LONDON, Aug. 1 (UPI) -- Revenues in the world's military training and simulation market will remain steady in the near future.
The forecast was made by market analysis firm Frost & Sullivan in its report, Global Military Training and Simulation (T&S) Market Assessment.
The United States military, it said, accounts for 68.4 percent of the total military T&S market, but budget sequestration has led to an overall negative compound annual growth rate of 0.6 percent at the global level for 2013-2022.
T&S market revenues are expected to fall slightly from $6.74 billion in 2013 to $6.36 billion in 2022, but two main factors offer a silver lining: budgets in the United States and Europe are expected to stabilize from 2018, and military spending and arms races across the Middle East, Central Asia and Asia-Pacific are expected to increase, fueling the need for procuring training systems.
"These factors will ensure that military T&S market revenues for air, land and naval forces remain steady over the next 10 years," Frost & Sullivan said.
"The Western regions ... will show a higher demand for military training services as end users prefer outsourcing some or most of their training requirements in the face of stretched budgets as well as decreasing facility and maintenance expenditure," it added. "This trend will take the cumulative market size of military training services up to $19.57 billion for the 2013–2022 period."