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DoD Training and Simulation Market 

  • May 2015
  • 129 pages
  • Frost & Sullivan
Report ID: 2919415


Table of Contents


As the Department of Defense’s discretionary spending levels off, the training and simulation market will remain relatively strong. As the services try to find the correct balance between live and simulated training, money will be spent on more immersive, virtual training to achieve an overall cost savings. Many issues such as networking standards and security need to be addressed before robust live, virtual, and constructive networks can be effectively implemented. With decreasing defense budgets, traditional defense contractors will need to continue forming partnerships with commercial and other defense firms to provide the best technology-driven proficiency training at reasonable costs and to seek out foreign market opportunities.

Key Findings

•The Department of Defense (DoD) budget request in the President’s Budget (PB) was $xx billion, with an additional $xx billion requested for overseas contingency operations (OCO) and $ billion for the president’s new Opportunity, Growth, and Security Initiative (OGSI). The PB was released near the end of the time allotted for this research and could not be included in the assessment.
•Training and simulation funding through is forecast to experience a negativexx % compound annual growth rate (CAGR).
•Operations and maintenance (O&M) funding for training and simulation is expected to decrease at xx % per year through .
•Procurement and research, development, test, and evaluation (RDT&E) funding will decrease xx % per year between and .
***Procurement funding will decrease at xx % per year.
***RDT&E funding will increase at xx % per year.
***These trends support the development of live, virtual, and constructive (LVC) technologies to reduce the total training costs over the Fiscal Years Defense Program (FYDP).

•The Navy will spend the most on training and simulation, at over $xx billion each year throughout the forecast period.
•In fiscal year (FY) , the DoD awarded approximately $xx billion toxx companies in the training and simulation market. Raytheon Company was the top firm in the market, with $xx million in contracts.
•The top xx market competitors owned xx % of the total market revenue in , which represents a decrease, compared to the xx % value calculated for in a previous study.
•Key trends include commercial-off-the-shelf (COTS) programs to enhance interoperability, reconfigurable simulators, multi-platform simulators, deployable/transportable simulators, virtual reality (VR) systems, augmented reality (AR) systems, and blended VR/AR.

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