Virtual Reality in Aerospace and Defense Market Size, Share & Industry Analysis, By Component (Hardware, Software, and Content), By Application (Training, Maintenance Assistance, Design and Manufacturing, Passengers Entertainment), and Regional Forecast, 2019-2026

The global virtual reality in aerospace and defense market size stood at USD 391.9 million in 2018 and is projected to reach USD 5,840.7 million by 2026, exhibiting a CAGR of 37.9% during the forecast period.

VR has provided a fully immersive and digitized environment. It brings real benefits and value to simulate, reproduce, and design products in safe environment. The aerospace and defense domain has always been on the verge of adoption and development of 3D design. The introduction of VR solutions has positively influenced the aerospace and defense industry from the last few years.

Many centers have been established for VR in aerospace and defense industry. For instance, Embraer’s virtual reality center is equipped with modern graphic computer systems, which enables the engineers to visualize the aircraft structure through 3D electronic models.

VR in aerospace and defense has created lucrative market opportunities. Organizations are looking forward to partner up or even acquire software vendors providing VR solutions to offer better services to their customers. For instance, Lockheed Martin, an aerospace company, is using virtual reality to build F-35. The company incorporates VR glasses to monitor each part of the warplane.

Market Drivers

“Increasing Demand for New 3D Tools in Aerospace and Defense to Boost Growth”

The 3D design has enabled significant gains in the aerospace and defense equipment manufacturing processes. This has positively impacted both performance of the aircraft as well as the manufacturing processes. The advancements in new 3D technologies are bringing new market opportunities for the optimization of production time and cost in the aerospace and defense industry. 3D technology has been a continuous trend, specifically in the aerospace industry.

Recent developments in the virtual reality technology have promised new applications in aerospace and defense domain, thereby impacting the virtual reality in aerospace and defense market growth. 3D visualization abilities incorporated with digital mock-ups with physical objects, virtual assembly lines, tighter integration, and a seamless design process would drive the market in the coming years.

“Growing Need for Enhanced Maintenance and Repair Solution to Drive Growth”

VR enables real-time visualizing properties. It has widely influenced maintainability and accessibility of complex machineries. VR has made assembly planning, fights check design, and other designing processes in the aerospace and defense industry more effective and efficient which has further led to productive manufacturing.

Pratt & Whitney provides training tools in VR. They have developed simulation environment where engineers can walk inside a jet engine and explicitly explore each part and study them. Also, Lockheed collaborated with Ngrain, a Vancouver-based company. The company develops the software and claims that the combination of the glasses and their software enables the engineers to work 30 percent faster with 96 percent accuracy.

Moreover, Japan Airlines has deployed Google Glass for its maintenance operations, intending to improve work efficiency. This system enables the maintenance staff to receive advice and guidance in the form of audio while they are working. Also, they are able to share a photograph or real-time video data with their associates. Such initiatives are expected to foster the VR in aerospace and defense market share in the forthcoming years.

SEGMENTATION

By Component Analysis

“VR Hardware to Dominate Owing to the Possession of Numerous Benefits”

Based on the component, the market is segmented as hardware, software, and content. VR hardware contributes to the maximum revenue share in the market. VR hardware, including VR headsets, head-mounted devices, and other controllers enables the engineers and technicians to execute research and development in the defense and aerospace equipment.

VR content is likely to grow at a notable CAGR in the coming years. Network transmission and content creation are forming the foundation of VR technology. Content is a more significant concern for the VR in aerospace and defense industry. The industry may face some challenges due to lack of VR content offerings.  VR also incorporates audio and video content to offer immersive experiences in aerospace and defense.

VR software is likely to gain importance in the aerospace and defense sector. Several companies are actively working towards developing VR software for aerospace and defense. For instance, Airbus is providing VR programs for new maintenance and research operations in the aerospace industry. The company offers RHEA (Realistic Human Experiment Analysis) rooms for fully immersive and realistic experience of the aircraft.

By Application Analysis

“Training Segment to Generate Maximum Revenue Backed by a Need for Task Optimization”

Based on the application, the market has been classified into training, maintenance assistance, design and manufacturing, and passenger entertainment. Training is the most ubiquitous application of VR across the VR in aerospace and defense industry. VR has enabled the engineers or expertise to optimize the procedures and tasks by providing advanced training to the workforce in the industry.

Passengers' entertainment segment is estimated to grow at a significant CAGR through the forecast period. The International Air Transport Association (IATA) has projected that the global passenger number will reach 7.8 billion by 2036. This factor contributes to the demand for advanced passenger entertainment solutions to provide better-quality service to passengers.

Other applications of VR in aerospace and defense include design and manufacturing, maintenance assistance, and others. Air France has already deployed passenger entertainment system using the VR headsets. This enables the passengers to watch 3D and 2D films and TV shows.

Regional Analysis

The market has been analyzed across five major regions, including North America, Asia Pacific, Europe, Middle East and Africa, and Latin America.

North America is anticipated to witness a flourishing growth in the global virtual reality in aerospace and defense market. In 2018, North America had generated a revenue of USD 136.3 million and is likely to acquire a remarkable market share till 2026. Early adoption of VR technology would foster market growth in the region. Also, the presence of key market players such as Google, HTC, and Sony would drive the market in this region.

Asia Pacific is projected to grow at a remarkable CAGR in the global market. Export promotions, new trade relationships, maturing open sky agreements, and enhanced logistics will drive the demand for VR solutions in aerospace and defense industry. There is an immense need to adopt VR solutions in defense to strengthen the military equipment with advanced facilities, which will contribute to market growth.

Europe is expected to hold a strong position in the global market followed by North America and Asia Pacific. Europe houses some of the eminent players in the aerospace and defense industry, such as Airbus. Airbus is prominently working on offering VR programs through the Airbus Holographic Academies, which are trying to take this technology to the next level in the industry. This will drive the virtual reality in aerospace and defense market revenue across the region.

The Middle East and Africa is expected to exhibit a moderate growth rate, whereas Latin America is expected to have a notable CAGR in the virtual reality in aerospace and defense market. The adoption of advanced technologies and substantial investment of organizations would expand the market size in this region.

INDUSTRY KEY PLAYERS

“Key players to Focus on Mergers and Acquisitions”

Increasing investments by aerospace and defense giants, namely, Boeing, Lockheed Martin, Airbus in VR solutions is expected to boost the market growth and encourage the market players to develop advanced VR solutions specifically for the aerospace and defense industry.

For instance, Boeing has announced its investments in C360 technologies, company based in Pittsburgh. The company focused on providing 360-degree video and augmented and virtual reality. This is the primary investment of Boeings HorizonX’s venture arm in the emerging Pittsburgh tech market.

List of Key Companies Profiled:

• Unity Technologies


• Microsoft


• Google


• Sony


• HTC Corporation


• Samsung


• Facebook Technologies, LLC.


• EON Reality, Inc.


• Magic Leap, Inc.


• WorldViz


• NextVR Inc.


• NVIDIA Corporation


• Virtuix

Report Coverage

The report presents a comprehensive assessment of the global market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the global market. 

Various key insights provided in the report are the price trend analysis, recent industry developments such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, and key virtual reality in aerospace and defense market industry trends, competitive landscape, and company profiles.

Report Scope & Segmentation

INDUSTRY DEVELOPMENT:

• April 2019 - Rolls Royce and Qatar Airways announced that they are using VR to train their engineers. The companies leverage HTC Vive equipment which offers an immersed environment using various characteristics, such as sight, sound, and touch.


• October 2019 - Anduril, a defense sector start-up has launched its first attack drone Interceptor that detects and destroys other drones. Interceptor is incorporated with the virtual border wall technology. It also encompasses Oculus Rift and is developed by the Oculus Founder Palmer Luckey.