Virtual Training and Simulation Market Extends at a Healthy CAGR of 13.85% by 2030

Introduction

Virtual training is a method that involves the building of a simulated virtual environment intending to evaluate a student's abilities so that they can become accustomed to the learning process. There are two types of training: instructor-led and non-instructor-led. Simulation is the process of simulating a system or event in the real world over time. In addition, simulation is applied to create a virtual learning environment that may be utilized for various purposes. Combining hardware and software yields virtual training and simulation solutions. Hardware components include headsets, combat instruments, hand-gloves, hearing aids, models, and game consoles. Software components are programs or instructions to carry out the system's duties.

Market Dynamics

Increased Awareness Regarding Virtual Training and Simulation Plus the Cost-Effective Benefits

Several industries have discovered the benefits of virtual training and simulation, including civil aviation, defense and security, healthcare, digital manufacturing, education, and entertainment. People and organizations employ hardware, software, or a combination of the two to train professionals, students, workers, and other affiliated individuals efficiently and with the least effort. A primary respondent predicted that shortly, knowledge of simulation and virtual training, as well as the value of training in scenarios that are comparable to real-world ones, will enable workers in a variety of industries to better comprehend, apply, and train with cutting-edge technology and create more complex and advanced systems.

Immersive gaming is projected to increase in popularity as more people turn to interactive virtual devices for fascinating experiences. The game industry has also been transformed by virtual reality training and simulations, which enable players to interact with a three-dimensional world. As a result, the demand for virtual reality-based games has increased, which has increased market awareness.

In addition, virtual training and simulation are cost-effective methods of training since they recreate real-world conditions through computers and simulation. Using a genuine aircraft for pilot training in civil or military aviation is more expensive and dangerous. It provides headsets, gloves, or other hardware solutions that can generate a virtual environment equal to the real world so trainees can comprehend and tackle problems via strategic mapping. Virtual training and simulation are helpful ways to train medical staff without endangering human life or incurring excessive expenses. And so these lead to the expansion of the market. 

Technological Advancements to Create Global Virtual Training and Simulation Market Opportunities

Due to advancements in this technology area, there are now hopes for long-term growth among manufacturers and technology developers. In a virtual environment, it is possible to conduct collaboration seminars, meetings, public lectures, military training, training for nurses and other medical professionals, and self-learning procedures. Surgeons can improve their skills through virtual training, and as the healthcare industry evolves, some simulations have become valuable tools for medical practitioners of many disciplines.

The government and commercial companies must continue to invest in virtual training and simulation solutions, as technical improvements would significantly improve their existing performance, including creating more realistic environments. Moreover, only virtual reality aerospace components are capable of providing hands-on training for data-driven and real-time deployments. This dramatically increases knowledge retention and increases the efficiency of skill transfer.

Regional Insights

North America will likely command the market while expanding at a CAGR of 12.8%. In recent years, the North American virtual training and simulation market has witnessed significant growth; nevertheless, the firm experienced a sharp decrease in 2020 due to the pandemic. In addition, various US healthcare sectors developed numerous training and simulation methods for doctors and scientists to tackle the pandemic problem, propelling market expansion. It is projected that the Federal Aviation Administration's stringent rules, the presence of well-established and technologically advanced market competitors, and the growing usage of technology in industries including healthcare, education, and the military will drive the market's growth.

The increasing usage of virtual reality and other cutting-edge technology, such as artificial intelligence, in various regions of the United States and Canada, boosts the North American market. Moreover, compared to in-person training, virtual training helps individuals and firm employees comprehend the instruction more thoroughly. As a result of the rising pandemic crisis in the North American region, many IT & telecom companies are embracing virtual training methods to train and employ their workers on real-time projects. This trend is gaining favor in the business.

The Asia Pacific is forecasted to have a share of USD 344 billion, growing at a CAGR of 15.4%. This region's market is booming because of the increasing use of virtual training and simulation models from various industries, such as healthcare, IT & telecom, and others, for pandemic employee training. In response to the growing patient populations in China, India, and other Asian nations, various governments are introducing e-learning programs for schools and universities, contributing to the market's expansion. In addition, numerous governments in the Asia-Pacific region are collaborating with businesses to support the introduction of virtual training methods in the training models of the education, civil aviation, healthcare, and military & defense sectors, which is expected to create a lucrative market opportunity.

The market is booming due to the increased usage of technology-enabled teaching methods in developing Asia-Pacific nations, such as China and India. In addition, several governments in the Asia-Pacific region are collaborating with businesses to promote the incorporation of virtual training techniques into the training models of the education, civil aviation, healthcare, and military & defense sectors, which is expected to create lucrative market opportunities.

Key Highlights

• The global virtual training and simulation market had a revenue holding of USD 289.95 billion in 2021. It is expected to reach USD 931.8 billion by 2030, growing at a CAGR of 13.85% during the forecast period (2022-2030). 
• Based on the component, the hardware section is predicted to advance at a CAGR of 13.3% and hold the largest market share.
• Based on the end-user, the entertainment section is forecasted to advance at a CAGR of 13.4% and hold the largest share.
• Based on regional analysis, North America will likely command the market while expanding at a CAGR of 12.8%.

Competitive Players

1. ANSYS, Inc.
2. BAE Systems
3. CAE Inc.
4. Cubic Corporation
5. Kratos Defence & Security Solutions, Inc.
6. L-3 Link Simulation & Training
7. Lockheed Martin Corporation
8. ON24, Inc.
9. Saab AB
10. The DiSTI Corporation

Recent Developments

• In 2022, Lockheed Martin Corporation launched the third CH-53K helicopter from Low-Rate Initial Production (LRIP) to the US Marine Corps. Due to its superior heavy-lift capabilities compared to all other rotary-wing platforms deployed by the US Department of Defense, the CH-53K is the only heavy-lift helicopter produced until 2032.

Segmentation

1. By Component
   1. Hardware
   2. Software
2. By End-User
   1. Defense & Security
   2. Civil Aviation
   3. Education
      1. E-Learning
      2. Game-based learning
   4. Entertainment
   5. Others