This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
Unit: USD millions
Table: Aircraft and Related Parts Market
|
|
2018 |
2019
|
2020 |
2021 (estimated)* |
|
Local Production |
16,105 |
16,602 |
599 |
599 |
|
Exports |
11,005 |
10,934 |
8,279 |
8,279 |
|
Imports |
15,571 |
15,924 |
9,674 |
9,674 |
|
Imports from the US |
10,217 |
9,475 |
6.172 |
6.172 |
|
Market Size |
20,670 |
21,592 |
1,994 |
1,994 |
|
Exchange Rates: 1 USD |
110.40 |
109.02 |
106.78 |
106.78 |
[ market size = ( local production + imports) – exports]
Data Sources:
Local Production: Ministry of Economy, Trade and Industry
Exports: Ministry of Finance
Imports: Ministry of Finance
Imports from the US: Ministry of Finance
Despite a dramatic decrease in air travel demand due to the COVID-19 pandemic and the tight entry restrictions countries around the world implement, Japan continues to offer a lucrative long-term market for imported aircraft, aircraft parts, engines, and related technologies. Society of Japanese Aerospace Companies (SJAC) projects that the aerospace industry will continue to remain flat. SJAC says that the industry is likely to not return to pre-COVID-19 levels until 2023, a year earlier than predicted by the International Air Transport Association (IATA)
U.S. firms have an overwhelming presence in this segment, due to long-standing relationships with domestic manufacturers and trading firms, some spanning over 60 years. Several trends are driving opportunities for U.S. firms. Japanese industry players are increasingly active in international projects, developing transport and patrol aircraft for defense, and manufacturing small jets and jet engines for civil aviation. Geopolitical considerations, including ongoing regional disputes with China, Russia, and North Korea, are driving demand for enhanced defense capabilities.
Civil aircraft
Japan’s commercial aerospace business is dominated by big companies that supply the major airplane makers, most especially Boeing. For example, Japanese manufacturers such as Mitsubishi Heavy Industries (MHI), Kawasaki Heavy Industries (KHI), and Subaru (former Fuji Heavy Industries), supply about 35 percent of the content for the Boeing 787 and 21 percent of the Boeing 777.
According to the Ministry of Finance, in 2020, imports of aircraft products amounted to $9.7 billion with U.S. aerospace products accounting for 63.8% of the total.
Generally, Japan does not levy import duties on aircraft or aircraft parts. The Civil Aircraft Agreement Product Coverage lists about 250 items that are duty-free provided they are for use in civil aircraft or ground flying trainers, or for use in such aircraft during their manufacture, repair, maintenance, rebuilding, modification or conversion.
Leading Sub-Sectors
Commercial aircraft and aircraft engines, helicopters, aircraft parts and supplies, avionics.
Events
Japan International Aerospace Exhibition
Dates: 2024
Venue: TBD
Website: https://www.japanaerospace.jp/files/en/JA2024PressRelease_20201008.pdf
Description: Japan’s only air show. The previous Japan Aerospace was held in 2018 in Tokyo, with 520 exhibitors and 20,000 visitors. The U.S. Commercial Service Japan provided on-site counseling to the U.S. exhibitors throughout the show. The next show was postponed twice due to the Tokyo Olympics and COVID. Dates are TBD but the show is scheduled sometime in 2024, which marks the 70th anniversary of the founding of the Japan Self-Defense Forces.
Resources
Japan Civil Aviation Bureau (Ministry of Land, Infrastructure, Transport and Tourism)
Website: https://www.mlit.go.jp/en/koku/index.html
Society of Japanese Aerospace Companies (SJAC)
Japan Business Aviation Association (JBAA)
CS Japan Contact
Ms. Sayoko Koto, Commercial Specialist