Asia is expected to be the largest travel market in the world, growing at 6.1 percent annually. One factor in this growth is the region's GDP, which is expected to grow by 4.3 percent annually over the next 20 years. Although that growth will be mixed owing to the region's current composition of mature, developing, and emerging markets, Asia GDP and passenger traffic will drive an estimated need for 14,330 new airplanes valued at $2.2 trillion. The LCC market, for example, is helping grow the need for 10,370 new single-aisle airplanes, with the majority in the size category of the 737 MAX 8. This size of airplane gives airlines the efficiencies needed to open new routes while continuing to operate profitably on current routes.
Meanwhile, widebody airplanes such as the 787 and 777 provide the needed range and economics to open markets that were inaccessible in the past. The 787 continues to open new markets to and from the region. Both Japan, a mature market, and China, a rapidly growing market, have employed the 787 to grow long-haul share. In China, the long-haul growth rate since 2010 has been 18 percent, with the 787 being used primarily to open new markets. In Japan, long-haul growth has been at 9 percent since 2010, with more than two-thirds of its new 787s being used to open new markets. These market dynamics will lead to regional need for 3,590 new widebody airplanes by 2034.
Air cargo also plays a crucial role in Asia. The region transports vast amounts of goods over difficult terrain and vast stretches of ocean. Many of the world's largest and most efficient cargo operators are located in the region, where the air cargo market is expected to grow by 5.7 percent per year. As a result, carriers in the region are expected to need 380 new production freighters and 570 converted freighters in the years ahead.