Aircraft Engine Market Size, Share & Industry Analysis, By Engine Type (Turboprop Engine, Turboshaft Engine, Turbofan Engine, and Piston Engine), By Technology (Conventional Engine, Electric/Hybrid Engine), By Component (Compressor, Turbine, Gear Box, Combustion Chamber, Fuel System, and Others), By End-Use (Commercial (Narrow Body, Wide Body, Business Jet, General Aviation, Helicopters) and Military (Fighter Aircraft, Military Transport Aircraft, Military Helicopters), and Regional Forecast, 2024-2032

The global aircraft engine market size was valued at USD 140.29 billion in 2023 and is projected to grow from USD 153.69 billion in 2024 to USD 279.76 billion by 2032, exhibiting a CAGR of 7.77% during the forecast period.

Aircraft engines with higher fuel efficiency, compact size, and lightweight are in demand today. The rise in demand for air travel has led the airliners to increase their aircraft fleet size. This demand for new aircraft is expected to drive the growth of the market. Moreover, the rising issue of reducing the carbon footprint has diverted the focus on the development of advanced types of aircraft engines such as electric or hybrid engines, which is expected to fuel market growth. However, existing backlogs in aircraft deliveries are expected to restrain the aircraft engine market growth.

The spread of the COVID-19 pandemic raged in several countries around the world and dealt a major blow to the airline industry, which faced a financial crisis and a lack of passenger demand. Some airlines were completely shut down, and cancelation of flight bookings also directly affected the market. However, the market recovered slightly in 2021, with rise in airplane deliveries. For example, Airbus delivered 611 jets in 2021, compared to 566 in 2020, and Boeing delivered 302 jets in 2021, compared to 157 in 2020. The market recovered by 2022 as the government eased regulations.

Aircraft Engine Market Trends

3D Printed Parts for Aircraft Engines Will Spur Opportunities for the Market

Nowadays, several engine manufacturers are focused on the development of lightweight engines to reduce the overall weight of the aircraft to increase the fuel efficiency of the aircraft. GE Aviation has developed an advanced turboprop engine, which is the first commercial aircraft engine with a large number of 3D printed components. The engine designers have reduced 855 separate parts down to 12 parts. This is expected to reduce the engine weight, which will require less fuel to achieve the same speed. Additive manufacturing makes the product durable and stronger. CFM international SA is developing an advanced LEAP engine that will be installed in The Boeing Company’s and Airbus’s new aircraft fleet of narrow-body aircraft. 15% reduction in fuel burn and emissions is resulted from deploying complex 3D printed fuel nozzles on the engine.

Aircraft Engine Market Growth Factors

Surge in Adoption of Cost-Effective and Fuel-Efficient Aircraft is Accelerating Market Growth

Major OEMs and aircraft manufacturers around the world are focusing on developing fuel-efficient aircraft to reduce fuel consumption. Rising fuel prices have led manufacturers to focus on aircraft fuel efficiency. Since aircraft fuel efficiency is improved by reducing the overall weight of the aircraft, several manufacturers are developing lightweight engines that reduce the weight of the airplane. The use of lightweight and strong composite materials, such as reinforced plastics is driving the market growth.

• In February 2024, GE Aerospace announced an USD 11 million investment to transform its Singapore aircraft engine repair facility into a modern “smart factory” that will revolutionize engine repair and workforce skills development to support new technologies.

Increasing Commercial Aircraft Deliveries Anticipated to Fuel the Market Growth

Economic growth in developing countries, such as India and China has increased the disposable income of individuals. The rapidly growing middle class population in these countries is the main reason for the increase in air passenger numbers. The rising demand for civil aircraft from India is directly reflected in the aircraft engine supply chain. Military aviation includes fighter aircraft and transport aircraft. Increasing deployment of fighter jets and fixed-wing Unmanned Aerial Vehicles (UAVs) by various militaries across the world is expected to propel the market growth.

•  According to the International Air Transport Association (IATA), the number of passengers traveling by air is expected to double to 8.2 billion by 2037.

The high demand for air travel has led airlines to expand their aircraft fleet, which is expected to boost the market growth. The procurement of new generation aircraft has increased owing to their improved features and fuel efficiency. The increasing procurement of business jets and commercial helicopters is one of the key factors surging the product demand.

RESTRAINING FACTORS

Longevity of Aircraft Engines Expected to Hamper the Market Growth

Aircraft engines are designed to have long life cycles. But it could be a factor that hinders the growth of the market. Due to the long life of these engines, there will be no demand for new engines except for new aircraft. The market is expected to be hindered due to the longevity of engines.

Moreover, backlogs in the production of aircraft have drastically impacted the market growth. The production of aircraft is directly proportional to aircraft engines, hence backlogs in the production of aircraft is restraining the deliveries of aircraft engines.

Aircraft Engine Market Segmentation Analysis

By Engine Type Analysis

Turbofan Segment Expected to Lead the Market Owing to Surging Demand for Commercial Jet

Based on engine type, the market is divided into turboprop engine, turboshaft engine, turbofan engine, and piston engine. The turbofan engine segment held the largest aircraft engine market share in 2023 and is expected to be the fastest-growing segment during the forecast period. The market is driven due to rising demand for business jets in Asia Pacific. The turboshaft segment is also expected to have vital growth throughout the forecast period, owing to the growing demand for civil helicopter fleet.

By Technology Analysis

Electric/Hybrid Engine Segment Anticipated to Grow at Higher CAGR due to Increasing Investment in Eco-friendly Technology

Based on technology, this market is classified into conventional engines and electric/hybrid engines. The conventional engine segment is anticipated to hold the largest market share owing to the increasing adoption of the conventional engine in current commercial and military aircraft. However, the electric/hybrid engine segment is predicted to be the fastest-growing segment during the forecast period owing to the rising investment in research & development of eco-friendly electric/hybrid engine technology to reduce the carbon footprint and fuel consumption.

By Component Analysis

Turbine Segment to Lead the Market Owing to Rising Development of Fuel-efficient Turbine Engine

Based on the component, the market is segmented into compressor, turbine, gearbox, combustion chamber, fuel system, and others. The compressor segment is expected to grow at a higher CAGR during the forecast period owing to the rise in demand for turbofan engines. The turbine segment held the largest market share in 2023 and is predicted to grow throughout the forecast period owing to rising investment in the research and development of fuel-efficient aircraft turbines.

By End-Use Analysis

Commercial Aircraft Expected to be Fastest Growing Owing to Rising Aircraft Deliveries

Based on end-use, the market is categorized into commercial and military. The commercial segment is anticipated to be the largest and fastest-growing segment during the aircraft engine market forecast period. The growth can be attributed to increasing demand for the replacement of conventional engines with technologically advanced engines. Moreover, the rising number of passengers has generated demand for new commercial aircraft.

The military segment is also projected to contribute significant growth owing to the rising procurement of military aircraft by the U.S. DoD and Indian government.

REGIONAL INSIGHTS

The market is segmented into North America, Asia Pacific, Europe, and the rest of the world.

The market in Asia Pacific is projected to witness the highest CAGR during the forecast period owing to rising defense spending by the Indian government. This, in turn, has created the demand for military helicopters and fighter aircraft in the country. Moreover, rising air passenger traffic in the region has created the demand for new aircraft procurement, which, in turn, is expected to support the growth of the market.

North America is anticipated to dominate the global market due to the presence of major players such as GE Aviation and Honeywell International Inc. in the region. Moreover, the U.S. government is spending on the quality and effectiveness of helicopters and their engines, which is expected to fuel the growth of the market. Furthermore, rising defense investment in the procurement of fighter jets, military helicopters, single-engine aircraft, and emergency medical services helicopters is expected to drive the market in North America.

List of Key Companies in Aircraft Engine Market

GE Aviation Leads the Global Market with its Excellence in Product Knowledge

The market is highly consolidated as a few companies control the large market share of overall output.

GE Aviation, a subsidiary of General Electric Company, is a leading provider of turboprop and jet engines. With excellence in product technology and a diversified product portfolio, the company is expected to dominate the global market.

Other key players in the market are Rolls Royce Holdings Plc., Safran SA, CFM International SA, and others. The introduction and modernization of advanced technology to offer an enhanced product portfolio for their customers is the key strategy implemented by the major players operating in the market.

LIST OF KEY COMPANIES PROFILED:

• CFM International SA (France)


• Honeywell International Inc. (U.S.)


• GE Aviation (U.S.)


• Rolls-Royce Holdings Plc. (U.K.)


• Safran SA (France)


• International Aero Engines AG (U.S.)


• MTU Aero Engines AG (Germany)


• Textron Inc. (U.S.)


• United Technologies Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 – India and the U.S. announced an agreement between Hindustan Aeronautics Limited (HAL) and GE Aerospace to manufacture fighter jet engines for the Indian Air Force (IAF). The IAF is in the process of receiving the 114 Multi-role Fighter Aircraft (MRFA) and an additional number of Light Combat Aircraft (LCA) Mk1A, followed by LCA Mk2. The fifth-generation Advanced Medium Combat Aircraft (AMCA) is also under development, as is the Twin-Engine Deck Based Fighter (TEDBF) by the Aeronautical Development Agency (ADA) and the Defense Research and Development Organization (DRDO) for naval aircraft carriers.


• March 2024 – The Ministry of Defense announced the signing of a contract with Hindustan Aeronautics Limited (HAL) to purchase aircraft engines for MiG-29 aircraft at a cost of USD 5,249.72 billion. The program will focus on the localization of several key high-value components, helping increase the localization content for future RD-33 aircraft engine overhaul and repair missions.


• January 2024 – Rolls-Royce signed a groundbreaking seven-year partnership with Hyderabad-based Azad Engineering to produce critical components for its defense aircraft engines. This strategic partnership brought Azad Engineering into Rolls-Royce's global supply chain for advanced aircraft engines, marking a significant leap forward for India in defense manufacturing.


• January 2024 – Homegrown low-cost airline Akasa Airlines signed an agreement with CFM International to purchase more than 300 Leap-1B engines to power 150 aircraft. The contract also included a spare engine and service contract. The agreement was signed during French President Emmanuel Macron's state visit to India.


• October 2023 – Triumph Group, Inc. and Honeywell Aerospace signed a long-term agreement covering multiple Honeywell engine platforms. The contract covered TRIUMPH's production and maintenance of booster pumps, electronic controllers, and hydro-mechanical fuel controllers for T55 helicopter engines as well as main fuel pumps for fighter aircraft engines/ F124 trainer and the HTF7000 business jet engine.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation