Aerospace and Defense in China.pdf

datamonitor usa 245 fifth avenue 4th floor new york, ny 10016 usa t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo datamonitor europe 119 farringdon road london ec1r 3da united kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: eurinfo datamonitor middle east and north africa datamonitor po box 24893 dubai, uae t: +49 69 9754 4517 f: +49 69 9754 4900 e: datamonitormena datamonitor asia pacific level 46, 2 park street sydney, nsw 2000 australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: apinfo china - aerospace other elements of military spending, such as personnel and buildings, are omitted. defense electronics and military aerospace are covered by the defense segment; the civil aerospace segment includes civilian planes and space equipment, but excludes military aircraft and related items. any currency conversions used in the creation of this report have been calculated using constant 2010 annual average exchange rates. for the purposes of this report, asia-pacific comprises australia, china, india, indonesia, japan, new zealand, singapore, south korea, taiwan, and thailand. market overview china - aerospace most of them are long-established and have very strong brands. the business model typical for this market also requires large amounts of expenditure in terms of materials needed, storage and transportation modes and so on. expertise and knowledge is crucial to the success of companies, as the work is highly specialized. the arms industry has become increasingly concentrated, both on national as well as international level. companies in the industry are obliged to adhere to strict regulations involving national security, export restrictions and licensing for military goods, accounting rules and safety requirements. furthermore, increasing fears about global warming are leading to a focus on reducing emissions, with many firms having to re-design and adjust the way they manufacture products to improve fuel efficiency. successful entry to the market may be more likely to be achieved if an existing company with similar operations (i.e. engineering) diversifies into the market. the steady growth of the market makes it more attractive to new entrants. overall the threat of new entrants is weak. five forces analysis china - aerospace however, there are alternatives to commercial aircraft. end-users of air transportation (passengers and companies wishing to transport their goods as air freight) may opt for alternative modes of transport, such as rail. in the short term the substitution of other modes of transport for air travel seems unlikely, but with increasing fears about global warming and carbon footprints, it is possible that alternative modes of transport may become attractive to companies seeking an eco-friendly reputation. in these circumstances, players in the civil aerospace sector may experience the pull-through of such changes in demand. overall, the threat of substitutes is weak. five forces analysis china - aerospace and maintenance, modifications and upgrades on platforms a- 10, b-1, b-52, c-32, c-40, c-130, e-4b, e-6, kc-10, kc-135, t-38 and vc-25. it also offers training systems and services on platforms including ah-64, c-17, f-15, f-16, f/a-18 and t-45, and defense and government services including the uk future logistics information services program. boeing capital corporation (bcc) facilitates, arranges, structures and provides selective financing solutions for the companys commercial airplanes customers. in the space and defense markets, bcc primarily arranges and structures financing solutions for its bds government customers. bccs portfolio consists of equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease and investments. leading companies china - aerospace ead stock exchange: paris; madrid source: company website d a t a m o n i t o r european aeronautic defense and space company (eads) is an aerospace, defense and related services company. the company operates in north america, europe, asia-pacific, middle east and latin america. the company operates through six business divisions: airbus commercial, cassidian, astrium, eurocopter, airbus military and other. airbus is one of the worlds leading aircraft suppliers. airbus modern and comprehensive product line comprise aircraft ranging from 107 to 525 seats: the single-aisle a320 family, the wide-body long-range a330/a340 and the all-new next generation a350 xwb family, and the ultra-long-range, double-decker a380 family. the company also continues to broaden its scope and product range by applying its expertise to the military market. airbus sold 510 commercial aircraft to 94 customers. deliveries of military aircraft also proceeded at a high level, as 20 aircraft were delivered to armed forces in europe, the us and latin america. the cassidian division offers integrated systems solutions for the armed forces and global security. it has a wide range of platforms, including eadss role in eurofighter, missile systems, defense communication systems, defense electronics and services. through its cassidian division, the company provides network solutions combining military aircraft, missile systems, defense and communications systems, defense electronics and related services. it also supplies electronics and sensors for unmanned aerial vehicles; advanced avionics for the companys helicopters; and high-tech products for secure communications. the astrium division is one of the europes preeminent space groups. this division is a supplier of satellites, launchers and space services. astrium operates through three branches: astrium space transportation, astrium satellites and astrium services. astrium space transportation is a european prime contractor for civil and military space transportation and manned space activities. leading companies china - aerospace dutch space, for space instruments and simulation systems; tesat for payload components; eads sodern for optronics and space equipment; and cilas for laser technologies and high precision optics. astrium also provides launch services, through its shareholdings in arianespace (ariane launcher), starsem (soyuz launcher) and eurockot (rockot launcher), as well as space-based services via telecommunications and earth observation satellites, through subsidiaries such as paradigm, infoterra, and spot image. the eurocopter division manufactures and sells a wide range of civil and military helicopters. eurocopters product range includes light single-engine, light twin-engine, medium and heavy helicopters which are adaptable to different mission types based on customer needs. it delivered 527 helicopters in fy2010. it supports a wide variety of missions such as corporate, emergency medical service, oil and gas, commercial business and military missions, among others. airbus military was formally created in april 2009, following the integration of the former military transport aircraft division (mtad) and of airbus military sociedad (amsl) into airbus. it is a military and humanitarian transport aircraft manufacturer and is engaged into developing, producing, selling and supporting a comprehensive family of airlifters ranging from three to 37 tons of payload. airbus military is fully responsible for the a400m program, as well as for the military tanker transport (mrtt) derivative of the a330, which can be fitted with an in-house developed state-of-the art flight-refueling boom (arbs). it is also responsible for future military derivative of civil airbus platforms. airbus military is one of the leaders in the market segments for light and medium-sized military transport aircraft. airbus military is also into conversion of the civil airbus platforms into multi role tanker transport (mrtt) aircraft. airbus military applies the integrated logistic support concept throughout the life cycle of its products, from the first design phase right through to the end of their useful lifetimes. airbus military provides services to more than 800 aircrafts. leading companies china - aerospace the commercial airplanes are y7 family and modern ark 60(ma60), which is designed and developed according to requirements of ccar-25 and far-25. in 1980, xac took its first step in international aviation cooperation and joint-venture management with companies of foreign countries, such as the u.s.a., canada, italy, france and germany. the parts and components for foreign companies produced in xac are mainly b737-700 vertical fins and b747 components for boeing, airbus doors and atr42 wing box for aerospecial, cl415 components for canadair as well as atr72 section 16 for alenia etc. non-aero products are mainly volov luxury bus, xifei brand aluminum extrusions, architectural metal panel, aluminum doors and windows series products, vcm film laminate plate, frequency variable ambiguity controller, morale bookshelf, anti-static floor board and so on. key metrics the company recorded revenues of $1,554 million in 2010, an increase of 28.1% comparing to 2009. its net income totaled $51 million in 2010, as compared to net income of $46.6 million in 2009. market forecasts china - aerospace & defense 0099 - 1002 - 2010 datamonitor. this profile is a licensed product and is not to be photocopied page 35 market forecasts market value forecast in 2015, the chinese aerospace & defense sector is forecast to have a value of $187 billion, an increase of 75.3% since 2010. the compound annual growth rate of the sector in the period 201015 is predicted to be 11.9%. table 17: china aerospace & defense sector value forecast: $ billion, 201015 year $ billion cny billion billion % growth 2010 106.7 723.2 80.4 6.4% 2011 120.8 819.1 91.0 13.3% 2012 135.6 919.3 102.1 12.2% 2013 151.1 1,024.6 113.8 11.4% 2014 168.2 1,140.3 126.7 11.3% 2015 187.0 1,267.7 140.9 11.2% cagr: 201015 11.9% source: datamonitor d a t a m o n i t o r figure 17: china aerospace & defense sector value forecast: $ billion, 201015 source: datamonitor d a t a m o n i t o r macroeconomic indicators china - aerospace & defense 0099 - 1002 - 2010 datamonitor. this profile is a licensed product and is not to be photocopied page 36 macroeconomic indicators table 18: china size of population (million), 200610 year population (million) % growth 2006 1,311.0 0.6% 2007 1,317.9 0.5% 2008 1,324.7 0.5% 2009 1,331.4 0.5% 2010 1,338.0 0.5% source: datamonitor d a t a m o n i t o r table 19: china gdp (constant 2000 prices, $ billion), 200610 year constant 2000 prices, $ billion % growth 2006 2,407.2 15.3% 2007 2,822.5 17.3% 2008 3,148.9 11.6% 2009 3,440.2 9.3% 2010 3,794.5 10.3% source: datamonitor d a t a m o n i t o r table 20: china gdp (current prices, $ billion), 200610 year current prices, $ billion % growth 2006 2,712.9 20.2% 2007 3,494.2 28.8% 2008 4,520.0 29.4% 2009 4,987.6 10.3% 2010 5,734.6 15.0% source: datamonitor d a t a m o n i t o r macroeconomic indicators china - aerospace & defense 0099 - 1002 - 2010 datamonitor. this profile is a licensed product and is not to be photocopied page 37 table 21: china inflation, 200610 year inflation rate (%) 2006 1.5% 2007 4.8% 2008 5.9% 2009 (0.7%) 2010 3.3% source: datamonitor d a t a m o n i t o r table 22: china consumer price index (absolute), 200610 year consumer price index (2000 = 100) 2006 108.6 2007 113.8 2008 120.5 2009 119.6 2010 123.6 source: datamonitor d a t a m o n i t o r table 23: china exchange rate, 200610 year exchange rate ($/cny) exchange rate (/cny) 2006 7.9819 10.0145 2007 7.6172 10.4228 2008 6.9623 10.1875 2009 6.8409 9.5123 2010 6.7788 9.0005 source: datamonitor d a t a m o n i t o r appendix china - aerospace & defense 0099 - 1002 - 2010 datamonitor. this profile is a licensed product and is not to be photocopied page 38 appendix methodology datamonitor industry profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. review of in-house databases created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, datamonitors in-house databases provide the foundation for all related industry profiles preparatory research we also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview definitions market definitions are standardized to allow comparison from country to country. the parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends datamonitor aggregates and analyzes a number of secondary information sources, including: - national/governmental statistics - international data (official international sources) - national and international trade associations - broker and analyst reports - company annual reports - business information libraries and databases modeling & forecasting tools datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date appendix china - aerospace & defense 0099 - 1002 - 2010 datamonitor. this profile is a licensed product and is not to be photocopied page 39 industry associations the international coordinating council of aerospace industries associations (iccaia) gulledelle 94-b.5, b-1200 brussels, belgium tel.: 32 2 775 8110 fax: 32 2 775 8111 related datamonitor research industry profile global aerospace & defense aerospace & defense in europe aerospace & defense in asia-pacific appendix china - aerospace & defense 0099 - 1002 - 2010 datamonitor. this profile is a licensed product and is not to be photocopied page 40 disclaimer all rights reserved. no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, datamonitor plc. the facts of this report are believed to be correct at the time of publication but cannot be guaranteed. please note that the findings, conclusions and recommendations that datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. as such datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. about datamonitor china - aerospace & defense 0099 - 1002 - 2010 datamonitor. this profile is a licensed product and is not to be photocopied page 41 about datamonitor the datamonitor group is a world-leading provider of premium global business information, delivering independent data, ana