the global military simulation and virtual training …defense sector report the global military...

Defense

Sector Report

www.icd-research.com

The Global Military Simulation and

Virtual Training Market 2011–2021

Reference code: DF0008SR

Published: January 2012

TABLE OF CONTENTS

earch. This product is licensed and is not to be photocopied

Published: December 2011

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 (www.strategicdefenceintelligence.com) ......................15

2 Executive Summary ............................................................................................................ 16

3 Global Military Simulation Market Size and Drivers ......................................................... 18

3.1 Military Simulation Market Size and Forecast 2011–2021 ..........................................................18

3.1.1 Global military simulation market to show positive growth over the forecast period ............................... 18

3.2 Global Military Simulation Market – Regional Analysis ..............................................................19

3.2.1 North America dominates the global military simulation market ............................................................ 19

3.2.2 Demand for flight simulators in the US to support market growth .......................................................... 21

3.2.3 Demand for military simulators in Europe expected to increase despite defense budget cuts................ 22

3.2.4 Military simulators market expected to grow at a CAGR of XX% in the Asia-Pacific region ................... 23

3.2.5 Markets in the Middle East to record increased military simulators expenditure .................................... 24

3.2.6 Military simulators and virtual training programs market in Latin America expected to register a CAGR of

XX% over the forecast period .............................................................................................................. 25

3.2.7 Markets in Africa expected to increase over the forecast period ........................................................... 26

3.3 Military Simulation Sub–Sector Market Size Composition .........................................................27

3.3.1 Maritime simulation market to record strong CAGR growth .................................................................. 27

3.3.2 Market size of flight simulators expected to grow at a CAGR of XX% over the forecast period .............. 29

3.3.3 Market size of combat simulators expected to rise at a CAGR of XX% over the forecast period ............ 30

3.3.4 Market for maritime simulators expected to increase and reach US$XX billion by 2021 ........................ 31

3.3.5 Market size of helicopter simulators expected to grow at a CAGR of XX% over the forecast period ...... 32

3.3.6 Market size of maintenance simulators expected to decline over the forecast period ............................ 33

3.4 Demand Drivers and Growth Stimulators ....................................................................................34

3.4.1 Defense budget cuts and the cost effectiveness offered by military simulators driving demand ............. 34

3.4.2 Modernization initiatives to spur demand for military simulators and virtual training programs ............... 34

3.4.3 Environmental issues prompting a shift from real to virtual training ....................................................... 34

3.5 Defense Budget Expenditure Review ..........................................................................................36

3.5.1 European capital expenditure expected to increase over the forecast period ........................................ 36

3.5.2 Asian defense budgets expected to increase at a robust pace ............................................................. 37

3.5.3 North American defense expenditure projected to decline marginally over the forecast period .............. 38

3.5.4 Modernization programs projected to drive defense expenditure in South American countries .............. 39

3.5.5 Military budgets of African countries expected to increase over the forecast period .............................. 40

3.5.6 Defense budgets of Middle Eastern countries projected to increase over the forecast period ................ 41

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3.6 Defense Modernization Review ....................................................................................................42

3.6.1 Financial constraints causing delays in European defense modernization programs ............................. 42

3.6.2 Defense budgets of Asian countries projected to be driven by competitive arms acquisitions................ 42

3.6.3 Global financial crisis leading to defense budget cuts in the North American region .............................. 43

3.6.4 Need to replace aging equipment driving South American defense expenditure ................................... 43

3.6.5 Security threats increasing the defense budget of African countries ..................................................... 43

3.6.6 Demand for air defense systems is projected to increase in the Middle East ........................................ 43

4 Industry Trends, Recent Developments and Challenges................................................. 44

4.1 Technological Developments .......................................................................................................44

4.1.1 Collimated displays to achieve enhanced field of view and focus .......................................................... 44

4.1.2 Improvised explosive device (IED) trainer simulator ............................................................................. 44

4.1.3 Submarine tracker simulator ................................................................................................................ 44

4.2 Market Trends................................................................................................................................45

4.2.1 Demand for flight simulators on the rise ............................................................................................... 45

4.2.2 Technological innovations require lower levels of capital and provide operating cost benefits ............... 45

4.3 Industry Consolidation .................................................................................................................46

4.3.1 Joint R&D programs expected to increase over the forecast period ...................................................... 46

4.3.2 Companies are entering into licensing agreements in order to simplify training programs ..................... 46

4.4 Key Challenges .............................................................................................................................47

4.4.1 Need for interoperability ....................................................................................................................... 47

4.4.2 Developing high-fidelity simulators at an affordable cost....................................................................... 47

5 SWOT Analysis of the Military Simulation and Virtual Training Market ......................... 48

5.1 Strengths .......................................................................................................................................49

5.1.1 Cost effective ....................................................................................................................................... 49

5.1.2 Ageing aircraft and helicopter fleet ....................................................................................................... 49

5.1.3 Diverse training scenarios .................................................................................................................... 49

5.1.4 Deferred training and environmental policies ........................................................................................ 50

5.2 Weaknesses ..................................................................................................................................51

5.2.1 Lack of precision.................................................................................................................................. 51

5.2.2 Limited opportunities in emerging markets and smaller nations ............................................................ 51

5.3 Opportunities.................................................................................................................................52

5.3.1 Growing demand for UAV simulators ................................................................................................... 52

5.3.2 Global shift in simulator perception ...................................................................................................... 52

5.4 Threats ...........................................................................................................................................53

5.4.1 US and European economic crisis ....................................................................................................... 53

5.4.2 Shrinking military expenditure to impact demand for advanced technology simulators .......................... 53

6 Country Analysis – Military Simulation Market ................................................................. 54

6.1 United States Market Size and Forecast 2011–2021 ...................................................................55

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6.1.1 Flight simulators expected to be the largest spend category in the US ................................................. 58

6.1.2 Combat simulators expected to constitute the second-largest market share in the US .......................... 59

6.1.3 Demand for Maritime simulators expected to increase at a CAGR of XX% over the forecast period ...... 60

6.2 Turkey Market Size and Forecast 2011–2021 ..............................................................................61

6.2.1 Demand for flight simulators to be robust over the forecast period ........................................................ 64

6.2.2 Helicopter simulators to be in demand in Turkey over the forecast period ............................................. 65

6.3 France Market Size and Forecast 2011–2021 ..............................................................................66

6.3.1 Demand for flight simulators in France to remain high .......................................................................... 69

6.3.2 Combat simulators procurement of France to continue until 2021 ......................................................... 70

6.4 The United Kingdom Market Size and Forecast 2011–2021 .......................................................71

6.4.1 Helicopter simulation market in the UK to increase over the forecast period ......................................... 74

6.4.2 UK Military Flight Training System (UKMFTS) program to drive expenditure in the flight simulator market

............................................................................................................................................................ 75

6.5 Saudi Arabia Market Size and Forecast 2011–2021 ....................................................................76

6.5.1 The market for helicopter simulators expected to increase at a CAGR of XX% over the forecast period ...

............................................................................................................................................................ 78

6.5.2 The procurement of flight simulators to end by 2021 ............................................................................ 79

6.6 UAE Market Size and Forecast 2011–2021 ..................................................................................80

6.6.1 Helicopter simulators market to grow over the forecast period .............................................................. 83

6.6.2 Demand for flight simulators in UAE to decline by 2021 ....................................................................... 84

6.7 Brazil Market Size and Forecast 2011–2021 ................................................................................85

6.7.1 Brazil is expected to spend significantly on military flight simulators ..................................................... 88

6.7.2 Brazil expected to spend US$XX million on procuring military helicopter simulators ............................. 89

6.7.3 Brazil expected to acquire simulators for armored personal carriers and main battle tanks ................... 90

6.8 Chile Market Size and Forecast 2011–2021 .................................................................................91

6.8.1 Chile expected to spend on flight simulators to train the armed forces for the acquisition of transport,

multi-role and reconnaissance aircraft .............................................................................................................. 94

6.8.2 Chile expected to procure combat simulators ....................................................................................... 95

6.9 China Market Size and Forecast 2011–2021 ................................................................................96

6.9.1 Hostile political environment driving expenditure on military equipment and consequently military

simulators ............................................................................................................................................ 99

6.9.2 China to spend US$XX million on the procurement of combat simulators ........................................... 100

6.9.3 Maritime military simulators being procured by China ......................................................................... 101

6.10 South Korea Market Size and Forecast 2011–2021 ................................................................... 102

6.10.1 South Korea is investing in maritime simulators due to the rising naval power of China and North Korea ..

.......................................................................................................................................................... 105

6.10.2 South Korea expected to allocate funds to the acquisition of helicopter simulators ............................. 106

6.10.3 South Korea investing in flight simulators until 2018 ........................................................................... 107

6.11 India Market Size and Forecast 2011–2021 ............................................................................... 108

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6.11.1 Procurement of combat simulators to meet training requirements as a result of the army’s modernization

program ............................................................................................................................................. 112

6.11.2 India expected to spend US$XX million on maritime simulators over the forecast period .................... 113

6.11.3 Flight simulators market to be driven by expenditure on military aircraft .............................................. 114

6.12 South Africa Market Size and Forecast 2011–2021 ................................................................... 115

6.12.1 South Africa investing in flight simulators to train its pilots on newly acquired aircraft .......................... 117

6.12.2 South Africa expected to procure combat simulators .......................................................................... 118

7 Major Military Simulation Programs .................................................................................119

7.1 Flight Simulators ......................................................................................................................... 119

7.1.1 UK Military Flight Training System (UKMFTS) program ...................................................................... 119

7.1.2 F 16 collision avoidance simulators .................................................................................................... 120

7.1.1 C-27J simulator ................................................................................................................................. 121

7.2 Helicopter Simulators ................................................................................................................. 122

7.2.1 Support contract for Tiger Aircrew Training Means (TATM) ................................................................ 122

7.2.2 NH90 simulator program .................................................................................................................... 123

7.2.3 MH-60R Tactical Operational Flight Trainers (TOFTs) ........................................................................ 124

7.3 Maintenance Simulators ............................................................................................................. 125

7.3.1 Maintenance and support of training systems..................................................................................... 125

7.3.2 3D interactive maintenance training ................................................................................................... 126

7.3.3 C-130J .............................................................................................................................................. 127

7.4 Maritime Simulators .................................................................................................................... 128

7.4.1 Landing Helicopter Dock .................................................................................................................... 128

7.4.2 POLARIS Ship’s Bridge Simulator...................................................................................................... 129

7.4.3 AN/SQQ-89(V)-T On-Board Trainer ................................................................................................... 130

7.5 Combat Simulators ..................................................................................................................... 131

7.5.1 Virtual reality simulator....................................................................................................................... 131

7.5.2 T-90 .................................................................................................................................................. 132

7.5.3 Dismounted Soldier Training System ................................................................................................. 133

8 Competitive Landscape and Strategic Insights ...............................................................134

8.1 Competitive Landscape Overview ................................................................................................. 134

8.1.1 Lockheed Martin Corporation: overview ............................................................................................. 134

8.1.2 Lockheed Martin Corporation: products and services ......................................................................... 134

8.1.3 Lockheed Martin Corporation: recent announcements and strategic initiatives.................................... 135

8.1.4 Lockheed Martin Corporation: alliances ............................................................................................. 135

8.1.5 Lockheed Martin Corporation: recent contract wins ............................................................................ 135

8.1.6 Lockheed Martin Corporation: financial analysis ................................................................................. 137

8.1.7 Boeing: overview ............................................................................................................................... 139

8.1.8 Boeing: products and services ........................................................................................................... 139

8.1.9 Boeing: recent announcements and strategic initiatives ..................................................................... 139

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8.1.10 Boeing: alliances ............................................................................................................................... 140

8.1.11 Boeing: recent contract wins .............................................................................................................. 140

8.1.12 Boeing: financial analysis ................................................................................................................... 141

8.1.13 CAE: overview ................................................................................................................................... 143

8.1.14 CAE: products and services ............................................................................................................... 143

8.1.15 CAE: recent announcements and strategic initiatives ......................................................................... 143

8.1.16 CAE: alliances ................................................................................................................................... 144

8.1.17 CAE: recent contract wins .................................................................................................................. 144

8.1.18 CAE: financial analysis ...................................................................................................................... 145

8.1.19 Saab: overview .................................................................................................................................. 146

8.1.20 Saab: products and services .............................................................................................................. 147

8.1.21 Saab: recent announcements and strategic initiatives ........................................................................ 148

8.1.22 Saab: alliances .................................................................................................................................. 148

8.1.23 Saab: recent contract wins ................................................................................................................. 148

8.1.24 Saab: financial analysis ..................................................................................................................... 149

8.1.25 L-3 Link Simulation & Training: overview ............................................................................................ 151

8.1.26 L-3 Link Simulation & Training: products and services ........................................................................ 151

8.1.27 L-3 Link Simulation & Training: recent announcements and strategic initiatives .................................. 151

8.1.28 L-3 Link Simulation & Training: alliances ............................................................................................ 152

8.1.29 L-3 Link Simulation & Training: recent contract wins........................................................................... 152

8.1.30 L-3 Link Simulation & Training: financial analysis ............................................................................... 153

8.1.31 AAI Corporation: overview ................................................................................................................. 153

8.1.32 AAI Corporation: products and services ............................................................................................. 153

8.1.33 AAI Corporation: recent announcements and strategic initiatives ........................................................ 153

8.1.34 AAI Corporation: alliances ................................................................................................................. 154

8.1.35 AAI Corporation: recent contract wins ................................................................................................ 154

8.1.36 AAI Corporation: financial analysis ..................................................................................................... 155

8.1.37 DCNS: overview ................................................................................................................................ 155

8.1.38 DCNS: products and services ............................................................................................................ 155

8.1.39 DCNS: recent announcements and strategic initiatives ...................................................................... 155

8.1.40 DCNS: alliances ................................................................................................................................ 155

8.1.41 DCNS: recent contract wins ............................................................................................................... 155

8.1.42 DCNS: financial analysis .................................................................................................................... 156

8.1.43 Cassidian: overview ........................................................................................................................... 156

8.1.44 Cassidian: products and services ....................................................................................................... 156

8.1.45 Cassidian: recent announcements and strategic initiatives ................................................................. 156

8.1.46 Cassidian: alliances ........................................................................................................................... 157

8.1.47 Cassidian: recent contract wins.......................................................................................................... 157

8.1.48 Cassidian: financial analysis .............................................................................................................. 157

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8.1.49 Sikorsky Aircraft Corporation: overview .............................................................................................. 158

8.1.50 Sikorsky Aircraft Corporation: products and services .......................................................................... 158

8.1.51 Sikorsky Aircraft Corporation: recent announcements and strategic initiatives .................................... 158

8.1.52 Sikorsky Aircraft Corporation: alliances .............................................................................................. 158

8.1.53 Sikorsky Aircraft Corporation: recent contract wins ............................................................................. 159

8.1.54 Sikorsky Aircraft Corporation: financial analysis ................................................................................. 159

8.1.55 Rockwell Collins: overview ................................................................................................................. 159

8.1.56 Rockwell Collins: products and services ............................................................................................. 159

8.1.57 Rockwell Collins: recent announcements and strategic initiatives ....................................................... 160

8.1.58 Rockwell Collins: alliances ................................................................................................................. 160

8.1.59 Rockwell Collins: recent contract wins................................................................................................ 161

8.1.60 Rockwell Collins: financial analysis .................................................................................................... 161

8.1.61 Kratos Defense and Security Solutions: overview............................................................................... 163

8.1.62 Kratos Defense and Security Solutions: products and services .......................................................... 163

8.1.63 Kratos Defense and Security Solutions: recent announcements and strategic initiatives ..................... 163

8.1.64 Kratos Defense and Security Solutions: alliances ............................................................................... 163

8.1.65 Kratos Defense and Security Solutions: recent contract wins ............................................................. 164

8.1.66 Kratos Defense and Security Solutions: financial analysis .................................................................. 164

8.1.67 Teledyne Brown Engineering, Inc: overview ....................................................................................... 166

8.1.68 Teledyne Brown Engineering, Inc: products and services ................................................................... 166

8.1.69 Teledyne Brown Engineering, Inc: recent announcements and strategic initiatives ............................. 167

8.1.70 Teledyne Brown Engineering, Inc: alliances ....................................................................................... 167

8.1.71 Teledyne Brown Engineering, Inc: recent contract wins ...................................................................... 167

8.1.72 Teledyne Brown Engineering, Inc: financial analysis .......................................................................... 167

8.1.73 Raytheon: overview ........................................................................................................................... 168

8.1.74 Raytheon: products and services ....................................................................................................... 168

8.1.75 Raytheon: recent announcements and strategic initiatives ................................................................. 168

8.1.76 Raytheon: alliances ........................................................................................................................... 168

8.1.77 Raytheon: recent contract wins .......................................................................................................... 169

8.1.78 Raytheon: financial analysis ............................................................................................................... 169

8.1.79 HAVELSAN: overview ....................................................................................................................... 172

8.1.80 HAVELSAN: products and services ................................................................................................... 172

8.1.81 HAVELSAN: recent announcements and strategic initiatives .............................................................. 172

8.1.82 HAVELSAN: alliances ........................................................................................................................ 172

8.1.83 HAVELSAN: Recent Contract Wins ................................................................................................... 173

8.1.84 HAVELSAN: financial analysis ........................................................................................................... 173

8.1.85 DiSTI: overview ................................................................................................................................. 173

8.1.86 DiSTI: products and services ............................................................................................................. 173

8.1.87 DiSTI: recent announcements and strategic initiatives ........................................................................ 174

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8.1.88 DiSTI: alliances.................................................................................................................................. 174

8.1.89 DiSTI: recent contract wins ................................................................................................................ 175

8.1.90 DiSTI: financial analysis ..................................................................................................................... 175

8.1.91 ZedaSoft Inc: overview ...................................................................................................................... 175

8.1.92 ZedaSoft Inc: products and services .................................................................................................. 175

8.1.93 ZedaSoft Inc: recent announcements and strategic initiatives ............................................................. 176

8.1.94 ZedaSoft Inc: alliances....................................................................................................................... 176

8.1.95 ZedaSoft Inc: recent contract wins ..................................................................................................... 176

8.1.96 ZedaSoft Inc: financial analysis .......................................................................................................... 176

8.1.97 Fidelity Technologies Corporation: overview ...................................................................................... 177

8.1.98 Fidelity Technologies Corporation: products and services .................................................................. 177

8.1.99 Fidelity Technologies Corporation: recent announcements and strategic initiatives............................. 177

8.1.100 Fidelity Technologies Corporation: alliances ...................................................................................... 177

8.1.101 Fidelity Technologies Corporation: recent contract wins ..................................................................... 178

8.1.102 Fidelity Technologies Corporation: financial analysis .......................................................................... 178

8.1.103 Alenia Aeronautica: overview ............................................................................................................. 178

8.1.104 Alenia Aeronautica: products and services ......................................................................................... 178

8.1.105 Alenia Aeronautica: recent announcements and strategic initiatives ................................................... 179

8.1.106 Alenia Aeronautica: alliances ............................................................................................................. 179

8.1.107 Alenia Aeronautica: recent contract wins ............................................................................................ 179

8.1.108 Alenia Aeronautica: financial analysis ................................................................................................ 179

8.1.109 VirTra Systems: overview .................................................................................................................. 179

8.1.110 VirTra Systems: products and services .............................................................................................. 180

8.1.111 VirTra Systems: recent announcements and strategic initiatives......................................................... 180

8.1.112 VirTra Systems: alliances .................................................................................................................. 180

8.1.113 VirTra Systems: recent contract wins ................................................................................................. 180

8.1.114 VirTra Systems: financial analysis ...................................................................................................... 180

8.1.115 Meggitt Training Systems: overview ................................................................................................... 180

8.1.116 Meggitt Training Systems: products and services ............................................................................... 181

8.1.117 Meggitt Training Systems: recent announcements and strategic initiatives ......................................... 181

8.1.118 Meggitt Training Systems: alliances ................................................................................................... 181

8.1.119 Meggitt Training Systems: recent contract wins .................................................................................. 181

8.1.120 Meggitt Training Systems: financial analysis ...................................................................................... 182

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LIST OF FIGURES

Figure 1: Global Military Simulation Market (US$ Billion), 2011–2021........................................................................................................................ 19 Figure 2: Military Simulation Market Breakdown by Region (%), 2011–2021 ............................................................................................................. 21 Figure 3: North American Military Simulation Market (US$ Billion), 2011–2021......................................................................................................... 22 Figure 4: European Military Simulation Market (US$ Million), 2011–2021.................................................................................................................. 23 Figure 5: Asia-Pacific Military Simulation Market (US$ Billion), 2011–2021 ............................................................................................................... 24 Figure 6: Middle East Military Simulation Market (US$ Million), 2011–2021 .............................................................................................................. 25 Figure 7: Latin American Military Simulation Market (US$ Million), 2011–2021 ......................................................................................................... 26 Figure 8: African Military Simulation Market (US$ Million), 2011–2021 ...................................................................................................................... 27 Figure 9: Military Simulation Market Breakdown by Segment (%), 2011–2021 .......................................................................................................... 29 Figure 10: Flight Simulation Market Size (US$ Billion), 2011–2021 ............................................................................................................................ 30 Figure 11: Global Combat Simulators Market Size (US$ Billion), 2011–2021 ............................................................................................................ 31 Figure 12: Global Maritime Simulators Market Size (US$ Billion), 2011–2021 ........................................................................................................... 32 Figure 13: Global Helicopter Simulation Market Size (US$ Million), 2011–2021 ........................................................................................................ 33 Figure 14: Global Maintenance Simulation Market Size (US$ Million), 2011–2021 ................................................................................................... 34 Figure 15: Defense Capital Expenditure of Top Three European Defense Spenders (US$ Billion), 2011–2021...................................................... 36 Figure 16: Defense Capital Expenditure of Top Three Asian Defense Spenders (US$ Billion), 2011–2021 ............................................................ 37 Figure 17: Defense Capital Expenditure of Top North American Defense Spenders (US$ Billion), 2011–2021....................................................... 38 Figure 18: Defense Capital Expenditure of Top Three South American Defense Spenders (US$ Billion), 2011–2021 ........................................... 39 Figure 19: Defense Capital Expenditure of Top Three African Countries (US$ Billion), 2011–2021 ......................................................................... 40 Figure 20: Defense Capital Expenditure of Top Three Middle Eastern Defense Spenders (US$ Billion), 2011–2021 ............................................. 41 Figure 21: Military Simulation Market in the US (US$ Billion), 2011–2021 ................................................................................................................. 56 Figure 22: Military Simulation Market Split By Sector in the US (%), 2011–2021....................................................................................................... 57 Figure 23: Flight Simulation Market Size in US (US$ Million), 2011–2021 ................................................................................................................. 58 Figure 24: Combat Simulation Market Size in US (US$ Million), 2011–2021 ............................................................................................................. 59 Figure 25: Maritime Simulation Market Size in the US (US$ Million), 2011–2021 ...................................................................................................... 60 Figure 26: Military Simulation Market in Turkey (US$ Million), 2011–2021 ................................................................................................................ 62 Figure 27: Military Simulation Market Split by Sector in Turkey (%), 2011–2021 ....................................................................................................... 63 Figure 28: Flight Simulators Market Size in Turkey (US$ Million), 2011–2021 ........................................................................................................... 64 Figure 29: Helicopter Simulators Market Size in Turkey (US$ Million), 2011–2021 ................................................................................................... 65 Figure 30: Military Simulation Market in France (US$ Million), 2011–2021 ................................................................................................................ 67 Figure 31: Military Simulation Market Split by Sector in France (%), 2011–2021 ....................................................................................................... 68 Figure 32: Flight Simulation Market Size in France (US$ Million), 2011–2021 ........................................................................................................... 69 Figure 33: Combat Simulation Market Size in France (US$ Million), 2011–2021 ....................................................................................................... 70 Figure 34: Military Simulator Market in the UK (US$ Million), 2011–2021 .................................................................................................................. 72 Figure 35: Military Simulation Market Split by Sector in UK (%), 2011–2021 ............................................................................................................. 73 Figure 36: Helicopter Simulation Market Size in the UK (US$ Million), 2011–2021 ................................................................................................... 74 Figure 37: Flight Simulator Market Size in the UK (US$ Million), 2011–2021 ............................................................................................................ 75 Figure 38: Military Simulation Market in Saudi Arabia (US$ Million), 2011–2021....................................................................................................... 76 Figure 39: Military Simulation Market Split by Sector in Saudi Arabia (%), 2011–2021 ............................................................................................. 77 Figure 40: Helicopter Simulation Market Size in Saudi Arabia (US$ Million), 2011–2021 ......................................................................................... 78 Figure 41: Flight Simulation Market Size in Saudi Arabia (US$ Million), 2011–2021 ................................................................................................. 79 Figure 42: Military Simulation Market in the UAE (US$ Million), 2011–2021 .............................................................................................................. 81 Figure 43: Military Simulation Market Split by Sector in the UAE (%), 2011–2021 .................................................................................................... 82 Figure 44: Helicopter Simulation Market Size in the UAE (US$ Million), 2011–2021 ................................................................................................. 83 Figure 45: Flight Simulation Market Size in the UAE (US$ Million), 2011–2021 ........................................................................................................ 84 Figure 46: Military Simulation Market in Brazil (US$ Million), 2011–2021 .................................................................................................................. 86 Figure 47: Military Simulation Market Split By Sector in Brazil (%), 2011–2021......................................................................................................... 87 Figure 48: Military Flight Simulation Market Size in Brazil (US$ Million), 2011–2021 ................................................................................................ 88 Figure 49: Military Helicopter Simulation Market Size in Brazil (US$ Million), 2011–2021......................................................................................... 89 Figure 50: Combat Simulation Market Size in Brazil (US$ Million), 2011–2021 ......................................................................................................... 90 Figure 51: Military Simulation Market in Chile (US$ Million), 2011–2021 ................................................................................................................... 92 Figure 52: Military Simulation Market Split By Sector in Chile (%), 2011–2021 ......................................................................................................... 93 Figure 53: Military Flight Simulation Market Size in Chile (US$ Million), 2011–2021 ................................................................................................. 94 Figure 54: Military Combat Simulation Market Size in Chile (US$ Million), 2011–2021 ............................................................................................. 95 Figure 55: Military Simulation Market in China (US$ Million), 2011–2021 .................................................................................................................. 97 Figure 56: Military Simulators Market Split by Sector in China (%), 2011–2021 ........................................................................................................ 98 Figure 57: Military Flight Simulators Market Size in China (US$ Million), 2011–2021................................................................................................ 99

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Figure 58: Military Combat Simulator Market Size in China (US$ Million), 2011–2021 ........................................................................................... 100 Figure 59: Maritime Simulation Market Size in China (US$ Million), 2011–2021 ..................................................................................................... 101 Figure 60: Military Simulation Market in South Korea (US$ Million), 2011–2021 ..................................................................................................... 103 Figure 61: Military Simulator Market Split by Sector in South Korea (%), 2011–2021 ............................................................................................. 104 Figure 62: Maritime Simulator Market Size in South Korea (US$ Million), 2011–2021 ............................................................................................ 105 Figure 63: Helicopter Simulator Market Size in South Korea (US$ Million), 2011–2021.......................................................................................... 106 Figure 64: Flight Simulator Market Size in South Korea (US$ Million), 2011–2021 ................................................................................................. 107 Figure 65: Military Simulation Market in India (US$ Million), 2011–2021 .................................................................................................................. 109 Figure 66: Military Simulator Market Split by Sector in India (%), 2011–2021 .......................................................................................................... 111 Figure 67: Combat Simulator Market Size in India (US$ Million), 2011–2021 .......................................................................................................... 112 Figure 68: Maritime Simulators Market Size in India (US$ Million), 2011–2021 ....................................................................................................... 113 Figure 69: Flight Simulators Market Size in India (US$ Million), 2011–2021 ............................................................................................................ 114 Figure 70: Military Simulation Market in South Africa (US$ Million), 2011–2021...................................................................................................... 115 Figure 71: Military Simulators Market Split by Sector in South Africa (%), 2011–2021 ............................................................................................ 116 Figure 72: Military Flight Simulators Market Size in South Africa (US$ Million), 2011–2021 ................................................................................... 117 Figure 73: Combat Simulator Market Size in South Africa (US$ Million), 2011–2021 .............................................................................................. 118 Figure 74: Lockheed Martin Corporation – Revenue Trend Analysis (US$ Billion), 2006–2010 ............................................................................. 137 Figure 75: Lockheed Martin Corporation – Operating Profit (US$ Million), 2006–2010 ........................................................................................... 138 Figure 76: Lockheed Martin Corporation – Net Profit Trend Analysis (US$ Million), 2006–2010 ............................................................................ 138 Figure 77: Boeing – Revenue Trend Analysis (US$ billion), 2006–2010 .................................................................................................................. 141 Figure 78: Boeing – Operating Profit (US$ million), 2006–2010 ............................................................................................................................... 142 Figure 79: Boeing – Net Profit Trend Analysis (US$ million), 2006–2010 ................................................................................................................ 142 Figure 80: CAE – Revenue Trend Analysis (CAD billion), 2006–2010 ..................................................................................................................... 145 Figure 81: CAE – Operating Profit (CAD million), 2006–2010 ................................................................................................................................... 145 Figure 82: CAE – Net Profit Trend Analysis (CAD million), 2006–2010 .................................................................................................................... 146 Figure 83: Saab – Revenue Trend Analysis (SEK billion), 2006–2010 ..................................................................................................................... 149 Figure 84: Saab – Operating Profit (SEK million), 2006–2010 .................................................................................................................................. 150 Figure 85: Saab – Net Profit Trend Analysis (SEK million), 2006–2010 ................................................................................................................... 150 Figure 86: Rockwell Collins – Revenue Trend Analysis (US$ billion), 2006–2010 ................................................................................................... 161 Figure 87: Rockwell Collins – Operating Profit (US$ million), 2006–2010 ................................................................................................................ 162 Figure 88: Rockwell Collins – Net Profit Trend Analysis (US$ million), 2006–2010 ................................................................................................. 162 Figure 89: Kratos Defense and Security Solutions – Revenue Trend Analysis (US$ million), 2006–2010 ............................................................. 165 Figure 90: Kratos Defense and Security Solutions – Operating Profit (US$ million), 2006–2010............................................................................ 165 Figure 91: Kratos Defense and Security Solutions – Net Profit Trend Analysis (US$ million), 2006–2010 ............................................................. 166 Figure 92: Raytheon – Revenue Trend Analysis (US$ billion), 2006–2010 .............................................................................................................. 169 Figure 93: Raytheon – Operating Profit (US$ million), 2006–2010 ........................................................................................................................... 170 Figure 94: Raytheon – Net Profit Trend Analysis (US$ million), 2006–2010 ............................................................................................................ 170

TABLE OF CONTENTS



LIST OF TABLES

Table 1: Global Military Simulation Market Overview................................................................................................................................................... 20 Table 2: Global Military Simulation Market Overview................................................................................................................................................... 28 Table 3: SWOT Analysis of the Military Simulation and Virtual Training Market ........................................................................................................ 49 Table 4: Leading Military Simulation Markets and Top Three Segments .................................................................................................................... 55 Table 5: US Military Simulation Market Overview ........................................................................................................................................................ 56 Table 6: Key Military Aircraft Programs ........................................................................................................................................................................ 57 Table 7: Turkish Military Simulation Market Overview ................................................................................................................................................. 62 Table 8: Key Turkish Military Simulator Programs ....................................................................................................................................................... 63 Table 9: French Military Simulation Market Overview .................................................................................................................................................. 67 Table 10: Key French Military Simulator Programs ...................................................................................................................................................... 68 Table 11: UK Military Simulation Market Overview ...................................................................................................................................................... 72 Table 12: Key UK Military Simulator Programs ............................................................................................................................................................ 73 Table 13: Saudi Arabian Military Simulation Market Overview .................................................................................................................................... 77 Table 14: Key Saudi Arabian Military Simulator Programs .......................................................................................................................................... 78 Table 15: UAE Military Simulation Market Overview.................................................................................................................................................... 81 Table 16: Key UAE Military Simulator Programs.......................................................................................................................................................... 82 Table 17: Brazilian Military Simulation Market Overview ............................................................................................................................................. 86 Table 18: Key Brazilian Military Simulator Programs ................................................................................................................................................... 88 Table 19: Chilean Military Simulation Market Overview ............................................................................................................................................... 92 Table 20: Key Chilean Military Simulation Programs ................................................................................................................................................... 94 Table 21: Chinese Military Simulators Market Overview ............................................................................................................................................. 97 Table 22: Key Military Simulators Programs ................................................................................................................................................................ 98 Table 23: South Korean Military Simulation Market Overview................................................................................................................................... 103 Table 24: Main South Korean Military Simulators Programs ..................................................................................................................................... 104 Table 25: Indian Military Simulation Market Overview ............................................................................................................................................... 109 Table 26: Key Indian Military Simulation Programs ................................................................................................................................................... 111 Table 27: South African Military Simulation Market Overview ................................................................................................................................... 116 Table 28: Key South Africa Military Simulators Programs ......................................................................................................................................... 117 Table 29: Program Details – UKMFTS program ........................................................................................................................................................ 120 Table 30: Program Details – F 16 Collision Avoidance Simulator Program .............................................................................................................. 121 Table 31: Program Details – C-27J simulator program .............................................................................................................................................. 122 Table 32: Program Details – Support contract for TATM ........................................................................................................................................... 123 Table 33: Program Details – NH90 simulator program .............................................................................................................................................. 124 Table 34: Program Details – MH-60R TOFTs simulator program ............................................................................................................................. 125 Table 35: Program Details – Maintenance and support of training systems ............................................................................................................. 126 Table 36: Program Details – 3D interactive maintenance training ............................................................................................................................ 127 Table 37: Program Details – C-130J Simulator Program........................................................................................................................................... 128 Table 38: Program Details – Landing Helicopter Dock .............................................................................................................................................. 129 Table 39: Program Details – POLARIS Ship’s Bridge Simulator ............................................................................................................................... 130 Table 40: Program Details – AN/SQQ-89(V)-T On-Board Trainer ............................................................................................................................ 131 Table 41: Program Details – Virtual reality simulators ............................................................................................................................................... 132 Table 42: Program Details – T-90 simulator ............................................................................................................................................................... 133 Table 43: Program Details – Dismounted Soldier Training System .......................................................................................................................... 134 Table 44: Lockheed Martin Corporation – Alliances .................................................................................................................................................. 136 Table 45: Lockheed Martin Corporation – Recent Contract Wins ............................................................................................................................. 136 Table 46: Boeing – Alliances ....................................................................................................................................................................................... 141 Table 47: Boeing – Recent Contract Wins ................................................................................................................................................................. 141 Table 48: CAE – Alliances........................................................................................................................................................................................... 145 Table 49: CAE – Recent Contract Wins ..................................................................................................................................................................... 145 Table 50: Saab – Alliances ........................................................................................................................................................................................ 149 Table 51: Saab – Recent Contract Wins .................................................................................................................................................................... 149 Table 52: L-3 Link Simulation & Training – Alliances ................................................................................................................................................. 153 Table 53: L-3 Link Simulation & Training – Recent Contract Wins............................................................................................................................ 153 Table 54: AAI Corporation – Alliances ........................................................................................................................................................................ 155 Table 55: AAI Corporation – Recent Contract Wins................................................................................................................................................... 155 Table 56: DCNS – Recent Contract Wins .................................................................................................................................................................. 157 Table 57: Cassidian – Alliances .................................................................................................................................................................................. 158

TABLE OF CONTENTS



Table 58: Cassidian – Recent Contract Wins ............................................................................................................................................................. 158 Table 59: Sikorsky Aircraft Corporation – Alliances ................................................................................................................................................... 159 Table 60: Sikorsky Aircraft Corporation – Recent Contract Wins .............................................................................................................................. 160 Table 61: Rockwell Collins – Alliances ....................................................................................................................................................................... 161 Table 62: Rockwell Collins – Recent Contract Wins .................................................................................................................................................. 162 Table 63: Kratos Defense and Security Solutions – Recent Contract Wins.............................................................................................................. 165 Table 64: Teledyne Brown Engineering, Inc – Alliances............................................................................................................................................ 168 Table 65: Teledyne Brown Engineering, Inc – Recent Contract Wins ...................................................................................................................... 168 Table 66: Raytheon – Alliances .................................................................................................................................................................................. 169 Table 67: Raytheon – Recent Contract Wins ............................................................................................................................................................. 170 Table 68: HAVELSAN – Alliances .............................................................................................................................................................................. 173 Table 69: HAVELSAN – Recent Contract Wins ......................................................................................................................................................... 174 Table 70: DiSTI – Alliances ......................................................................................................................................................................................... 175 Table 71: DiSTI – Recent Contract Wins .................................................................................................................................................................... 176 Table 72: ZedaSoft Inc – Alliances ............................................................................................................................................................................. 177 Table 73: ZedaSoft Inc – Recent Contract Wins ........................................................................................................................................................ 177 Table 74: Fidelity Technologies Corporation – Recent Contract Wins ...................................................................................................................... 179 Table 75: Alenia Aeronautica – Alliances ................................................................................................................................................................... 180 Table 76: Alenia Aeronautica – Recent Contract Wins .............................................................................................................................................. 180 Table 77: VirTra Systems – Recent Contract Wins .................................................................................................................................................... 181 Table 78: Meggitt Training Systems – Recent Contract Wins ................................................................................................................................... 182

EXECUTIVE SUMMARY



1 Executive Summary

The global military simulator market is expected to increase at a CAGR of XX% over the forecast

period

The global military simulation market, which valued US$XX billion in 2011, is projected to grow at a CAGR of

XX% over the forecast period to value US$XX billion by 2021. Demand for military simulators is anticipated to

be driven by both internal and external security threats, territorial disputes and modernization initiatives

undertaken by armed forces across the world. Perhaps most importantly demand will be additionally driven by

the cost effectiveness provided by military simulators in times when defense budgets are being cut due to the

economic difficulties being faced by the key markets including the US and Europe. Cumulatively, the market

for military simulators over the forecast period is expected to value US$XX billion. Significant spenders include

countries in the North American, Asia-Pacific and European regions, with the global military simulation market

projected to be dominated by the US over the forecast period, followed by the Asia-Pacific, European and

Latin American regions. Even though many of the European nations are facing an economic crisis, Europe’s

share of the global market is projected to increase over the forecast period due to a shift from actual to virtual

training, owing to the resultant cost savings.

GLOBAL MILITARY SIMULATION MARKET SIZE AND DRIVERS



2 Global Military Simulation Market Size and Drivers

2.1 Military Simulation Market Size and Forecast 2011–2021

2.1.1 Global military simulation market to show positive growth over the forecast period

The global military simulation and virtual training programs market valued US$XX billion in 2011. The market

consists of five simulation categories: flight, helicopter, combat, maritime and maintenance. The value of the

market is expected to increase at a CAGR of XX% over the forecast period, to reach a value of US$XX billion

by 2021. The military simulation market is expected to record consistent growth rates over the forecast period

reaching its peak by 2021. Flight simulators are expected to account for XX% of the global military simulation

market followed by combat, maritime and helicopter simulators with respective shares of XX%, XX% and

XX%. Over the forecast period, the cumulative global expenditure on military simulators and virtual training

programs is expected to reach US$XX billion.

The chart below shows the expected military simulation market value during 2011–2021:

Figure 1: Global Military Simulation Market (US$ Billion), 2011–2021

Source: ICD Research analysis © ICD Research

XX

XX

XX

XX

XX

XX

XX

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

US

$ B

illi

on

2021




2.2 Global Military Simulation Market – Regional Analysis

2.2.1 North America dominates the global military simulation market

The US has observed budget cuts, a situation which is projected to continue in the future. Despite this, North

America is expected to account for the largest share of the total global military simulators and virtual training

programs market with a XX% share over the forecast period. Regional demand is primarily driven by the large

procurements of military aircraft, submarines and armored vehicles which have consequently resulted in a

demand for training programs. Asia and Europe are also expected to account for a significant portion of the

total global military simulators market over the forecast period, with respective shares of XX% and XX%. This

will be largely driven by the modernization efforts of countries such as India, China, the UK and Russia. Latin

America, Africa and the Middle East account for respective shares of XX%, XX% and XX% with regards to

global military simulation expenditure.

The table below gives a brief overview of the global military simulation market:

Table 1: Global Military Simulation Market Overview

Particulars Market in 2011 Market in 2021 Total Market (2011–2021)

Annualized growth/decline

(2011–2021)

North America US$XX billion US$XX billion US$XX billion XX%

Asia-Pacific US$XX million US$XX billion US$XX billion XX%

Europe US$XX million US$XX million US$XX billion XX%

Latin America US$XX million US$XX million US$XX billion XX%

Africa US$XX million US$XX million US$XX million XX%

Middle East US$XX million US$XX million US$XX million XX%

Total military simulation market US$XX billion US$XX billion US$XX billion XX%





2.3 Military Simulation Sub–Sector Market Size Composition

2.3.1 Maritime simulation market to record strong CAGR growth

Demand for maritime simulators is expected to register a CAGR growth of XX% over the forecast period.

While flight simulators are expected to account for XX% of the global military simulation market, combat

simulators are expected to constitute XX%. Maritime and helicopter simulators are projected to account for

respective shares of XX% and XX%. Maintenance simulators are expected to hold the remaining XX% share

of the total global expenditure.

The table below gives a brief overview of the global military simulation market:

Table 2: Global Military Simulation Market Overview

Particulars Market in 2011 Market in 2021 Total Market (2011–2021)

Annualized growth/decline

(2011–2021)

Flight simulators US$XX billion US$XX billion US$XX billion XX%

Combat simulators US$XX billion US$XX billion US$XX billion XX%

Maritime simulators US$XX billion US$XX billion US$XX billion XX%

Helicopter simulators US$XX billion US$XX billion US$XX billion XX%

Maintenance simulators US$XX million US$XX million US$XX million XX%

Total Military Simulation Market US$XX billion US$XX billion US$XX billion XX%


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