On January 8th, CAE (Canadian Aviation Electronics Ltd.), a major helicopter manufacturer that also offers civil helicopter and business aviation training, won a contract valued at more than US$110 million . The company also signed a deal earlier in December for five full-flight simulators, a series of flight training devices and update services. CAE contracts will help the company to continue providing a range of its training systems and services for defense customers on a global scale.
Countries such as Brazil, Mexico and the US tend to generate the highest demand for helicopters in the Americas, so a contract with the United States Navy and the Mexican Air Force will “add to CAE third quarter fiscal 2014 order intake”, said Gene Colabatistto, the Group President for Defence and Security of CAE.
This encouraging pipeline of opportunities for CAE is expected to continue for the traditional Defense market and as well as the public safety and security segments. In fact, with such a positive trend continuing into the future, one of the major drivers that will likely affect the helicopter industry growth is an increasing demand for helicopter pilots from such segments.
As the demand for helicopter pilots drastically grows, flight training will follow similar suit. Thus, combining the effects of CAE recent contracts and an increasing demand for pilots, both are significantly contributing to the Global Helicopter Simulators Market, which is expected to grow at a CAGR of 2.80 percent for the period of 2014-2018.
Simultaneously, a rising number of people who are training to obtain their license to fly helicopters are using helicopter simulation as a means to train future pilots. This alternative to real time helicopter training prevents potentials deaths and helps companies lie CAE avoid massive financial losses resulting from accidents.
Additionally, companies like CAE are playing its part in saving fuels costs, helping reduce environmental impact. This is beneficial for key helicopter vendors because they save 10 times more, rather than employing real time flight training.
Helicopter industry growth is largely dependent on the demand for commercial aircraft and helicopters globally. This means that recognized players in the helicopter simulation industry like CAE and Boeing, another leading helicopter manufacturer, will benefit greatly from the growth in the Global Aviation Simulators Market with plans to double in fleet size by 2023 already in the works. This in turn, will drive the demand upwards in the Global Helicopter Simulators Market.
Moreover, the Global Helicopter Market was valued at US$24 billion in 2013 and TechNavio analysts project it to reach US$27 billion by 2018. This is good news for the helicopter industry key vendors like CAE that offer helicopter simulation services. This naturally increasing demand for helicopters is leading to higher demand of helicopter simulation training. As a result, the need for pilot training via helicopter simulation is clearly driving the Global Helicopter Simulators Market forward.
For more information, view our 2014-2018 Global Helicopter Simulators Market report.
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