Steady growth seen for China aerospace industry

DUBLIN – The aerospace industry in the People's Republic of China is expected maintain the steady growth it has had over the last five years, according to a new report in the Research and Markets portfolio. 

According to Chinese Aerospace Market Supply Chain and Opportunities: 2012-2017, the industry is forecast  to reach approximately $102,549 million in revenue in 2017, with a CAGR of 19% over the next five years. All industry segments are expected to witness double-digit revenue increases throughout the forecast period of 2101-2017.

While the Chinese aerospace industry faces tough competition from Russia and India, increasing passenger traffic, China's thriving economy, and strong government support will continue to drive growth in the country’s aerospace industry. The development and production of indigenous programs such as the C919, ARJ21, and MA700 will help fuel additional market growth.

China's commercial aircraft sector is anticipated to be the top revenue producer, while the civil helicopter market is anticipated to have the highest rate of growth during 2012-2017.

The Chinese aerospace supply chain market is also poised for further robust growth, driven by joint ventures, foreign investment and various initiatives by the Chinese government. This sector has benefited various developments in terms of increasing foreign investments, civil aircraft advances, and the increasing involvement of Chinese suppliers in the industry supply chain. Low labour costs create JV and partnership opportunities for Chinese aerospace supply chain players for various systems and subsystems manufactured for global majors such as Boeing, Airbus, and Eurocopter

China also builds its defence aircraft indigenously using its own manufacturing base.

The report, which provides trend scenarios and forecast statistics for 2012 through 2017, details the industry's drivers and challenges; discusses market opportunities at OEM, Tier 1, and Tier 2 levels; provides supply chain analysis; explores JV/partnership opportunities in the aerospace supply chain; and discusses demand and supply scenarios in China's aerospace industry. The report also evaluates China's aerospace supply chain through SWOT and PEST analyses and more.