Military Simulators and Training Market Size & Share Analysis - Growth Trends & Forecasts (2024-2029)

The Military Simulation and Training Market size is estimated at USD 12.94 billion in 2024, and is expected to reach USD 16.71 billion by 2029, growing at a CAGR of 5.24% during the forecast period (2024-2029). The continued growth in global defense spending combined with the increased need for skilled forces to successfully navigate and operate various new combat vehicles is expected to propel the growth of the military simulators and training market during the forecast period.

The growth in demand for military vehicles across the land, sea, and aerial platforms is the primary driver of the market growth. Several countries are modernizing their military fleet by inducting newer generation vehicle platforms, generating a simultaneous demand for simulation-based training for the military personnel on these platforms, thereby propelling the market prospects of the affiliate military simulators.

The training of pilots and military personnel in real aircraft, land vehicles, and ships involves multiple risks and sometimes may lead to hazardous situations and fatalities. Simulators provide a realistic experience and safety training for beginners. This need for safe and efficient training is also driving the simulator market.

Product development in the simulators market is lengthy, as it takes a significant amount of time to develop a replica of any aircraft tested. They also need to comply with safety and regulatory management issues, making it a challenge to deliver the required simulators on time.

Military Simulation and Training Market Trends

Aerial Segment Expected to Experience the Highest Growth During the Forecast Period

The increasing adoption of newer aircraft that incorporate complex technologies in the military may require pilots to familiarize themselves with the latest equipment and systems. In such situations, providing hands-on experience may be difficult due to high-cost involvement. In such cases, the simulators act as the preferred option.

For instance, the operating cost of the USAF's F-35A is estimated to be about USD 44,000 per flight hour. In this regard, the F-35 pilots are first trained on simulators instead of the actual aircraft, which helps in cost-cutting. Pilots are typically trained for about 30 hours on the F-35 full-mission simulators before getting airborne on their first sortie in the F-35.

Lockheed Martin Corporation is also planning to connect full-mission simulators in the US and the UK through a software upgrade, allowing the Air Force pilots in these countries to virtually train with one another across international borders. Furthermore, the US Air Force (USAF) aims to deploy and connect more full-mission simulators in the years to come. Such initiatives also help the militaries increase interoperability without conducting joint military exercises on actual aircraft.

With the interest of the defense departments of major countries in utilizing flight simulator training, the demand for simulators that cater to the needs of aircraft and military pilot training is skyrocketing. As a result, new purchases and product innovations to supply the most advanced military aircraft training activities have been taking place in the market.

Similarly, in August 2022, Northrop Grumman Corporation & Terma A/S signed an MoU to collaborate on electronic warfare simulation & training opportunities in Northern Europe. Fourth & 5th generation aircraft will likely receive realistic air combat training due to the company’s simulation & training capabilities.

North America Held the Largest Market Share

In 2022, the US defense expenditure accounted for USD 877 billion, wherein a major share was invested towards the procurement of several newer generation military vehicles across all platforms amidst the ongoing race for technological superiority. Simultaneously, the country is investing in the development and procurement of related simulator solutions, which is expected to drive market growth in the region. Although the US Air Force has been procuring simulators on a large scale for several years, the US Navy is investing heavily in simulation to improve its navigation training, and it budgeted for new integrated bridge simulators to fill the capacity gaps.

The efforts to increase ship simulator capacity are further supported by constructing new buildings in San Diego and Norfolk to house multiple simulation facilities. The Royal Canadian Air Force plans to combine two training programs under a single, multibillion-dollar project, the Future Aircrew Training Program (FAcT), where the number of pilots trained annually will likely increase.

Furthermore, the government of Canada, with plans to implement fire training simulators for military uses, offered to stand VirTra, Inc. in December 2021. As per the offer, the company was expected to supply advanced military training simulators to the country's land, marine, and air force divisions of the military. Such developments are expected to drive the growth of the market in the North American region during the forecast period.

Military Simulation and Training Industry Overview

The military simulators and training market is semi-consolidated and dominated by players such as Collins Aerospace (RTX Corporation), CAE Inc., Rheinmetall AG, FlightSafety International Inc., and THALES. Simulator manufacturers are required to build a brand and reach out to geographical extremes to get customers. Manufacturers may have the first-mover advantage if they can attract customers for the simulators for new vehicle platforms, as simulators tend to be reconfigured or upgraded to support newer variants, providing the players with continuous revenue inflow.

Mergers and acquisitions are expected to help the players by increasing their addressable market. For instance, in March 2021, CAE Inc. announced the acquisition of L3Harris Technologies' Military Training business for USD 1.05 billion. Such acquisitions are expected to help the companies expand their market presence and their revenue share in the market during the forecast period. In the coming future, growing demand from end-users is expected to create some intense competitive rivalry where the companies offering the best products for a limited budget, along with other affiliate services, will reap the most benefits.

Military Simulation and Training Market News

• December 2023: The US State Department approved Saudi Arabia’s request to provide its air force with military training to address current and future threats. The foreign military sale of USD 1 billion covers the provision of flight training, technical training, and professional military education to the Royal Saudi Air Force (RSAF) and other related forces. Program management, trainers, simulators, travel, billeting, and medical support may also be included.
• April 2021: The US Army awarded two major contracts worth more than USD 4 billion to Science Applications International Corp. for modeling and simulation systems engineering and hardware-in-the-loop development of simulation capabilities for the Aviation & Missile Center.
• January 2021: Top Aces Corp announced that it received the first batch of its F-16 aircraft, which were to be used for military air training for the pilots who operate them.