The aircraft engine market is primarily driven by increasing aircraft orders and replacement of aging fleet globally. Aircraft engines provide thrust or power to propel an aircraft. Mainstream engines are primarily turbofans which combine turbo machinery with large-diameter, multi-stage fans. Turbofans offer higher thrust-to-weight ratio, reduced fuel consumption, and lesser noise than turbojets. Engines are one of the most complex and critical systems in an aircraft. Significant technological advancements have enabled higher reliability, durability, and fuel efficiency of aircraft engines.
The aircraft engine market is estimated to be valued at USD 109.83 Bn in 2024 and is expected to reach USD 187.05 Bn by 2031, growing at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031.
Key Takeaways
Key players operating in the aircraft engine market are General Electric Company (GE Aviation), Rolls-Royce Holding PLC, Pratt & Whitney, Honeywell International Inc., and Safran Aircraft Engines. Key players are investing heavily in R&D to develop advanced engine technologies focusing on fuel efficiency, reduced emissions and noise levels.
The rising numbers of low-cost carriers globally present significant opportunities for Aircraft Engine Market manufacturers. Growing air passenger traffic in Asia Pacific and Middle East regions will also drive the demand for new aircraft and engines.
Key players are expanding their global manufacturing and MRO networks to capitalize on opportunities across different regions. Strategic partnerships and collaborations are helping engine makers to spread risks and enhance capabilities.
Market Drivers
Rising aircraft orders from commercial and business jet manufacturers are the major growth driver for aircraft engine market. Boeing forecasts a demand for over 41,000 new aircraft worth $6.8 trillion by 2038. North America and Asia Pacific are projected to account for over 60% of this demand. The replacement of aging fleets for meeting stringent emission norms will further fuel engine demand. Growing air traffic in emerging economies is slated to propel the need for new aircraft and propulsion systems.
PEST Analysis
Political: The aircraft engine market is influenced by aviation policies and government regulations related to aircraft manufacturing and maintenance. Stricter emission norms can impact the demand for new aircraft engines.
Economic: Economic growth, rise in disposable incomes drive greater air travel and freight transport, fueling demand for new aircraft and replacement of existing engines. Market depends on the financial health of airline industry.
Social: Increased global mobility and preference for air travel continue to support market growth. However, environmental concerns related to aviation emissions may impact demand trends over the long term.
Technological: Advancements in material science, engine design and manufacturing processes help improve fuel efficiency, reduce noise levels and emissions. Adoption of alternative fuels and hybrid-electric propulsion technologies will reshape competition in coming years.
Geographical Regions
The North American region currently accounts for the largest share of the global aircraft engine market value owing to strong presence of leading OEMs and MRO service providers in the US and Canada. Key customers include major airlines as well as business and general aviation aircraft users. The Asia Pacific region is expected to witness the fastest growth in demand for aircraft engines through 2031 as air passenger traffic continues rising across emerging economies like China and India, driving strong orders for new commercial and military aircraft. Countries actively expanding their aviation infrastructure to support travel and freight transport include India, Indonesia, Vietnam and the Philippines.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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