Investment Rating - The report maintains a "Positive" investment rating for the aerospace and defense industry [11]. Core Insights - The next generation of aerospace engines is reaching the thermal limits of metal materials, while ceramic matrix composites (CMCs) offer excellent high-temperature performance and lightweight advantages, indicating significant application potential [2][5]. - The market for CMCs in China's military and civilian aerospace engines is projected to exceed 10 billion yuan annually over the next decade, driven by deep integration of production and research [2][7]. - The global CMC market is expected to maintain a compound annual growth rate (CAGR) of 10% over the next ten years, with the aerospace and defense sector accounting for approximately 39.6% of the market [7][28]. Summary by Sections CMC Overview - CMCs are identified as a new structural material for advanced aerospace engine hot-end components, with a working temperature of up to 1650°C, significantly higher than that of metal alloys [5][28]. - The main types of CMCs currently applied in aerospace engines include silicon carbide fiber-reinforced silicon carbide composites (SiC/SiC) and oxide fiber-reinforced oxide composites (Ox/Ox) [36][41]. International Landscape - The CMC industry in Europe and the U.S. is well-established, with significant investments and advancements in production capabilities, including the successful application of CMCs in various engine components [6][59]. - Companies like GE and Pratt & Whitney have made substantial progress in integrating CMCs into their engine designs, enhancing performance metrics such as thrust-to-weight ratio and fuel efficiency [6][59]. Domestic Development - China's CMC industry is in its early stages, with a focus on integrating research and production, exemplified by partnerships between companies like Huayin Technology and research institutions [8][21]. - Key domestic players include Huayin Technology, Torch Electronics, and AVIC High-Tech, which are actively developing CMC technologies and applications [12][21]. Market Potential - The report estimates that the CMC market in China could exceed 10 billion yuan annually, with significant demand driven by military and civilian aerospace applications [7][28]. - The demand for CMCs is expected to be further propelled by advancements in gas turbine technology, with projected cumulative demand exceeding 68 billion yuan from 2024 to 2027 [7][28].