A new Frost & Sullivan analysis predicts the Defense Department’s budget for training and simulation systems to experience a compound annual growth rate of 1.7 percent through 2020.
The demand for mixed reality training or live, virtual and constructive training is expected to drive investments and technology updates in the military training and simulation market, Frost & Sullivan said Tuesday.
“While spending is an issue, the global crises in Eastern Europe and the Middle East will still require a large number of assets and combat-ready troops,” said Michael Blades, senior industry analyst for aerospace and defense at Frost & Sullivan.
“Technology, robust mixed reality exercise and portable equipment will be required to ensure quality and timely training.”
The report said the demand for LVC training will drive the market for augmented reality and virtual reality systems.
Frost & Sullivan also noted that it expects a decline in the budget for the acquisition of training and simulation tools due to a slowdown in the delivery of training systems for new programs such as littoral combat ships as well as KC-46 and P-8 aircraft.