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Future Market Potential

The development of the helicopter depends upon market demand. With the growth of China's national economy the prospects of the Chinese helicopter industry seemed brilliant. The foreseen direction of the helicopter development was to improve the reliability, maintainability and availability on the technology basis of the conventional rotor aircraft and to develop various derivative helicopters which will use same lift system, same power plant system and approximately same airframes and will be in same class but will have different uses to satisfy different needs in various geographical environments and climatic conditions.

As of 2010 China registered a total of more than 160 civilian and police helicopters. Eurocopter, Sikorsky helicopters, the United States, Bell Helicopter and Robinson Helicopter Company and other foreign manufacturers have occupied over 90% of the market share; while the Chinese domestic manufacturers Hafei helicopters, Changhe Agusta production of Z-9 helicopters, CA109 little helicopter sales records, the helicopter market share of only single digits.

China's domestic market potential has been recognized for a helicopter, a private helicopter market in 2012 after the most promising. Helicopter in Europe and the United States developed the main application areas include: offshore oil and gas platform, helicopter transport services, official flying helicopters, flying helicopters, navigation, medical and ambulance helicopter, helicopters, private recreation, agroforestry service helicopters, air sea rescue helicopter and police and other law enforcement helicopters.

According to AVIC II's 2006 market research, there will be a robust market demand for as many as 2,763 civil helicopters in China by 2026. On 21 July 2010 the Flight International UK website reported that the helicopter market in China had great potential, the main demand will come from the police, the quasi-public sector and oil and gas sector. Moreover, it was projected tha by 2020, when demand in China will reach 10,000 helicopters, the market value will reach 1,000 billion U.S. dollars.

Low Altitude Airspace

The Chinese government has a plan to gradually open airspace below 600 meters to facilitate growth in general aviation. A boom in the aviation market was expected to follow China's decision in November 2010 to open its low-altitude airspace to private aircraft. Part of the low-altitude airspace will be opened to promote the country's general aviation sector, including the purchase and use of private planes, said a document jointly issued by the State Council and the Central Military Commission.

In China, due to the impact of airspace control, the major application in the public service helicopters, helicopters and the field of quasi-military helicopters, such as the current most active markets: offshore oil and gas platform for the helicopter transportation business, followed by police helicopters, coastal patrol helicopter Maritime Search and Rescue helicopters, power line patrol helicopters, medical helicopters, and disaster relief helicopters.

For the future development of China's helicopter market potential, domestic and foreign firms and the relevant advisory bodies, gives a more optimistic expectations. It was generally believed that the current helicopter market, hindering China''s potential demand for quick release of the factors at the policy level, the primary solution is the issue of opening up China at low altitude. From the level of economic development, China has possessed the high-growth helicopter market to achieve economic base.

In 2006 it was reported that China is likely to open most or even all of its low-altitude airspace around 2010. But the Air Traffic Control Committee of the Central Military Commission has never confirmed the news. In November 2010 officials decided to allow general-aviation aircraft to fly below 4,000 meters, or about 13,000 feet. The first step was an experiment allowing planes to fly below 1,000 meters, or 3,300 feet, which will be tried out in 2011 and 2012 in Guangdong and Heilongjiang provinces.

Once the low-altitude airspace control liberalization of China got rid of unfavorable factors, China's helicopter market constraints will show strong growth, will soon become the world after the United States No. 2 or 3 large helicopter market. In 2015, predicted that China needs at least 450 helicopters. After the opening of the low altitude, the helicopter market demand will be a breakthrough in the next 10 years, 1,000 helicopters. During this period, private helicopter, medical and rescue helicopters, navigation services, helicopter, helicopters, environmental monitoring will be to develop fast applications.

China's aviation sector was expected to require 2,763 civil helicopters of all types between 2006 and 2026, said Zhang Hongbiao, general manger of the China No.2 Aviation Industrial Corporation (CAIC) on October 16, 2006. Zhang made the forecast Monday on the 50th anniversary of China's helicopter industry. He said that his company would take about 15 years to grapple the core technologies in helicopter design and production, and try to make China one of the world's top helicopter producers by 2020.

The Chinese helicopter market nurtured a huge potential for foreign manufacturers to further increase the helicopter product launches, market expansion potential customer development efforts, to private capital as the representative of the China domestic enterprises have adopted a helicopter joint venture, the introduction of technology, a way to join in the helicopter field.

According to an industry insider, international experience shows that a GDP per capita of USD 2,000 will start up family car consumption, while a GDP per capita of USD 4,000 will trigger off private ownership of aircraft. Following the sharp growth of auto market in the recent couple of years, civil and private aircraft market will go into a rapid growth period. As the gradual lifting of China's airspace restrictions, it is expected that the private aircraft market will witness an annual growth rate of 20%-25% in the upcoming decade. As of 2010 there were less than 180 civil helicopters in China, while the United States has more than 10,000 and Brazil has nearly 500, according to figures from Avicopter Co Ltd. Avicopter estimates that China will need 1,440 helicopters by 2018, with 83 percent of the demand coming from the affluent eastern parts of the country, once the government relaxes low altitude airspace controls. The company plans to deliver 300 civilian helicopters annually beginning in 2018. A major constraint on the civilian helicopter industry in China is airspace restrictions and the resulting lack of air and ground services. Except for designated commercial air routes, China's mainland airspace is under the administration of the air force. Insufficient pilot and maintenance crews also hamper development of the industry.

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Page last modified: 04-11-2018 17:45:54 ZULU