Aircraft Engine Market Size - By Type, Component, Technology, Application Analysis, Share, Growth Forecast, 2025 - 2034

Aircraft Engine Market Size

The global aircraft engine market was valued at USD 81.2 billion in 2024 and is estimated to grow at a CAGR of 8.7% from 2025 to 2034. The push to modernize defense aircraft is boosting the market. As countries upgrade their military fleets, they need better engines for fighter jets and other aircraft. This trend aims to improve performance, save fuel, and meet new defense needs.
 

At the same time, many governments want to make these engines at home to rely less on foreign suppliers. This focus on building local skills is helping the market grow, especially in areas that want to strengthen their defense industries. For instance, in March 2024, the Indian Ministry of Defense announced a contract between Hindustan Aeronautics Limited (HAL) and a Russian Original Equipment Manufacturer (OEM) to produce RD-33 aero engines. The deal, valued at approximately USD 610 million, aims to enhance the operational capabilities of the Indian Air Force's (IAF) MiG-29 fleet.
 

Aircraft engine manufacturers are tailoring solutions to meet the unique needs of airlines and military customers. They offer engines optimized for specific conditions, such as high-altitude or extreme weather operations. This customization extends to flexible maintenance contracts and service options. The industry is also focusing on lifecycle management services, including maintenance, repair, and overhaul (MRO). As modern engines become more complex, service intervals lengthen, creating a robust aftermarket. Aircraft operators seek efficient maintenance programs to extend engine life, driving demand for spare parts and repair services. These trends reflect industry’s shift towards more personalized, long-term solutions in aircraft engine manufacturing and maintenance.
 

Aircraft Engine Market Trends

The market is shifting towards better fuel efficiency and longer engine life. This change comes from airlines wanting to cut costs and be more environmentally friendly. Engine makers are now focusing on new technologies that use less fuel and need fewer repairs. These improvements help airlines save money and meet stricter environmental rules. At the same time, more people are using private jets and regional flights, which creates a demand for engines that work well on these smaller planes. As a result, we're seeing new ideas in both turbofan and turboprop engine designs to meet these needs.
 

For instance, in May 2023, Pratt & Whitney Canada, a division of Pratt & Whitney, unveiled its new PW545D engine. This engine will power the Cessna Citation Ascend, the latest addition to Textron Aviation's business jet lineup. Designed and optimized specifically for Textron Aviation, the PW545D offers several improvements. These include better fuel efficiency, higher thrust output, and longer intervals between overhauls, enhancing the overall performance and maintenance cycle of the aircraft.
 

The aircraft engine market faces several big hurdles. Making engines is expensive, and needs lots of money for research, materials, and testing. Following worldwide aviation rules, especially for emissions, noise, and safety, is tough and costly for engine makers. These rules, while important, make it pricier and slower to create new engines. Economic problems like recessions or global conflicts can also lower the demand for new aircraft engines, especially in commercial flights. Despite these challenges, the market has great opportunities. The push for greener flying is driving new ideas in fuel-efficient engines and technologies like electric and hybrid engines. Government support for reducing carbon emissions is helping this trend.
 

Growing air travel in developing markets, particularly in Asia-Pacific and Africa, offers engine makers chances to expand. There's also an opportunity to upgrade existing engines to save fuel and provide maintenance services. As air travel recovers after the pandemic, the need for new, advanced engines is expected to grow, matching airlines' goals to modernize their fleets and become more environmentally friendly.
 

Aircraft Engine Market Analysis

Based on type, the market is segmented into turboprop, turbofan, turboshaft, and piston engine. The turboshaft segment is expected to grow at a CAGR of over 8.5% by 2034.
 

• The turboshaft segment of the market is growing rapidly. These engines are widely used in helicopters and unmanned aerial vehicles (UAVs) for both commercial and military applications. Their popularity stems from their high power-to-weight ratio and reliability in various environments, making them ideal for missions requiring precision and agility.
   
• Improved fuel efficiency and hybrid-electric technologies are driving segment growth, especially in sustainability-focused markets. Defense fleet modernization and increased use of rotary-wing aircraft in emerging economies further boost demand. The need for engines that can operate in extreme conditions is pushing manufacturers to develop advanced turboshaft engines for specialized missions.

Based on technology, the aircraft engine market is segmented into conventional and hybrid. The conventional segment held a market share of over 57% in 2024 and is expected to grow at a lucrative pace.
 

• Airlines are driving demand for conventional engines as they update their fleets. They're replacing older planes with newer, more fuel-efficient models. These new engines burn less fuel and produce fewer emissions, helping airlines meet environmental rules while saving money. The latest engines offer better specific fuel consumption (SFC) and lower emissions, benefiting both the environment and the airline's finances. As a result, the commercial aviation sector is seeing increased demand for these advanced conventional engines.
   
• Conventional engines remain a crucial part of the aviation market, thanks to ongoing improvements in fuel efficiency and emissions control. These advancements help meet stricter environmental rules while keeping costs down. As air travel demand grows, especially in developing countries, the well-established supply chains for conventional engines support their continued use. While hybrid technologies are on the horizon, traditional engines still dominate due to their proven performance and lower upfront costs. This balance of efficiency, compliance, and affordability keeps conventional engines at the forefront of the aviation industry.

North America dominated the aircraft engine market and is expected to reach a value of over USD 80.2 billion by 2034. Military modernization efforts, especially the upgrading of fleets with advanced fighter jets and unmanned systems, are driving up demand for high-performance turboshaft and turbofan engines. The U.S. Department of Defense's contracts for next-generation propulsion systems are also boosting market growth. These developments are reshaping the military aircraft engine landscape, pushing manufacturers to innovate and meet the evolving needs of modern warfare.
 

German manufacturers and research institutions are working closely with European aviation programs to develop cutting-edge engines. Initiatives like Clean Sky and Flightpath 2050 are spearheading efforts to improve fuel efficiency and reduce noise in aircraft engines. These collaborative projects aim to create more environmentally friendly and quieter aircraft for the future.
 

China's thriving commercial aviation industry, fueled by rising domestic air travel and increased disposable incomes, is driving strong demand for fuel-efficient turbofan engines. Simultaneously, the country is actively working to reduce its reliance on imported engines by developing its own technologies, aiming to boost its domestic aviation capabilities.
 

Japan is focusing on creating lighter, more fuel-efficient engines through partnerships. Ongoing research into composite materials and hybrid propulsion systems is boosting engine performance while meeting environmental standards. The country's need for efficient, smaller aircraft is driving growth in both turbofan and turboprop engine markets.
 

South Korea is focusing on fuel-efficient and sustainable engines as air travel grows both domestically and internationally. To meet rising passenger demand, airlines are updating their fleets with modern, fuel-efficient turbofan engines. This modernization effort aims to improve both operational efficiency and environmental performance in the country's aviation sector.
 

Aircraft Engine Market Share

The market is a fiercely competitive arena where industry giants like Rolls-Royce, Pratt & Whitney (RTX), MTU Aero Engines, and IHI are locked in a constant battle for supremacy. These companies are pushing the boundaries of innovation, forging strategic partnerships, and investing heavily in new technologies to stay ahead. The competition is particularly intense in developing fuel-efficient and eco-friendly engines, as manufacturers respond to stricter regulations and growing demand for greener aviation.
 

Beyond sustainability, these firms are also vying to outdo each other in areas such as advanced materials, engine performance, and aftermarket services. To maintain their edge, they're increasingly turning to strategic collaborations and pouring resources into next-generation technologies like hybrid-electric propulsion systems, which are set to shape the future of aviation.
 

Aircraft Engine Market Companies

Major players operating in the aircraft engine industry are:

• CFM International
• Engine Alliance
• Enjet Aero
• General Electric
• IHI
• ITP Aero
• Mitsubishi Heavy Industries Aero Engines
• MTU Aero Engines
• Pratt & Whitney (RTX)
• Rolls-Royce
• Safran
• Textron
   

Aircraft Engine Industry News

• In May 2024, Hanwha launched Hanwha Aviation, a new platform for leasing and trading aircraft and engines. The platform offers comprehensive solutions for both commercial and military aircraft, as well as engine assets, streamlining the process of leasing and trading in the aviation sector.
   
• In October 2024, Safran Aircraft Engines (Paris, France) unveiled an investment plan exceeding USD 1.1 billion for the development of its global maintenance, repair, and overhaul (MRO) network. This initiative aims to support the expanding fleet of composite-intensive LEAP engines worldwide.
   

This aircraft engine market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) & volume (units) from 2021 to 2034, for the following segments:

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Market, By Type

• Turboprop
• Turbofan
• Turboshaft
• Piston Engine

Market, By Component

• Turbine
• Compressor
• Gearbox
• Exhaust System
• Fuel System
• Others

Market, By Technology

• Conventional
• Hybrid

Market, By Application

• Commercial Aircrafts
  • Narrow-body
  • Wide-body
  • Regional Jets
  • Turboprop/Helicopters
• Military Aircrafts
  • Fighter Aircraft
  • Transport Aircraft
  • Special Mission Aircraft
  • Military Helicopters
  • Unmanned Aireal Vehicle

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa