Analysis of the DoD Training and Simulation Market Integrated Training Presents Future Growth Opportunities

Frost & Sullivan, April 2012, Pages: 74

This research forecasts budget spending for the U.S. Department of Defense (DoD) training and simulation market, including general trends and program analysis affecting the market. Five training and simulation classifications make up the U.S. DoD training and simulation market, including: live training; virtual training; constructive training; mixed live, virtual, and constructive (LVC) training; and operations-related education. Military training and simulation provides soldiers, civilians, and leaders with the development, training, and education necessary to carry out the various operational missions of the U.S. Armed Forces.

Market Overview
Training and Simulation Accounts for $13.73 Billion or Approximately 2.0 percent of the 2012 U.S. DoD Budget

At $5.68 Billion, the Navy Has the Largest Share of the DoD's Training and Simulation Budget

Among all military services, the Navy had the largest share of the training and simulation spending pie, mainly due to the procurement of F-35 and P-8A training devices/simulators and T-6 trainer aircraft. There will be a significant hike in the need for operational training to keep soldiers battle-ready as troops are redeployed from Iraq and Afghanistan. The proposed troop reduction will take several years and the DoD cuts in the total number of ground forces will be far less than the number of redeployed troops. Also, when reducing the worldwide presence of U.S. troops, the DoD will remain committed to training partner nations to provide their own defense and security. The U.S. armed forces will be shifting focus to the Asia Pacific, which will require related changes in training priorities. “The 2010 Quadrennial Defense Review (QDR) highlights the need for training in the language, cultural, and regional skills of soldiers, which will necessitate an increase in related educational programs,” says the analyst of this research.

The suggested reduction in military spending could benefit the virtual segment of the training and simulation market, even as it hampers the live segment. The Budget Control Act (BCA) of 2011 could force the DoD to cut approximately $1 trillion in spending during the next 10 years. If the Congress does not decide that programs that will be reduced or cut by early 2013, the funding for every DoD program will be cut by the same percentage through sequestration. These budget reductions will result in the replacement of expensive live training with simulated/virtual training, which is more cost effective and aids higher learning retention. “As live training is replaced by virtual training, simulator/simulation fidelity and realism must increase for the training to be robust and effective,” notes the analyst. “It may be advantageous for simulation companies to include instant tracking and feedback within virtual training programs to provide immediate analysis of program effectiveness.”

In the next 10 years, there will be little or no distinction among live, virtual, and constructive training. Training methods will be highly integrated and the mix will be constantly adapted to training requirements and technologies. Augmented reality (AR) use will improve rapidly to stand in for live training, while helping to integrate LVC training. Companies that excel in AR and LVC technologies will emerge as market leaders. Market participants will especially gain from providing affordable, miniaturized automatic flight-control systems, sense-and-avoid technologies, redundant sensor/control systems, total systems integration, communications solutions, and data-exploitation efficiencies.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Live
- Virtual
- Constructive
- Education
- Live, virtual, and constructive (LVC)

1. Executive Summary

2. Market Overview

3. Total DoD Training and Simulation Market

3.1 External Challenges: Drivers and Restraints

3.2 Forecasts and Trends

3.3 Market Share and Competitive Analysis

4. CEO's 360 Degree Perspectives

5. LVC Training Segment Breakdown

6. Live Training Segment Breakdown

7. Virtual Training Segment Breakdown

8. Constructive Training Segment Breakdown

9. Education Segment Breakdown

10. The Last Word

11. Appendix

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