North American Commercial and Military Flight Simulation Markets

Abstract

Need for Cost-effective Training Solutions to Boost Demand for Outsourced Pilot Training

Outsourced pilot training is proving to be an attractive alternative for commerical airlines services in North America as they strive to reduce in-house training expenses, restructure, and save costs across their operations. As the slowdown in the airline industry continues, independent training centers are offering 'by-the-hour' training that eliminate capital expenditure such as purchase of flight simulators and the building and maintenance of expensive training facilities. Full flight simulators (FFSs) and flight training devices (FTDs) are driving market growth as they are 10 to 20 times cheaper than real aircraft training. Such devices and services are becoming popular in the military sector also.

This Frost & Sullivan research is a comprehensive study on the North American Commercial and Military Flight Simulation Markets and its subsegments including FFSs and FTDs. The report also presents a broad perspective on research and development activities as well as operations and support of simulated training within the Department of Defense in the United States and Department of National Defense in Canada.

Computer-based Simulator Training for Newer Aircraft and Automated Cockpits Increases Demand

"The sales of simulators and other training equipment will be the most affected in the short term. The orders for new simulators are expected to pick up by 2004-2005, but at a slow pace," according to the analyst. "However, advancements in simulator technology fueled by powerful computer systems, image generators, and less expensive design solutions will enable distributed training and allow smaller, deployable, and interconnecting training devices that are easy to maintain, operate, and upgrade."

With the airline industry likely to start recovering by 2004, the replacement of turboprop aircrafts with jet aircrafts is about to pick up momentum. These new generation aircraft will need trained pilots, increasing the demand for simulation equipment and outsourced training. In the military flight simulation segment, new aircraft simulator systems and upgrades of existing systems with new computer and visual technologies will boost the market.

Capitalize on Technological Advancements and Strengthen Market Position, as Industry Consolidation Will Continue

Leading market participants are acquiring smaller companies to capitalize on technological expertise, production and operational synergies, and end-user similarities, thereby strengthening their market position. The analyst adds, "Military services can benefit from purchasing simulator-training time at independent commercial pilot training centers according to their requirements. The adoption of visual and computer systems used in commercial products for military pilot training can result in mutual benefits." In addition, market opportunities exist for strategic partnerships with aerospace companies in the military simulation area. These can also be extended to commercial aircraft.

New and modernized simulators, FTDs with enhanced capabilities, and comprehensive computer-based training will continue to direct the market in the next five to eight years. Continuous focus on research and development is likely to increase the ability in terms of realistic simulation and additional training sessions. Long-term training contracts with regional and commuter airlines as well as re-assessment of product portfolio and business strategies will provide a competitive edge to market participants.