Aircraft Engine Market By Engine (Turboprop, Turbofan, Turboshaft, Piston Engine), By Aircraft (Commercial Aircraft, Military Aircraft, Business and General Aviation Aircraft), By Point of Sale (OEM, Aftermarket), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Aircraft Engine Market was valued at USD 76.8 billion in 2023 and will surpass USD 112.4 billion by 2030; growing at a CAGR of 5.6% during 2024 - 2030.

The aircraft engine market is a cornerstone of the aviation industry, driven by increasing air travel demand, fleet expansion, and advancements in engine technology. Aircraft engines are essential for propulsion and play a critical role in determining an aircraft's performance, fuel efficiency, and environmental impact. As airlines strive to optimize operations and reduce carbon footprints, manufacturers are focusing on developing next-generation engines with enhanced fuel efficiency and lower emissions. Innovations such as hybrid-electric and fully electric engines are also gaining traction, reflecting a shift towards sustainable aviation solutions.

The market's growth is further supported by the rising adoption of narrow-body aircraft for short-haul routes and wide-body aircraft for long-haul travel. Additionally, the replacement of aging fleets and the demand for lightweight, high-thrust engines are driving significant investments in research and development. With regulatory bodies enforcing stricter emission standards and noise reduction measures, engine manufacturers are prioritizing eco-friendly designs without compromising performance, ensuring the market's steady expansion.

Turbofan Segment is Largest Owing to High Demand for Commercial Aircraft

The aircraft engine market is diverse, comprising different engine types designed to meet the specific needs of various aircraft categories. The engines include turboprop, turbofan, turboshaft, and piston engines. Each engine type serves different segments of aviation, from commercial and military aircraft to business and general aviation. Among these, turbofan engines dominate the market, primarily due to their widespread use in commercial aviation and their ability to offer the best balance of fuel efficiency and high thrust.

Turbofan engines are widely regarded as the most efficient and powerful engines for commercial jet aircraft, particularly in long-haul operations. The demand for commercial aircraft has surged in recent years, fueled by the recovery of global air travel and the growing air passenger traffic. As airlines continue to seek ways to reduce operating costs and increase fuel efficiency, turbofan engines remain the preferred choice. The latest advancements in turbofan technology, such as geared turbofan engines, which offer better fuel economy and lower noise levels, have further reinforced their dominance in the market. This trend is expected to continue as airlines and OEMs (original equipment manufacturers) continue to prioritize sustainability and cost-effectiveness in their aircraft engine procurement strategies.

Commercial Aircraft Segment is Fastest Growing Due to Rising Air Travel Demand

The aircraft engine market can be segmented based on the type of aircraft that the engines power. These segments include commercial aircraft, military aircraft, and business and general aviation aircraft. The commercial aircraft segment is by far the largest and fastest-growing within the market, driven by a steady rise in global air travel demand. As international trade and tourism increase, the need for commercial aircraft engines, particularly those for new-generation fuel-efficient jets, is expanding rapidly.

The commercial aviation sector is seeing a strong recovery after the pandemic, with increasing passenger traffic and airlines striving to expand their fleets. This growth is propelling the demand for modern, fuel-efficient turbofan engines that can help airlines lower operational costs. The development of next-generation aircraft, like the Boeing 787 and Airbus A350, which are equipped with advanced turbofan engines, has further accelerated this demand. The market for commercial aircraft engines is expected to continue growing at a rapid pace, driven by the continued expansion of low-cost carriers and the ongoing renewal of older aircraft fleets by major airlines across the globe.

Aftermarket Segment is Fastest Growing Due to Increased Maintenance and Overhaul Services

The aircraft engine market is also segmented by point of sale, primarily categorized into OEM (original equipment manufacturer) and aftermarket. The aftermarket segment is currently the fastest growing, primarily due to the increasing demand for maintenance, repair, and overhaul (MRO) services. As aircraft engines age, operators need more frequent maintenance and parts replacement to ensure performance and safety. Additionally, with more airlines seeking to extend the lifespan of their aircraft rather than investing in new fleets, the aftermarket sector is experiencing substantial growth.

The expansion of aftermarket services is also fueled by the growing number of aircraft in service globally and the increasing demand for engine upgrades and retrofits. Major OEMs are capitalizing on this trend by offering comprehensive aftermarket services, including engine diagnostics, repair services, and the provision of spare parts. This trend is expected to continue as airlines prioritize cost-effectiveness and reliability, ensuring that aircraft remain operational for as long as possible. In response, companies are focusing on providing end-to-end lifecycle management for engines, from installation to aftermarket services, ensuring a steady revenue stream in the long term.

Asia-Pacific is Fastest Growing Due to Expanding Aviation Infrastructure

The aircraft engine market is spread across several regions, with North America, Europe, and Asia-Pacific being the key players. Asia-Pacific is currently the fastest growing region in the aircraft engine market, driven by the rapid expansion of air travel in countries like China, India, and Southeast Asian nations. The region is experiencing a significant increase in air passenger traffic, which is prompting airlines to expand and modernize their fleets with new, fuel-efficient engines. This growth is also fueled by rising disposable incomes, a growing middle class, and an increasing demand for both domestic and international flights.

China and India, in particular, are leading the charge in terms of aircraft orders, creating substantial demand for new aircraft engines. The governments of these countries have made substantial investments in their aviation infrastructure, further fueling the growth of the aviation sector. As these economies continue to expand, the need for both commercial and military aircraft engines will rise, making Asia-Pacific the key growth region for the aircraft engine market in the coming years. The region is expected to continue attracting significant investments from OEMs and aftermarket service providers looking to capitalize on the growing demand for aircraft engines.

Competitive Landscape: Leading Companies Innovating in Aircraft Engine Technology

The aircraft engine market is highly competitive, with several key players leading the charge in terms of innovation and market share. Some of the leading companies in this space include General Electric (GE) Aviation, Rolls-Royce, Pratt & Whitney, Safran Aircraft Engines, and Honeywell International. These companies are at the forefront of developing cutting-edge technologies that enhance fuel efficiency, reduce emissions, and improve overall performance of aircraft engines.

In addition to product development, these companies are expanding their footprints through strategic partnerships, mergers, and acquisitions. For example, GE Aviation and Safran have entered into joint ventures to develop advanced propulsion systems for commercial aircraft. Rolls-Royce and Pratt & Whitney have also made significant advancements in electric and hybrid-electric engine technologies. These partnerships not only enhance technological capabilities but also provide opportunities to tap into new markets, especially in the Asia-Pacific region, where aviation growth is robust. As the market continues to evolve, these companies are expected to remain dominant players, leveraging their technological prowess and extensive service networks to maintain leadership in the global aircraft engine market.

Recent Developments: -

• General Electric (GE) Aviation announced the launch of a new fuel-efficient turbofan engine, aimed at reducing fuel consumption by 20% for next-generation commercial aircraft.
• Rolls-Royce completed the acquisition of a leading aerospace components manufacturer to expand its presence in the engine repair and overhaul market.
• Pratt & Whitney received FAA certification for its new turbofan engine model, designed for regional and short-haul aircraft.
• Safran Aircraft Engines unveiled its latest lightweight turboprop engine, focusing on reducing fuel usage and increasing operational efficiency for smaller aircraft.
• Honeywell International entered into a strategic partnership with a major aviation OEM to develop sustainable and eco-friendly engine technologies for future aircraft models.

List of Leading Companies:

• Advanced Atomization Technologies Inc.
• Enjet Aero
• Engine Alliance
• Safran Group
• Pratt & Whitney
• Rolls-Royce
• MTU Aero Engines AG
• CFM International
• General Electric Company
• ITP Aero
• New Hampshire Ball Bearing (MinebeaMitsumi Aerospace)
   

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