Aircraft Propulsion System Market - By Type (Air Breathing Engine, Non-air Breathing Engine), By Application (Aircraft, Missiles, UAVs, Spacecraft), By End-use Industry (Aerospace & Defense, General Aviation, Commercial Aviation) & Forecast, 2023 - 2032

Aircraft Propulsion System Market - By Type (Air Breathing Engine, Non-air Breathing Engine), By Application (Aircraft, Missiles, UAVs, Spacecraft), By End-use Industry (Aerospace & Defense, General Aviation, Commercial Aviation) & Forecast, 2023 - 2032

Aircraft propulsion system industry size is projected to expand at over 10.4% from 2023 to 2032. The increasing demand for fuel-efficient and environmentally friendly aircraft is promoting the development of advanced propulsion technologies. For instance, in March 2023, well-known drive system developer BRP-Rotax introduced the Rotax 916iS/c aircraft propulsion system designed for four-seater and high-performance two-seater airplanes in a bid to reiterate its commitment to developing pioneering technologies and advanced propulsion systems for customers.

The growing focus of the aerospace industry on reducing emissions and enhancing performance is also amplifying the adoption of modern and efficient propulsion systems. The surging rate of air travel, driven by global economic growth is contributing to the high demand for new aircraft with improved propulsion. Additionally, the escalating environmental concerns is making way for stringent regulations and the influx of government initiatives for promoting sustainable aviation. The rise in technological advancements, including electric and hybrid propulsion will also shape the future of aircraft propulsion.

The market is categorized into type, application, end-use industry, and region.

Based on type, the industry share from the air-breathing engine segment is estimated to increase at rapid pace during 2023-2032, driven by the higher need for advanced propulsion systems in both military and commercial aviation. The demand for air-breathing engines, including turbofans and turbojets is further likely to grow for offering enhanced fuel efficiency, performance, and environmental sustainability.

The aerospace and defense end-use segment is anticipated to account for sizeable share of the aircraft propulsion system market by 2032, attributed to the increasing investments in military aviation and the commercial aerospace sector. The growing demand for advanced and efficient propulsion systems to enhance aircraft performance, fuel efficiency, and mission capabilities will also boost the segment growth.

Regionally, the Asia Pacific aircraft propulsion system industry size is slated to flourish at over 12% CAGR through 2032, fueled by the expanding aviation sector, rising air travel demand, and increasing defense budgets. Furthermore, the surge in the number of commercial aircraft orders and the higher adoption of advanced propulsion technologies will drive the regional market expansion.