Abstract
Need for Cost-effective and Risk-free Training Methods Spurs Demand
The cost effectiveness, safety, and systematic nature of simulated flight
makes it an attractive alternative to actual flight training, thus ensuring its
continued use in both the military and commercial market segments. Simulated
flight training acquaints pilots with the different controls and avionics
equipment of an aircraft and familiarizes them to its maneuvering capabilities.
In addition, simulated training programs incorporate training for flight in
adverse conditions. This feature makes it an integral part of military flight
training in countries such as India and China, where most fighter crashes happen
due to novice pilot error during training. More importantly, military flight
simulation enables mission rehearsal as pilots can train for specific scenarios.
As training is a continuous process, this is expected to have a very high impact
on the market in the long-term.
This new research service from Frost & Sullivan provides a strategic
assessment of the Asia Pacific flight simulation and training markets. The
analysis provides an overview of new opportunities for standardization and
improvement in order to better sales. An assessment of drivers, restraints, and
challenges that facilitate growth strategies for established industry
participants and new entrants are also discussed. The commercial and military
segments of the flight simulation markets are discussed in pertinent detail,
along with the trends specific to each of these areas.
Revenue Growth Increases as New Aircraft Models Enter Market
Several new aircraft models that will require training systems and services
prior to acquisition have either entered the market or are anticipated to,
offering new opportunities for the sale of flight simulation systems. In the
commercial segment, many Asia Pacific-based airlines have already placed orders
for the Airbus A-380. The Boeing 7E7 is still in the design phase, but is
another likely popular entry in the market with orders expected to come in by
early 2004.
"Countries such as India and China have quite a few indigenous aircraft
programs in the pipeline, making them good markets for simulation systems,"
according to the analysts of this research service. For military purposes, these
countries have programs to develop platforms such as India's Light Combat
Aircraft (LCAs) and the China's J-10. These are expected to drive demand for the
corresponding simulation and training systems.
Cost-effective Solutions Set to Attract Buyers in the Price-sensitive Asia
Pacific Market
In the commercial market, the technologies behind flight simulators and
training devices are relatively undifferentiated. The simulation systems have
been standardized, making price the key differentiator. In the military market,
even though simulation systems are customized, companies from countries outside
the region, like Israel and the United Kingdom, offer cost-effective solutions
that are about 30 to 40 percent less than the norm. This is a current challenge
faced by other military simulation systems manufacturers.
"Companies that find new ways to develop next-generation systems or new
methods of pricing aftermarket and training services should experience increases
in market share," add the analysts. Participants that adapt to changing
market conditions and reassess their business strategies will be able to compete
successfully in both the military and commercial segments.
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