China is set to surpass North America and Europe to claim the title of the world’s largest aviation services market by 2043, with the market value projected to nearly triple from $23 billion in 2024 to $61 billion, according to Airbus' latest global services forecast.
Key Drivers of Growth
This year, China’s aviation services market grew by 24%, reaching $23 billion, up from $18.6 billion in 2023. The rapid growth is fueled by increasing domestic consumption and cultural tourism, as highlighted during the Central Economic Work Conference.
Airbus Vice President Hu Yongdong noted, “Higher demand for travel will drive significant growth in China’s civil aviation sector,” reflecting optimism for next year’s air transportation market.
Passenger and Fleet Growth
The Civil Aviation Administration of China (CAAC) reported record-breaking numbers in 2024, with over 700 million passengers transported by December 15. Daily passenger volumes have exceeded 2 million, a rise of 18.1% year-on-year and 10.7% above pre-COVID levels.
By 2043, China is expected to operate 11,160 aircraft, with 9,520 new deliveries, accounting for 20% of global demand. The fleet will largely consist of next-generation digital aircraft, aligning with China’s growing emphasis on technological advancements.
Booming Services Market
China’s aviation services sector is forecasted to grow at a 5.1% compound annual growth rate (CAGR), driven by three key areas:
- Maintenance Services: Representing 83% of the market, maintenance will expand from $19 billion in 2024 to $51 billion in 2043, fueled by fleet expansion and aging aircraft.
- Fleet Enhancement Solutions: Focused on connectivity and digitalization, this segment is expected to grow at a CAGR of 5.6%, reaching $6 billion by 2043.
- Training and Operations: The sector will require 478,000 new skilled workers, including 155,000 technicians, 124,000 pilots, and 199,000 cabin crew, over the next 20 years.
Global Implications
Eurasia, China, and North America are projected to drive over half of global demand for aviation personnel and services in the coming decades.
With a robust aviation infrastructure and a strong focus on innovation, China is positioned to lead the global aviation services market, setting a benchmark for the industry’s future growth.
News Source: China Daily
