China will need to buy more aircraft from the West than previously anticipated because of its air travel market will continue to boom despite a temporary slowdown today, according to The Boeing Company, which is also the largest U.S. exporter by dollar value.
Boeing estimates Chinese airlines will need 8,090 new planes until 2038, a total 5.2 percent higher than its previous forecast made in 2018. These planes will be worth more than $1.3 trillion based on list prices. Boeing said China is on track to become the world's biggest aviation market within the next decade.
Boeing projected a Chinese demand for 5,960 new single-aisle airplanes over the next 20 years, representing 74 percent of total new deliveries. China's widebody fleet will require 1,780 new planes, tripling the country's current widebody fleet size.
China will also need about $1.6 trillion worth of commercial services for its aircraft fleet over the period, Boeing said.
Boeing said growth will be driven by China's expanding middle class and infrastructure improvements. China accounts for 15 percent of the world's commercial aircraft. This total is set to expand to 18 percent by 2038, according to Boeing.
In 2018, Boeing forecast a 6.2 percent growth in China's new aircraft demand. This would have brought China's total aircraft demand to 7,690 planes from 2019 to 2037.
Boeing is currently negotiating with Chinese airlines for 100 twin-aisle jets. Trump's trade war, however, get in the way of this massive deal's completion, according to Chinese sources.
"An expanding middle class, significant investment in infrastructure, and advanced technologies that make airplanes more capable and efficient continue to drive tremendous demand for air travel," said Randy Tinseth, vice president of commercial marketing for Boeing.
Chinese airlines, however, are fighting to expand capacity due to softer travel demand amid a slowing economy.
Airbus, Boeing's competitor, received a $35 billion order for it's from China in March. China is ordering 290 A320-series planes and 10 A350 widebodies.
