The aircraft engine market comprises gas turbine engines that propel aircrafts. Aircraft engines find application in various commercial and military aircrafts including narrow-body aircraft, wide-body aircraft, regional jets, turboprops and helicopters. There is a growing need for fuel-efficient and lightweight aircraft engines across the aviation industry. Aircraft engine manufacturers are developing advanced engine designs with lower emissions and noise levels. The global aircraft population has increased significantly over the past few years with rise in air passenger traffic. This growing fleet size of existing aircrafts as well as demand for new aircrafts from airlines is driving the aircraft engine market.
The aircraft engine market is estimated to be valued at USD 109.83 Bn in 2024 and is expected to reach USD 187.05 Bn by 2031, growing at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031.
Key Takeaways
Key players operating in the aircraft engine market are General Electric Company (GE Aviation),Rolls-Royce Holding PLC,Pratt & Whitney,Honeywell International Inc., and Safran Aircraft Engines. GE Aviation and Rolls-Royce are the dominant engine manufacturers with over 80% market share. Pratt & Whitney and Honeywell also have a sizable presence in the market through their commercial aircraft and business jet engine programs. These players are investing heavily in research and development of new engine technologies including hybrid-electric and hydrogen-powered aircraft engines.
There is a high growth opportunity for Aircraft Engine Market manufacturers in developing countries in Asia Pacific and Middle East regions. Countries like China, India and Middle Eastern nations are planning massive fleet expansion to meet rising domestic and international air travel demand.
This translates to significant business opportunities for engine makers for new aircraft engine supply as well as spare parts and maintenance services. Engine manufacturers are focusing on global expansion through partnerships, joint-ventures and acquisitions. For instance, Rolls-Royce partnered with MTU Aero Engines to produce engine components for wide-body aircrafts. GE Aviation acquired BAE Systems' military engine business to penetrate lucrative defense contracts. Such strategic moves help companies strengthen foothold across key international markets.
Market drivers
Growing commercial aircraft fleet: The commercial aircraft fleet is growing at a brisk pace with airlines ordering new fuel-efficient aircrafts to replace older models as well as expand routes. This is driving demand for new aircraft engines.
Rising military spending on aircraft procurement: Countries are bolstering their defense budgets for military aircraft procurement including combat and transport aircraft. This augurs well for military aircraft engine sales.
Market restrain
High investment and R&D costs: Developing new-generation fuel-efficient aircraft engines involves massive investments and lengthy research & development process. This acts as a hurdle for small engine manufacturers.
Segment Analysis
The aircraft engine market is segmented by type into turbofan, turboprop, and turbojet. The turbofan segment currently dominates the market due to its high fuel efficiency and relatively lower noise production as compared to other engine types. Turbofans are widely used in commercial aircraft for their low operating costs which has resulted in their increased preference among airliners.
Global Analysis
Regionally, North America holds the major share of the aircraft engine market owing to presence of leading OEMs such as GE Aviation and Pratt & Whitney in the region. Increased aircraft deliveries for military as well as commercial applications has boosted the demand for aircraft engines in North America. Europe is the second largest market for aircraft engines supported by presence of manufacturers like Rolls-Royce and Safran in the region. Rapid infrastructural development and expansion of air passenger traveling are factors expected to drive the Asia Pacific market at a high rate during the forecast period. Middle East and Latin America are also projected to witness significant growth in demand for aircraft engines due to rising aircraft fleet and surge in air passenger traffic in the coming years.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
