Overview
Unit: $millions
| 2022 | 2023 | 2024 estimated | 2025 estimated |
|---|---|---|---|---|
Local Production | 10,718 | 12,007 | 12,007 | 12,007 |
Exports | 5,302 | 5,466 | 5,466 | 5,466 |
Imports | 8,337 | 10,420 | 10,420 | 10,420 |
Imports from the US | 4,967 | 6,498
| 6,498
| 6,498
|
Market Size | 13,753 | 16,961 | 16,961 | 16,961 |
Exchange Rates: 1 $ | 131.46 | 140.50 | 151.46 | 151.460 |
Data Sources:
Local Production (Ministry of Economy, Trade and Industry), Exports, Imports and Imports from US (Ministry of Finance). 2024 and 2025 estimated data are based on May 2025 projections provided by the Society of Japanese Aerospace Companies (“SJAC”).
Japan continues to offer a lucrative long-term market for imported aircraft, aircraft parts, engines, and other related technologies. Although aircraft engine production has returned to pre-COVID levels, Japan’s production of other aircraft parts remains flat.
Market Considerations
U.S. firms have an overwhelming presence in Japan’s aircraft and aircraft parts segment due to long-standing relationships with domestic manufacturers and trading firms – some spanning over 70 years. Several trends are driving opportunities for U.S. firms. For example, Japanese industry players are increasingly active in international projects, developing transport and patrol aircraft for defense initiatives and manufacturing small jets and jet engines for civil aviation. Geopolitical considerations, including ongoing regional disputes with China, Russia, and North Korea, are also driving Japan’s demand for enhanced defense capabilities.
Japanese customers of aircrafts and aircraft parts first consider track record and quality rather than cost competitiveness. In many cases, U.S. firms compete against other U.S. firms for new Japan contracts.
Industry Outlook: Japan’s Aerospace Sector (2025–2026)
Japan’s aerospace industry is steadily recovering to pre-COVID levels, with signs of cautious optimism across the commercial aviation supply chain. While the overall trajectory is positive, several structural and market challenges remain—particularly related to aircraft production rates, certification delays, and foreign exchange volatility.
Aircraft Production Trends
Prior to the COVID-19 pandemic, Boeing’s wide-body aircraft production was significantly higher. Japanese suppliers involved in the Boeing 787 program had the capacity to support a monthly output of 10 aircraft, with internal targets aiming to ramp up to 14. However, as of 2025, production has only recovered to approximately 7 aircraft per month.
Japanese suppliers also supported a monthly production rate of 4 to 5 Boeing 777 aircraft, which has since declined to 3 to 4 aircraft per month. The planned ramp-up of the next-generation 777X remains delayed. Boeing is currently working with the Federal Aviation Administration (“FAA”) to obtain type certification, but the program continues to experience scheduling setbacks. These delays have hindered the anticipated increase in wide-body production volumes.
Although the 777X has not yet made a significant impact on production figures, the gradual phase-out of older 777 models is being partially offset by rising 787 output. Nonetheless, overall wide-body production levels remain below earlier industry expectations.
Outlook for 2025–2026
Despite these headwinds, Japan’s aerospace sector is on a stable recovery path from the disruptions of the COVID-19 era. If Boeing can resolve its certification and production delays—particularly with the 777X program—a significant production rebound is expected, especially in the wide-body segment. This would have a positive knock-on effect for Japanese aerospace suppliers, many of whom are integrated into Boeing’s global supply chain.
Leading Sub-sectors
Aircraft Engines
Aircraft engines are a leading sub-sector. Concerning the development of civil aircraft engines, Japan participates in international joint development projects for civil engines such as the V2500, Trent1000, GEnx, GE9X, and PW1100G-JM. In addition, Japan develops defense engines such as F7 and XF9-1.
Helicopters
As the world’s fifth largest helicopter user, Japan develops and manufactures fuselages, engines, and all other helicopter components. Japan has also developed and produced a composite-material, bearing-less version of the rotor system that makes full use of cutting-edge technologies. In addition, the Japanese aerospace industry is proactively participating in multinational development projects such as the following:
Participation in International Civil Helicopter Projects
MD902 Helicopters Transmission Production
AW139 (AgustaWestland) High-Speed Gearbox
Opportunities
Civil Aircraft
Japan’s commercial aerospace business is dominated by big companies that supply the major aircraft manufacturers – specifically Boeing. For example, Japanese manufacturers such as Mitsubishi Heavy Industries (“MHI”), Kawasaki Heavy Industries (“KHI”), and Subaru (formerly Fuji Heavy Industries) supply about 35 percent of content for the Boeing 787 aircraft including aircraft wings, center wings, and front fuselage. These companies also supply about 21 percent of content for the Boeing 777 such as center section, center fuselage, and aft fuselage.
According to Japan’s Ministry of Finance, in 2023 imports of aircraft products including parts, sub-parts, and components amounted to $10.4 billion, with U.S. aerospace products accounting for 62.4 percent of the total.
Events
Aeromart Nagoya
Dates: September 24-26, 2025
Venue: Port Messe Nagoya
Description: Business matchmaking event focused on the aerospace sector. Aeromart Nagoya connects global OEMs, suppliers, and service providers through pre-arranged one-on-one meetings. The 2022 event included 400 companies from 20 countries and over 5,000 meetings.
Japan International Aerospace Exhibition (“JA”)
Dates: Fall 2028
Venue: Tokyo Big Sight
Website: https://japanaerospace.jp/en/
Description: Japan’s only large scale, fully integrated trade show on aerospace, defense, and space. The most recent “JA” was held in 2024 in Tokyo with 685 exhibitors and 37,168 visitors. The U.S. Commercial Service Japan provided on-site counseling to U.S. exhibitors throughout the exhibition.
Resources
Japan Civil Aviation Bureau under Japan’s Ministry of Land, Infrastructure, Transport and Tourism
Society of Japanese Aerospace Companies (“SJAC”)
Japan Business Aviation Association (“JBAA”)
U.S. Commercial Service Japan Contact
For more information about aerospace market developments in Japan and related opportunities for U.S. firms, please contact the U.S. Commercial Service at Office.Tokyo@trade.gov or Ms. Sayoko Koto at sayoko.koto@trade.gov.