The aircraft engine market is one of the rapidly growing markets and is expected to witness substantial growth in the coming years on account of increasing global air passenger traffic. Aircraft engines are one of the core components of an aircraft propulsion system and play a vital role in aircraft operations.
The Aircraft Engine is responsible for generating thrust required to propel aircraft. Over the years, aircraft engine manufacturers are focusing on developing fuel-efficient and low emission aircraft engines to reduce operational costs and minimize environmental impact.
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, Safran, United Technologies Corporation. The market is dominated by a few major players who accounts for more than 50% of the overall market share.
Asia Pacific region offers huge growth opportunities for aircraft engine manufacturers owing to rising aircraft demand from countries like China and India. Also, developing countries are increasingly investing in domestic aviation infrastructure which will propel the demand for new aircrafts.
Development of new fuel-efficient engine technologies such as geared turbofan engines helps in reducing fuel burn by 15-20% along with lower noise levels. Companies are extensively carrying out research and development activities to enhance engine durability and reduce maintenance costs.
Market Drivers
Rising global aircraft fleet: The demand for aircraft engines is directly dependent on the growth in commercial aircraft fleet size across the world. According to Airbus, the global commercial aircraft fleet is expected to grow by 4.4% annually over the next 20 years. This burgeoning aircraft fleet will propel the demand for new aircraft engines during the forecast period.
Replacement of aging aircraft fleet: Many aircraft fleets operating presently are over 20-30 years old and require to be replaced with new aircraft equipped with fuel-efficient engines. This aircraft replacement cycle provides opportunities for aircraft engine manufacturers to supply new engines.
Current Challenges in Aircraft Engine Market
The aircraft engine market is facing various challenges currently. With rising fuel costs and increasing focus on reducing carbon footprint, engine manufacturers are facing pressure to develop more fuel efficient engines while meeting stringent emission norms. The development of new generation engines involving advanced materials and technologies requires huge investments. Supply chain disruptions due to Covid pandemic impacted the production and delivery schedules of aircraft engine manufacturers in the recent past. Recruiting and retaining skilled talent is another challenge for companies in this niche industry.
SWOT Analysis
Strength: Aircraft engine manufacturers have strong R&D capabilities allow them to develop fuel efficient and lightweight engines.
Weakness: Huge capital requirements and long product development cycles increase financial risks for companies.
Opportunity: Demand for new aircraft to replace aging fleets and focus on sustainable aviation fuels and hybrid-electric propulsion provides growth opportunities.
Threats: Intense competition among major players and threat of new entrants with disruptive technologies.
The US accounts for over 30% of the global aircraft engine market value currently led by major OEMs like GE Aviation and Pratt & Whitney. Asia Pacific region has emerged as the fastest growing market for aircraft engines driven by increasing passenger traffic, replacement of older fleets and expansion of low-cost carriers in countries like China and India. Western Europe is another major geographic concentration area accounting for around 25% of the global market value with presence of engine manufacturers like Rolls-Royce, Safran.
The Asia Pacific region is projected to witness highest CAGR during the forecast period till 2024 led by demand from China and India. Rising purchasing power, passenger traffic and procurement of new aircraft by budget carriers to meet capacity addition are driving the aircraft engine market in Asia Pacific.
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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)