SDI - The Global Military Simulations and Virtual Training Market 2014 - 2024
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For more information, please contact Brian Renvoize on +61 2 8076 8802 or brian.renvoize@strategicdefenceintelligence.com

For more information, please contact Brian Renvoize on +61 2 8076 8802 or brian.renvoize@strategicdefenceintelligence.com

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SDI - The Global Military Simulations and Virtual Training Market 2014 - 2024 SDI - The Global Military Simulations and Virtual Training Market 2014 - 2024 Document Transcript

  • The Global Military Simulation and Virtual Training Market 2014–2024 The Global Military Simulation and Virtual Training Market 2014–2024 1
  • The Global Military Simulation and Virtual Training Market 2014–2024 TABLE OF CONTENTS 1 Introduction ......................................................................................................................... 12 1.1 What is this Report About? ..............................................................................................................12 1.2 Definitions .......................................................................................................................................12 1.3 Summary Methodology ...................................................................................................................14 1.4 About Strategic Defence Intelligence...............................................................................................15 2 Executive Summary ............................................................................................................ 16 3 Global Military Simulation and Virtual Training Market Size and Drivers ...................... 18 3.1 Military Simulation and Virtual Training Market Size and Forecast 2014–2024................................18 3.1.1 Global military simulation market to show positive growth over the forecast period ................................ 18 3.2 Global Military Simulation and Virtual Training Market – Regional Analysis.....................................19 3.2.1 North America dominates the global military simulation market............................................................... 19 3.2.2 Flight simulators are expected to be the main drivers to support growth in the US market ..................... 21 3.2.3 Military simulation and virtual training market in the Asia-Pacific region is expected to witness growth over the forecast period ........................................................................................................................................ 22 3.2.4 cuts European military simulation and virtual training market expected to increase despite defense budget .................................................................................................................................................................. 23 3.2.5 Markets in the Middle East to record robust spending on military simulation .......................................... 25 3.2.6 The military simulators and virtual training market in Latin America expected to register a moderate growth over the forecast period ............................................................................................................................ 26 3.2.7 African markets expected to witness a gradual increase in military simulation and virtual training spending over the forecast period ......................................................................................................................... 27 3.3 Military Simulation and Virtual Training Sub-Sector Market Size Composition .................................28 3.3.1 Market size of flight simulators expected to grow at a CAGR of 4.23% over the forecast period ............ 28 3.3.2 Market size of combat simulators expected to rise at a CAGR of 3.52% over the forecast period.......... 30 3.3.3 Maritime simulation market is consistently growing at the global level .................................................... 31 3.3.4 Helicopter simulators expected to account for a considerable share in the global simulation market ..... 32 3.4 Demand Drivers and Growth Stimulators ........................................................................................33 3.4.1 Simulation being looked upon as a significant cost cutting solution in the wake of defense budget cuts 33 3.4.2 Modernization initiatives to spur demand for military simulators and virtual training programs ............... 33 3.5 Defense Budget Spending Review ..................................................................................................34 3.5.1 European capital expenditure expected to increase during the forecast period ...................................... 34 3.5.2 Asian defense budgets expected to increase at a robust pace ................................................................ 35 3.5.3 North American defense expenditure projected to increase marginally during the forecast period ......... 36 3.5.4 Modernization programs likely to drive defense expenditure in South American countries ..................... 37 3.5.5 Military budgets of African countries expected to increase during the forecast period ............................ 38 2
  • The Global Military Simulation and Virtual Training Market 2014–2024 3.5.6 Defense budgets of Middle Eastern countries likely to increase during the forecast period .................... 39 3.6 Defense Modernization Review .......................................................................................................40 3.6.1 Debt crisis in Europe leading to postponement of modernization plans .................................................. 40 3.6.2 Arms race in Asia reflected in modernization plans ................................................................................. 40 3.6.3 North American modernization plans marginally affected by economic recession .................................. 40 3.6.4 Modernization programs in South America driven by replacement of obsolete armaments .................... 41 3.6.5 African countries mainly spending on infantry weapons, surveillance and monitoring equipment, to slow growing crime rate................................................................................................................................................. 41 3.6.6 4 Middle Eastern countries pursuing modernization of Air Force and air defense systems ....................... 41 Industry Trends, Recent Developments and Challenges ................................................ 42 4.1 Technological Developments ..........................................................................................................42 4.1.1 Cobra Curved Display Flight Simulator, the world’s first panadome spherical projection simulator ........ 42 4.1.2 Improvised explosive device (IED) trainer simulator ................................................................................ 42 4.1.3 Collimated displays to achieve enhanced field of view and focus ............................................................ 42 4.1.4 Submarine periscope simulator system .................................................................................................... 43 4.1.5 COTS Technology to result in substantial cost savings for the manufacturers ........................................ 43 4.2 Market Trends .................................................................................................................................44 4.2.1 Flight simulators segment dominating the military simulation sector ....................................................... 44 4.2.2 Combat training centers to warrant the growth of combat simulators market .......................................... 44 4.2.3 Technological innovations require lower levels of capital and provide operating cost benefits ............... 44 4.3 Industry Consolidation .....................................................................................................................45 4.3.1 Joint R&D programs continues to increase in the industry....................................................................... 45 4.3.2 Companies are entering into licensing agreements in order to simplify training programs ...................... 45 4.4 Key Challenges ...............................................................................................................................46 4.4.1 4.4.2 Need for interoperability............................................................................................................................ 46 4.4.3 5 Military simulation industry beset by fiscal challenges and increased competition .................................. 46 Developing high-fidelity simulators at an affordable cost ......................................................................... 46 SWOT Analysis of the Military Simulation and Virtual Training Market ......................... 47 5.1 Strengths.........................................................................................................................................48 5.1.1 Cost effectiveness of simulators and virtual training systems .................................................................. 48 5.1.2 Ageing aircraft and helicopter fleet stimulating demand for simulators .................................................... 48 5.1.3 Ability to meet diverse training requirements............................................................................................ 49 5.1.4 Deferred training and environmental policies ........................................................................................... 49 5.2 Weaknesses ...................................................................................................................................50 5.2.1 Lack of precision ....................................................................................................................................... 50 5.2.2 Limited opportunities in emerging markets and smaller nations .............................................................. 50 3
  • The Global Military Simulation and Virtual Training Market 2014–2024 5.3 Opportunities...................................................................................................................................51 5.3.1 Demand for UAV simulators expected to grow ........................................................................................ 51 5.3.2 Global shift in simulator perception .......................................................................................................... 51 5.4 Threats............................................................................................................................................52 5.4.1 5.4.2 6 US and European economic crisis ........................................................................................................... 52 Achieving interoperability among simulators ............................................................................................ 52 Country Analysis – Military Simulation and Virtual Training Market .............................. 53 6.1 United States Market Size and Forecast 2014–2024 .......................................................................54 6.1.1 Flight simulators expected to be the largest spend category in the US ................................................... 57 6.1.2 Combat simulators expected to constitute the second-largest market share in the US ........................... 58 6.1.3 Demand for Maritime simulators expected to increase at a CAGR of 1.33% over the forecast period ... 59 6.2 Indian Market Size and Forecast 2014–2024 ..................................................................................60 6.2.1 Flight simulators to account for the largest segment of expenditure ........................................................ 63 6.2.2 Market for combat simulators to grow at a CAGR of 6.14% over the forecast period.............................. 64 6.2.3 Maritime simulators to account for the third largest share of Indian simulation market expenditure ....... 65 6.3 Chinese Market Size and Forecast 2014–2024 ...............................................................................66 6.3.1 Flight simulators market in China to account for the highest segment of expenditure ............................. 69 6.3.2 Chinese expenditure on combat simulators expected to grow at a CAGR of 5.74% over the forecast period 70 6.3.3 Maritime simulators to constitute 18.2% of Chinese military simulation and virtual training market ........ 71 6.4 Australian Market Size and Forecast 2014–2024 ............................................................................72 6.4.1 Flight simulators expected to account for the largest segment of expenditure ........................................ 75 6.4.2 Market for helicopter simulators to grow at a CAGR of 6.28% over the forecast period .......................... 76 6.4.3 Combat simulators expected to account for the third largest area of expenditure ................................... 77 6.5 Russian Market Size and Forecast 2014–2024 ...............................................................................78 6.5.1 Russian flight simulator market to witness highest expenditure during the forecast period ..................... 81 6.5.2 Russian MoD’s shift of focus towards simulation training to drive the expenditure on combat simulators82 6.5.3 Helicopter simulators expected to constitute the third largest share in Russia ........................................ 84 6.6 UK Market Size and Forecast 2014–2024 .......................................................................................85 6.6.1 Flight simulators expected to account for the highest expenditure in the UK .......................................... 88 6.6.2 British Royal Navy’s emphasis on crew training to drive expenditure on maritime simulators in the country 89 6.6.3 Helicopter simulators to account for the third largest share in the country .............................................. 90 6.7 French Market Size and Forecast 2014–2024 .................................................................................91 6.7.1 French flight simulators market to witness highest expenditure during the forecast period ..................... 94 6.7.2 Helicopter simulators expected to account for the second largest segment in the French military simulation market .................................................................................................................................................. 95 4
  • The Global Military Simulation and Virtual Training Market 2014–2024 6.8 The UAE Market Size and Forecast 2014–2024..............................................................................96 6.8.1 Flight simulators to account for the largest share in the UAE .................................................................. 98 6.9 Saudi Arabian Market Size and Forecast 2014–2024 ......................................................................99 6.9.1 The market for flight simulators expected to increase at a CAGR of 8.16% during the forecast period 102 6.9.2 Helicopter simulators to account for the second largest share in Saudi Arabia ..................................... 103 6.9.3 Combat simulators to be driven by the armored fighting vehicles procurement in Saudi Arabia ........... 104 6.10 Brazilian Market Size and Forecast 2014–2024 ............................................................................105 6.10.1 Brazil is expected to spend significantly on military flight simulators ..................................................... 108 6.10.2 Brazil expected to spend over US$987 million on procuring maritime simulators ................................. 109 6.10.3 Combat simulators for armored personal carriers and main battle tanks are expected to be the third largest category................................................................................................................................................... 110 6.11 South African Market Size and Forecast 2014–2024 .....................................................................111 6.11.1 Maritime simulators segment to account for a major portion of expenditure by South Africa ................ 114 6.11.2 Flight simulators to account for second largest share of South African spending on military simulation115 7 Major Military Simulation and Virtual Training Programs .............................................. 116 7.1 Flight simulators ............................................................................................................................116 7.1.1 The UK - UK Military Flight Training System (UKMFTS) program ......................................................... 116 7.1.2 The US - F-16 Training System .............................................................................................................. 117 7.1.3 The US – Support and Maintenance of Flight Simulators ...................................................................... 118 7.2 Helicopter Simulators ....................................................................................................................119 7.2.1 Australia - Helicopter Aircrew Training System ...................................................................................... 119 7.2.2 France - NH90 simulator program .......................................................................................................... 120 7.2.3 The US - US Army Aviation Combined Arms Tactical Trainer (AVCATT) suites ................................... 121 7.3 Maritime Simulators ......................................................................................................................122 7.3.1 Australia - Canberra Class LHD simulators ............................................................................................ 122 7.3.2 The US - Training and Simulation Solutions for LCS ............................................................................. 123 7.3.3 Turkey - Submarine Diving Simulators ................................................................................................... 124 7.4 Combat Simulators........................................................................................................................125 7.4.1 7.4.2 India - T90 MBT simulators..................................................................................................................... 126 7.4.3 8 Russia - Combat Training Center Program ............................................................................................ 125 US - Dismounted Soldier Training System ............................................................................................. 127 Competitive Landscape and Strategic Insights .............................................................. 128 8.1 Competitive Landscape Overview .................................................................................................128 8.1.1 Lockheed Martin Corporation: overview ................................................................................................. 128 8.1.2 Lockheed Martin Corporation: products and services ............................................................................ 129 8.1.3 Lockheed Martin Corporation: recent announcements and strategic initiatives ..................................... 129 5
  • The Global Military Simulation and Virtual Training Market 2014–2024 8.1.4 Lockheed Martin Corporation: alliances ................................................................................................. 129 8.1.5 Lockheed Martin Corporation: recent contract wins ............................................................................... 130 8.1.6 Lockheed Martin Corporation: financial analysis .................................................................................... 130 8.1.7 Boeing: overview .................................................................................................................................... 132 8.1.8 Boeing: products and services ............................................................................................................... 132 8.1.9 Boeing: recent announcements and strategic initiatives ........................................................................ 132 8.1.10 Boeing: alliances ..................................................................................................................................... 133 8.1.11 Boeing: recent contract wins .................................................................................................................. 133 8.1.12 Boeing: financial analysis ....................................................................................................................... 134 8.1.13 CAE: overview ........................................................................................................................................ 136 8.1.14 CAE: products and services ................................................................................................................... 136 8.1.15 CAE: recent announcements and strategic initiatives ............................................................................ 137 8.1.16 CAE: alliances ........................................................................................................................................ 137 8.1.17 CAE: recent contract wins ...................................................................................................................... 138 8.1.18 CAE: financial analysis ........................................................................................................................... 139 8.1.19 Saab: overview ....................................................................................................................................... 141 8.1.20 Saab: products and services .................................................................................................................. 141 8.1.21 Saab: recent announcements and strategic initiatives ........................................................................... 142 8.1.22 Saab: alliances ....................................................................................................................................... 142 8.1.23 Saab: recent contract wins ..................................................................................................................... 142 8.1.24 Saab: financial analysis .......................................................................................................................... 143 8.1.25 L-3 Link Simulation & Training: overview ............................................................................................... 145 8.1.26 L-3 Link Simulation & Training: products and services .......................................................................... 145 8.1.27 L-3 Link Simulation & Training: recent announcements and strategic initiatives ................................... 145 8.1.28 L-3 Link Simulation & Training: alliances ................................................................................................ 146 8.1.29 L-3 Link Simulation & Training: recent contract wins ............................................................................. 146 8.1.30 AAI Corporation: overview ...................................................................................................................... 147 8.1.31 AAI Corporation: products and services ................................................................................................. 147 8.1.32 AAI Corporation: recent announcements and strategic initiatives .......................................................... 148 8.1.33 AAI Corporation: alliances ...................................................................................................................... 148 8.1.34 AAI Corporation: recent contract wins .................................................................................................... 149 8.1.35 DCNS: overview ..................................................................................................................................... 150 8.1.36 DCNS: products and services ................................................................................................................ 150 8.1.37 DCNS: recent announcements and strategic initiatives ......................................................................... 150 8.1.38 DCNS: recent contract wins ................................................................................................................... 150 8.1.39 DCNS: financial analysis ........................................................................................................................ 151 8.1.40 Cassidian: overview ................................................................................................................................ 153 6
  • The Global Military Simulation and Virtual Training Market 2014–2024 8.1.41 Cassidian: products and services ........................................................................................................... 153 8.1.42 Cassidian: recent announcements and strategic initiatives.................................................................... 153 8.1.43 Cassidian: alliances ................................................................................................................................ 154 8.1.44 Cassidian: recent contract wins .............................................................................................................. 154 8.1.45 Sikorsky Aircraft Corporation: overview .................................................................................................. 155 8.1.46 Sikorsky Aircraft Corporation: products and services ............................................................................. 155 8.1.47 Sikorsky Aircraft Corporation: recent announcements and strategic initiatives ..................................... 155 8.1.48 Sikorsky Aircraft Corporation: alliances .................................................................................................. 156 8.1.49 Sikorsky Aircraft Corporation: recent contract wins ................................................................................ 156 8.1.50 Rockwell Collins: overview ..................................................................................................................... 156 8.1.51 Rockwell Collins: products and services ................................................................................................ 157 8.1.52 Rockwell Collins: recent announcements and strategic initiatives ......................................................... 158 8.1.53 Rockwell Collins: alliances...................................................................................................................... 158 8.1.54 Rockwell Collins: recent contract wins ................................................................................................... 159 8.1.55 Rockwell Collins: financial analysis ........................................................................................................ 159 8.1.56 Kratos Defense and Security Solutions: overview .................................................................................. 161 8.1.57 Kratos Defense and Security Solutions: products and services ............................................................. 161 8.1.58 Kratos Defense and Security Solutions: recent announcements and strategic initiatives ..................... 162 8.1.59 Kratos Defense and Security Solutions: recent contract wins ................................................................ 163 8.1.60 Kratos Defense and Security Solutions: financial analysis ..................................................................... 163 8.1.61 Teledyne Brown Engineering, Inc: overview .......................................................................................... 165 8.1.62 Teledyne Brown Engineering, Inc: products and services ..................................................................... 165 8.1.63 Teledyne Brown Engineering, Inc: recent announcements and strategic initiatives .............................. 166 8.1.64 Teledyne Brown Engineering, Inc: alliances........................................................................................... 166 8.1.65 Teledyne Brown Engineering, Inc: recent contract wins ........................................................................ 166 8.1.66 Thales: Overview .................................................................................................................................... 167 8.1.67 Thales: Products and services ............................................................................................................... 167 8.1.68 Thales: recent announcements and strategic initiatives ......................................................................... 167 8.1.69 Thales: Recent contract wins ................................................................................................................. 168 8.1.70 Thales: Financial analysis....................................................................................................................... 168 8.1.71 HAVELSAN: overview ............................................................................................................................ 170 8.1.72 HAVELSAN: products and services ....................................................................................................... 170 8.1.73 HAVELSAN: recent announcements and strategic initiatives ................................................................ 170 8.1.74 HAVELSAN: alliances............................................................................................................................. 170 8.1.75 HAVELSAN: Recent Contract Wins ....................................................................................................... 171 8.1.76 DiSTI: overview ....................................................................................................................................... 171 8.1.77 DiSTI: products and services .................................................................................................................. 171 7
  • The Global Military Simulation and Virtual Training Market 2014–2024 8.1.78 DiSTI: recent announcements and strategic initiatives .......................................................................... 172 8.1.79 DiSTI: alliances ....................................................................................................................................... 172 8.1.80 DiSTI: recent contract wins ..................................................................................................................... 173 8.1.81 ZedaSoft Inc: overview ........................................................................................................................... 173 8.1.82 ZedaSoft Inc: products and services ...................................................................................................... 173 8.1.83 ZedaSoft Inc: recent announcements and strategic initiatives ............................................................... 174 8.1.84 ZedaSoft Inc: alliances ........................................................................................................................... 174 8.1.85 ZedaSoft Inc: recent contract wins ......................................................................................................... 175 8.1.86 Fidelity Technologies Corporation: overview .......................................................................................... 175 8.1.87 Fidelity Technologies Corporation: products and services ..................................................................... 176 8.1.88 Fidelity Technologies Corporation: recent announcements and strategic initiatives ............................. 176 8.1.89 Fidelity Technologies Corporation: alliances .......................................................................................... 176 8.1.90 Fidelity Technologies Corporation: recent contract wins ........................................................................ 176 8.1.91 Alenia Aeronautica: overview ................................................................................................................. 177 8.1.92 Alenia Aeronautica: products and services ............................................................................................ 177 8.1.93 Alenia Aeronautica: recent announcements and strategic initiatives ..................................................... 177 8.1.94 Alenia Aeronautica: alliances ................................................................................................................. 177 8.1.95 Alenia Aeronautica: recent contract wins ............................................................................................... 178 8.1.96 VirTra Systems: overview ....................................................................................................................... 178 8.1.97 VirTra Systems: products and services .................................................................................................. 178 8.1.98 VirTra Systems: recent announcements and strategic initiatives ........................................................... 178 8.1.99 VirTra Systems: alliances ....................................................................................................................... 179 8.1.100 VirTra Systems: recent contract wins ..................................................................................................... 179 8.1.101 Meggitt Training Systems: overview ....................................................................................................... 179 8.1.102 Meggitt Training Systems: products and services .................................................................................. 179 8.1.103 Meggitt Training Systems: recent announcements and strategic initiatives ........................................... 180 8.1.104 Meggitt Training Systems: alliances ....................................................................................................... 180 8.1.105 Meggitt Training Systems: recent contract wins ..................................................................................... 180 9 Appendix ............................................................................................................................ 181 9.1 Methodology .................................................................................................................................181 9.2 About SDI......................................................................................................................................181 9.3 Disclaimer .....................................................................................................................................181 8
  • The Global Military Simulation and Virtual Training Market 2014–2024 LIST OF FIGURES Figure 1: Global Military Simulation and Virtual Training Market (US$ Billion), 2014–2024 ................................................................................. 18 Figure 2: Military Simulation and Virtual Training Market Breakdown by Region (%), 2014–2024 ....................................................................... 20 Figure 3: North American Military Simulation and Virtual Training Market (US$ Billion), 2014–2024 ................................................................... 21 Figure 4: Asia-Pacific Military Simulation and Virtual Training Market (US$ Billion), 2014–2024 ......................................................................... 22 Figure 5: European Military Simulation and Virtual Training Market (US$ Billion), 2014–2024 ............................................................................ 24 Figure 6: Middle East Military Simulation and Virtual Training Market (US$ Million), 2014–2024 ........................................................................ 25 Figure 7: Latin American Military Simulation and Virtual Training Market (US$ Million), 2014–2024 ................................................................... 26 Figure 8: African Military Simulation and Virtual Training Market (US$ Million), 2014–2024 ................................................................................ 27 Figure 9: Military Simulation and Virtual Training Market Breakdown by Segment (%), 2014–2024 .................................................................... 29 Figure 10: Flight Simulators Market Size (US$ Billion), 2014–2024 .................................................................................................................... 29 Figure 11: Combat Simulators Market Size (US$ Billion), 2014–2024................................................................................................................. 30 Figure 12: Maritime Simulators Market Size (US$ Billion), 2014–2024 ............................................................................................................... 31 Figure 13: Helicopter Simulators Market Size (US$ Billion), 2014–2024 ............................................................................................................. 32 Figure 14: Defense Capital Expenditure of Top Three European Defense Spenders (US$ Billion), 2014–2024 .................................................. 34 Figure 15: Defense Capital Expenditure of Top Three Asian Defense Spenders (US$ Billion), 2014–2024 ....................................................... 35 Figure 16: Defense Capital Expenditure of Top North American Defense Spenders (US$ Billion), 2014–2024 ................................................... 36 Figure 17: Defense Capital Expenditure of Top Three South American Defense Spenders (US$ Billion), 2014–2024 ........................................ 37 Figure 18: Defense Capital Expenditure of Top Three African Countries (US$ Billion), 2014–2024 ................................................................... 38 Figure 19: Defense Capital Expenditure of Top Three Middle Eastern Defense Spenders (US$ Billion), 2014–2024 .......................................... 39 Figure 20: Military Simulation and Virtual Training Market in the US (US$ Billion), 2014–2024 ........................................................................... 55 Figure 21: Military Simulation and Virtual Training Market Split By Category in the US (%), 2014–2024 ............................................................. 56 Figure 22: Flight Simulators Market Size in the US (US$ Billion), 2014–2024 ..................................................................................................... 57 Figure 23: Combat Simulators Market Size in the US (US$ Billion), 2014–2024 ................................................................................................. 58 Figure 24: Maritime Simulators Market Size in the US (US$ Million), 2014–2024 ............................................................................................... 59 Figure 25: Military Simulation and Virtual Training Market in India (US$ Million), 2014–2024.............................................................................. 61 Figure 26: Military Simulation and Virtual Training Market in India by Sector (%), 2014–2024 ............................................................................ 62 Figure 27: Flight Simulators Market Size in India (US$ Million), 2014–2024 ....................................................................................................... 63 Figure 28: Combat Simulators Market Size in India (US$ Million), 2014–2024 .................................................................................................... 64 Figure 29: Maritime Simulators Market Size in India (US$ Million), 2014–2024................................................................................................... 65 Figure 30: Military Simulation and Virtual Training Market in China (US$ Million), 2014–2024 ............................................................................ 67 Figure 31: Military Simulation and Virtual Training Market Split by Sector in China (%), 2014–2024 ................................................................... 68 Figure 32: Flight Simulators Market Size in China (US$ Million), 2014–2024 ...................................................................................................... 69 Figure 33: Combat Simulators Market Size in China (US$ Million), 2014–2024 .................................................................................................. 70 Figure 34: Maritime Simulators Market Size in China (US$ Million), 2014–2024 ................................................................................................. 71 Figure 35: Military Simulation and Virtual Training Market in Australia (US$ Million), 2014–2024 ....................................................................... 73 Figure 36: Military Simulation and Virtual Training Market Split by Sector in Australia (%), 2014–2024............................................................... 74 Figure 37: Flight Simulators Market Size in Australia (US$ Million), 2014–2024 ................................................................................................. 75 Figure 38: Helicopter Simulators Market Size in Australia (US$ Million), 2014–2024 .......................................................................................... 76 Figure 39: Combat Simulators Market Size in Australia (US$ Million), 2014–2024 .............................................................................................. 77 Figure 40: Military Simulation and Virtual Training Market in Russia (US$ Million), 2014–2024 .......................................................................... 79 Figure 41: Military Simulation and Virtual Training Market By Category in Russia (%), 2014–2024 ..................................................................... 80 Figure 42: Flight Simulators Market Size in Russia (US$ Million), 2014–2024 .................................................................................................... 81 Figure 43: Combat Simulators Market Size in Russia (US$ Million), 2014–2024 ................................................................................................. 83 Figure 44: Helicopter Simulators Market Size in Russia (US$ Million), 2014–2024 ............................................................................................. 84 Figure 45: Military Simulation and Virtual Training Market in the UK (US$ Million), 2014–2024 .......................................................................... 86 Figure 46: Military Simulation and Virtual Training Market Split by Sector in the UK (%), 2014–2024 ................................................................. 87 Figure 47: Flight Simulators Market Size in the UK (US$ Million), 2014–2024 .................................................................................................... 88 Figure 48: Maritime Simulator Market Size in the UK (US$ Million), 2014–2024 ................................................................................................. 89 Figure 49: Helicopter Simulator Market Size in the UK (US$ Million), 2014–2024 ............................................................................................... 90 Figure 50: Military Simulation and Virtual Training Market in France (US$ Million), 2014–2024 .......................................................................... 92 Figure 51: Military Simulation and Virtual Training Market Split by Sector in France (%), 2014–2024 ................................................................. 93 Figure 52: Flight Simulators Market Size in France (US$ Million), 2014–2024 .................................................................................................... 94 Figure 53: Helicopter Simulators Market Size in France (US$ Million), 2014–2024 ............................................................................................. 95 Figure 54: Military Simulation and Virtual Training Market in the UAE (US$ Million), 2014–2024 ........................................................................ 97 9
  • The Global Military Simulation and Virtual Training Market 2014–2024 Figure 55: Military Simulation and Virtual Training Market Split By Category in the UAE (%), 2014–2024........................................................... 97 Figure 56: Flight Simulator Market Size in the UAE (US$ Million), 2014–2024 .................................................................................................... 98 Figure 57: Military Simulation and Virtual Training Market in Saudi Arabia (US$ Million), 2014–2024 ................................................................100 Figure 58: Military Aircraft Market Split By Category in Saudi Arabia (%), 2014–2024 .......................................................................................101 Figure 59: Flight Simulators Market Size in Saudi Arabia (US$ Million), 2014–2024 ..........................................................................................102 Figure 60: Helicopter Simulators Market Size in Saudi Arabia (US$ Million), 2014–2024 ...................................................................................103 Figure 61: Combat Simulators Market Size in Saudi Arabia (US$ Million), 2014–2024 ......................................................................................104 Figure 62: Brazilian Military Simulation Market Overview ...................................................................................................................................105 Figure 63: Military Simulation and Virtual Training Market in Brazil (US$ Million), 2014–2024 ..........................................................................106 Figure 64: Military Simulation and Virtual Training Market Split By Category in Brazil (%), 2014–2024 .............................................................107 Figure 65: Military Flight Simulation Market Size in Brazil (US$ Million), 2014–2024 .........................................................................................108 Figure 66: Military Maritime Simulation Market Size in Brazil (US$ Million), 2014–2024.....................................................................................109 Figure 67: Combat Simulation Market Size in Brazil (US$ Million), 2014–2024 ..................................................................................................110 Figure 68: Flight Simulators Market Size in South Africa (US$ Million), 2014–2024 ...........................................................................................115 Figure 69: Lockheed Martin Corporation – Revenue Trend Analysis (US$ Billion), 2009–2013..........................................................................130 Figure 70: Lockheed Martin Corporation – Operating Profit (US$ million), 2009–2013.......................................................................................131 Figure 71: Lockheed Martin Corporation – Net Profit Trend Analysis (US$ Million), 2009–2013 ........................................................................131 Figure 72: Boeing – Revenue Trend Analysis (US$ billion), 2008–2012 ............................................................................................................134 Figure 73: Boeing – Operating Profit (US$ million), 2008–2012 .........................................................................................................................135 Figure 74: Boeing – Net Profit Trend Analysis (US$ million), 2008–2012 ...........................................................................................................135 Figure 75: CAE – Revenue Trend Analysis (CAD billion), 2009–2013 ...............................................................................................................139 Figure 76: CAE – Operating Profit (CAD million), 2009–2013 ............................................................................................................................140 Figure 77: CAE – Net Profit Trend Analysis (CAD million), 2009–2013 ..............................................................................................................140 Figure 78: Saab – Revenue Trend Analysis (SEK billion), 2008–2012 ...............................................................................................................143 Figure 79: Saab – Operating Profit (SEK million), 2008–2012............................................................................................................................144 Figure 80: Saab – Net Profit Trend Analysis (SEK million), 2008–2012 .............................................................................................................144 Figure 81: DCNS – Revenue Trend Analysis (Euro billion), 2009-2012..............................................................................................................151 Figure 82: DCNS – Operating Profit (Euro million), 2009–2012 .........................................................................................................................152 Figure 83: DCNS – Net Profit Trend Analysis (Euro million), 2009–2012 ...........................................................................................................152 Figure 84: Rockwell Collins – Revenue Trend Analysis (US$ billion), 2009–2013 ..............................................................................................160 Figure 85: Rockwell Collins – Operating Profit (US$ million), 2009–2013 ..........................................................................................................160 Figure 86: Rockwell Collins – Net Profit Trend Analysis (US$ million), 2009–2013 ............................................................................................161 Figure 87: Kratos Defense and Security Solutions – Revenue Trend Analysis (US$ million), 2008–2012 ..........................................................164 Figure 88: Kratos Defense and Security Solutions – Operating Profit (US$ million), 2008–2012 ........................................................................164 Figure 89: Kratos Defense and Security Solutions – Net Profit Trend Analysis (US$ million), 2008–2012..........................................................165 Figure 90: Thales – Revenue Trend Analysis (EUR billion), 2008–2012 ............................................................................................................168 Figure 91: Thales – Operating Profit (EUR million), 2008–2012 .........................................................................................................................169 Figure 92: Thales – Net Profit Trend Analysis (EUR million), 2008–2012...........................................................................................................169 10
  • The Global Military Simulation and Virtual Training Market 2014–2024 LIST OF TABLES Table 1: Global Military Simulation and Virtual Training Market Overview ........................................................................................................... 19 Table 2: Global Military Simulation and Virtual Training Market Overview ........................................................................................................... 28 Table 3: SWOT Analysis of the Military Simulation and Virtual Training Market .................................................................................................. 47 Table 4: Leading Military Simulation and Virtual Training Markets and Top Three Segments.............................................................................. 53 Table 5: US Military Simulation Market Overview ............................................................................................................................................... 54 Table 6: Indian Military Simulation and Virtual Training Market Overview ........................................................................................................... 60 Table 7: Chinese Military Simulation and Virtual Training Market Overview ........................................................................................................ 66 Table 8: Australian Military Simulation and Virtual Training Market Overview ..................................................................................................... 72 Table 9: Russian Military Simulation Market Overview ........................................................................................................................................ 79 Table 10: UK Military Simulation and Virtual Training Market Overview .............................................................................................................. 85 Table 11: French Military Simulation and Virtual Training Market Overview ........................................................................................................ 91 Table 12: The UAE Military Simulation and Virtual Training Market Overview ..................................................................................................... 96 Table 13: Saudi Arabian Military Simulation and Virtual Training Market Overview ............................................................................................. 99 Table 14: Program Details – UKMFTS program.................................................................................................................................................116 Table 15: Program Details – F 16 Training System Program .............................................................................................................................117 Table 16: Program Details – Support and Maintenance of Flight Simulators ......................................................................................................118 Table 17: Program Details – Helicopter Aircrew Training System ......................................................................................................................119 Table 18: Program Details – NH90 simulator program .......................................................................................................................................120 Table 19: Program Details – US Army Aviation Combined Arms Tactical Trainer (AVCATT) suites ...................................................................121 Table 20: Program Details – Canberra Class LHD simulators ............................................................................................................................122 Table 21: Program Details – Training and Simulation Solutions for LCS ............................................................................................................123 Table 22: Program Details – Submarine Diving Simulators ................................................................................................................................124 Table 23: Program Details – Combat Training Center Program .........................................................................................................................125 Table 24: Program Details – T90 MBT simulators ..............................................................................................................................................126 Table 25: Program Details – Dismounted Soldier Training System ....................................................................................................................127 Table 26: Lockheed Martin Corporation – Alliances ...........................................................................................................................................129 Table 27: Lockheed Martin Corporation – Recent Contract Wins .......................................................................................................................130 Table 28: Boeing – Alliances .............................................................................................................................................................................133 Table 29: Boeing – Recent Contract Wins .........................................................................................................................................................133 Table 30: CAE – Alliances .................................................................................................................................................................................137 Table 31: CAE – Recent Contract Wins .............................................................................................................................................................138 Table 32: Saab – Alliances ...............................................................................................................................................................................142 Table 33: Saab – Recent Contract Wins ............................................................................................................................................................142 Table 34: L-3 Link Simulation & Training – Alliances .........................................................................................................................................146 Table 35: L-3 Link Simulation & Training – Recent Contract Wins .....................................................................................................................146 Table 36: AAI Corporation – Alliances ...............................................................................................................................................................148 Table 37: AAI Corporation – Recent Contract Wins ...........................................................................................................................................149 Table 38: DCNS – Recent Contract Wins ..........................................................................................................................................................150 Table 39: Rockwell Collins – Alliances...............................................................................................................................................................158 Table 40: Rockwell Collins – Recent Contract Wins...........................................................................................................................................159 Table 41: Kratos Defense and Security Solutions – Recent Contract Wins ........................................................................................................163 Table 42: Teledyne Brown Engineering, Inc – Alliances.....................................................................................................................................166 Table 43: Teledyne Brown Engineering, Inc – Recent Contract Wins ................................................................................................................166 Table 44: Thales – Recent Contract Wins..........................................................................................................................................................168 Table 45: HAVELSAN – Alliances .....................................................................................................................................................................170 Table 46: HAVELSAN – Recent Contract Wins .................................................................................................................................................171 Table 47: DiSTI – Alliances ...............................................................................................................................................................................172 Table 48: DiSTI – Recent Contract Wins ...........................................................................................................................................................173 Table 49: ZedaSoft Inc – Alliances ....................................................................................................................................................................174 Table 50: ZedaSoft Inc – Recent Contract Wins ................................................................................................................................................175 Table 51: Fidelity Technologies Corporation – Recent Contract Wins ................................................................................................................176 Table 52: Alenia Aeronautica – Alliances ...........................................................................................................................................................177 Table 53: Alenia Aeronautica – Recent Contract Wins .......................................................................................................................................178 Table 54: VirTra Systems – Recent Contract Wins ............................................................................................................................................179 Table 55: Meggitt Training Systems – Recent Contract Wins.............................................................................................................................180 11
  • The Global Military Simulation and Virtual Training Market 2014–2024 1 Introduction 1.1 What is this Report About? This report offers detailed analysis of the global military simulation and virtual training market over the next ten years, providing market size forecasts. It covers the key technological and market trends in the military simulation and virtual training industry, and provides analysis of the factors influencing the demand for military simulation and virtual training and the challenges faced by industry participants. In particular, it provides an in-depth analysis of the following: Global military simulation and virtual training market size and drivers: detailed analysis of the market for military simulation and virtual training during 2014–2024, including highlights of the demand drivers and growth stimulators. It also provides a snapshot of the spending and modernization patterns of different regions around the world Recent development and industry challenges: insights into the technological developments in the military simulation and virtual training market and a detailed analysis of the changing preferences of military forces around the world. It also analyses changing industry structure trends and the challenges faced by the industry participants SWOT analysis of the military simulation and virtual training market: a study of the military simulation and virtual training industry’s characteristics, using SWOT analysis to determine its strengths, weaknesses, opportunities, and threats Global military simulation and virtual training country analysis: analysis of the key markets in each region, providing an analysis of the top three military simulation and virtual training segments expected to be in demand in each region Major programs: details of the top three programs in each segment expected to be executed during the forecast period Competitive landscape and strategic insights: analysis of competitive landscape of the global military simulation and virtual training industry. It provides an overview of key defense companies, together with insights such as key alliances, strategic initiatives, and a brief financial analysis 1.2 Definitions For the purposes of this report, the following timeframes apply: Forecast Period: 2014 to 2024 The following are definitions of military expenditure Capital expenditure (CAPEX) covers research and development (R&D), procurement, maintenance, transportation, and storage of weaponry and other equipment. It also includes expenditure on aircraft and aero-engines, heavy and medium vehicles, naval equipment, and expenditure on the purchase of land, construction plants and machinery 12
  • The Global Military Simulation and Virtual Training Market 2014–2024 The following are definitions of categories: Flight simulators are training devices that reproduce exactly the conditions experienced on the flight deck of an aircraft and unmanned aerial vehicles Helicopter simulators are training systems (software and hardware) that allow the user to experience what it feels like to pilot a specific type of helicopter Maritime simulators are used for training, assessment of competence or demonstration of continued proficiency in maritime education. Maritime simulators basically are divided in four different functions: simulators for navigational (bridge) operation, engine operation, cargo handling and radio communication Combat simulators are training devices that help to train soldiers to use weapons, target systems, armored vehicles and missiles The following are miscellaneous definitions: Network-Centric Warfare (NCW) focuses on the effective linking and networking of forces dispersed across the battlefield, enabling the real-time transfer of information to generate a clear situational awareness, resulting in combat effectiveness Asymmetric Warfare is a type of conflict in which a weaker force exploits the weaknesses of a better-aligned and technologically superior enemy by adopting strategies and tactics to offset its deficiencies. Examples of asymmetric warfare include guerrilla warfare, insurgency, terrorism, and urban warfare Command, Control, Communications Computers and Intelligence Systems (C4I) refers to an information system employed by a military’s top command to direct its forces. This system provides the military with information on various parameters associated with executing a strategy during a military exercise. The parameters include reconnaissance and surveillance, troop positions, inventory levels, and weather conditions. The communication system enables the transfer of images and video captured by surveillance systems, and data and voice between the command and control center. In addition, the system aids in joint operations between the Army, Navy, and Air Force 13
  • The Global Military Simulation and Virtual Training Market 2014–2024 1.3 Summary Methodology Strategic Defense Intelligence (SDI) dedicated research and analysis teams consist of experienced professionals with a background in industry research and consulting in the defense sector. The market size is derived by consolidating ongoing procurement programs, modernization initiatives, and future procurement plans, utilizing information gathered through primary and secondary sources. Forecasting is conducted based on the lifetime of current inventory levels, suitability/need of the weapon category for a specific country, budget availability, and opinion of leading industry experts. The following research methodology is followed for all databases and reports. Secondary Research The research process begins with exhaustive secondary research to source reliable qualitative and quantitative information related to the military simulation and virtual training market. The secondary research sources that are typically referred to include, but are not limited to: Globally renowned think tanks Industry associations National government documents and statistical databases Company websites, annual reports, financial reports, broker reports, and investor presentations Industry trade journals and other literature Internal and external proprietary databases News articles, press releases, and webcasts specific to the companies operating in the market Primary Research SDI conducts hundreds of primary interviews a year with industry participants and commentators in order to validate its data and analysis. A typical research interview fulfills the following functions: Provides first-hand information on market size, market trends, growth trends, competitive landscape, and future outlook Helps to validate and strengthen secondary research findings Further develops the analyses team’s expertise and market understanding The participants who typically take part in such a process include, but are not limited to: Industry participants: CEOs, VPs, business development managers, market intelligence managers, and national sales managers External experts: investment bankers, valuation experts, research analysts, and key opinion leaders specializing in defense markets 14
  • The Global Military Simulation and Virtual Training Market 2014–2024 Conventions Currency conversions are performed on the basis of average annual conversion rate format calculations All the values in tables, with the exception of compounded annual growth rate (CAGR) and compounded annual rate of change (CARC) are displayed to one decimal place. Growth rates may, therefore, appear inconsistent with absolute values due to this rounding method 1.4 About Strategic Defence Intelligence This report is one of a series available to subscribers of our premium research platform, Strategic Defence Intelligence. Strategic Defence Intelligence provides a stream of continuously updated customer and competitor intelligence, as well as detailed research reports providing an unrivalled source of global information on the latest developments in the defense industry. Strategic Defence Intelligence's unique monitoring platform tracks global defense activity for over 2,500 companies and 65 product categories in real time and in a highly structured manner, giving a comprehensive and easily-searchable picture of all defense industry activity. The site features: daily updated analysis, comment and news, company and customer profiles, defense spending, tenders and contracts, product and technology intelligence, a research and analysis database providing access to industry and competitor reports to enable business and market planning, and fully customizable tools, including instant personalized report generation and custom alerts. 15