Executive Summary
Japan offers 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 domestic industry undertakes international projects, develops transport and patrol aircraft for defense, as well as small jets and small jet engines for civil aviation. U.S. firms that are new to the market should consider partnering with trading firms that are knowledgeable in aircraft industry networks.
Market Entry
Specialized trading firms market imports to domestic end-users including manufacturers, airlines, private users, law enforcement, defense, and other government agencies. Many U.S. manufacturers also have partnerships with their Japanese counterparts. New-to-market firms should consider partnering with trading firms knowledgeable in aircraft industry networks.
Current Market Trends and Demand
According to the Ministry of Finance, in 2019, imports of aircraft products amounted to $15.9 billion, with U.S. aerospace products accounting for 59.5% of the total. U.S.-made aircraft, aircraft engines, parts and supplies enjoy an overwhelming presence in the market.
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’s subsidiary, Mitsubishi Aircraft Corporation (MITAC), has been developing a twin-engine commuter aircraft since 2008 that was originally promised for 2013 but has been postponed to 2021 or later due to a series of design changes. The firm announced in May 2019 the name of the aircraft changed from Mitsubishi Regional Jet to Space Jet in order to reflect a more global vision for the previously Japan-centric business. According to the press reports in June 2020, the firm will reduce development costs in the aircraft business by more than half to 60 billion yen (USD 550 million) in the fiscal year ending in March 2021. The workforce of 1,800 personnel will also be reduced because of the plunging air travel demand due global market disruptions. The firm is conducting flight tests for the aircraft in the State of Washington, and focusing on improving the design of the aircraft and validating testing flight data as it seeks to obtain a safety certification from the Japan Civil Aviation Bureau for the 88-seat Space Jet.
Export, Import and Production Data
Unit: USD millions
|
|
2016
|
2017
|
2018
|
2019
|
|
Total Local Production
|
17,937
|
15,281
|
16,105
|
16,602
|
|
Total Exports
|
15,111
|
10,241
|
11,005
|
10,934
|
|
Total Imports
|
10,731
|
12,284
|
15,571
|
15,924
|
|
Imports from the US
|
13,556
|
8,216
|
10,217
|
9,475
|
|
Total Market Size
|
9,691
|
17,324
|
20,670
|
21,592
|
|
Exchange Rates: 1 USD
|
108.66
|
112.10
|
110.40
|
109.02
|
Data Sources: Total Local Production: Ministry of Economy, Trade and Industry
Total Exports, Total Imports and Imports from U.S.: Ministry of Finance
Opportunities
Japan’s civil helicopter market has seen a continuous decline in the past decade due to decreasing demand for transport helicopters and dust cropping operations. The industry expects potential growth in such areas as: emergency medical services, or the so-called the Doctor Heli program, and disaster relief operations as Japan is regrettably subject to earthquakes and other natural disasters. Japan’s Ministry of Defense, as the largest helicopter operator in Japan, operates helicopters for search and rescue operations at the onset of natural disasters such as major earthquakes.
The three indigenous manufacturers, MHI, KHI, and FHI, supply approximately 90% of their helicopter production to the Japan Ministry of Defense, independently and in partnership with American manufacturers such as Sikorsky, Bell and Boeing. In the civil helicopter market, all major manufacturers have established a presence in Japan. Airbus Helicopters, Bell, Sikorsky, MD and some other makers have successfully formed partnerships with local agents to market their products in Japan.
Trade Events
Engine Forum Kobe
Dates: October 20 & 21, 2020
Venue: Kobe Convention Center, Hyogo
Website: https://www.kobe.bciaerospace.com/en/
Description: Supply chain event dedicated to aero-engines, gas turbines and other propulsion and power generation equipment.
MAST Asia (Maritime/Air Systems and Technologies)
Dates: November 9-11, 2020
Venue: Tokyo
Website: https://mastconfex.com/
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.
DSEI Japan (Defense and Security Equipment International – Japan)
Dates: May 19-21, 2021
Venue: Makuhari Messe, Chiba
Website: https://www.dsei-japan.com/
Description: DSEI-Japan brings the global defense and security sector together with both the Japanese and wider Asian defense community to innovate, partner and share knowledge
Contact
Sayoko Koto
U.S. Embassy Tokyo, Japan
Commercial Specialist
Sayoko.Koto@trade.gov
81-3-3224-5079
