Boeing Predicts China to be the First $1 trillion Market
Boeing recently released their China Current Market Outlook (CMO), showing predictions that China will become a $1 trillion market over the next two decades.
The outlook shows the demand will reach 6,810 planes ordered over the country. Nearly 75% of the demand they predict will be for single-aisle airplanes. A rising middle class in China and throughout Asia is spurring this move, with low-cost carriers and full-service airlines adding airplanes and expanding new point-to-point services to cater to the demand.
“As China transitions to a more consumer-based economy, aviation will play a key role in its economic development,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “Because travel and transportation are key services, we expect to see passenger traffic grow 6.4% annually in China over the next 20 years.”
Boeing forecasts the widebody fleet will triple in size, requiring 1,560 new airplanes. This year’s forecast reflects a continued shift away from very large airplanes to more efficient small and medium widebody airplanes.
Driven by China’s growing e-commerce business, already the largest in the world, air cargo is expected to become a key driver for the continuous growth of aviation in China, with the need for 180 new freighters and 410 converted freighters.
Worldwide, Boeing projects investments of $5.9 trillion for 39,620 new commercial airplanes to be delivered during the next 20 years.