China will need 5,000 new commercial planes valued at $600 billion by 2030 as the country becomes the second-largest aircraft market after the U.S., aircraft manufacturer Boeing said Wednesday.
Boeing raised its sales expectations 25 percent from estimates last year as China's growing middle class travels more. China’s air demand is expected to grow annually at an average rate of 7.6 percent, said Randy Tinseth, Boeing Commerical Airplanes’ vice president of marketing.
China sales will account for about 15 percent of the $4 trillion in sales Chicago-based Boeing expects over the next two decades.
"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.
Boeing forecasts that China will order 1,040 small and intermediate twin-aisle aircraft, such as the 787 Dreamliner and 777, equaling about 40 percent of the market in value. By tapping their memberships in airlines alliances, Tinseth said major Chinese airlines will shift their focus from domestic to international markets to become competitive global players.
This will cause China’s inbound tourism to surge, resulting in about, 3,350 deliveries of single-aisle aircraft. Boeing’s new 737 Max family is poised to tap the single-aisle market, Tinseth said.