The Europe flight training and simulation market is anticipated to grow at a CAGR of more than 5% during the forecast period.
- Increasing passenger traffic is encouraging airlines to procure new aircraft, which in turn is creating an acute pilot shortage. Thus, aviation training institutes in the region are modernizing their training capabilities via procuring new simulator equipment to train a larger batch of aviation aspirants per year while adhering to the certification criteria of the regulatory agencies.
- Despite the demand, the adoption of flight simulators may be deterred by the inherently steep operational and maintenance costs that are multifold higher than the initial procurement price.
Key Market Trends
Demand for Fixed-wing Training to Outshine the Other Segments During the Forecast Period
The fixed-wing segment had the largest market share in 2019, and it is expected to dominate the market throughout the forecast period. According to IATA, over the next decade, passenger trips are expected to grow by 4.2% annually. Increasing air passenger traffic has forced airlines to expand their fleet size, which has increased the procurement of new aircraft. Moreover, rising concern over aviation emission has also shifted the focus toward new fuel-efficient aircraft models. Some of the new commercial aircraft models introduced since 2012 are A350XWB, A320neo, A220, and Embraer E2 family jets. The introduction of the new aircraft model generates the need for pilots trained on that aircraft, which, in turn, generates the demand for new fixed-wing simulators. Due to the introduction of such new aircraft, along with the requirement of trained pilots by commercial airlines, this segment of the market is expected to grow steadily over the forecast period.
Eastern Europe to Dominate the Market During the Forecast Period
With new airlines emerging in the Eastern Europe region, there has been a noticeable shift in the perception of aviation aspirants seeking to undergo the required training for obtaining their CPL or PPL license. The relatively lower investment required to undertake an aviation certification course in the region has driven the number of aspirants who enroll in the aviation institutes in the Eastern Europe region. This has encouraged regional aviation institutes to modernize their infrastructure and induct new simulators. For instance, in March 2020, BAA Training announced signing a major contract for procuring nine RealitySeven FFS from L3Harris Technologies Inc. While the first four systems would be installed at the training facilities in Lithuania and Spain, the remaining five are to be installed in Vietnam and Italy by 2022. Moreover, in December 2019, airBaltic procured an A220 FFS to support its envisioned fleet of 80 A220-300 aircraft.
The Europe Flight Training and Simulation Market is moderately fragmented. CAE Inc. is the market leader, mainly due to its huge geographical presence and brand image. L3Harris Technologies Inc., TRU Simulation + Training Inc., FlightSafety International, and The Boeing Company are the other players who captured a significant share in the market in 2019. FAA and other aviation safety and regulatory bodies are expected to make changes in pilot training and may also ease the eligibility criteria for getting commercial pilot’s license, crew, engineer, navigational training, and simulation activity. The aforementioned factors are also expected to grow over the forecast period, while airlines battle each other for market share and dominance.
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