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
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Announcing Poland #DigitalTransformation Pavilion
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
CloudEXPO | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.