Aircraft Engine Market By Engine Type (Turbofan, Turboprop, Turbojet, Turboshaft, Piston Engine), By Platform (Commercial Aircraft, Military Aircraft, General Aviation, Unmanned Aerial Vehicles), By Component (Compressor, Turbine, Combustor, Fan, Gearbox, Others), By End-user (OEM, Aftermarket, Others), Global Market Size, Segmental analysis, Regional Overview, Company shares analysis, Leading Company Profiles and Market Forecast, 2025 – 2035

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What trends will shape the Aircraft Engine Market in the coming years?

The Aircraft Engine Market accounted for USD 62.35 Billion in 2024 and USD 68.55 Billion in 2025 is expected to reach USD 176.8 Billion by 2035, growing at a CAGR of around 9.94% between 2025 and 2035. The Aircraft Engine Market is concerned with the crafting, fabrication, and servicing of engines used to propel commercial, military, and individual aircraft. The market is expected to grow steadily because of the rising level of air travel around the globe, the high budget allocated to defense, and the necessity of fuel-efficient and low-emission engines.

These major trends are the hybrid-electric propulsion, the lightweight composite materials, and sustainable aviation fuels (SAFs). Moreover, its expansion will be achieved by expanding investment in urban air mobility (UAM) and next-gen supersonic aircraft. Environmentally friendly, less noisy, and smart engines are the key to the future because the aerospace industry will follow the global decarbonization strategy. 

What do industry experts say about the Aircraft Engine Market trends?

"The geared turbofan (GTF) represents a generational leap in propulsion efficiency. By decoupling the fan and turbine speeds, we’ve unlocked unprecedented fuel savings and noise reduction. This is the future of narrow-body aviation."

• Dr. Alan Epstein, Former VP of Technology & Environment, MIT Professor

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the Aircraft Engine Market?

Will rising air passenger traffic drive commercial aircraft engine demand?

The Aircraft Engine Market is gaining a stable momentum, and the main driver in it is the recovery and the sustained growth in global air travel. With economies slowly picking up and the middle-income population growing, particularly in Asia-Pacific and Africa, commercial airlines are increasing the size of their fleets in anticipation of a surge in travel. As an example, by the start of 2025, there will be more than 13,000 commercial engines operating under Pratt & Whitney, and Rolls-Royce manages over 13,000 engines across the world, which indicates the massive installed base that serves as a motivation for maintenance and replacement packages. That is, this fleet growth is a direct translation into increasing orders of sophisticated engines, which are fuel-efficient. Further, the low-cost carriers are also aggressively expanding, which is another boost to the demand for engines. According to CFM International alone, it has produced more than 37,500 engines for a total of 570 operators; thus, one of its engine families is one of the most widespread ones around the world. OEMs are hitting back with next next-generation propulsion system that can have lower fuel burns and lower noise.

The more aircraft are used, the greater there is need to replace engines, as well as the necessity of MROs, which has been exemplified by the HTF7000 engine line produced by Pratt & Whitney, reaching a total of more than 10 million flight hours and now clocks an average of 2,000 hours of utilization per day. The Aircraft Engine Market is therefore set to gain a lot with the gradual increase in the number of both domestic and international travellers. This is affirmed by the growing trend in investments by airports and the ease of travel restrictions implemented since COVID. Also, twin-aisle planes are in demand because of long-haul connections to unserved areas. When combined with these factors, the TAM (Total Addressable Market) of engine manufacturers and service providers is growing.

Can fuel-efficient propulsion systems boost engine upgrades and replacements?

Fuel efficiency in the Aircraft Engine Market has been one of the key determinants of the investment plans of the players, and the airline companies are mainly focusing on operational cost reduction and achieving environment-related objectives. The new generation engines, such as GTF by Pratt and Whitty and LEAP series by CFM, provide fuel efficiency and emission reduction in double digits. Such advantages are encouraging airline companies to retire old models to embrace solutions that are sustainable. Greener propulsion is also linked to the prevalent ESG (Environmental, Social, and Governance) requirements. As a result, major automakers and first-level suppliers are investing billions in developing propulsion innovations.

This spurs aftermarket upgrade and retrofit, which provides another source of revenue to MRO providers. The trend is also highlighted by the greater demand for engines that can be used with SAF (Sustainable Aviation Fuel) in the Aircraft Engine Market. Due to the persistence of oil price volatility, cost-conscious carriers are focusing on the modernization of their engines. The objective of propulsion efficiency will probably hasten the engine cycles in the coming decade. Such predictive health of the engine is also becoming popular due to its efficiency and lifecycle cost advantage. Operators no longer fixate on fuel burns per trip in consideration but on the total cost of ownership (TCO).

Are high R&D costs limiting innovation in advanced engine technologies?

The high cost of developing next-generation propulsion systems is one of the issues that is so urgent in the Aircraft Engine Market. Engine R&D is expensive, and its programs can even reach billions of dollars and take many years to certify. The cost of doing business is particularly high among the smaller manufacturers and start-ups attempting to gain an entry into the market. Even the big OEMs are at risk as the technological breakthroughs fail to give the expected outcomes or fail in regulatory performances.

Another challenge that the Aircraft Engine Market faces is the elaborate supply chain of high-performance materials such as titanium alloys and ceramic matrix composites, which adds to add on the R&D costs. In addition, the recent restrictions on noise and emissions imply that even a single design iteration is associated with a vast amount of tests and simulations. Such financial and technical restraints may restrict the innovation cycles and slow down the introduction of products. R&D collaboration and joint ventures might help take off some pressure of costs, but capital intensity is also a major barrier to long-term innovation in this industry. Another challenge that compromises R&D, especially in new corners, is the widening talent gap in propulsion engineering. Also, the timing of the ROI of engine innovation is very long, which is off-putting to short-term financiers.

Can electric aircraft adoption create new engine design possibilities?

The electric aviation movement is opening up new design horizons in the Aircraft Engine Market. With the momentum of decarbonization, various startups and established OEMs in the sector are betting on full electric and hybrid-electric propulsion systems. These engines are quite different from the usual gas turbine, and they present modular, lighter, and lower maintenance solutions. City air transport networks and local electric aviation are generating a requirement for smaller, expandable propulsion systems. Innovation spillovers are currently experienced in the Aircraft Engine Market to the EV (electric vehicle) industry, namely EV batteries (chemistry) and thermal management systems.

Certification of Electric aircraft is also receiving shortcuts, such that regulatory bodies like EASA and FAA are accelerating commercial processes. The advances lead to a reduction of market entry barriers by new players and ignite the competition in propulsion design. Although it will take some time to gain large-scale adoption, electric propulsion in cargo drones, air taxis, and short-haul commuter flights can provide real-world electric propulsion applications. This is the segment with huge potential in the long run. Strategic pilot projects in Europe and North America are being jump-started by innovation grants, typically provided by the government. Joint ventures between battery tech companies and aviation OEM companies are also sprouting.

Will sustainable aviation fuels reshape future propulsion development strategies?

The important growth lever is Sustainable aviation fuels (SAFs), which provide an appropriate solution to reducing carbon without the need to replace the current fleet entirely. Engine manufacturers are going to design engines in such a way that they can run on 50 percent or even 100 percent SAF blends. Airports and airlines are both entering decarbonization, with SAF supply agreements, indicating that a shift in the ecosystem is about to happen. SAF readiness has become essential in the design of aircraft engines in the Aircraft Engine Market and is also transforming propulsion research and development priorities. The rules of conducting engine tests are changing to decouple the practice of testing engines only under fixed fuel conditions (higher octane fuel), with tests being carried out to test the performance under SAF conditions, and certification requirements are also being changed in parallel.

Furthermore, this transition offers an aftermarket that should develop as the older engines gain an opportunity to retrofit their engines to run with SAFs. SAF investments are further made economically through government subsidies and carbon credits. As the SAF manufacturing increases and prices decrease, engine manufacturers at the forefront in compatibility will enjoy an advantage. SAF shift is a technological commercial opportunity. SAF regional policies, in particular the EU, are driving OEMs to achieve earlier timelines of adaptation. Green airline companies are actively preferring a SAF-compliant model of engine design.

What are the key market segments in the Aircraft Engine industry?

Based on the Engine Type, the Aircraft Engine Market has been classified into Turbofan, Turboprop, Turbojet, Turboshaft, and Piston Engines, which are engaged in matching the unique aviation requirements. Of them, Turbofan engines are dominant on the market, which is stipulated by the fact that they are widely used in commercial flights.

Their low fuel consumption ratios, superior fuel economy up to high altitudes, low noise emissions, and high engine thrust-to-weight ratio allow them to be favored by large passenger and cargo jumbo planes. Turboprops, originally efficient for short-haul regional operations, have less market share. The niche ones are turbojets, which are used in military jets, and turboshafts used in helicopters. Piston engines are primarily applied to light planes as well as UAVs. The constant demand for fuel-efficient and quieter engines further strengthens the lead of the turbofans in this segment.

Based on the Platform, the Aircraft Engine Market has been classified into Commercial Aircraft, Military Aircraft, General Aviation, and Unmanned Aerial Vehicles (UAVs). The biggest part of them belongs to commercial aircraft and is due to the high level of air travel demand and flights increase in various airlines around the world. This is added on by standardized cycles of engine replacement and MRO requirements.

Military aircraft engines come afterwards, and their procurement and modernization continue throughout the globe. Business jets and privately owned aircraft fall under general aviation, which is a steadily increasing niche. UAVs are the smallest currently, but they are gaining popularity with increased usage in surveillance, logistical operations, and in defence. In modernizing the fleet of airlines towards greener fleets, the commercial segment would continue to dominate over the period of forecast period.

Which regions are leading the Aircraft Engine Market, and why?

North America's Aircraft Engine Market dominates, and this is due to the presence of large OEMs like General Electric, Pratt and Whitney, and Honeywell. The region is endowed with an established aviation industry, a large commercial fleet, and a steady military program expenditure. The strong infrastructural setup for its aircraft manufacturing and engine MRO services also boosts its leadership.

Moreover, the sustained investment in the next-gen military aircraft programs by the U.S. government is a good momentum. North America is likely to continue dominating in the near future with heavy use of commercial aircraft and well-established airline services.

The Asia-Pacific Aircraft Engine Market is one of the fastest-growing regions in the world, driven by a speedy increase in air traffic, economic development, and new infrastructural growth. In places such as China, India, and Southeast Asian countries, there has been a sudden spurt in the number of airline fleet orders in anticipation of the increased burden of passengers.

The procurement of military engines is also boosted by the government-funded modernization programs of the defense. Also, the local supply chain is being reinforced by regional MRO hubs and joint ventures with international OEMs. With the enhancement of air connectivity and the increasing spread of low-cost carriers, the Asia-Pacific is going to be the wheelhouse of the global market in the coming years.  

What does the competitive landscape of the Aircraft Engine Market look like?

The Aircraft Engine Market is defined by a small number of well-established players with intense competition, all adopting the policy of maximizing R&D, building global alliances, and strengthening contracts on long-term supplies to comply with the marketplace. Key participants are General Electric, Rolls-Royce, Pratt & Whitney, Safran Aircraft Engines, and Honeywell Aerospace. These companies are also concentrating on creating the next generation of fuel-efficient engines and hybrid-electric propulsion systems to accommodate the changing environmental norms. Shared technological capability and optimization of costs are being facilitated by strategic alliances, including joint ventures (CFM International, a joint venture by GE and Safran).

Players are also spending a lot of money on digital twin technology and predictive maintenance solutions in order to improve aftermarket services. The second broad strategy is expansion into the emerging markets by means of local partnerships and MRO facilities, which is common in the Asia-Pacific. Besides, firms are pursuing SAF (Sustainable Aviation Fuel) engine compatibility efforts, a move that consolidates their ESG statuses. All in all, the main pillars of creating competitiveness in this market are innovation, sustainability, and long-term maintenance contracts.

Aircraft Engine Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the Aircraft Engine industry?

• In July 2025, GE Aerospace announced that SkyWest, Inc. finalized a deal to purchase CF34-8E engines and spares for its fleet of 60 Embraer 175 regional jets. This reflects the continued strength of the CF34 platform in regional aviation and reinforces GE's deep partnership with SkyWest.
• In May, 2025, Rolls-Royce announced the delivery of its 9,000th jet engine from its Dahlewitz facility in Germany, a major production milestone highlighting strong demand and execution across its civil and defense portfolio.

Report Coverage:

By Engine Type

• Turbofan
• Turboprop
• Turbojet
• Turboshaft
• Piston Engine

By Platform

• Commercial Aircraft
• Military Aircraft
• General Aviation
• Unmanned Aerial Vehicles

By Component

• Compressor
• Turbine
• Combustor
• Fan
• Gearbox
• Others

By End-user

• OEM
• Aftermarket
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• General Electric
• Rolls-Royce Holdings plc
• Pratt & Whitney
• Safran Aircraft Engines
• Honeywell Aerospace
• MTU Aero Engines
• CFM International
• IAE International Aero Engines AG
• Engine Alliance
• Aerojet Rocketdyne
• Avio Aero
• United Engine Corporation
• Kawasaki Heavy Industries
• Honda Aircraft Company
• Williams International

Frequently Asked Questions (FAQs)