China set to become world's first trillion-dollar aviation market

China will need nearly 7,000 aircraft in the next 20 years at a cost of $1 trillion, making it the world's first trillion-dollar aviation market, Boeing said on Tuesday.

To meet demand from the surging middle class in China and across Asia, low-cost carriers and traditional full-service airlines have been adding planes and expanding new point-to- point services to cater for both leisure and business travel.

A report on Boeing's annual current market outlook forecast that China will need 6,810 new aircraft in the next 20 years at an estimated cost of $1 trillion.

American aviation giant Boeing estimated China will need 5,110 new single-aisle airplanes through 2035. And China's widebody fleet will triple in size, requiring 1,560 new airplanes.

Randy Tinseth, vice president of marketing with Boeing Commercial Airplanes, said as China moves towards a more consumer-based economy, the aviation industry will play a key role.

China's continuous economic growth will bring vitality to the aviation market, Tinseth said.

"As travel and transportation are key services, we expect to see passenger traffic grow 6.4 per cent annually in China over the next 20 years," state-run Xinhua news agency quoted Tinseth as saying.

China has become Boeing's largest customer in the world. In the past three years, Boeing delivered Chinese customers 25 per cent of its total aircraft production.

According to Boeing statistics, China's single-aisle fleet currently accounts for about 18 per cent of global single-aisle aircraft. The widebody fleet only represents about 5 per cent of the global widebody segment.

"The continuing expansion of China's middle class, new visa policies and a wide range of widebody airplanes give us reasons to expect a very bright future for China's long-haul market," Tinseth said.

Empowering by its growing e-commerce business, the air cargo is expected to become a key driver for the continuous growth of aviation in China. Besides, new airliners and a rising middle-class will drive market growth.