Welcome!

News Feed Item

Frost & Sullivan: Budget Stabilisation and Renewed Spending to Revive Global Military Training and Simulation Market

Merger and acquisition activity, product portfolio diversification and augmented training solutions key to remain competitive

LONDON, July 31, 2014 /PRNewswire/ -- The global military training and simulation (T&S) market has been witnessing a downtrend, as a result primarily due to the sequestration on the United States Department of Defence budget since early 2013. As the US accounts for 68.4 percent of the total military T&S market, its progressive decline has led to an overall negative compound annual growth rate of 0.6 percent at the global level for 2013-2022. Fleet renewal has also slowed down across Western European countries owing to financial constraints.

New analysis from Frost & Sullivan, Global Military Training and Simulation (T&S) Market Assessment, finds that military T&S market revenues are expected to fall slightly from $6.74 billion in 2013 to $6.36 billion in 2022 as the consequence of defence expenditures unsteadiness .

However, defence budgets in the US and Europe are expected to stabilise from 2018 onwards. Military spending and arms races across the Eastern regions, comprising the Middle East, Central Asia and Asia-Pacific, are also expected to increase. These factors will ensure that military T&S market revenues for air, land and naval forces remain steady over the next 10 years. Revenues will be fuelled mainly by the demand for training equipment as training service opportunities will remain relatively restricted in these regions.

"The Western regions, on the other hand, will show a higher demand for military training services as end users prefer outsourcing some or most of their training requirements in the face of stretched budgets as well as decreasing facility and maintenance expenditure," said Frost & Sullivan Aerospace & Defence Industry  Analyst Alix Leboulanger. "This trend will take the cumulative market size of military training services up to $19.57 billion for the 2013–2022 period."

The need for comprehensive military T&S solutions will also rise in Asia-Pacific, Latin America and the Middle East. These regions are investing in defence assets and forces, looking to replace fighters, and boosting their maritime defence. Transitioning regions are keen to acquire new, high-end technology systems as well, with notably a growing interest in connected and distributed training. Their on-going modernisation programmes and need to deter any potential foreign aggression will further improve the prospects of military T&S market participants.

"Price is an essential parameter being increasingly considered by market participants, since end users are highly sensitive to both simulation and training equipment lifecycle management costs," observed Leboulanger. "Newcomers from emerging markets are bringing down training equipment prices and commercial companies are leveraging their IT expertise to gain market exposure. This has made leading military T&S providers face an incredibly competitive market."

To cope with those struggles, traditional suppliers could engage in merger and acquisition activity, diversify their product portfolio and service offerings, and in addition focus on augmented training solutions that seem to be stimulating end-user interest. These measures will also help suppliers in the global military T&S market tap the revenue opportunities that emerge over the next 15 years due to armed forces' evolution and reorganisation.

For more information on this study, please email Edyta Grabowska, Corporate Communications, at [email protected].

Global Military Training and Simulation (T&S) Market Assessment is part of the Defence (http://www.defense.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Military Naval Vessels and Support in Service Market Assessment, Global Military Fixed-wing Aircraft, and 2013 Global Military Land Vehicles Market Insight. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

Global Military Training and Simulation (T&S) Market Assessment

MA06-16

Contact:
Edyta Grabowska
Corporate Communications – Europe
P: +48 22 481 62 03
E: [email protected] 

http://www.frost.com

SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...