The aircraft manufacturing and development industry, Boeing, published in November last year its forecast for the demand for its aircraft units in China for the next 2 decades. According to Boeing’s assessment of the Chinese market, demand will increase despite the Covid-19 pandemic decimated its deliveries in 2020 worldwide.
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China’s economy in support
China has proven to be a strong economy in the last 20 years, as it reported a growth rate of approximately 9% stable in that period of time. It is a country that stands out for maintaining its economic development despite the adversities that are being experienced worldwide, by mid-October the BBC estimated that the eastern country was leading the economic recovery with a growth of 5% only in what is between July and September.
Having a growing economy is a sign of the increase in the country’s productivity (GDP) and its commercial activity, it is not surprising that, since China is one of the countries from which more goods are exported to the rest of the world, it is also where more units for air transport of goods and passengers are required.
The results of the Boeing study
It is estimated that until 2039 the companies of the eastern country will require approximately 8,600 new aircraft. Boeing had already made a prediction in 2019, however, this new result reveals that demand is 6.3% higher than previously speculated. The value of the number of units required according to Boeing calculations amounts to 1.4 trillion dollars. Boeing’s data on China’s rise in demand for airplanes matches the CAE data we read about in the article: Demand for pilots will increase in the coming years.
Specifically, Boeing has projected China’s demand for the next 20 years as follows: 6,450 new narrow-body aircraft will be needed, while for wide-body aircraft, 1,590 aircraft will be required. The forecast looks favorable for the company and more considering the problems it had worldwide with the Boeing 737 Max. To learn more about the situation of the 737 Max, we invite you to read: The Boeing 737 MAX receive authorization from the US to fly again.
A demand that will have competition
Not only Boeing competes for the Chinese market; its European competitor, Airbus, also has a large participation in that country, however, a new competitor: COMAC; (Commercial Aircraft Corporation of China Ltd) the country’s state-owned company founded in 2008; currently presents growing competition for the aforementioned US and European aeronautical manufacturers. In recent years COMAC has been distributing its aircraft to various Chinese airlines, thus posing greater challenges for Boeing.
What do you think of this topic? Do you think Boeing can maintain its leadership in the China market?
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