Boeing Predict China to spend $1.1 trillion on aeroplanes over next 20 years
Boeing have boldly predicted that China is to spend over $1 trillion on over 7000 planes by 2036.
The aerospace company, competing with Airbus for market share in China, has stated that this growth will be made up of around 75% passenger planes and 25% cargo carriers. Chinese spend is set to make up 20% of global airline demand over the next 20 years.
Reasons cited by Boeing include better economic growth than expected in China which has resulted in an optimistic economic outlook for the long term, as well as a resurgence in the cargo market. There is also a growing middle class and there has been increased investment in infrastructure. Overall, demands for domestic and international travel are on the rise.
According to Reuters, Boeing Commercial Airplanes marketing vice president, Randy Tinseth, has stated that “China’s fleet size is expected to grow at a pace well above the world average.”
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China is currently the fastest-growing aviation market in the world, and this latest prediction is 6.3% higher than Boeing’s previous prediction made two years ago.
This previous prediction was backed up by CAPA, the Centre for Aviation, with data showing that in the first quarter of 2015 Chinese airlines carried more than 100 million passengers, making up a 13% increase over the previous year.
Across the world, Boeing predicts over 41,000 new commercial planes will be required in this period, with a total value on $6.1 trillion.
Boeing is the world’s largest aerospace company and a top US exporter, with $96.1bn revenue for 2016, ahead of Netherlands-based rival Airbus whose 2016 revenue totalled $70.41bn.
Business Review Asia Magazine - September issue
Timeline: India takes unicorn leap with six in five days
We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.
April 5: Meesho
India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.
April 6: CRED
Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.
April 7: API Holdings / Groww
The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.
April 8: ShareChat
New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.
April 9: Gupshup
AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels.