Virtual Training and Simulation Market

Market Overview

The global virtual training and simulation market size was valued at 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). 

Virtual training is a method that involves the creation of a simulated virtual environment to evaluate the capabilities of a student so that they can be used to the process of learning. There are two different kinds of it: instructor-led training and non-instructor-led training. The method of simulating a system or action in the real world over time is called simulation. In addition, the simulation generates a virtual setting that serves as a learning environment and can be utilized for various reasons. Hardware and software are combined to create virtual training and simulation solutions. While software components are programs or instructions used to carry out the system's functions, hardware components include headsets, combat instruments, hand-gloves, hearing aids, mannequins, gaming consoles, and others.

The market for virtual training and simulation is primarily driven by increased consumer awareness of the advantages of such training and simulation and increased spending by different end users, including the defense, healthcare, and educational sectors, due to increased budget allocation. However, other areas, including North Africa, cannot implement this technology due to a lack of the required infrastructure or comprehensive knowledge of the technology. Manufacturers' lack of research & development spending in the virtual training and simulation market restricts innovation potential and industry growth. However, the key players in the global virtual training and simulation market are anticipated to benefit from significant growth opportunities due to technological advancements, increased internet users, and the expansion of technology into other sectors like energy, transportation, and mining.

Market Dynamics

Global Virtual Training and Simulation Market Drivers

Increased Awareness Regarding Virtual Training and Stimulation

Many industries, including civil aviation, defense and security, healthcare, digital manufacturing, education, and entertainment, have found a use for virtual training and simulation. Nowadays, people or organizations use hardware, software, or a combination of the two to train professionals, students, crews, and other associated people effectively and with the least amount of work. A primary responder predicted that soon, knowledge of simulation and virtual training, as well as the value of training in scenarios that are comparable to real-world ones, would enable people working in a variety of industries to comprehend better, apply, and train with state-of-the-art technology and create more sophisticated and more advanced systems.

As more people turn to advanced interactive virtual devices for enthralling experiences, immersive gaming is predicted to become more popular. The gaming business has also transformed thanks to virtual reality training and simulations, which allow players to experience and engage in a three-dimensional environment. Because of this, there is a greater demand for virtual reality-based games, which has raised market awareness.

Cost Effective Benefits

Virtual training and simulation provide a cost-effective approach for training, as it replicates real-world circumstances through computers and simulation. Using an actual aircraft to train a pilot is more expensive and riskier in civil or military aviation. For a trainee to comprehend and approach problems using strategic mapping, it offers headsets, gloves, or other hardware solutions that can create a virtual environment identical to the real world. Virtual training and simulation provide practical methods to train medical personnel without endangering human life at a minimal cost. 

Training students, nurses, or other medical professionals on live patients in healthcare is unethical and hazardous. Leading industry participants are focusing on offering premium virtual content. For instance, in 2018, Oculus supplied 300,000 PSVR headsets, followed by HTC with 230,000, and Sony with 463,000, indicating a significant level of enterprise adoption of VR technology. This has significantly accelerated the creation of virtual training and simulation content, which is projected to fuel market expansion.

Global Virtual Training and Simulation Market Restraints

The Resistance to Adopt Virtual Training and Stimulation

Due to either a lack of infrastructure development or knowledge about the technology, underdeveloped nations cannot utilize virtual training and simulation technology. According to a survey by Docebo, Africans are eager to incorporate this technology into everyday activities like education, industry, healthcare, and other areas; however, a lack of adequate infrastructure prohibits them from moving further. Additionally, several nations still have expensive equipment, discouraging individuals from utilizing the technology.

Furthermore, due to gradual and steady traction and niche use cases in healthcare, major social networking firms like Facebook's Oculus struggle to push virtual reality to the mainstream consumer market. This has led to worries about the quality of virtual reality material and its capacity to keep users interested for extended periods. These aspects are anticipated to impede market expansion.

Global Virtual Training and Simulation Market Opportunities

Technological Advancements

Manufacturers and technology developers now have prospects for long-term growth thanks to advancements in this field of technology. Collaboration seminars, meetings, public lectures, military training, training for nurses and other medical professionals, and self-learning processes can all be done in a virtual environment. Through virtual training, surgeons can improve their skills, and ongoing developments in healthcare make some helpful simulation tools for medical practitioners across all specialties.

The government and other private businesses must continue investing in virtual training and simulation solutions as technological advancements would significantly improve their current performance, including constructing more realistic settings. Additionally, virtual reality aerospace components are the only ones with the capacity to deliver hands-on training for data-driven and real-time deployments. This raises knowledge retention significantly and improves the efficiency of skill transfer.

Regional Analysis

The region-wise segmentation of the global virtual training and simulation market includes North America, Europe, Asia-Pacific, and LAMEA.

North America, along with the Asia Pacific, will Likely Lead The Regional Market

North America will likely command the market while expanding at a CAGR of 12.8%. The regional virtual training and simulation market share has seen tremendous expansion in recent years; however, the business experienced a sharp decline in 2020 due to the pandemic. Additionally, healthcare industries in the US developed numerous training and simulation methods for doctors and scientists to combat the pandemic crisis, again driving market expansion. The Federal Aviation Administration's stringent regulations, the presence of well-established and technologically sophisticated market players, and the widespread adoption of technology in industries like healthcare, education, and the military are anticipated to expand the market.

The virtual training and simulation market share in North America is expanding due to the increasing use of virtual reality and other cutting-edge technologies, like artificial intelligence, in various parts of the United States and Canada. In addition, compared to in-person training, virtual training aids people and company personnel in understanding the training more thoroughly. Thus, many IT & telecom firms are embracing virtual training methods to train and employ their staff on real-time projects as a result of the escalating pandemic situation in the North American region, which is gaining popularity in the industry.

The Asia Pacific is forecasted to have a share of USD 344 billion, growing at a CAGR of 15.4%. The regional market is increasing due to the rising usage of virtual training and simulation models from various industries, including healthcare, IT & telecom, and others, for training staff in pandemic situations. Additionally, the market is expanding favorably as a result of the introduction of e-learning programs for schools and colleges by numerous governments in response to the rising patient populations in China, India, and other Asian nations. Additionally, multiple governments in the Asia-Pacific region are working with various businesses to support the introduction of virtual training methods in the education, civil aviation, healthcare, and military & defense sectors' training models, which is anticipated to present a lucrative opportunity for the market.

The market is expanding due to the increasing use of technology-enabled teaching methods in developing countries in the Asia-Pacific, including China, India, and others. Additionally, several governments in the Asia-Pacific region are working with various businesses to support the introduction of virtual training methods in the education, civil aviation, healthcare, and military & defense training models, which is anticipated to present lucrative market opportunities.

Segmental Analysis

The global virtual training and simulation market is analyzed across the component, end-user, and region.

By Component Analysis

Per the component, the fragments are hardware and software.

The hardware section is predicted to advance at a CAGR of 13.3% and hold the largest market share. Hardware is crucial in implementing simulation technologies and establishing a virtual training environment. It is a media integrated with the technology used in training activities to create a virtual reality or environment. Shortly, the increase in demand for virtual training and simulation technology is anticipated to boost the growth of the hardware industry. In the healthcare, digital manufacturing, e-learning, and entertainment areas, various display devices, headsets, gloves, trackers, and other hardware instruments are utilized. Through movies or presentations, projectors are used to create virtual classrooms for training purposes in e-learning, corporate learning, and webinars.

The software section will hold the second-largest share. In the virtual training and simulation market, software refers to computer programs that generate simulations or virtual environments using hardware devices. Among these are online classroom software, the AIDA simulator, virtual corporate training software, flight simulation software, and online civil aviation software.

By End-User Analysis

As per the end-user, the fragments are defense & security, civil aviation, education, entertainment, and others. 

The entertainment section is forecasted to advance at a CAGR of 13.4% and hold the largest share. Globally, simulation-based gaming consoles train individuals by encouraging them to handle or confront circumstances similar to the actual world by simulating the environment. Not only is it advantageous for the student, but it may also generate a substantial increase in revenue for those who specialize in designing and producing such games. Currently, video games are top-rated among young people; educational institutions are capitalizing on this trend by incorporating video games into their curriculum. The rise of start-ups in emerging and revived industries like virtual reality, augmented reality, and casual gaming, along with the high demand for programmers, designers, and scientists, all contribute to the segment's growth.

The education section will hold the second-largest share. The education industry employs virtual training and simulation for online content, game-based learning, corporate learning, learning management systems (LMS), and online certification courses. Simulation-based training is a potent tool, especially for corporate training, because it enables students to apply their acquired information in many settings and situations actively. This learning session is engaging and cost-effective due to the activities' selection and real-world implications.

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.