The global aircraft engine market size attained a value of USD 95.1 billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 7.3% between 2025 and 2034, reaching almost USD 179.3 billion by 2034. This growth is driven by factors such as the increasing demand for air travel, advancements in aircraft engine technology, and the modernization of military aircraft fleets. The market’s expansion also reflects the aviation industry’s push towards sustainability, with innovations in fuel efficiency and hybrid-electric propulsion systems gaining traction. This blog post takes a closer look at the key drivers, market segments, and regional trends shaping the global aircraft engine market in the coming decade.
Market Segmentation
By Engine Type
The aircraft engine market is highly diversified, with various engine types designed to meet specific performance requirements in different aircraft categories. Here are the main types of aircraft engines:
Turboprop Engines
Turboprop engines are commonly used in smaller aircraft, especially for short-haul flights. These engines combine a jet engine and a propeller, making them highly fuel-efficient for aircraft that fly at lower altitudes and speeds. Turboprop engines are most often found in regional aircraft, which is a growing segment due to increasing air travel demand in remote regions. They are also used in military aircraft and cargo planes.
Turboshaft Engines
Turboshaft engines are primarily used in helicopters and other rotary-wing aircraft. These engines are designed to generate shaft power for driving rotors, rather than directly propelling the aircraft. As the demand for helicopters in both military and civilian applications continues to rise, particularly in search and rescue, medical evacuation, and military operations, the turboshaft engine market is also growing. The shift toward advanced rotary-wing technologies is expected to keep this market expanding.
Turbofan Engines
Turbofan engines are the most common type of engine in commercial aviation today. They provide a high level of efficiency and are typically used in long-haul flights. These engines operate with a fan at the front that accelerates air, which then passes through the engine core, generating thrust. With airlines continually looking to improve fuel efficiency and reduce carbon emissions, turbofan engines are being designed with advanced materials and more efficient combustion technologies. This is making them more popular among commercial aircraft manufacturers and airlines.
Piston Engines
Piston engines, while less common in commercial aviation, are still widely used in smaller general aviation aircraft. These engines, which are similar to those found in cars, offer a more affordable and less complex solution for small planes. With the growth of general aviation for personal travel and business use, piston engines remain a significant part of the overall aircraft engine market. Their affordability and ease of maintenance make them ideal for small aircraft and light aircraft training.
Others
In addition to the traditional engine types mentioned above, the “others” category includes emerging technologies such as hybrid-electric engines. With the aviation industry pushing towards reducing its carbon footprint, hybrid and electric propulsion systems are gaining attention. These technologies aim to provide cleaner alternatives to conventional engines, which could reshape the future of the aircraft engine market.
By Wing Type
The market is also segmented based on wing types, with the two primary categories being fixed-wing and rotary-wing aircraft.
Fixed Wing
Fixed-wing aircraft, including commercial airplanes, cargo planes, and military jets, dominate the global aircraft engine market. These aircraft are characterized by their fixed wings, which provide lift and allow for stable flight. The growing global air travel demand, coupled with the expansion of cargo logistics and defense sectors, is fueling the demand for advanced engines for fixed-wing aircraft. The trend of fleet modernization, with airlines and defense forces opting for more fuel-efficient and powerful engines, is a key factor contributing to the market’s growth.
Rotary Wing
Rotary-wing aircraft, primarily helicopters, require specialized turboshaft engines that can provide the necessary power for vertical take-off and landing (VTOL). The demand for rotary-wing aircraft is growing due to their vital roles in military operations, search and rescue missions, medical transport, and law enforcement. As technology continues to improve, there is increasing demand for more efficient engines to enhance the performance and capabilities of rotary-wing aircraft.
By Aircraft Type
The aircraft engine market is further divided based on the type of aircraft that uses the engines. These include:
Commercial Aircraft
Commercial aircraft engines are the largest segment of the aircraft engine market. With the recovery of the global aviation industry post-pandemic and the increasing demand for air travel, both passenger and cargo aircraft manufacturers are ramping up production. The growing focus on reducing operational costs through fuel-efficient engines is also contributing to this growth. In addition, there is an increasing focus on reducing aircraft emissions, which is spurring the development of cleaner technologies in the engine sector.
Military Aircraft
Military aircraft engines are a major driver of the global market, particularly as nations modernize their defense fleets. These engines must meet demanding specifications, including higher performance and durability under extreme conditions. With the rise of advanced military technologies, such as unmanned aerial vehicles (UAVs), stealth aircraft, and hypersonic jets, the demand for advanced and high-performance aircraft engines is expected to continue growing.
General Aviation
General aviation includes a wide range of small aircraft, such as private planes, recreational aircraft, and small business jets. Piston engines and smaller turboprops are commonly used in this segment. The growing interest in personal air travel, flying schools, and corporate aviation is contributing to the expansion of the general aviation engine market.
Others
This category includes specialized aircraft, such as drones and cargo planes. As drone technology continues to evolve and find new applications in industries such as logistics, surveillance, and agriculture, the demand for small aircraft engines is expected to rise.
Regional Analysis
North America
North America, particularly the United States, is the largest market for aircraft engines, driven by its extensive commercial aviation sector and the presence of leading aircraft engine manufacturers like GE Aviation and Pratt & Whitney. The U.S. is also a major producer of military aircraft engines, with significant investments in defense modernization.
Europe
Europe is home to several key aircraft engine manufacturers, including Rolls-Royce and Safran. The region has a robust commercial aviation market and a growing defense sector. Additionally, Europe is at the forefront of research and development in hybrid and electric aircraft engine technologies, contributing to the market’s growth.
Asia-Pacific
Asia-Pacific is the fastest-growing market for aircraft engines, fueled by the rapid expansion of the aviation industry in countries like China and India. The increasing middle-class population in these countries is driving demand for commercial aircraft, while growing defense budgets are pushing the need for advanced military aircraft engines. Additionally, Asia-Pacific is witnessing the rise of domestic aircraft manufacturers and a greater focus on sustainable aviation solutions.
Latin America
Latin America is seeing steady growth in both commercial and military aviation sectors. Countries such as Brazil are investing in expanding their aviation infrastructure, which is contributing to the demand for aircraft engines. The region’s focus on upgrading its fleets is expected to boost the aircraft engine market.
Middle East and Africa
The Middle East is known for its strong aviation sector, with airlines like Emirates and Qatar Airways investing heavily in fleet expansion. Military aviation also plays a significant role in the region, driving the demand for high-performance engines. In Africa, while the aviation market is still developing, there is increasing demand for both commercial and defense aircraft engines.
Market Dynamics
SWOT Analysis
- Strengths: The growth of the aviation industry, technological advancements in engine design, and increasing military and defense spending are key strengths.
- Weaknesses: High production costs, long product development cycles, and reliance on fuel prices remain potential challenges.
- Opportunities: Emerging markets, particularly in Asia-Pacific and Africa, and advancements in sustainable engine technologies such as hybrid-electric engines offer significant opportunities.
- Threats: Economic downturns, fluctuating fuel prices, and environmental regulations pose potential risks to the market.
Porter’s Five Forces Analysis
- Threat of New Entrants: Barriers to entry in the aircraft engine market are high due to the capital-intensive nature of the industry and the need for advanced technological expertise.
- Bargaining Power of Suppliers: Raw material suppliers, particularly for advanced materials like titanium and composites, hold significant bargaining power in the engine manufacturing process.
- Bargaining Power of Buyers: Large aircraft manufacturers and airline operators exert considerable influence over engine suppliers due to the high value of contracts.
- Threat of Substitutes: Electric and hybrid-electric engines are emerging as potential substitutes for traditional aircraft engines, which could disrupt the market in the long term.
- Industry Rivalry: The market is highly competitive, with established players such as GE Aviation, Rolls-Royce, and Pratt & Whitney vying for dominance in the commercial, military, and general aviation sectors.
Competitive Landscape
The aircraft engine market is dominated by several key players, including:
- General Electric (GE) Aviation
- Rolls-Royce
- Pratt & Whitney
- Safran
- CFM International
These companies focus on innovation, technological advancements, and cost-efficiency to maintain a competitive edge. They also engage in strategic partnerships and joint ventures to enhance their product offerings and expand into new markets.
