The aero engine strategy is of great significance:Reflect the national strength of a country. The reason why aeroengines is known as the "flower of industry" is that its research and development have concentrated on the most advanced technology and the most advanced industrial achievements of modern industry, and it is also a concentrated expression of a country's comprehensive national strength, industrial foundation and technological level. From the perspective of national strategic security, my country must develop self-developed domestic aero-engines to make up for the shortcomings of the national defense industry. my country's defense industry system is relatively complete, and it is one of the few countries that can match the integrity of the United States' defense industry, and aero engines are the obvious shortcomings of my country's defense industry. Today, when the air force is playing a role and air supremacy is valued unprecedentedly, my country has gradually developed a number of military aircraft that are close to the world-class or even the world’s leading military aircraft, such as the J-20. However, high-performance aero-engines have not been able to be localized for a long time. To a certain extent, the lag has affected and restricted the progress of the development and delivery of our military’s aircraft.

Demand: military aircraft replacement, domestic replacement of civil aircraft, and aviation development market scale exceeding one trillion

The quantity and quality of my country's fighter jets, transport aircraft, and helicopters are significantly different from those of the US military, and there is an urgent need for new models to be replaced and upgraded. In terms of quantity, according to "World Airforce 2020", the total number of military aircraft in my country in 2019 was 3,210, 24.2% of that of the United States. From a structural point of view, my country’s military aircraft still account for a relatively high proportion of second-generation and second-and-a-half generations of military aircraft, and new models with a high degree of information technology and strong comprehensive combat capabilities are insufficient. Take fighter jets as an example. The third-generation aircraft in the United States accounted for 84%, and the fourth-generation aircraft accounted for 16%. my country's second-generation aircraft accounted for 50%, the third-generation aircraft accounted for only 38% of the United States, and the fourth-generation aircraft (J-20) is currently only installed in a small number. With the accelerated installation of the F-10/11 and F-16, and the successive batch production of my country's new-generation military aircraft such as the F-20, Y-20, and medium-sized general-purpose helicopters, my country's Air Force equipment has the basis for reloading. We believe that the next ten years will be a stable period for the refitting of military aircraft, and it is also a period of acceleration for the development of my country's aero engine industry.

In addition to the incremental market for accelerated installation of military aircraft, the domestic aero engine market also has an existing maintenance and replacement market. In the context of strengthening actual combat military training, to achieve the goal of transforming technological advantages into capability advantages and combat advantages, the intensity of military exercises and training will be greatly increased. It is assumed that the annual average flight hours of a single aircraft in the future will be 200 hours, and the engine will be mass-produced. The overhaul period is 1000 hours, and the full life span is 2000 hours. Before 2025, the incremental model will overhaul the engine once, and the stock model will update the engine 0.5 times and overhaul the engine once. Assuming that every three new engines purchased need to be equipped with a spare engine at the same time, and the overhaul price of the stock engine is 30% of the new engine.

From 2020 to 2025, the total market size of my country's military aeroengine market is about 195.2 billion yuan, an average of 32.5 billion yuan per year. Assuming that by 2025, the number of my country's military aircraft will reach half of that of the United States, and taking into account the maintenance and renewal requirements of spare and stock models, it is estimated that the total market size of my country's military aeroengines from 2020 to 2025 is about 195.2 billion yuan. Among them, the market space of fighter aircraft engines (turbofan and a small number of turbojet engines) is about 119.3 billion yuan; the market space of helicopter aeroengines (turboshaft engines) is about 39.5 billion yuan; transport aircraft/bombers (large bypass ratio turbofan and turbofan engines) The market space for turboprop engines is about 30.6 billion yuan; the market space for trainers (turbojet and a small number of turboprop engines) is about 5.8 billion yuan.

Capital investment: two machines were launched, and hundreds of billions of capital support

my country's capital investment in the field of aeroengines has been insufficient. The average annual investment in research and development of aeroengines in the United States, Britain, and France is 3 billion, 1 billion and 900 million US dollars respectively. In the United States, only the fifth-generation integrated high-performance turbine engine technology (IHPTET) pre-research program has a total investment of 5 billion U.S. dollars for 17 years. According to a report in China Business News in 2015, this amount is equivalent to my country’s 20-year engine pre-research total 6 times the investment. As the plan enters the follow-up project VAATE plan, the technology conversion and innovation from the laboratory to the factory are completed. The goal is to increase the capacity of the turbo propulsion system by ten times that of the baseline engine in 2017 in 2017. Relatively speaking, my country's investment in aeroengines is not only relatively small, but also scattered with each other, which greatly reduces the development capability of China's aeroengines.

Major projects are related to national development strategies and are of great significance. The major national science and technology projects are derived from the "National Medium and Long-term Science and Technology Development Plan Outline (2006-2020)", which aims to achieve national goals, through resource integration and core technology breakthroughs, to complete major strategic products and key common technologies within a certain time limit. And major projects are key tasks related to the national strategy. The 16 major special projects will be implemented from 2006 to 2020, and they will be launched one by one according to development needs and basic conditions, and they will be implemented step by step. As of the end of 2010, major private projects involved nearly 50 billion yuan of central government funding, spurring local, corporate, and social investment of about 100 billion yuan.

During the "Thirteenth Five-Year Plan" period, major projects for the two aircraft were launched in an all-round way, and policy and financial support were vigorously strengthened.In November 2016, Minister Miao Wei of the Ministry of Industry and Information Technology introduced at the National Industry and Information Technology Innovation Conference that during the "13th Five-Year Plan" period, my country will continue to promote the development of high-end equipment manufacturing by organizing and implementing major scientific and technological projects as a starting point. Implement major special projects for aero engines and gas turbines. In terms of aero engine special projects, it will focus on the turbofan and turbojet engine fields, while taking into account the turboshaft, turboprop and piston engine fields that have certain market needs, and mainly develop large turbofan engines with large bypass ratios, medium and small turbofans/turbofans. Key products such as jet engines and medium and high-power turboshaft engines; the main goal of the gas turbine special project is to realize the independent development of F-class 300MW gas turbines by 2020, and to realize the independent development of H-class 400MW gas turbines by 2030. It is estimated that the direct investment of the two aircrafts will be in the order of 100 billion yuan, driving local, corporate and social investment of about 200 billion yuan. With the support of major special projects for industrial integration, the development of my country's engine industry has cleared away obstacles in terms of systems, policies, and funds, and successfully entered a high-speed growth channel.

Main parts and corresponding companies in engine maintenance

In the maintenance cost, the value of individual parts and components account for a high proportion. We will make a detailed analysis of the raw materials, production processes and corresponding companies of the main parts and components related to the aero engine and maintenance.