A newÂ Frost & SullivanÂ analysis predicts the Defense Departmentâ€™s budget for training and simulation systems to experience a compound annual growth rate of 1.7 percent through 2020.
The demand for mixed reality training orÂ live, virtual and constructiveÂ training is expected to driveÂ investments and technology updatesÂ in the military training and simulation market, Frost & Sullivan said Tuesday.
â€œWhile spending is an issue, the global crises in Eastern Europe and the Middle East will still require a large number of assets and combat-ready troops,â€ said Michael Blades, senior industry analyst for aerospace and defense at Frost & Sullivan.
â€œTechnology, robust mixed reality exercise and portable equipment will be required to ensure quality and timely training.â€
The report said the demand for LVC trainingÂ will drive the market for augmented reality and virtual reality systems.
Frost & SullivanÂ also noted that itÂ expects a decline in the budget for the acquisition of training and simulation tools due to a slowdown in the delivery of training systems for new programs such as littoral combat ships as well as KC-46 and P-8 aircraft.