On Feb. 9, Boeing released its 20-year market forecast for the Asia-Pacific region. The good news is the 20-year market for new airplanes is valued at $1.9 trillion. The bad news is Boeing faces stiff competition from its chief rival, European Aeronautical Defense and Space’s Airbus. Here’s what else you need to know.
When giants fight
In it’s long-term market report, Boeing states, “During the next 20 years, nearly half of the world’s air traffic growth will be driven by travel to, from, or within the Asia Pacific region.” For Asia-Pacific airlines, that growth equates to 12,820 new airplanes, valued at $1.9 trillion. That adds up to 36% of the world’s new airplane deliveries over the next 20 years.
Further, the demand will be highest for single-aisle airplanes, like Boeing’s 737 MAX and Airbus’ A320neo. The good news is last year, Boeing delivered a record 143 planes to China; the bad news is Airbus still has the lead when it comes to market share and orders, in the Asia-Pacific region.
According to Airbus’ Asia-Pacific Market update, In 2013, Airbus’ net market share in the Asia-Pacific region was 82%, compared with Boeing’s 18%. Further, when it comes to single-aisle airplane orders and customers in that region, Airbus’ A320neo had 12 customers, with 912 orders, while Boeing’s 737 Max had 3 identified customers, with 255 orders — not exactly the best news for Boeing.