Aircraft Engine Market Size to Hit USD 169.7 Billion by 2033: Key Trends & Forecast

Market Size & Growth

Market Size (2024): USD 101.2 Billion

Projected Market Size (2033): USD 169.7 Billion

Compound Annual Growth Rate (CAGR) (2025-2033): 5.87%

Key Market Drivers:

• Surging Air Travel Demand
• Push for Fuel-Efficient Engines
• Defense Modernization Investments

Emerging Trends

• Rise of Sustainable Propulsion Systems
• Adoption of Digital Twin Technology
• Growth in Additive Manufacturing

Segmentation Highlights

• Breakup By Component
• Breakup By Engine Type
• Breakup By Platform
• Breakup By End User
• Breakup By Region

Market Overview:

According to IMARC Group's latest research publication, The global aircraft engine market size reached USD 101.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 169.7 Billion by 2033, exhibiting a growth rate (CAGR) of 5.87% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:

• Market Dynamics
• Market Trends And Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Aircraft Engine Market

• Surging Air Travel Demand:

The aircraft engine industry is booming due to a massive increase in global air travel. More people are flying for business, leisure, and tourism, especially in emerging markets like Asia-Pacific and the Middle East. For instance, the International Air Transport Association reported a 55.5% rise in global air traffic, measured in revenue passenger kilometers, in February 2023 compared to the previous year. This surge pushes airlines to expand fleets, directly boosting demand for new engines. Low-cost carriers, like IndiGo in India, are ordering hundreds of aircraft, further fueling the need for efficient engines. Government initiatives, such as India’s increased defense spending on military aircraft, also drive demand for high-performance engines, creating a ripple effect across commercial and military aviation sectors.

• Push for Fuel-Efficient Engines:

Airlines are under pressure to cut costs and meet strict environmental regulations, driving demand for fuel-efficient aircraft engines. Manufacturers are innovating to create engines that burn less fuel while delivering more thrust. For example, CFM International’s LEAP-1A engine, used in Airbus A320neo aircraft, reduces fuel consumption by 15% compared to older models. This efficiency is a game-changer for airlines facing high fuel prices. Government schemes, like the U.S. investing in next-generation military aircraft with advanced engines, also emphasize fuel savings. The focus on efficiency isn’t just about costs—it’s about meeting global emission standards, which are getting tougher. This trend is spurring massive R&D investments by companies like GE Aviation and Pratt & Whitney to stay competitive.

• Defense Modernization Investments:

Governments worldwide are pouring money into modernizing their air forces, significantly boosting the aircraft engine market. The U.S. government, for instance, is heavily funding advanced fighter jets and helicopters, requiring specialized high-performance engines. In March 2024, India’s Ministry of Defense signed a contract with Hindustan Aeronautics Limited to produce RD-33 engines for combat aircraft, aiming for self-reliance. This focus on domestic production and advanced technology is mirrored in other nations, like China, increasing regional demand. Military engines need to handle extreme conditions, driving innovation that often trickles down to commercial applications. With defense budgets rising globally, engine manufacturers like Rolls-Royce and Safran are securing lucrative contracts, ensuring steady growth in this high-value segment.

Key Trends in the Aircraft Engine Market

• Rise of Sustainable Propulsion Systems:

Sustainability is reshaping the aircraft engine market as the aviation industry aims to slash carbon emissions. Hybrid-electric and fully electric engines are gaining traction, especially for short-haul flights and urban air mobility. Rolls-Royce and Safran are investing heavily in hybrid-electric propulsion, with prototypes showing up to 50% lower emissions. Sustainable aviation fuels (SAFs) are also trending, with engines being adapted for compatibility. For instance, GE Aviation’s engines now support SAF blends, reducing CO2 output significantly. Governments are backing this shift—European regulations push for greener aviation, while U.S. initiatives fund SAF research. These advancements signal a future where eco-friendly propulsion isn’t just an option but a standard, driven by environmental pressures and consumer demand.

• Adoption of Digital Twin Technology:

Digital twin technology is revolutionizing aircraft engine maintenance and performance. By creating virtual replicas of engines, manufacturers like GE Aerospace and Pratt & Whitney can monitor real-time performance, predict maintenance needs, and cut downtime. For example, Safran’s digital twin platform for LEAP engines has reduced maintenance costs by 20% for some airlines. This tech uses AI and IoT to analyze data from sensors, improving engine reliability and safety. In February 2024, GE Aerospace invested $11 million in a Singapore “smart factory” to enhance digital twin capabilities for engine repairs. As airlines prioritize cost efficiency, digital twins are becoming a must-have, transforming how engines are designed, monitored, and serviced in both commercial and military applications.

• Growth in Additive Manufacturing:

Additive manufacturing, or 3D printing, is changing how aircraft engines are built, making them lighter and more efficient. Companies like Pratt & Whitney use 3D printing to create complex components, like fuel nozzles, reducing weight by up to 15% compared to traditional methods. This leads to better fuel economy and lower emissions. In May 2024, Pratt & Whitney opened a new facility in Morocco dedicated to 3D-printed engine parts, boosting production speed and customization. The technology also cuts costs by streamlining prototyping and reducing material waste. As demand for compact, high-performance engines grows, especially for drones and helicopters, additive manufacturing is becoming a cornerstone of innovation, giving manufacturers a competitive edge in a fast-evolving market.

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Leading Companies Operating in the Global Aircraft Engine Industry:

• Barnes Group Inc.
• General Electric Company
• Honeywell International Inc.
• IHI Corporation
• Mitsubishi Heavy Industries Ltd.
• MTU Aero Engines AG
• Raytheon Technologies Corporation
• Rolls-Royce Holdings plc
• Safran S.A.
• Textron Inc.

Aircraft Engine Market Report Segmentation:

Breakup By Component:

• Fan
• Compressor
• Combustor
• Turbine
• Mixer
• Nozzle
• Others

Turbine exhibits a clear dominance in the market. It is integral to aircraft engine performance, providing the necessary thrust and efficiency for various aircraft types.

Breakup By Engine Type:

• Piston and Turboprop Engine
• Turbojet Engine
• Turboshaft Engine
• Turbofan Engine

Turbofan engine represents the largest segment owing to its high efficiency, reduced noise levels, and lower emissions, making it the preferred choice for commercial airliners and business jets.

Breakup By Platform:

• Fixed Wing
• Rotary Wing

Fixed wing holds the biggest market share as it is the most common type of aircraft in operation, used extensively for passenger and cargo transport.

Breakup By End User:

• Commercial Aviation
• Military Aviation

Commercial aviation accounts for the majority of the market share because of the increase in air travel activities among the masses.

• Breakup By Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America dominates the market attributed to its robust aerospace manufacturing base, home to major players, along with a strong focus on research that drives innovation and technological advancements in engine design and production.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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