Impact of COVID-19 on the Global Flight Simulator Market
The aviation industry is witnessing unprecedented scenarios from the past two months due to COVID-19. The pandemic has had the most dramatic effect on airline companies. As major countries across the world have scaled back airline operations due to COVID-19, the demand for flight training has also been negatively impacted. As a result of this, the demand for flight simulator has also fallen as the pandemic continues.
Pre-COVID-19 Impact on the Flight Simulator Market
According to Market Research Future, the global aircraft leasing market was estimated to reach USD 7,794.3 million by 2025 due to factors such as the growing demand for airline pilots, and the need to reduce pilot training costs had a positive impact on the flight simulator market. Furthermore, the rise in the implementation of flight simulators for training combat aircraft pilots in militaries across regions was further expected to drive the market growth. In addition to this, the expansion of fleets across airline companies in the Asia-Pacific region further drove the demand for flight simulators. The flight simulator industry was expected to witness a Compound Annual Growth Rate (CAGR) of 5.38% by 2025.
REGION-WISE DEMAND FORECAST FOR NEW PILOTS
Post-COVID-19 Impact on the Flight Simulator Market
COVID-19 has had a devastating impact on the aviation industry across the world. Amid the pandemic, very few countries are allowing transportation through air network. Most airline companies have grounded their fleet due to a significant reduction in air travel. Apart from the reduction in air travel, the pandemic has painted a distressing picture for airline companies as they are presently burning significant capital towards the maintenance of the grounded fleet. The International Air Transport Association (IATA) has estimated a decrease in international air passenger revenues by approximately 50%. Due to a large amount owed to lessors by airline companies, they now look forward to the government for financial support in terms of loans, financial support, and tax reliefs to survive during the pandemic. Airline companies have also put a hold on recruiting new pilots as a result of which the demand for flight simulators have also reduced. Furthermore, flight simulator training has been rescheduled by many flight simulator service companies.
COVID-19 Impact on the Flight Simulator Industry in Key Regions
North America: North America includes the US and Canada. Various airline companies have currently put a stay on pilot training. Due to the grounding of the aircraft fleet has led airline companies to hire new pilots, as a result of which flight training institutes have cut back on operations. Unless the air travel demand returns to normalcy, the demand for flight simulators remains to be lower.
Europe: As flight operations are suspended in Europe, governments across various countries are expected to support airline companies in this region through financial aid, which, in turn, is expected to drive the demand for flight simulators as few airlines will be looking forward to hiring experienced pilots.
Asia-Pacific: Asia-Pacific includes countries such as China, India, Japan, Australia, Singapore, and Australia. Various countries in the region have stopped hiring new pilots due to the ongoing pandemic. Furthermore, flight training institutes have put a stay on new admissions for flight training. Thus, reducing the demand for flight simulators.
The Road Ahead
As airline companies are not currently hiring pilots, the demand for flight simulators remains low due to the pandemic. Future scenario is expected to witness the lifting of lockdown and resuming of flight operations which will restore the demand for flight simulators. However, as the pandemic continues, the situation is expected to turn grave for flight simulator companies.
Role of Market Research Future
As a market research and consulting company, Market Research Future has been continuously monitoring and tracking the COVID-19 pandemic and its impact on various markets within the aerospace & defense industry. All our research studies have been updated to accommodate the impact of COVID-19 in the respective market to provide our customers with comprehensive market data along with present and future trends with macro and micro-level impact factors.
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