Increase in awareness among end users about the benefits of virtual training and simulation, and increased spending by various end users such as defense, healthcare, and education due to higher budget allocation are the major drives of the market. However, North African countries are unable to adopt this technology due to either lack of necessary infrastructures or limited knowledge about the technology. Manufacturers in virtual training and simulation market lack in terms of investments in R&D, which limits the innovation potential and market expansion. However, advancements in technology, rise in number of Internet users, and increase in scope of technology in other industries such as energy, transportation, and mining are expected to offer significant growth opportunities for prominent players operating in market.
The world virtual training and simulation market is segmented based on components, end user, and geography. The components segment is further divided into hardware and software. Based on end user, the market is segmented into defense & security, civil aviation, education, entertainment, and others (digital manufacturing and healthcare). The education segment is further bifurcated into e-learning and game-based learning. Based on geography, the market is analyzed across four major regions, namely, North America, Europe, Asia-Pacific, and LAMEA.
Key players in the virtual training and simulation industry include CAE Inc., L-3 Link Simulation & Training, Cubic Corporation, ON24, Inc., QinetiQ Group plc, BAE Systems plc, Laerdal Medical Corporation, Kratos Defense & Security Solutions, Inc., The DiSTI Corporation, and ANSYS, Inc. Over the years, these market leaders have established themselves with continuous investment on product innovation, which enabled them to improve the quality and performance of the training and simulation solutions. Further, these companies expanded their market presence through strategic alliances and are working toward launching upgraded products in the market to gain maximum market share as well as to deliver better benefits to the stakeholders.
An in-depth analysis of the world virtual training and simulation market is provided along with the market dynamics that would prove crucial in understanding the market.
Quantitative analysis of the current market and future estimations from 2014 to 2022 is projected to assist strategists to design business strategies to capitalize on the prevailing market opportunities.
Porter’s Five Forces analysis examines the competitive structure of the virtual training and simulation industry and also provides a clear understanding of the factors that influence the market entry and market expansion.
A detailed analysis of geographic segments offers identification of most profitable segments to capitalize on.
A comprehensive analysis of market trends, sub-segments, and key revenue pockets is provided.
Analysis of the key leaders and their business strategies is anticipated to assist stakeholders to make more informed business decisions.
A detailed company profile analysis is provided that showcases major developments such as mergers and acquisitions, expansions, and new product launch.
Key market segments
By End user
Defense and Security
Others (Digital Manufacturing and Healthcare)
Rest of Europe
Rest of Asia-Pacific
1.1 Report description
1.2 Key benefits
1.3 Key market segments
1.4 Research methodology
1.4.1 Secondary research
1.4.2 Primary research
1.4.3 Analyst tools and models
CHAPTER 2 EXECUTIVE SUMMARY
2.1 CXO perspective
CHAPTER 3 MARKET OVERVIEW
3.1 Market definition and scope
3.2 Key findings
3.2.1 Top impacting factors
3.2.2 Top winning strategies
3.2.3 Top investment pockets
3.3 Value chain analysis
3.3.1 Research and development
3.3.2 Component manufacturers
3.3.3 Assembly, programming and testing
3.3.4 Marketing and sales
3.3.5 End user
3.3.6 After sales services
3.4 Porters five forces analysis
3.4.1 Moderate bargaining power of buyers due to highly fragmented market and high switching costs
3.4.2 Large number of suppliers and threat of backward & forward integration lead to moderate bargaining power of suppliers
3.4.3 Presence of strong brands and large number of product launches leads to intense rivalry among competitors
3.4.4 Low threat from in-direct substitutes
3.4.5 Low threat from new entrants due to high initial investment costs and stiff competition from established brands
3.5 Market share analysis, 2015
3.6.1 Increasing awareness about the virtual training and simulation
3.6.2 Cost-effective benefits of virtual training and simulation solutions
3.6.3 Increase in defence, healthcare and education expenditure
3.7.1 Resistance to adopt the virtual training and simulation technology
3.7.2 Lack of investments in R&D
3.8.1 Advancements in technology
3.8.2 Scope for improvements in other industries (Mining, transportation and energy)
CHAPTER 4 WORLD VIRTUAL TRAINING AND SIMULATION MARKET BY COMPONENTS
4.1.1 Market size and forecast
4.2.1 Key market trends
4.2.2 Key growth factors and opportunities
4.2.3 Market size and forecast
4.3.1 Key market trends
4.3.2 Key growth factors and opportunities
4.3.3 Market size and forecast
CHAPTER 5 WORLD VIRTUAL TRAINING AND SIMULATION MARKET BY END USER
5.1.1 Market size and forecast
5.2 Defence and security
5.2.1 Key market trends
5.2.2 Key growth factors and opportunities
5.2.3 Market size and forecast
5.3 Civil aviation
5.3.1 Key market trends
5.3.2 Key growth factors and opportunities
5.3.3 Market size and forecast
5.4.1 Market size and forecast
126.96.36.199 Key market trends
188.8.131.52 Key growth factors and opportunities
184.108.40.206 Market size and forecast
5.4.3 Game-based learning
220.127.116.11 Key market trends
18.104.22.168 Key growth factors and opportunities
22.214.171.124 Market size and forecast
5.5.1 Key market trends
5.5.2 Key growth factors and opportunities
5.5.3 Market size and forecast
5.6 Others (Digital manufacturing and healthcare)
5.6.1 Key market trends
5.6.2 Key growth factors and opportunities
5.6.3 Market size and Forecast
CHAPTER 6 WORLD VIRTUAL TRAINING AND SIMULATION MARKET BY GEOGRAPHY
6.1.1 Market size and forecast
6.2 North America
6.2.1 Key market trends
6.2.2 Key growth factors and opportunities
6.2.3 Market size and forecast
126.96.36.199.1 MARKET SIZE AND FORECAST
188.8.131.52.1 MARKET SIZE AND FORECAST
184.108.40.206.1 MARKET SIZE AND FORECAST
6.3.1 Key market trends
6.3.2 Key growth factors and opportunities
6.3.3 Market size and forecast
220.127.116.11.1 MARKET SIZE AND FORECAST
18.104.22.168.1 MARKET SIZE AND FORECAST
22.214.171.124.1 MARKET SIZE AND FORECAST
126.96.36.199.1 MARKET SIZE AND FORECAST
188.8.131.52.1 MARKET SIZE AND FORECAST
184.108.40.206 Rest of Europe
220.127.116.11.1 MARKET SIZE AND FORECAST
6.4.1 Key market trends
6.4.2 Key growth factors and opportunities
6.4.3 Market size and forecast
18.104.22.168.1 MARKET SIZE AND FORECAST
22.214.171.124.1 MARKET SIZE AND FORECAST
126.96.36.199.1 MARKET SIZE AND FORECAST
188.8.131.52 Rest of Asia-Pacific
184.108.40.206.1 MARKET SIZE AND FORECAST
6.5.1 Key market trends
6.5.2 Key growth factors and opportunities
6.5.3 Market size and forecast
220.127.116.11 Latin America
18.104.22.168.1 MARKET SIZE AND FORECAST
22.214.171.124 Middle East
126.96.36.199.1 MARKET SIZE AND FORECAST
188.8.131.52.1 MARKET SIZE AND FORECAST
CHAPTER 7 COMPANY PROFILES
7.1 CAE Inc.
7.1.1 Company overview
7.1.2 Business performance
7.1.3 Key strategic moves and development
7.2 L-3 Link Simulation & Training
7.2.1 Company overview
7.2.2 Key strategic moves and development
7.3 Cubic Corporation
7.3.1 Company overview
7.3.2 Business performance
7.3.3 Key strategic moves and development
7.4 ON24, Inc.
7.4.1 Company overview
7.4.2 Key strategic moves and development
7.5 QinetiQ Group plc
7.5.1 Company overview
7.5.2 Business performance
7.5.3 Key strategic moves and development
7.6 BAE Systems plc
7.6.1 Company overview
7.6.2 Business performance
7.6.3 Key strategic moves and development
7.7 Laerdal Medical Corporation
7.7.1 Company overview
7.7.2 Key strategic moves and development
7.8 Kratos Defense & Security Solutions, Inc.
7.8.1 Company overview
7.8.2 Business performance
7.8.3 Key strategic moves and development
7.9 The DiSTI Corporation
7.9.1 Company overview
7.9.2 Key strategic moves and development
7.10 ANSYS, Inc.
7.10.1 Company overview
7.10.2 Business performance
7.10.3 Key strategic moves and development
Increase in defense, education & healthcare spending, rise in awareness about this technology, and its cost-effective benefits in various industries are the major factors that drive the market growth. Leading companies in this market are taking initiatives toward development of novel solutions by investing in R&D and are seeking new opportunities by expanding their market presence through partnerships, collaborations, and other strategic alliances. For instance, in military simulation and virtual training market, leading vendors focus on development of more compact and cost-effective simulators that can elevate the quality of virtual environment same as the real world. However, resistance to adopt this technology in various regions such as North African countries and limited investments in R&D activities have restricted the growth of the market to a certain level.
In the year 2014, hardware segment accounted for about 70% of total revenue. It is expected to dominate the market throughout the analysis period, expanding at a CAGR of 14.6% owing to its higher adoption in education, civil aviation, and healthcare industry. In the year 2014, North America dominated the virtual training and simulation market in hardware segment, whereas Asia-Pacific is expected to grow at the fastest CAGR around17% during the forecast period. The software segment is projected to reach significant amount by 2022, which will be more than four times as compared to that of 2014.
Among the end users, entertainment sector generated the maximum revenue in the virtual training and simulation industry and represented around 54% share of the total market revenue in 2014. Further, by 2022, the segment is expected to dominate the market, with a CAGR of 14.1%. However, education sector is projected to grow at the fastest CAGR of 22.1% due to supportive government initiatives and spending in education sector along with rise in number of Internet users especially in Asia-Pacific.
Key findings of the study:
In the year 2014, hardware segment led the overall virtual training and simulation market revenue, and is projected to grow at a CAGR of14.6% during the forecast period.
Education sector virtual training and simulation market is anticipated to grow at the fastest CAGR of 22.1%, owing to the support from governments, rise in Internet penetration, and presence of strong regulatory bodies.
Entertainment sector generated the maximum revenue in virtual training and simulation industry in 2014.
In education segment, e-learning accounted for the maximum share in the revenue, while game-based learning is anticipated to grow at the highest CAGR.
In the year 2014, North America was the dominant region in virtual training and simulation market. However, Asia-Pacific is expected to grow at the fastest CAGR with China leading the market.
- CAE Inc
- L-3 Link Simulation & Training
- Cubic Corporation
- ON24 Inc
- QinetiQ Group plc
- BAE Systems plc
- Laerdal Medical Corporation
- Kratos Defense & Security Solutions Inc
- The DiSTI Corporation
- ANSYS Inc