The 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.
Since more than a decade, armed forces from several countries have been using drones. Ground troops are employing small drones regularly. Military spending on unmanned aerial vehicles (UAVs) is rising as a fraction of overall military spending, which is propelling the growth of specialist drone manufacturers and simulator software developers. For instance, the preliminary examination of the Department of Defense's budget request for 2019 revealed that US$ 9.39 billion was invested in drone procurements, research and development initiatives, and manufacturing in United States. The amount is increased by 26% from the amount invested in 2018. In 2019, orders for at least 3,447 new unmanned air, ground, and marine systems were placed, representing a threefold increase over orders placed in 2018. Military drones are already in use in about 95 nations across the world. Several drones are being developed specifically for surveillance purposes. Some drones, on the other hand, have been developed for vital missions, such as transporting weapons. Countries such as China, India, Germany, and Azerbaijan utilize remotely controlled unmanned aerial vehicles (UAVs) to carry weapons for defense forces. Furthermore, drones are employed as loitering weapons. Drones are also employed in real-time to collect data on ongoing and life-threatening military missions using their intelligence, surveillance, and reconnaissance (ISR) capabilities. Hence, the demand for drone simulators is increasing as a result of the factors listed above.
Impact of COVID-19 Pandemic on North America Drone Simulator 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.
Lucrative Regions for Drone Simulator Providers
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Drone Simulator Market Insights
Increasing Investments in Research and Development for Military Simulation
Governments across the world are cutting military spending due to the dwindling financial resources owing to the COVID-19 outbreak. Many nations' military ministries are cutting training expenditures and downscaling their forces. As a result, the military's attention has shifted toward finding less expensive and more effective solutions to their needs. Real-time training is time-consuming and costly. Also, it necessitates a huge quantity of raw resources, such as gasoline and explosives, and consists of a high level of danger. Therefore, military ministries are increasingly preferring virtual training and simulation-based games that use technologies, such as big data, AI, and cloud computing. Military simulation and virtual training are becoming increasingly popular among military forces across the world because they are based on commercial-off-the-shelf (COTS) components, and they help minimize training expenses. The simulators are made at a minimal cost of development. The criteria are critical for the military to innovate massively in simulation-based training technology. Drone simulations are currently being used to train future soldiers and represent a real-time scenario using realistic digital settings. Hence, increased expenditures in simulation software drive the growth of the drone simulator market. In addition, several nations' defense ministries are restructuring and changing their militaries using new solutions, which is also bolstering the market growth.
Component-Based Market Insights
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.
Drone Simulator Market, by Component, 2020 and 2028 (%)
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Simulator Type-Based Market Insights
Based on simulator type, the drone simulator market is segmented into fixed and portable. In 2020, the fixed segment accounted for a larger market share.
Drone Type-Based Market Insights
Based on drone type, the drone simulator market is segmented into fixed wing and rotary wing. In 2020, the fixed wing segment accounted for a larger market share.
Technology-Based Market Insights
Based on technology, the drone simulator market is segmented into augmented reality and virtual reality. In 2020, the virtual reality segment accounted for a larger market share.
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Drone Simulator Market: Strategic Insights
Market Size Value in US$ 615.66 Million in 2021 Market Size Value by US$ 1,435.14 Million by 2028 Growth rate CAGR of 12.9% from 2021-2028 Forecast Period 2021-2028 Base Year 2021
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Drone Simulator Market: Strategic Insights
| Market Size Value in | US$ 615.66 Million in 2021 |
| Market Size Value by | US$ 1,435.14 Million by 2028 |
| Growth rate | CAGR of 12.9% from 2021-2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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The players operating in the drone simulator market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
- In March 2021, CAE announced that it has reached a formal agreement with L3Harris Technologies to buy L3Harris' Military Training business for US$ 1.05 billion (the "Acquisition"), subject to normal adjustments. The acquisition value is about 13.5 times the L3Harris Military Training business's estimated adjusted 2020 EBITDA, or about 10 times when cost synergies are factored in, which are expected to reach a range of C$35 to C$45 million (approximately US$ 28 to US$ 35 million) annually by the end of the second year following acquisition's closing.
- In March 2020, General Atomics Aeronautical Systems, Inc. (GA-ASI) installed a new Predator Mission Trainer (PMT) at its Flight Test and Training Center (FTTC) in Grand Forks, North Dakota. The aircraft flight simulator, produced by CAE, will be used to train the operators of MQ-9 Block 5 Remotely Piloted Aircraft (RPA). At the FTTC, GA-ASI offers a variety of pilot and sensor operator training for operators of GA-RPA ASI's systems. The new PMT adds to the FTTC's existing training capabilities, which includes a Block 1 simulator and Ground Control Systems (GCS).
The global drone simulator market has been segmented as mentioned below:
By Component
- Solution
- Services
By Simulator Type
- Fixed
- Portable
By Drone Type
- Fixed Wing
- Rotary Wing
By Technology
- Augmented Reality
- Virtual Reality
By Geography
North America
- US
- Canada
- Mexico
Europe
- France
- Germany
- Italy
- UK
- Russia
- Rest of Europe
Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
South America (SAM)
- Brazil
- Rest of SAM
Company Profiles
- L3Harris Technologies, Inc.
- General Atomics
- Israel Aerospace Industries Ltd.
- Leonardo S.p.A.
- HAVELSAN A.S.
- CAE Inc.
- SIMLAT UAS SIMULATION
- SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED
- BLUEHALO
- Quantum3D
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component , Simulator Type , Drone Type , and Technology
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Growing Adoption of Drones in Military and Commercial Applications.
Increasing Investments in Research and Development for Military Simulation.
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, worldwide expenditure on military and defense 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 defense 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.
Based on component, the drone simulator market is bifurcated into software and hardware. The global drone simulator market is dominated by hardware segment in 2020, which accounted for 67.4%.
Several businesses and start-ups are currently studying and developing unmanned aerial vehicles (UAVs) with autonomous tools driven by artificial intelligence (AI) and machine learning (ML). The AI-powered simulators show the user how to deploy and control the drone in the field by plotting its expected flight path. For instance, Lockheed Martin, an aerospace and defense juggernaut, provides the ‘Desert Hawk III’ with a simulation system, as the drone intended for field usage can be piloted by a single operator. Before takeoff, the simulation system can control the drone's predicted timing, and any issues that arise during the flight may also be handled using the system. Similarly, AeroVironment, a US-based defense firm, offers a revolutionary line of military drones known as the Raven series that can fly independently along a path utilizing GPS coordination and computer vision.
The major players profiled in the market study of drone simulator market include Aegis Technologies; CAE Inc; General Atomics ; Havelsan AS; Israel Aerospace Industries Ltd; L3 Link Training & Simulation; Leonardo SpA; Sikan Nutzfahrzeuge GmbH; Simlat Uas Simulation; Singapore Technologies Electronics Limited and Zen Technologies Limited among others.
North America held the significant market share in year 2020, along with the notable revenue generation opportunities in Europe and APAC.
The List of Companies - Drone Simulator Market
- 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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