The global military simulation and virtual training market is projected to increase from $13.3bn in 2016 to $17.7bn in 2026, according to a report by Strategic Defence Intelligence.
Titled “The Global Military Simulation and Virtual Training Market 2016–2026”, the report forecasts the market to grow at a compound annual growth rate (CAGR) of 2.90%, with cumulative global expenditure reaching $168.1bn during the forecast period.
The need to reduce expenditure on traditional training methods, tackle environmental issues and lower energy prices is expected to drive demand in the market. Procurement of simulators is dependent on the acquisition of other military equipment, including aircraft, helicopters and naval ships.
North America is leading the market with a share of 36.1% and is expected to invest $60.6bn over the next ten years, while Europe, the Asia Pacific and the Middle East are showing promising growth in the sector.
The report also states a number of factors that will drive growth in the market, such as security threats, territorial disputes, and modernisation programmes being undertaken by militaries worldwide.
In addition, environmental issues and high energy prices are driving militaries across the world to reduce expenditure on live training programmes. However, the market has grown based on the procurement of military equipment, including aircraft, helicopters, armoured vehicles, and naval ships.