The aircraft engine market comprises of engines that propel aircrafts including commercial, military, general aviation aircrafts. Aircraft engines play an important role in providing thrust to aircrafts during take-off, climb, and cruise phases of flights. Key components of aircraft engines include turbine, compressor, combustion chamber, and fan. Aircraft engines offer advantages like high fuel efficiency, increased reliability, reduced noise, and lower emissions. With growing passenger and freight traffic globally, there is increasing demand for new aircrafts, which drives the aircraft engine market.
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 General Electric Company (GE Aviation), Rolls-Royce Holding PLC, Pratt & Whitney, Honeywell International Inc., Safran Aircraft Engines. GE Aviation and CFM International, a joint venture between GE and Safran Aircraft Engines, collectively dominate the market.
Secondly, growing air passenger traffic and replacement of aging aircraft fleets are the major factors fueling demand for new aircraft engines. Low-cost carriers are also driving demand for new regional aircraft.
Technological advancements in the Aircraft Engine Market such as hybrid electric engines, optimized turbofan engines with high bypass ratios, and 3D printing of engine parts are allowing manufacturers to build more fuel-efficient and lightweight aircraft engines.
Market Trends
One key trend is the development of hybrid electric aircraft engines to boost fuel efficiency. Companies are working on developing more electric and all-electric aircraft propulsion systems with technologies like electric fans and distributed propulsion. Secondly, there is an increasing focus on digitalization and integration of advanced technologies like AI, data analytics, IoT sensors to enable predictive maintenance and condition-based monitoring of aircraft engines.
Market Opportunities
One major opportunity lies in the growing demand for new aircraft from developing countries in Asia Pacific and Middle East regions. This will drive the requirement for additional aircraft engines over the next decade. Secondly, development of sustainable aviation fuels provides an opportunity to reduce aviation's carbon footprint and dependence on conventional jet fuel.
Impact of COVID-19 on Aircraft Engine Market Growth
The COVID-19 pandemic severely impacted the aircraft engine market growth globally. The travel bans and lockdowns enforced across countries resulted in halting of air traffic, which led to grounding of commercial aircraft fleets. This adversely affected the demand for aircraft engines in 2020. The Original Equipment Manufacturers (OEMs) witnessed significant drop in new aircraft orders during this period. This had ripple effects on engine makers as well as impacted their production volumes and supply chains.
However, with mass vaccination drives and relaxation in travel norms in 2021, the commercial aviation sector started recovering gradually. This provided stimulus for aircraft engine market to rebound from losses incurred during peak pandemic time. The engine makers accelerated their production rates to fulfill pending orders from airlines. They also resumed new aircraft delivery and installation of engines. Various initiatives were undertaken to streamline manufacturing and ensure supply security. Despite challenges, the long term outlook remains positive backed by anticipated increase in air passenger traffic over the coming decade.
Geographies with Highest Aircraft Engine Market Value
North America holds the largest share of global aircraft engine market in terms of value, led by strong presence of major OEMs and tier players in the region. Countries like United States are home to leading companies like GE Aviation and Pratt & Whitney who have significant manufacturing footprint. Also, the commercial aviation sector is well developed in North America with large domestic and international air traffic. This drives continuous demand for new aircraft and replacement of existing engine fleets.
Asia Pacific is the fastest growing regional market for aircraft engines projected to exhibit robust growth over the forecast period. Expanding low cost airline industry and rising middle class income are propelling air travel in countries like China and India. This is prompting government investments in development of airports and fleet modernization programs. Engine makers are making advances to capitalize on opportunities through local production and supplier development in Asia Pacific.
Fastest Growing Region in Aircraft Engine Market
Asia Pacific has emerged as the fastest growing regional market for aircraft engines globally. Factors such as rapidly growing economy, rising disposable incomes and expanding low cost carrier market are fueling demand for air travel especially in China and India. This has accelerated aircraft procurement programs of airlines in Asia. Additionally, Asia Pacific governments are investing heavily in development of airports and air connectivity to boost tourism and trade.
Rising middle class population is increasingly opting for air travel making Asia an important aviation growth center. Engine manufacturers are thus prioritizing the region through joint ventures, engine assembly, repair facilities and supplier base expansion. Their focus on Asia Pacific is anticipated to capture the untapped potential and benefit from the projected higher fleet expansion of over 35% over next two decades. As air traffic and infrastructure continue to grow exponentially, Asia Pacific will remain a key powerhouse driving overall aircraft engine market growth.
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About Author:
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.
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