Aircraft Engine Market Size

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.

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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.