Commercial and Military Flight Simulation: A Global Strategic Business Report
San Jose, CA (PRWEB) September 24, 2012
Follow us on LinkedIn – Pilot shortages is turning out to be a major challenge for the civil aviation sector as a result of aging demographics. Although the layoffs of experienced pilot staff by beleaguered airline carriers during the 2007-2009 economic recession temporarily provided respite from the supply and demand imbalance, the cyclical pilot shortages is forecast to re-emerge in the immediate future. As existing pilots retire, demand for pilots is expected to outstrip supply, thus providing ample business opportunities for simulation, modeling technologies and integrated training solutions. Against this backdrop several independent flight training schools are expected to mushroom in the upcoming years, thus driving demand for flight simulation devices and products, including full-flight simulators. As pilot shortage skills intensify in the future, government intervention to boost supply of pilots in the form of airline subsidized training, channelizing resources on developing high-grade piloting skills and provision of vocational pilot training courses which are tax-exempt, are all expected to augur well for the flight simulation market.
Regulatory safety compliance is also expected to drive demand for flight simulators in the commercial sector. For instance, ever increasing air traffic and multiple intercrossing air pathways in densely populated cities with busy air traffic have resulted in the tightening of safety regulations in order to ensure order in air traffic. Agencies such as the FAA and Department of Transport, Canada have tightened the safety measures and enforced strict training programs. These agencies have endorsed the use of simulation technology as a safe, effective, and cost-effective method for training pilots. Stringent guidelines for training of pilots will continue to shape demand for training equipment such as simulators, as these regulation step up the need for skill upgradation necessary for gaining compliance. Also, rising fuel costs is emerging into another key factor driving increased preferences for simulated flight training as against conventional real time flight training.
The global commercial and military flight simulations market will also benefit from the growing need to replace the ageing aircraft fleet, particularly in North America and Europe. As airlines start replacing their aging fleet with new models of aircrafts, demand for trained pilots and crew will also witness an increase, since new automated cockpits always require new additional training for existing pilots. Emerging markets, home to the largest number of aircraft deliveries, are also poised to add steam to the burgeoning demand for training solutions designed for aircrew. With a constant flow of demand trickling from the both the developed and developing markets, the flight simulation market is expected to continue to witness growth in the upcoming years.
Although flight simulation offers an economic alternative to expensive flying in real-time, commercial flight simulation equipment was especially roughed up during the 2007-2008 world economic recession. With professional pilot skills being traditionally expensive to acquire, recession induced weakness in personal finances resulted in making pilot training less attractive thus explaining the decline in the number of enrolments in flying schools. Reduced access to education loans during the period recorded increases in the number of academic fallouts of debt ridden, self sponsored student pilots. With most growth fundamentals springing back into action, the market however posted an encouraging recovery in the year 2011.
The industry in Europe is running into fresh set of challenges with the impact of the Euro crisis already being witnessed in the reduction of defense budgets for equipment as part of the financial drive to reduce public deficit in most European countries. With most European banks compelled to carry higher capital, the ensuing tightening of lending norms is already restricting finance options for airline companies, thus reducing internal investments for simulation equipment purchase. The periodic flaring up Europe’s financial problems is continuing to create an increasingly uncertain business environment in Europe.
Despite the optimistic claims made by the European governments on the progress made in the resolution of the crisis, the quickening tempo of business preparations for a potential Greek exit is sending out mixed signals of optimism and fear. The market continues to remain tense and in the event of Greece exiting from the Eurozone, the knock on effects on member countries like Italy, Spain and Portugal, will be significant and the reconfiguration of the Euro will negatively impact Aerospace companies, especially transnational companies, which until now have been the primary beneficiaries of the unified currency. Given the fact that growth in the aerospace industry depends upon the stability of medium to long-term forecast of the financial and economic environment, the present period of sustained uncertainty in itself is taking its toll on the aerospace industry and its downstream markets like flight simulation equipment, as witnessed by the sequential weakening of growth in key Western European markets for the year 2012.
As stated by the new market research report on Commercial and Military Flight Simulation, the US represents the largest regional market. Asia-Pacific represents the fastest growing regional market waxing at a CAGR of about 5.8% over the analysis period. Commercial Flight Simulation represents the largest segment contributing a majority share of revenues to the total market.
Major players in the global marketplace include Alsim, L-3 Communications Holdings, Inc., Atlantis Systems Corp., The Boeing Company, Elbit Systems Ltd., CAE, Inc., Cubic Corporation, ELITE Simulation Solutions, ETC Simulation, FlightSafety International, Inc., Frasca International, Inc., HAVELSAN A.S., Mechtronix Inc., Rockwell Collins, and Thales Training & Simulation Ltd., among others.
The research report titled "Commercial and Military Flight Simulation: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of technology, market trends, drivers, issues, challenges, company profiles, mergers, acquisitions and other recent industry activities. The study provides market estimates and projections in US$ Million for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America, and Middle East. Product/Service markets analyzed include Commercial Full Flight Simulators, Commercial Flight Training Devices, Commercial Flight Training Services, Military Full Flight Simulators, Military Flight Training Devices, and Military Flight Training Services.
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