China Aerospace Executive Briefing

January, 2014 by SAI

China’s aerospace market grew by 11% CAGR from 2007 to 2011, while the global market grew by 5% during the same period. Under China’s 12th Five Year Plan, the government announced it was to purchase about 1,000 new commercial aircraft to facilitate the development of local infrastructure. In 2012 alone, China purchased a total of 200 aircraft from Boeing and EADS and expects to order a further 430 between 2013 and 2015. China’s total purchased number of commercial aircraft has increased at 20% CAGR for the last 4 years while the global market increased at 11% CAGR.

China’s aerospace industry is still fragmented with many local parts producers and subcontractors. MNCs with design capabilities are key market leaders. They include EADS, Boeing, Mitsubishi Heavy Industries and Xi’An Aircraft International.

China’s aerospace industry is expected to achieve a 16% CAGR from 2012 to 2016 in terms of market value. The military aerospace industry will drive overall growth of China’s aerospace industry, while civil aerospace is expected to maintain a slower pace of <5% annual growth in the next five years.

Key applications which will benefit most from a fast growing aerospace industry in China are: Prepreg (CFRP/GFRP) – an essential material to produce parts and frames, epoxy adhesives which are used increasingly as a substitute for traditional welding to reduce weight, and coatings.

SAI has developed a complimentary executive briefing on China’s aerospace industry. For a copy, please contact Jess at SAI is also well-placed to support your business’ expansion in China and other Asian markets, please contact us if you require our support.