China Becoming 2nd Biggest Aircraft Market

China will need 5,000 new commercial planes valued at $600 billion by 2030, making it the number two market for airplanes after the U.S., said a report from Boeing Wednesday.

Despite the slight slowing in China’s growth rate Boeing’s sales forecast for China was raised by 25 percent over last year on a travel boom among China’s middle class. China’s air demand is set to grow at a 7.6 percent average annual rate, according to Boeing’s marketing vice president Randy Tinseth, accounting for about 15 percent of the firm’s $4 trillion in sales over the next two decades.

China will order 1,040 small and intermediate twin-aisle aircraft like the 787 Dreamliner and the 777 which accounts for about 40 percent of the market in value. Major Chinese carriers are expected to shift their focus toward the global market through alliances with airlines in other nations. The resulting surge in inbound tourism will help fuel China’s demand for about 3,350 single-aisle planes, including Boeing’s 737 Max family.

“Sustained strong economic growth, growing trade activities, increasing personal wealth and income, as well as continued market liberalization will be the driving forces in shaping China’s air travel market,” Tinseth said.