Aircraft Engine Market

Aircraft Engine Market Overview

The global Aircraft Engine Market size was valued at USD 67.94 billion in 2024 and is predicted to reach USD 118.89 billion by 2030 with a CAGR of 9.8% from 2025-2030.

Aircraft engine market or the aviation engine market is driven by numerous drivers such as a growing demand for air freight, expansion of military sector along with growing world air passenger traffic. However, high development cost incurred on aviation engines slows down the growth of the market. On the other hand, usage of hydrogen powered in airplanes offers opportunity to the market growth. Besides, leading companies such as Mitsubishi Heavy Industries, Ltd., Honeywell International Inc., and others are adopting product launches, partnership and other strategies to maintain their dominance in the market. 

Rising Demand for Air Cargo Drives Aircraft Engine Market Growth 

Increasing air cargo demand drives aircraft engine market trends with the increasing need for efficient fuel saving engines in planes that contains a higher payload capacity. Global air cargo demand, increased by 13.6% in July 2024 from last year as per the report of the International Air Transport Association. This growing demand for air cargo highlights the importance of efficient engines that can handle more volumes of freight effectively. 

Surge in Defense Sector Fuels the Growth of the Market

Growth in the defense sector accelerates the demand for airplane engines as countries around the world invest in new military planes to enhance national security and defense systems. The recent report of the World Bank Group states that total worldwide military spending in 2023 totaled USD 2.21 trillion compared to USD 2.07 trillion in 2021, increasing by 6.8%. This expansion of military expenditure also stimulates extra production of high-technology airplane engines, and this also stimulates industry expansion overall as well as innovation. 

Rising Global Air Passenger Traffic Fuels, the Aircraft Engine Market Demand 

The growth in world air passenger traffic drives the demand for jet engines as a result of the necessity for efficient, dependable and more capacity engines to support the growing number of flights. The report of the Air Passenger Forecasts states that world air passenger increased by 10.4% in 2024 compared to 2023. This growth in world air passenger raises the demand for high performance advanced engines to sustain the growing fleet of aircraft that further drives the market growth. 

High Development Costs Restrains the Market Growth

The high cost of development of commercial aircraft engines acts as a strong constraint, as the large amount of investment is needed for research, testing and manufacturing restricts new entrants and hinders innovation within the market.

Adoption of Hydrogen-Powered Engines Presents Lucrative Opportunity for the Market Expansion

The use of hydrogen powered engines in aircraft presents a major future prospect for the industry. With low emissions of carbon and high performance of these engines probably offers tremendous growth opportunities in the next couple of years. 

Market Segmentations and Scope of the Study

The aircraft engine market is segmented on the basis of component, engine type, platform, technology, sales channel, end-users and region. On the basis of component, the market is divided into compressor, turbine, gear box, combustion chamber, fuel system, and others. On the basis of engine type, the market is distributed into turboprop engine, turboshaft engine, turbofan engine, and piston engine. On the basis of platform, the market is divided into fixed-wing aircraft, rotary-wing aircraft, and unmanned aerial vehicles (UAVs). On the basis of technology, the aircraft engine market report is segmented into conventional and hybrid. On the basis of sales channel, the market is divided into OEM and aftermarket. On the basis of end-users, the market is classified into commercial, military, and general aviation. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW). 

Geographical Analysis

North America dominates the aircraft engine market share and is expected to hold the largest share during the forecast period. This is due to the growth of the military industry that accelerates the demand for advanced aviation engine to enhance performance, efficiency and accommodate contemporary military capabilities in the region. As per the report released by the World Bank Group, the U.S. defense spending increased from USD 734.34 billion in 2019 to USD 876.94 billion in 2023, registering a growth of 19.4% in a span of 3 years. This increase in defense expenditure increases the demand for advanced aviation engines among the military forces to modernize and increase their fleets that in turn drives the market growth. 

In addition, increase in the volume of air passenger traffic in the region drives the market growth as airlines expand their fleets to accommodate rising travel needs. According to the recent report issued by the ACI World Airport Traffic states that the North America region is forecasted to reached 2.2 billion passengers in 2024. The increase in passenger traffic propels airlines to improve their fleets that leads to the ongoing growth of the market in the region. 

On the other hand, Asia-Pacific region is anticipated to exhibit a consistent growth in the aircraft engine sector throughout the forecast period. This is achieved through expansion in air cargo traffic, that drives airlines to upgrade their aviation engines to enhance the cargo operations and meet the increasing demands of the region. The recent report of the International Air Transport Association states that airlines in the region recorded a 17.6% increase in air cargo demand during July 2024. The rising demand for air cargo traffic propels airlines companies to adopt efficient aviation engines to satisfy the increasing volume of goods transported.

In addition, the presence of key market players such as Hanwha Group, Triumph Group and Honeywell Aerospace pushes the expansion of the aircraft engine sector with the introduction of innovative solutions and technologies in order to raise the level of performance and efficiency within the industry. For instance, Triumph Group collaborated with Honeywell Aerospace in terms of co-operation in Honeywell engine platforms for aircraft. Such partnerships among key players promote market growth by providing a stable supply of quality components, driving innovation and enhancing operating efficiency. 

Competitive Landscape

The aircraft engine industry comprises of various market players such as Mitsubishi Heavy Industries, Ltd., Honeywell International Inc., General Electric Company, Rolls-Royce Holdings plc, Safran S.A., Textron Inc., Hanwha Group, ZeroAvia, Inc., MTU Aero Engines AG, Pratt & Whitney Inc., CFM International, Rotax GmbH & Co KG, Continental Aerospace Technologies, Lycoming Engines and others. These market players continue to adopt various market development strategies including product launches to maintain their dominance in the market.

For example, Hanwha launched Hanwha Aviation, a new platform to lease and trade aircraft and engines, in May 2024. The initiative is an example of long-term planning in its effort to connect operations vertically for the backing of next-generation aerospace assets. 

Also, in April 2024, ZeroAvia introduced a new offering focused on electric and hydrogen aviation components to support innovators in clean aviation. This move aligns with its strategy to boost R&D investment and promote vertical integration in the growing hydrogen-electric powertrain market. 

Key Benefits

• The report provides quantitative analysis and estimations of the aircraft engine industry from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the aircraft engine industry including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the aircraft engine industry is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Aircraft Engine Market Key Segments

By Component

• Compressor

• Turbine

• Gear Box

• Combustion Chamber

• Fuel System

• Others

By Engine Type

• Turboprop Engine

• Turboshaft Engine

• Turbofan Engine

• Piston Engine 

• Electric Engine

By Platform

• Fixed-Wing Aircraft

• Rotary-Wing Aircraft

• Unmanned Aerial Vehicles (UAVs)

By Technology

• Conventional

• Hybrid

By Sales Channel

• OEM

• Aftermarket

By End-Users

• Commercial

• Military

• General Aviation 

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Mitsubishi Heavy Industries, Ltd

• Honeywell International Inc.

• General Electric Company

• Rolls-Royce Holdings plc

• Safran S.A.

• Textron Inc.

• Hanwha Group

• Zeroavia, Inc.

• MTU Aero Engines AG

• Pratt & Whitney Inc.

• CFM International

• MTU Aero Engines AG

• Rotax GmbH & Co KG

• Continental Aerospace Technologies

• Lycoming Engines

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 67.94 Billion
Revenue Forecast in 2030	USD 118.89 Billion
Growth Rate	CAGR of 9.8% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	The air cargo demand drives the growth of the market.  The expansion of the military sector fuels the market growth. The growth of the market is driven by rising global air passenger traffic.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.