DUBLIN–(BUSINESS WIRE)–The “Global Drone Simulator Market Forecast to 2028 – COVID-19 Impact and Global Analysis By Component (Hardware and Software), Simulator Type (Fixed and Portable), Drone Type (Fixed Wing and Rotary Wing), and Technology” report has been added to ResearchAndMarkets.com’s offering.
The global drone simulator market is expected to grow from US$ 615.66 million in 2021 to US$ 1,435.14 million by 2028; it is estimated to grow at a CAGR of 12.9% during 2021-2028.
Defense spending across the world increased by 3.9% per year and was valued at US$1.83 trillion in 2020. Despite severe economic contractions caused by the COVID-19 pandemic and the series of lockdowns across many countries globally, expenditure on military and defense globally climbed dramatically from an average of 1.85% in 2019 to 2.08% in 2020 as military budgets were maintained.
The growth of global defense spending has accelerated since 2018, but it is anticipated to decline in 2021 as the US defense budget is expected to flatten, and Asia-Pacific expenditure growth is slow. The US and China have raised their defence budgets, accounting for almost two-thirds of the entire increase in global spending in 2020. Furthermore, organizations are creating networks to encourage the use of drones, resulting in the growth of the drone simulator industry. The Thales Group and the State of North Dakota, for example, have agreed to build a statewide network of unmanned aircraft systems to carry out tasks outside visual line of sight (BVLOS). Thales will work with a group of companies based in North Dakota to ease system integration and offer technical support. As a result of increased military spending, the use of drones would rise in the coming years, creating a profitable potential for drone simulator suppliers.
Based on component, the drone simulator market is bifurcated into hardware and software. In 2020, the hardware segment led the market, accounting for a larger market share. By simulator type, the market is bifurcated into fixed and portable. In 2020, the fixed segment accounted for a larger market share. Based on drone type, the drone simulator market can be bifurcated into fixed wing and rotary wing. In 2020, the fixed wing segment accounted for a larger market share. By technology, the market is bifurcated into augmented reality and virtual reality. In 2020, the virtual reality segment accounted for a larger market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for a significant share in the global market.
North America is known for the highest rate of adoption of advanced technologies due to favorable government policies to boost innovation and strengthen infrastructure capabilities. As a result, any factor affecting the performance of industries in the region hinders its economic growth. Currently, the US is the world’s worst-affected country due to the COVID-19 outbreak, which has led governments to impose several limitations on industrial, commercial, and public activities in the country to control the spread of infection.
Therefore, drone manufacturers and drone MRO service providers are witnessing significant loss during the pandemic. The drone manufacturers’ production volume decreased drastically, thereby hindering the adoption rate of different simulation solutions. However, the governments of the US and Canada have maintained their defense spending levels. For instance, the defense spending in the US reached US$ 778 billion in 2020, with a yearly increase on 4.4%. This has led several drone manufacturers, UGV manufacturers, and weapon and combat system manufacturers to expedite the procurement rate of simulation systems. As a result, the COVID-19 pandemic and its consequences have had a nominal impact on the drone simulator market in North America.
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Market Dynamics
Drivers
- Growing Adoption of Drones in Military and Commercial Applications
- Increasing Investments in Research and Development for Military Simulation
Restraints
- Concerns Regarding Complexity of Drone Simulator Systems
Opportunities
- Increasing Defence Spending
Future Trends
- Incorporation of AI
Companies Mentioned
- Aegis Technologies
- CAE Inc
- General Atomics
- Havelsan AS
- Israel Aerospace Industries Ltd
- L3 Link Training & Simulation
- Leonardo SpA
- Simlat Uas Simulation
- Singapore Technologies Electronics Limited
- Quantum3D
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