Aircraft Engines Market Size, Share and Growth Forecast for 2024 - 2031

Aircraft Engines Market Size and Share Analysis

The aircraft engines market is estimated to increase from US$69.32 Mn in 2024 to US$141.35 Mn by 2031. This growth is further shown by the market's CAGR of 10.7% from 2024 to 2031. The market growth driven by increased air travel demand, technological advancements, and regulatory changes, primarily driven by the need for fuel-efficient engines.

Key Highlights of the Market

• The development of more efficient, environment-friendly engine technologies and the adoption of advanced engine technologies fuel aircraft engines market growth.
• North America market is projected to account for 35.1% of the market share by 2024.
• The industry demand is fueled due to increased air travel demand, fleet expansion, and demand for fuel-efficient engines.
• Europe market is anticipated to expand at a CAGR of 9.1% through 2031.
• Technological advancements such as lightweight materials and advanced engine designs, are driving market growth.
• Based on engine, the turbofan segment is expected to lead the market with a 71.2% share in 2024
• Regulatory changes in emission reductions and noise abatement are driving manufacturers to invest in engine efficiency innovation.
• The commercial aircraft segment is predicted to achieve the largest revenue share in 2024.
• Germany, the UK, and France lead in engine development focusing on fuel efficiency, reduced emissions, and noise reduction technologies.

Attributes	Key Insights
Market Size (2024E)	US$69.32 Mn
Projected Market Value (2031F)	US$141.35 Mn
Global Market Growth Rate (CAGR 2024 to 2031)	10.7%
Historical Market Growth Rate (CAGR 2019 to 2023)	7.9%

North America Aircraft Engines Market Maintains Primacy

Region	Market Share by 2024
North America	35.1%

North America market is expected to account for the market share of 35.1% by 2024 owing to increasing air travel demand, fleet expansion, and the demand for fuel-efficient engines. Technological advancements such as lightweight materials, advanced engine designs such as geared turbofans, and enhanced maintenance practices are contributing to the market growth in the region.

Regulatory changes in terms of emission reductions and noise abatement are compelling aircraft engine manufacturers to invest in innovation in engine efficiency further increasing the market outlook in the region.

Europe Aircraft Engines Market to Soar with a 9.1% CAGR

Region	CAGR through 2031
Europe	9.1%

Europe market is anticipated to expand at a CAGR of nearly 9.1% during the forecast period from 2024 to 2031. The market benefits from established aerospace infrastructure and technological innovation.

Companies in Germany, the United Kingdom, and France lead in engine development focusing on fuel efficiency, reduced emissions, and noise reduction technologies to meet stringent environmental regulations. This growth is propelled by leading manufacturers focusing on eco-friendly engine technologies and advancements in materials science. Collaborative efforts within Europe aerospace programs strengthen competitiveness in producing efficient engines for global markets.

Turbofan Engines are Favored for their Fuel Efficiency

Category	Market Share by 2024
Engine - Turbofan	71.2%

Based on engine type, the turbofan segment is expected to attain 71.2% of the market share in 2024. This can be attributed to the increasing demand for commercial and military aircraft worldwide.

Turbofan engines are favored for their fuel efficiency, lower noise levels, and ability to operate efficiently across various flight conditions. Manufacturers are focusing on developing advanced turbofan technologies including high-bypass ratio engines and geared turbofans to meet stringent environmental regulations and enhance aircraft performance. Continued fleet expansion and technological innovation are key factors propelling growth in this segment.

Expanding Air Travel Demand Globally Drives Commercial Aircraft Segment Growth

Based on aircraft, the commercial aircraft segment is predicted to account for the large revenue share in 2024. The growth of this segment is driven by expanding air travel demand worldwide. Airlines are increasingly investing in new, fuel-efficient aircraft equipped with advanced engine technologies to enhance operational efficiency and reduce environmental impact. Manufacturers are focusing on developing high-thrust engines with improved fuel efficiency and lower emissions to meet stringent regulatory standards. Additionally, fleet modernization initiatives and increasing air connectivity further propel growth in this segment, ensuring sustained demand for new engine installations.

Market Introduction and Trend Analysis

The aircraft engines market overview shows that this industry is responsible for the design, development, manufacturing, and maintenance of the engines that power various types of aircraft, including commercial airliners, military jets, private planes, and helicopters. These engines are the heart of an aircraft, providing the necessary thrust to enable flight.

The market encompasses a range of engine technologies from traditional turbofan and turboprop engines to more advanced designs like turbine-electric hybrid and all-electric propulsion systems. The industry has been experiencing several notable trends in recent years.

One of the aircraft engines market trends is the increasing focus on fuel efficiency and environmental sustainability. The development of more fuel-efficient engine designs can significantly reduce fuel consumption and emissions. Another trend is the growing demand for engine upgrades and retrofits.

The market is also witnessing the emergence of new engine technologies, such as hybrid-electric and all-electric propulsion systems. These innovations are driven by the need to reduce the environmental impact of aviation and explore alternative power sources.

The increasing demand for military aircraft particularly in emerging economies is driving growth in the military aircraft engines segment. Governments are investing in the modernization of their air forces, which is creating opportunities for engine manufacturers to supply advanced engines for fighter jets, transport aircraft, and other military platforms.

Historical Growth and Course Ahead

The aircraft engines market overview has shown healthy growth in recent years. The market expanded at a CAGR of 7.9% between 2019 and 2023. This market growth was due to increasing demand for air travel, the need for fleet modernization, and the rising adoption of more fuel-efficient engine technologies.

The market is poised for continued growth. Industry forecasts indicate that the market is anticipated to secure a CAGR of 10.7% from 2024 to 2031. This accelerated growth is attributed to a surge in air travel demand.

As airlines and aircraft operators seek to expand their fleets to meet this growing demand, the demand for new aircraft engines will rise accordingly. The latest, more fuel-efficient models are driving the demand for advanced aircraft engines that can provide improved performance and reduce environmental impact.

The development of efficient, environment-friendly engine technologies and the adoption of advanced engine technologies will be a crucial driver of market growth in the coming years. Further, the market is also expected to benefit from the growing demand for air travel in emerging economies.

Market Growth Drivers

Increasing Demand for Air Travel

The global economy is expected to rebound in the coming years leading to a surge in air travel demand. As airlines and aircraft operators seek to expand their fleets to meet this growing demand, the demand for new aircraft engines will rise accordingly.

Increased demand for air travel driven by factors like economic growth, rising middle-class populations in emerging markets. Airlines are looking to modernize their fleets and meet the growing passenger traffic, which in turn fuels the need for more advanced and efficient aircraft engines.

Fleet Modernization

Many airlines and aircraft operators are actively replacing their older, less-efficient aircraft with newer, more fuel-efficient models. This trend is driving the demand for advanced aircraft engines that can provide improved performance and reduced environmental impact.

As airlines focus on improving their operational efficiency and reducing their carbon footprint, the need for advanced, eco-friendly aircraft engines will continue to grow. Manufacturers are responding to this demand by developing engines that offer better fuel efficiency, lower emissions, and improved reliability boosting aircraft engines market demand.

Advancements in Engine Technology

Manufacturers are continuously investing in the development of efficient and environment-friendly engine technologies such as geared turbofan engines and hybrid-electric propulsion systems. The adoption of these advanced engine technologies will be a key driver of aircraft engines market expansion in the coming years as airlines and aircraft operators seek to upgrade their fleets with the latest and most efficient engine solutions.

Technological innovation in the market is crucial to meeting the industry's sustainability goals and staying competitive. Manufacturers that can successfully develop and commercialize these advanced engine technologies will be well-positioned to capture a large share of the growing market.

Factors Impeding the Market Growth

Regulatory Challenges

The aircraft engines are subject to stringent regulatory oversight and environmental standards, particularly around emissions and noise levels. Implementing new regulations like the CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) can create challenges for manufacturers as they work to develop engines that meet these evolving requirements. Navigating the complex regulatory landscape and ensuring compliance can be a significant hurdle for the aircraft engines market sales.

Supply Chain Disruptions

The aircraft engines sales are highly dependent on a global supply chain, which can be vulnerable to various disruptions. Factors such as trade disputes, geopolitical tensions, and the COVID-19 pandemic have the potential to disrupt the supply of critical components and materials, impacting the production and delivery of aircraft engines.

Maintaining a resilient and reliable supply chain is crucial for manufacturers to meet the growing demand for aircraft engines, and any disruptions can hinder the growth of the aircraft engines market revenue.

Future Opportunities for the Market Players

Development and Adoption of Sustainable Aviation Fuels (SAF)

As the aviation industry strives to reduce its carbon footprint, the development and adoption of sustainable aviation fuels (SAF) present several aircraft engines market opportunities. Aircraft engine manufacturers can collaborate with fuel providers to ensure their engines are compatible with and optimized for the use of SAF, which can significantly lower the environmental impact of air travel. This shift toward sustainable propulsion solutions will be a key focus area for the industry driving innovation and growth in the market.

Hybrid and Electric Propulsion Systems

The emergence of hybrid-electric and all-electric propulsion systems for aircraft is another promising opportunity for the market. While these technologies are still in the early stages of development, they have the potential to transform the industry by reducing emissions and noise levels and offering new possibilities for urban air mobility and regional air transportation. 

Aircraft engine manufacturers that can successfully develop and commercialize these innovative propulsion systems will be well

Competitive Landscape for the Aircraft Engines Market

The aircraft engines market is highly competitive, with a few dominant players vying for market share. Some of the key players in the market include General Electric (GE), Rolls-Royce, Pratt & Whitney, and CFM International. These companies have been actively investing in research and development to introduce innovative engine technologies. For example,

• In 2022, Rolls-Royce unveiled its UltraFan engine, which promises a 25% improvement in fuel efficiency compared to the company's previous generation of engines. To stay competitive, manufacturers are also exploring new business models, such as offering engine leasing and maintenance services to airlines in addition to core engine sales.

Recent Developments in the Aircraft Engines Market

• May 2024, Korean conglomerate Hanwha has launched Hanwha Aviation, aiming to build up a portfolio of around 1,000 assets over the next decade. The platform will provide a transaction platform for trading, leasing, and asset management of aero-engines and aircraft. Hanwha's CEO, Jeff Lewis, formerly worked for FTAI Aviation, focuses on acquiring portfolios of narrowbody engines and aircraft, targeting "newer generation assets.
• April 2024, Rolls-Royce has launched a flight test campaign for its advanced aero engine, the Pearl 10X, marking a significant milestone in the company's business aviation venture. The engine, chosen by Dassault exclusively for its Falcon 10X, is designed to operate seamlessly with 100% Sustainable Aviation Fuel (SAF), reducing carbon emissions. The rigorous flight testing will evaluate the engine's performance across various conditions, including speed, altitude, and anti-icing capabilities.

Aircraft Engines Market Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Country Covered	North America Asia Pacific Europe Latin America The Middle East & Africa
Key Market Segments Covered	By Engine By Aircraft By Region
Key Companies Profiled	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)
Report Coverage	Market Forecast Company Share Analysis Competition Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization & Pricing	Available upon request

Aircraft Engines Market Segmentation

By Engine

• Turboprop
• Turbofan
• Turboshaft
• Piston Engine

By Aircraft

• Commercial Aircraft
• Military Aircraft
• Business and General Aviation Aircraft

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• The Middle East & Africa

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