Why this is important to Wisconsin: American companies already play a large role in aviation in Japan, and Wisconsin exporters could be a prime source for participation.
Japan’s aviation industry depends heavily on foreign-based corporations, making it a strong option for Wisconsin exporters.
Five companies—Airbus and ATR, based in Europe, and Lockheed Martin, Textron, and Boeing, based in the U.S.—make up 97% of Japan’s aviation market, which is projected to reach $10.5 billion in 2024 and to top $13 billion by 2029, according to Research and Markets.
The commercial aviation industry, which comprises airlines and their supply chains, is expected to provide $72 billion for Japan’s gross domestic product between 2024 and 2029, the report says.
American companies have longstanding relationships with Japan’s domestic aircraft and aircraft parts manufacturers, including some that have spanned more than 70 years.
According to Japan’s Ministry of Finance, in 2022, imports of aircraft products, including parts, amounted to $8.3 billion, and U.S. aerospace products represented 60% of that amount.
Japan does not levy import duties on aircraft or aircraft parts.
According to the U.S. Department of Commerce’s International Trade Administration, several trends are projected to fuel growth in Japan’s aviation industry. They include increasing geopolitical concerns that stem from disputes with China, Russia, and North Korea, as well as Japan’s growing involvement in international projects to develop aircraft for transport and defense.
Wisconsin companies in the aerospace sector could find opportunities for their products and services in Japan.
