Live Laser-Based Training and Simulation Platforms Market Size

Live Laser-Based Training and Simulation Platforms Market Overview

Live Laser-Based Training and Simulation Platforms Market is anticipated to reach USD 1.425 Billion by 2030 at a 6.7% CAGR during the forecast period 2020 and 2030.

Live laser-based training and simulation platforms market provides training systems and services for the armed defense and security forces globally. Live laser-based training and simulation platforms help provide the recruits the chance to get accustomed to a wide array of weapons to operate in real scenarios effectively. These types of training help trainees develop a high degree of mind-body coordination in a risk-free environment, focusing on making the recruits combat-ready.

The growth of the global live laser-based training and simulation platforms market is attributed to the growing need for live training and increasing political disputes and civil unrest across the globe. However, issues related to incorporating laser-based technologies into indoor training systems and lack of realism in laser-based live training and simulation are anticipated to hamper the market growth. In contrast, increasing defense expenditures in the emerging economies areanticipated to provide significant growth opportunities for the live laser-based training and simulation platforms market.

COVID-19 Analysis

According to MRFR, the current projections of the global live laser-based training and simulation platforms market growth till 2026 are expected to be lower than pre-COVID-19 estimates. Many governments across the globe are focused on controlling COVID-19 outbreaks in their countries. Hence, they are investing more in healthcare equipment and the development of vaccines. Therefore, the defense R&D expenditures are expected to be slightly lower for the next few years. The defense expenditure is expected to increase gradually during the forecast period after the pandemic ends.

However, the growing demand for live laser-based training and the rise in political instability and civil unrest is anticipated to drive the market once the global economy plunges back. Thus, it is expected that the global live laser-based training and simulation platforms market will grow at a slower rate in 2020 and 2021; from 2022, it will grow gradually.

Market Dynamics

Drivers

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  Growing Need for Live Training

  
  

Live training offers recruits the chance to get accustomed to a wide array of weapons to operate effectivelyin real scenarios. These types of training help trainees develop a high degree of mind-body coordinationin a risk-free environment to make the recruits combat-ready. The need for risk-free live training is critical as there have been several instances that have led to the death of armed forces personnel globally. For instance, in the US,as per a House Armed Services Committee report related to the National Defense Authorization Act for the fiscal year 2019, in 2017, nearly four times as many service members died in training accidents compared to those that were killed in combat. Therefore, due to the rise in deaths of armed forces personnel in training, there is a high demand for live training, especially with laser-based simulation platforms. Thus, the growing need for live training is expected to drive the growth of the global live laser-based training and simulation platforms market during the forecast period.

Opportunities

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  Increasing Defense Expenditures in the Emerging Economies

  
  

The global defense spending reached USD 1.83 trillion in 2020, reflecting a 3.9% annual growth in real terms. Despite severe economic contractions caused by the coronavirus pandemic, the global defense spending as a proportion of GDPsharply increased from an average of 1.85% in 2019 to 2.08% in 2020. The defense expenditure by developed economies is under pressure, and the emerging economies, especially in the Middle East and Asia-Pacific, are gaining importance among defense equipment manufacturers. The increase in the defense expenditure by countries in the Middle East and the Asia-Pacific regions is driven by the constant need to monitor rising terrorist activities coupled with unstable geopolitical situations. The increasing defense expenditure in emerging economies is anticipated to create lucrative growth opportunities for the vendors operating in the global laser-based live training and simulation platforms market.

Restraints

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  Incorporating Laser-Based Technologies into Indoor Training System

  
  

The laser-based technologies are often more suitable for outdoor training modules. The limitation of laser-based technologies for the indoor training system hampers the growth of the market. There has been an increase in the demand for indoor training systems as these systems can reduce the inherent costs associated with outdoor training activities, such as the overhead costs of transporting personnel, assets, and equipment to locations. For this reason, there has been an uptick in the adoption of training and simulation, which are based on Virtual Reality (VR). Owing to significant technological advancements in VR technology, VR-based training poses a risk for substitution, further limiting the market's growth. Hence, the limitation of incorporating laser-based technologies into indoor training systems is expected to restrain the growth of the global live laser-based training and simulation platforms market during the forecast period.

Cumulative Growth Analysis

Increasing Demand for Laser-Based Simulation Trainingto Bolster Market’s Growth Rate

The global live laser-based training and simulation platformsmarket growth is expected to be at a rate of 6.7% over the analysis period (between 2021 and 2027), on account of the increasing demand for laser-based simulation training.

Segment Overview

Increasing Focus on Simulated Vehicle Exercises and Threat Assessmentto Bolster Demand for Vehicle Equipment

The global live laser-based training and simulation platforms market has been segmented, based on application, into body equipment, weapon equipment, building equipment, vehicle equipment, and others. The vehicle equipment segment dominated with a value of USD 409.62 million in 2020 and is expected to exhibit a 6.16% CAGR during the forecast period.Monitoring and analyzing the simulated vehicle exercises enables each vehicle and crew unit to have full situational awareness of the broader training system exercises. Vehicle equipment attaches to mechanized and armored vehicles supporting communications over a large training area while ensuring connectivity among soldier and vehicle participants. Laser detectors, laser transmitters, and status indicators are attached for assessing threat and understanding ballistics data.

Regional Analysis

North America Accounted for the Largest Market Share

The live laser-based training and simulation platforms market in North America has been segmented into the US and Canada. North America dominated the global live laser-based training and simulation platforms market owing to the increasing demand for simulation-based training. Developed by the Canadian Army Doctrine and Training Centre (CADTC), Future Integrated Training Environment (FITE) is a working concept for how the Army plans to harness existing and emerging modeling and simulation technologies and design a framework for live, virtual, and constructive training. Working through a multinational working group known as Modelling, Instrumentation, and Simulation for Training Systems (MIST) under the ABCANZ (America, Britain, Canada, Australia, and New Zealand) framework, the FITE team has been circulating the concept and gathering feedback for the development of standards.

Cubic Corporation (US) showcased a range of its state-of-the-art live, virtual and constructive (LVC) training solutions at CANSEC 2019, Canada's largest global defense and security trade show organized in May 2019. The company featured laser-based Weapon Effects Simulation for the Tactical Armored Patrol Vehicle (WES-TAPV) and Multi-Code Instrumented Harness Kit. The availability of manufacturers and intergovernmental associations in the region is anticipated to increase its market share during the forecast period.

APAC Races Ahead at the Fastest Rate as China and India Take the Lead

Asia-Pacific is expected to have a promising growth rate during the forecast period owing to the increasing number of combat troops, military vehicles, and the increasing number of joint training exercises by military personnel. The region is classified into China, India, Japan, South Korea, and the rest of Asia-Pacific. It holds the third-largest position in the live laser-based training and simulation platforms market. In Asia-Pacific countries, the military departments are aimed at signing long-term training contacts with companies. For example, InVeris Training Solutions (Georgia, US) was awarded a contract by Minister for Defence Industry, Australia, to deliver 14 simulators by July 2021. It will deliver and support a fully digitized Mobile Weapons Training Simulation System (MWTSS).

The growing military expenditure and number of personnel in the region are anticipated to fuel the market growth. For instance, China decided to increase its defense budget by 6.6% to reach 1.27 trillion yuan (USD 178 billion) and 1.35 trillion yuan (USD 209 billion) by 2021. The Indian Army has the world's largest ground force, currently comprising 1.4 million personnel.

Competitive Landscape

Significant Investments by Players Likely to Intensify Competition

The global live laser-based training and simulation platforms market is expected to grow significantly in the coming years due to the growing need for live training. The global live laser-based training and simulation platforms market is characterized by the presence of several global and regional vendors. The market is highly competitive, with all the players trying to gain maximum market share. Frequent changes in government policies, intense competition, and aviation regulations are the key factors that impact global market growth. The vendors compete based on cost, product quality, and reliability. The players must offer cost-efficient and high-quality live laser-based training and simulation platforms to succeed in a highly competitive market environment.

List of Key Companies Covered in this Report

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  Cubic (US)

  
  


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  Lockheed Martin Corporation (US)

  
  


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  Saab AB(Sweden)

  
  


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  RUAG Group (Switzerland)

  
  


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  Raytheon Technologies Corporation(US)

  
  


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  Inter-Coastal Electronics Inc. (US)

  
  


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  ZelTech(US)

  
  


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  Rheinmetall AG(Germany)

  
  

Recent Developments

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  April 2020 –Saab AB signed a three-year contract with the UK Ministry of Defence to provide support and services to the direct fire weapon effects simulator (DFWES) capability.

  
  


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  February 2020– Rheinmetall AG signed a contract with the German Army to deliver AGDUS laser duel simulators to its Puma infantry fighting vehicle (IFV).

  
  

Report Overview

Scope of the Report

The scope of the report highlights drivers, opportunities, restraints, and challenges surrounding the global market. With easy-to-comprehend segmentation that includes application and region, MRFR projections are based on historical and expected trends. In addition, major firms active in the global market have been profiled and paired with the top strategies employed by them to remain competitive in the industry.

Segmentation Table

Application

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  Body Equipment

  
  


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  Weapon Equipment

  
  


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  Building Equipment

  
  


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  Vehicle Equipment

  
  


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  Others