Key Research Findings
- Adoption of flight simulators for military & defense applications will exhibit a healthy CAGR of 5% during the forecast period, 2020 – 2030.
- Demand for Fixed Flight Training Devices (FTD) continues to grow strong, on the back of their application in effective pilot trainings.
- Full Flight Simulator (FFS) sales will grow 1.5X between 2020 and 2030, though at a steady pace.
- Owing to proliferation of air travellers, especially in developing countries, civil applications of flight simulators will rise 1.4X during period of projection.
- North America leads the global flight simulator market, with a major revenue share of over 49%.
KEY FACTORS SHAPING FLIGHT SIMULATOR MARKET
Mounting Number of Air Passengers in Asia Pacific
Increasing preference for air travelling among consumers in developing countries of Asia Pacific is a central growth driver for the market. This can be accredited to the increase in disposable income of consumers, further complemented by improving affordability of air travel. To cater to this demand, new domestic routes and pilots for the same are needed. This further increases the demand for flight simulators for training new pilots.
Countries such as India, and Indonesia are witnessing the birth of unicorn start-ups such as Flipkart, Gojek, Zomato, and Oyo. Expansion of such start-ups further increases international travelling frequency of passengers between Asia Pacific and North America & Europe. This increasing frequency of air travelling also drives an increase in investments of airline companies in training of pilots on international routes, using advanced flight simulators.
Increasing Civil Applications
Improving Aircraft Simulation Technology (AST) has become a top priority for aircraft manufacturers. Statutory agencies and laws such as the Federal Aviation Administration (FAA), and Federal Aviation Regulations, mandate the use of flight simulators for training pilots, which spurs the demand growth of flight simulators.
To capture maximum opportunities arising from the stringent federal aviation regulations, manufacturers are focusing on developing enhanced AST systems. Strategic mergers and acquisitions are thus being considered by key market players to consolidate technical expertise. For instance, Textron, L-3 Communications, and Lockheed Martin are acquiring commercial aircraft simulator competitors in a bid to dominate the civil aviation training segment.
COVID-19 Pandemic Impedes Emergence of Gainful Opportunities in Market
As the world fights COVID-19 outbreak through social distancing, isolation, and lockdowns, airline companies and airports are compelled to temporarily suspend their operations to a great extent. Cancellation of flights due to government restrictions create a heap of financial burden in terms of reimbursements.
Further, these companies bear heavy operational costs from their cash reserves. Airport authorities are experiencing a massive loss each coming day, as there is no sale from duty-free, and other airport facilities. These factors are posing a direct impact on the near-term future of flight simulator manufacturers.
Since airline companies are exhausting their cash reserves on work-from-home salaries, ticket refunds for customers, and rescue operations for stranded nationals, investments in training of new pilots are naturally postponed for an unprecedented time. The uptake in demand can only be determined based on the recovery rate of the aviation industry.
Flight Simulator Market Structure Analysis
- The flight simulator market is moving towards consolidation, as major players are actively involved in strategic mergers and acquisitions.
- Integration of advanced technologies such as AR, VR, and AI to create enhanced pilot training environments is a key product differentiation strategy adopted by many players.
- For an instance, CAE has installed an in-house Research and Development department that dedicatedly works for leveraging technologies that enhance flight simulator training environments.
- Base Year - 2019
- Historical Period - 2015-2019
- Forecast Period - 2020-2030
- Segments Covered - Type, Application
- Regions Covered - North America, Latin America, Europe, South Asia & Oceania, East Asia, and Middle East & Africa
- Key Companies - CAE Inc., L-3 Communications Holdings Inc., Flightsafety International, The Boeing Company, Thales Group, Collins Aerospace, Airbus Group N.V., Indra Sistemas SA, TRU Simulation + Training, The Raytheon Company, Elite Simulation Solutions, Frasca International Inc., Precision Flight Controls Inc., Avion Group, and Simcom Aviation Training.
- Growth Drivers -
- Increasing affordability of air travelling options in developing countries
- Increasing stringency of pilot training regulations
- Growing integration of next-gen technologies for achieving real-life flight simulations
Market Research Methodology - Perfected through Years of Diligence
A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.
Flight Simulator Market: Segmentation
- Full Flight Simulator (FFS)
- Fixed Flight Training Devices (FTD)
- Military & Defense
- North America
- Latin America
- East Asia
- South Asia