Aircraft Engine Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Aircraft Engine Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Aircraft Engines Market size is estimated at USD 82.96 billion in 2024, and is expected to reach USD 111.32 billion by 2029, growing at a CAGR of 6.06% during the forecast period (2024-2029).

The industry growth is also driven by the demand for new-generation engines with low emissions and lower weight, which will likely enhance aircraft fuel efficiency. Due to this trend, the largest companies in the market are investing in research and development of new engine models utilizing the latest technologies, like additive manufacturing and composite technologies.

However, growing concerns over the failure of aircraft engines during operation and delays in deliveries are some of the factors hampering the industry growth.

Aircraft OEMs and engine manufacturers are engaging in extensive integration efforts to enhance performance and extend the range of aircraft. The investments towards the R&D of such technologies are anticipated to bolster the market prospects during the forecast period. The manufacturing cycle of aircraft engine OEMs is expected to undergo rapid transformation due to the increasing use of 3D printing and ceramic matrix composites to construct critical components of an aircraft engine. Furthermore, emerging industry trends such as a hybrid-electric jet engine are anticipated to enhance the current business opportunities for the market players.

Aircraft Engine Market Trends

Commercial Aviation to Dominate the Global Market Share During the Forecast Period

The commercial aircraft segment currently holds a significant market share and is expected to continue its dominance during the forecast period, owing to a large number of commercial aircraft deliveries across the world, which are generating demand for aircraft engines. The backlog of the aircraft OEMs is expected to support the commercial engines segment to grow at a healthy rate during the forecast period. The demand for narrow-body aircraft is expected to recover faster than for wide-body aircraft as domestic demand is expected to return to pre-pandemic levels earlier than the international passenger demand.

Technological advancements in new-generation passenger aircraft make it possible for them to fly longer distances. Players are emphasizing increasing the fuel efficiency of passenger aircraft while increasing their range, as airlines are looking to procure such aircraft for their fleets. In February 2022, Safran Helicopter Engines signed a Memorandum of Understanding (MoU) with ST Engineering to conduct a study on the use of Sustainable Aviation Fuel (SAF) in helicopter engines. The study aims to assist helicopter operators in switching from conventional fossil fuels to SAF. Similarly, Airbus entered a partnership with CFM International in February 2022 to develop a hydrogen-fueled aircraft engine with the aim of introducing zero-emission aircraft by 2035. Such plans are anticipated to propel global market growth.

Asia-Pacific Region Expected to Witness the Highest Growth During the Forecast Period

The industry analysis shows that Asia-Pacific is expected to witness the highest growth in the global market during the forecast period due to the strong demand for domestic air travel in developing economies. Due to the faster growth of domestic passenger traffic, low-cost airlines in the region are strengthening their aircraft fleet with new-generation aircraft to support their route expansion plans. Such robust aircraft orders as part of fleet modernization plans of the airlines in the region are expected to increase the market value and demand for aircraft engines over the coming years.

Furthermore, due to geopolitical tensions in the region, countries are increasing their investments to strengthen their aerial capabilities with the procurement of advanced aircraft and replace their aging aircraft. For instance, in June 2023, India and the US announced the agreement between Hindustan Aeronautics Limited (HAL) and GE Aerospace to produce fighter jet engines for the Indian Air Force (IAF). The deal takes place in the context of efforts by the IAF to improve its capabilities and capacities. The IAF is in the process of procuring 114 multi-role fighter jets (MRFA), along with acquiring additional numbers of Light Combat Aircraft (LCA) Mk1A, followed by LCA Mk2. GE's F404 engines are the engine used to power India's only indigenous fighter jet LCA Tejas. As of now, GE has manufactured 75 F404 engines, and another 99 are on order with LCA Mk1A.

Such fleet modernization plans will likely generate demand for advanced lightweight and fuel-efficient engines over the coming years.

Aircraft Engine Industry Overview

The aircraft engine market is consolidated, with a few players holding a dominating market share in both the commercial and military aircraft segments. Some of the largest companies in the global market are General Electric Company (through GE Aviation), RTX Corporation (through Pratt & Whitney), Rolls-Royce plc, Safran SA, and Honeywell International Inc.

The players mentioned above, along with their joint ventures such as CFM International (GE Aviation and Safran), International Aero Engines (Pratt & Whitney, Japanese Aero Engine Corporation, and MTU Aero Engines), and Engine Alliance (General Electric and Pratt & Whitney), provide engines for major commercial and military aircraft programs.

Also, engine manufacturers are partnering with aircraft manufacturers to develop sustainable aircraft engine solutions that are low-weight and reduce engine emissions. For instance, in February 2022, Embraer, Widerøe, and Rolls-Royce entered a research partnership agreement to conduct a 12-month study and research innovative sustainable technologies for regional planes, focusing on developing a conceptual zero-emissions aircraft.

In addition, due to increasing demand for local manufacturing, regional players are partnering with international players. For instance, as of March 2022, India's Defence Research and Development Organization (DRDO) was in talks with Safran for the joint development of a 125KN engine for the indigenous fifth-generation Advanced Medium Combat Aircraft (AMCA) (currently under development, with the first flight planned for 2024). Industry analysis suggests that such developments are anticipated to help the companies increase their geographical presence over the coming years.

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