Interoperable, Hi-Tech Products Give Larger Participants the Upper Hand in Flight Simulator Markets

Business Wire, July 26, 2004

PALO ALTO, Calif. -- With flight simulator manufacturers increasingly working with specific aircraft manufacturers and operating system and component providers, they run the risk of over-specialization, and consequently, of being alienated from the larger market. Interoperability, adaptability, and diversity hold the key to success in this industry.

"An optimal way for simulator manufacturers to garner the maximum market share would be through the increasingly popular independent flight training centers that offer a variety of training solutions and cater to a large audience," says Frost & Sullivan Senior Analyst Juliette Salvati.

New analysis from Frost & Sullivan (http://www.Aerospace.frost.com), North American Military and Commercial Flight Simulation, reveals that revenue in this market (Please note that this is the TOTAL flight simulation market, not just the independent training centers revenue) THX- totaled $2.39 billion in 2003 and projects to reach $3.60 billion in 2010.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the North American Military and Commercial Flight Simulation, then send an email to Melina Gonzalez - Corporate Communications at melina.gonzalez@frost.com with the following information: your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you via e-mail.

In general, these centers offer services that include full flight simulators (FFS), flight training devices (FTD), and a variety of other PC based solutions and it is vital that these systems are interoperable and use the same data for the same type of aircraft in order for a pilot to train consistently no matter what training method he chooses.

Interoperability and adaptability of simulators can also help the industry cater to the evolving needs of the military sector. Recognizing the importance of synchronization and coordination for the new network-centric warfare doctrine, the military is on the lookout for new technology that it can incorporate into training strategy.

As part of this drive, the United State Department of Defense's budget is expected to increase significantly, enabling the training of the U.S. military into becoming an ultra-modern fighting force in its war against terrorism. Flight simulation technology is expected to play a pivotal role in this initiative.

"However, without a definite plan and overview of the military's needs, R&D efforts could end up being off the mark and inappropriate," cautions Salvati.

"Simulator manufacturers, therefore, are required to anticipate the needs of the defense sector, reassess the available equipment, and develop advanced technology to suit the military's ever-evolving needs. This action is likely to prevent undue delays of simulation contracts.

"In fact, developing increasingly complex and realistic technology that can guarantee ultimate flier safety is perhaps the only way to survive in the present military flight simulation industry.

"In this situation, large manufacturers have a significant advantage over smaller or over-specialized competitors as they can maximize R&D investment by spreading the risk and benefits of new technology over a larger product line and a more diverse client base," notes Salvati.

These larger participants are consolidating the market through mergers and takeovers, thus increasing their market share and strengthening their competitive position. This move further enables these conglomerates to offer multiple technologies and products and capture new market segments.

The North American Military and Commercial Flight Simulation, a part of the Modeling, Simulation & Training Monitoring Subscription, analyzes both the commercial and military segments of the market and provides industry participants with Strategies to develop and maintain market share. The forecasts -- broken down between the two segments -- are anticipated to help manufacturers target the best market for their needs, focus on their area of strength, and refine their positioning and strategy. The comprehensive overview of emerging trends can help them identify newer niches and potential opportunities. Executive summaries and interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence and management training. Our mission is to forge partnerships with our clients' management teams, to deliver market insights, and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff, spans the globe with offices in every major country.

North American Military and Commercial Flight Simulation