Report : Asia-Pacific Drone Simulator Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Component (Hardware and Software), Simulator Type (Fixed and Portable), Drone Type (Fixed Wing and Rotary Wing), and Technology (Augmented Reality and Virtual Reality)
Fixed Wing Segment to Dominate APAC Drone Simulator Market during 2020–2028
According to a new market research study on “APAC Drone Simulator Market to 2028 – COVID-19 Impact and Regional Analysis and Forecast by Component, Simulator Type, Drone, Type, and Technology” is expected to reach US$ 346.18 million by 2028 from 123.93 US$ million in 2021. The market is estimated to grow at a CAGR of 15.8% from 2021 to 2028. The report provides trends prevailing in the APAC drone simulator market along with the drivers and restraints pertaining to the market growth. Boost in defense spending is the major factor driving the growth of the APAC drone simulator market. However, issues associated with drone simulator systems complexity hinders the growth of APAC drone simulator market.
APAC drone simulator market is segmented into component, simulator type, drone type, technology, and country. Based on component, the APAC drone simulator market is bifurcated into hardware and software. Hardware segment held the largest market share in 2020. Based on simulator type, the APAC drone simulator market is bifurcated into fixed and portable. Fixed segment held the largest market share in 2020. Based on drone type, APAC drone simulator market is bifurcated into fixed wing and rotary wing. Fixed wing segment held the largest market share in 2020. Similarly based on technology the APAC drone simulator market is bifurcated into augmented reality and virtual reality. Virtual reality segment held the largest market share in 2020. Based on country, the APAC drone simulator market is segmented into Australia, China, India, Japan, South Korea, and rest of APAC. China held the largest market share in 2020.
The COVID-19 pandemic has severely impacted APAC due to wide disease spread; countries in this region are among the highly populated, which leads to the greater risk infection spread. According to the Organization for Economic Co-operation and Development (OECD), the pandemic has affected major economies such as China, India, Australia, and Japan, which are experiencing inflation. India is the worst-hit country by the pandemic in this region. Many global brands and technological companies are headquartered in the region. The limitations imposed by governments to control the spread of COVID-19, the impact of the disease on populations of different countries in the region, and current inability to utilize production capabilities are the key factors impacting military spending of Asian countries. Defense budgets have been drastically cut, resulting in a decrease in the need for drone simulator and other systems. Therefore, the COVID-19 pandemic is likely to continue to hinder the drone simulator market growth in APAC in the coming years.
CAE Inc.; HAVELSAN A.S.; Israel Aerospace Industries Ltd.; L3Harris Technologies, Inc.; Leonardo S.p.A.; and SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED are among the leading companies in the APAC drone simulator market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market. For instance, in 2021, CAE has announced that it has reached a formal agreement with L3Harris Technologies (NYSE: LHX) to buy L3Harris' Military Training business for US$1.05 billion (the "Acquisition"), subject to normal adjustments. The Acquisition value is about 13.5 times the L3Harris Military Training business's estimated adjusted 2020 EBITDA (1), or about 10 times when cost synergies are factored in, which are expected to reach a range of C$35 to C$45 million (approximately US$28 to US$35 million) annually by the end of the second year following the Acquisition's closing.