Aircraft Engine Market will grow at highest pace owing to increased focus on fuel efficiency Aircraft engines are propulsion systems used in aircrafts for sustained air travel and transportation of passengers and cargo. Aircraft engines are typically either piston engines or gas turbine jet engines. Jet engines are more commonly used to power large aircraft whereas piston engines are used in small propeller-driven aircraft. Gas turbine engines are highly efficient and capable of producing high thrust power required for aircraft operations. With growing passenger air traffic worldwide, demand for more fuel efficient aircraft engines is increasing. Airlines are under constant pressure to reduce operational costs and increase profitability. This has increased focus on developing aircraft engines with reduced fuel consumption and emissions.
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 GE Aviation, Rolls-Royce, Pratt & Whitney, Safran Aircraft Engines, Honeywell Aerospace. GE Aviation is a leader in aircraft engine manufacturing as it provides engines for various aircraft programs including commercial and military aircraft. Rolls-Royce is a leading engine supplier for both commercial and defense aircraft and has partnered with several OEMs to provide engines.
The air passenger traffic has grown significantly over the past few decades and is expected to further grow in the coming years. Rising incomes and increased preference for air travel are fueling demand for new commercial aircrafts and their engines. According to Airbus, the global fleet is projected to double in size by 2030. This growing fleet size will drive the demand for new and more efficient aircraft engines during the forecast period.
Technological advancements are focused on developing fuel efficient engines with reduced carbon emissions. Development of geared turbofan engines and open rotor propulsion technology are expanding capabilities of aircraft engines. Manufacturers are developing hybrid-electric and electric propulsion systems for narrow-body aircrafts. Integration of 3D printing technology and advanced materials like composites & coatings are also fueling aircraft engine advancements.
Market Trends
Growing Adoption of Geared Turbofan Engines: Geared turbofan engines deliver 10-15% better fuel efficiency compared to conventional turbofan engines. Major engine manufacturers have developed new aircraft engine programs based on geared turbofan technology.
Increased Focus on Sustainability: Engine manufacturers are developing tools and strategies to reduce environmental impact of aircraft operations. Use of sustainable aviation fuels and hybrid-electric propulsion concepts are gaining traction.
Market Opportunities
Development of Hybrid-Electric Propulsion Systems: Manufacturers are working on technologies to develop hybrid-electric propulsion systems capable of reducing fuel burn by 10-15% for short-haul aircraft. This presents significant opportunity over the forecast period.
Rise of Urban Air Mobility: Urban air mobility concepts involving small electric VTOL aircraft are emerging. This presents opportunity for developing electric or hybrid-electric propulsion systems for urban air vehicles.
Impact of COVID-19 on Aircraft Engine Market Growth
The COVID-19 pandemic has significantly impacted the aircraft engine market. During the pre-COVID period, the market was growing steadily at around 7.9% CAGR owing to increasing air passenger traffic as well as freighter aircraft deliveries. However, the imposition of lockdowns and travel restrictions globally led to a steep decline in commercial air travel. This adversely affected aircraft engine orders and deliveries in 2020. Original equipment manufacturers like GE Aviation, Rolls-Royce, and Pratt & Whitney saw their revenues drop by over 35% compared to the previous year.
With vaccination drives underway in 2021, the market is witnessing signs of recovery albeit at a gradual pace. While international travel is yet to pick up, domestic air passenger traffic is increasing steadily month-on-month. Major airlines are also retiring older and inefficient aircraft models to replace them with newfuel-efficient ones incorporating latest engine technologies. This is supporting demand recovery for new aircraft engines. Nonetheless, full recovery to pre-pandemic levels is expected only by 2023-24 as passenger confidence needs to significantly improve. Original equipment manufacturers are focusing on services andaftermarket capabilities to offset new engine order slowdown.
Geographical Regions with Highest Value for Aircraft Engine Market
In terms of value, North America held the largest share of over 35% in the global aircraft engine market owing to strong presence of OEMs like GE Aviation and Pratt & Whitney in the region. Additionally, majority of large commercial aircraft like Boeing 737s and 777s are operated in this region, driving the demand for engine spares and services. Western Europe is another major market driven by Airbus' large manufacturing base and MRO activities. Together, North America and Western Europe account for nearly 55% of the global aircraft engine market value. Asia Pacific is witnessing fastest growth led by countries like China and India where air traffic is expanding rapidly. Many international airlines are also basing their low-cost units in Southeast Asian countries like Indonesia. This is benefiting the aftermarket services sector.
Geographical Region Witnessing Fastest Growth for Aircraft Engine Market
Among regions, Asia Pacific is expected to witness fastest growth in aircraft engine market during the forecast period from 2024-2028. Countries like China, India and Indonesia offer strongest potential for growth. China's widebody fleet is projected to triple over the next 20 years with Chinese airlines operating over 2,000 single-aisle and widebody aircraft by 2038. Similarly, India's fleet is projected to grow at 6-7% annually to over 1,000 aircraft by 2027. This rapid fleet expansion is driving the demand for new engine systems as well as spares andservices. Additionally, many global aircraft and engine OEMs are establishing local manufacturing and MRO facilities in Asia to capitalize on the opportunities. This will further aid Asia Pacific's rise as the fastest growing region for the aircraft engine market.
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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. (https://www.linkedin.com/in/ravina-pandya-1a3984191)