming, serious games, healthcare training, energy, transportation training, e-learning, military & navy, digital manufacturing, and others. 

 

Rise in awareness regarding virtual training and simulation positively drives the virtual training and simulation market growth. This technology is utilized in various fields such as civil aviation, military, e-learning, serious gaming, simulation-based gaming, entertainment, digital manufacturing, and healthcare due to its advantages such as ease of handling and understanding, offers virtual environment as close as real one, and efficiency of training. 

Virtual-Training-and-Simulation-Market-2020-2027 (002)

Over the past few years, increase in defense, healthcare, and education expenditure has been observed, especially in Asia-Pacific, LAMEA, and European countries; this is expected to significantly boost the growth of the virtual training and simulation market during the forecast period. With an increase in expenditure, the number of sales of related equipment in these sectors is expected to increase, including for virtual training and simulation equipment.

Virtual training and simulation is majorly used in industries such as defense & security, civil aviation, healthcare, digital manufacturing, education, and entertainment. In addition, it finds applications in other industries such as mining, energy, and transportation. In these industries, training can be made effective for respected crew members at minimum costs and without compromising any human life.  

The report focuses on the growth prospects, restraints, and market analysis. The study provides Porter’s five forces analysis of the virtual training and simulation industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market. 

Over the years, these market leaders have established themselves with continuous investment on product innovation, which has enabled them to improve the quality, capability, and performance of the training and simulation solutions. Further, these companies have expanded their virtual training and simulation market opportunities presence through strategic alliances and are working toward launching upgraded products in the market to gain maximum market share as well as to deliver better benefits to the stakeholders.

Segment review

The virtual training and simulation market is segmented on the basis of component, end user, and region. By component, it is categorized into hardware and software. Depending on end user, it is categorized into defense & security, civil aviation, education, entertainment, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The market players operating in the virtual training and simulation market analysis include ANSYS, Inc., BAE Systems, CAE Inc., Cubic Corporation, The DiSTI Corporation, Kratos Defence & Security Solutions, Inc., L-3 Link Simulation & Training, Lockheed Martin Corporation, ON24 Inc., and Saab AB.

Impact of COVID-19 on Virtual Training and Simulation Market

Though COVID-19 crisis continues to disrupt many industries, it has opened opportunities for high adoption of digital transformation approaches among various industries such as education, healthcare, defense and others owing to which there is a high demand for virtual training and simulation market. When state-and country-wide lockdowns initiated at the beginning of 2020, demand for virtual training and simulations increased among the healthcare sector due to various countries implementing implement their Life-saving Instruction for Emergencies (LIFE) project for fighting against various pandemic situation. Furthermore, various key players of the market are introducing new strategies to enhance the customer experience and to improve their market share in the pandemic situation.

Top impacting factors

The significant impacting factors include increase in awareness about virtual training and simulation; cost-effective benefits of virtual training and simulation technology; and rise in defense, healthcare, and education expenditure. In few regions such as Africa, people are willing to adopt the technology, but lack of infrastructure and availability of solutions resist them to do so. This negatively impacts the market. Moreover, absence of novelty in products may lead to loss of interest of consumers in outdated technology and would stick to the existing one, rather than buying another one. Thus, lack of investments in R&D is projected to impact negatively on the virtual training and simulation market. Advancements in virtual training and simulation technology positively affects the market growth and is expected to continue this in the near future.

Virtual Training and Simulation Market
By Component
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Hardware is projected as one of the most lucrative segments.

Increase in awareness about virtual training and simulation

Virtual training and simulation have found scope in various industries such as civil aviation, defense & security, healthcare, digital manufacturing, education, and entertainment. Nowadays, individuals or organizations are taking advantage of either hardware or software or combination of both solutions to train professionals, students, crews, and other associated people in an efficient way with minimum efforts. According to a primary respondent, in the near future, awareness of simulation & virtual training and the importance of training in a situation similar to real life scenario will help people in different fields to understand/utilize & train in a better state of the art technology and to develop more advanced and even sophisticated systems.

Virtual Training and Simulation Market
By End-user
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Entertainment is projected as one of the most lucrative segments.

Increase in defense, healthcare, and education expenditure

In Asia-Pacific, Europe, and LAMEA, defense, healthcare, and education expenditure has increased significantly, which indicates the rise in sales for related equipment including virtual training and simulation solutions. This increase in expenditure is due to rise in air traffic and commercial aircraft fleet and increase in number of Internet users and adoption of mobile phones. In addition, virtual training and simulation market forecasts growth due to technological advancements in healthcare and digital manufacturing, growth in penetration of serious gaming in education segment, and remarkable growth in e-learning market. This in turn further supplements the adoption of virtual training and simulation solutions.

Virtual Training and Simulation Market
By Region
2027
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific would exhibit the highest CAGR of 15.2% during 2020-2027.

Key Benefits For Stakeholders

  • This study includes the virtual training and simulation market trends, opportunity, analysis, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities of the virtual training and simulation industry.
  • The virtual training and simulation market share is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the virtual training and simulation market.

Virtual Training and Simulation Market Report Highlights

Aspects Details
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By Component
  • Hardware
  • Software
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By End User
  • Defense & Security
  • Civil Aviation
  • Education
    • E-Learning
    • Game-based learning
  • Entertainment
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (Germany, France, UK, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (Japan, China, India, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

CUBIC CORPORATION, THE DISTI CORPORATION, CAE INC., LOCKHEED MARTIN CORPORATION, L3 LINK TRAINING & SIMULATION, ANSYS, INC., .KRATOS DEFENSE & SECURITY SOLUTIONS, INC, BAE SYSTEMS, SAAB AB, ON24, INC.

Analyst Review

According to the CXOs of leading companies operating in the virtual training and simulation market, initial investments and development cost of training & simulation solutions are higher as compared to other solutions. However, virtual training and simulation solutions provide better options for training as compared to conventional tools and methods. As solution manufacturers focus on every minute details of real incidents while developing the solutions, so that a trainee gets a real-world experience with minimum wastage of resources such as money, human life, and physical entities. For instance, the idea of using a real aircraft component is expected to approximately cost $10,000, but by using the latest technology available in the market it can be manufactured to simulate the component at a lesser price like between $2,000 and $3,000.

However, there was a time, when an aircraft simulator used to cost approximately three times the actual aircraft’s cost, but today the development & innovation has helped the manufactures to minimize the manufacturing cost to great extent. The applications of simulation technology are observed in various end users, which include aviation, naval, military, medical, and others. In addition, in the near future, the awareness and adoption of virtual training and simulation solutions are expected to increase at a significant rate among various end users. This is expected to improve training process in different organizations, which is estimated to result into high productivity and innovation.

The key players operating in the global virtual training and simulation market include CAE Inc., L-3 Link Simulation & Training, Cubic Corporation, ON24, Inc., BAE systems PLC, Kratos Defence & Security Solutions, Inc., DiSTI Corporation, ANSYS, Inc., SaaB AB, and Lockheed Martin Corporation. Major players have adopted various revenue and business growth strategies to enhance and develop their product portfolio, strengthen their virtual training and simulation market share, and help them increase their market penetration.

Author Name(s) : Shadaab Khan| Pramod Borasi | Onkar Sumant
Frequently Asked Questions?

Virtual training is a methodology in which a simulated virtual environment is created to test the capabilities of a trainee that can contribute to the learning process. Simulation is the imitation of the processes of a real-world operation or system over time.

Virtual training and simulation solutions provide cost-effective solutions for a wide range of applications such as pilot training, soldier training, e-learning simulation-based gaming and training of nurses, doctors, and other medical professionals.

Growth in awareness among end users about the benefits of virtual training & simulation and increased spending by various end users such as defense, healthcare, and education due to higher budget allocation.

The market players operating in the virtual training and simulation market include ANSYS, Inc., BAE Systems, CAE Inc., Cubic Corporation, Kratos Defence & Security Solutions Inc., L-3 Link Simulation & Training, Lockheed Martin Corporation, ON24 Inc., Saab AB and The DiSTI Corporation.

Due to the outbreak of the COVID-19 pandemic, the market is projected to witness a sudden downfall in 2020. This is attributed to implementation of lockdown by governments in majority of the countries and the shutdown of schools, colleges, offices and other organizations to prevent the transmission of virus.

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Virtual Training and Simulation Market

Global Opportunity Analysis and Industry Forecast, 2020-2027