Overview                                            
                                                                                                     Unit: USD millions

(total market size = (total local production + imports) - exports)

Data Sources:
            Total Local Production: Ministry of Economy, Trade and Industry
            Total Exports: Ministry of Finance
            Total Imports: Ministry of Finance
            Imports from the US: Ministry of Finance

Notes: 2019 estimates are based on projections provided by the Society of Japanese Aerospace Companies (SJAC).  SJAC forecasted that industry sales will remain stable for the next few years.

Japan continues to offer a lucrative market for imported aircraft, aircraft parts, and engines.  U.S. firms have an overwhelming presence in the market due to long-standing relationships, some spanning over 60 years, with domestic manufacturers and trading firms.  U.S. firms are presented with opportunities in the market as the Japanese industry undertakes international projects, develops transport and patrol aircraft for defense, and develops small jets and small jet engines for civil aviation.

In the civil aircraft market, 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 Boeing 777. Thus, the aerospace business on the commercial side is influenced by the success of Boeing programs.

MHI established Mitsubishi Aircraft Corporation (MAC) in April 2008 to undertake the design, type certification, procurement, sales and marketing and customer support for the Mitsubishi Regional Jet (MRJ). The firm announced in May 2019 that it will be dropping its own name from the aircraft, and the MRJ will assume the name “Space Jet” to reflect a more global vision for the previously Japan-centric business. In June 2019 the firm will announce the details of their reworked project.  Sixty percent of the MRJ’s components are currently supplied by U.S. companies. According to press reports, there are plans to increase the use of U.S. suppliers for certain parts to cut costs, aiming to make price a selling point along with fuel efficiency. MAC is conducting flight tests for the aircraft in the U.S. and is considering production in the U.S. as well. The first delivery of the regional jet is currently scheduled mid-2020. The firm is reportedly going to announce a dramatic redesign to create a smaller 70-seat-class model, in addition to the 90-seater.

Leading Sub-Sectors
Commercial aircraft and aircraft engines, helicopters, aircraft parts and supplies, avionics.

Opportunities
MAST Asia (Maritime/Air Systems and Technologies) Chiba, Japan
Location: Chiba
Dates: June 17-19, 2019
Website: https://mastconfex.com/asia2019/  
Description: Particularly focused on Undersea, Surface, Air, Space, and Cyber Platforms, Systems, and Technologies, MAST provides networking opportunities between Government, Research and Technology, and Defense Industry.

Aeromart Nagoya
Location: Nagoya
Dates: September 24-26, 2019
Website: http://nagoya.bciaerospace.com/en/
Description: Aeromart Nagoya, an event that offers BtoB Meetings in the aerospace industry, is a great opportunity to make new business connections and strengthen existing ones in Japan.

DSEI Japan
Location: Chiba
Dates: November 18-20, 2019
Website: https://www.dsei-japan.com/
Description: Venue to connect the global defense industry and the Japanese defense community, to support the sourcing of the latest equipment and systems, develop international relationships and generate new business opportunities and partnerships between Japan and the world.

Web Resources
Japan Civil Aviation Bureau (Ministry of Land, Infrastructure, Transport and Tourism)
Society of Japanese Aerospace Companies (SJAC)
Japan Business Aviation Association (JBAA)