Analysis of the US DoD Training and Simulation Market

Published Pages Publisher Report code
Apr 2014 109 Frost & Sullivan ASDR-104353
Analysis of the US DoD Training and Simulation MarketAs the Department of Defense's discretionary spending continues to decrease, 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. With decreasing defense budgets, traditional defense contractors will need to continue forming partnerships to provide the best technology-driven training at reasonable costs, as well as branch out into simulated training opportunities in the commercial market.

Key Findings
  • The Department of Defense (DoD) budget request in the 2014 Presidentís Budget (PB) is $xx billion with an additional $xx billion request for overseas contingency operations (OCO) funding.
  • The 2014 National Defense Authorization Act (NDAA) was signed into law on xx December 2013 and authorized $xx billion in defense spending, more than the Presidentís request, and the full $ billion for OCO.
  • In addition, the Bipartisan Budget Act (BBA) was also signed into law on xx December 2013 and reduces the effects of sequestration for fiscal years 2014 and 2015.
  • Training and simulation funding through 2018 is forecasted to experience a negative xx% compound annual growth rate (CAGR). This decrease will be less than the average yearly decrease in overall DoD funding, which should be a negative xx-xx% per year, depending on congressional actions.
  • Operations and maintenance (O&M) funding for training and simulation is expected to decrease at a negative xx % CAGR through 2018.
  • Procurement funding will decrease, on average, xx% per year between 2014 and 2018. While the decreasing defense budget will contribute, the main factor for the decrease will be the completion of initial training system deliveries for programs such as the P-8, KC-46, and littoral combat ship (LCS).
  • Research, development, test and evaluation (RDT&E) funding will remain consistent at around $xx-xx million per year throughout the forecast period and beyond.
  • The Navy will spend the most on training and simulation throughout the forecast period.
  • In FY 2013, the DoD awarded approximately $xx billion to xx companies in the training and simulation market. Raytheon Company was the top firm in the market with $xx billion in contracts.
  • The top xx market competitors owned xx% of total market revenue in 2013. This represents a slight increase over the xx% value calculated for 2011 in a previous study.

Key Questions This Study Will Answer
  • Is the DoD training and simulation market growing, how long and at what rate will it continue to grow?
  • What segments, technologies, and services make up the market?
  • What are the leading market drivers, restraints, and challenges?
  • What are the top programs for the DoD training and simulation market?
  • What technologies and services will be emphasized?
  • What companies are leading the market?

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