, LONDON: The need for joint military training exercises allied with benefits of time and cost efficiencies are boosting the European markets for military synthetic training and simulation. As the market expands, new entrants are increasingly entering the fray and intensifying competition.
Frost & Sullivan finds that the European Military Synthetic Training and Simulation Markets earned revenues of $1.1 billion in 2006 and estimates this to reach $1.8 billion in 2015.
“As European countries increase cooperation in joint military training programmes to promote improved training efficiency and cost reductions in net-centric warfare (NCW) environments, the markets for military synthetic training and simulation will expand, ” explains Frost & Sullivan Research Analyst Marie-France Mann. “The switch to joint training will mean that a series of networked simulation devices will need to be procured even as current systems will have to be upgraded, networked or replaced.”
Besides, despite procurement costs, European militaries are likely to acknowledge the time and cost efficiency benefits offered by simulated training equipment. Operation and maintenance expenditures incurred while using simulated training devices for military training purposes are significantly lower than that incurred using actual military equipment.
“Time efficiency is also an important factor as more training can be imparted on simulators compared to actual systems,” adds Ms. Mann. “In terms of personnel safety, simulation helps avoid injuries and accidents that can occur during actual training.”
Despite the optimistic scenario, contracts are decreasing in number. This situation is compelling subcontractors to win at least a segment of these contracts in order to survive and avoid exiting the market altogether. Also, as the number of participants increases, competition is intensifying and the market is becoming fragmented placing tremendous pressure on small- and medium-sized contractors.
“Manufacturers must aim to design open and highly interoperable architectures to meet next generation synthetic training requirements necessitated by joint training programmes,” advises Ms. Mann. “Being proactive on design, delivery and service capabilities together with a focus on innovation will be key to achieving product differentiation and market success.”
Military Synthetic Training and Simulation Markets in Europe is part of the Aerospace and Defence Subscription. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are also available.
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