Aircraft Engine Market

Aircraft Engine Market Size:

The global aircraft engine market size reached USD 101.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 169.7 Billion by 2033, exhibiting a growth rate (CAGR) of 5.87% during 2025-2033. North America dominates the market owing to strong defense spending, extensive airline fleets, presence of leading manufacturers, and advanced technological infrastructure. The market is experiencing growth primarily because of continuous technological advancements in the aviation industry, along with the increasing demand for air travel for personal and business purposes and the implementation of several stringent emissions regulations.

Aircraft Engine Market Analysis:

• Major Market Drivers: The aircraft engine market is witnessing growth driven by the increasing demand for air travel, particularly in emerging markets. Additionally, continuous investments in research and development (R&D) activities by engine manufacturers are influencing the market positively.
• Key Trends: Ongoing technological advancements are improving fuel efficiency, reducing emissions, and enhancing performance, including the integration of lightweight materials and digitalization. Additionally, rapid electrification and hybrid propulsion are driving the market.
• Geographical Trends: Emerging markets in Asia and the Middle East are driving demand for new aircraft engines due to increasing air travel. Furthermore, established markets in North America continue to invest in engine innovations.
• Competitive Landscape: Some of the major market players in the aircraft engine industry include Barnes Group Inc., General Electric Company, Honeywell International Inc., IHI Corporation, Mitsubishi Heavy Industries Ltd., MTU Aero Engines AG, Raytheon Technologies Corporation, Rolls-Royce Holdings plc, Safran S.A., and Textron Inc., among many others.
• Challenges and Opportunities: The implementation of stringent emissions regulations is posing challenges and also stimulating innovation in eco-friendly engine technology. Additionally, several opportunities lie in expanding the use of sustainable aviation fuels and further optimizing engine design for increased efficiency and reduced environmental impact.
   

Aircraft Engine Market Trends:

Rising Air Passenger Traffic and Fleet Expansion

The consistent increase in worldwide air travel is generating significant opportunities for airlines to grow and upgrade their fleets. Enhanced connectivity between cities and nations, combined with lower airfare prices in many areas, is encouraging an increasing number of travelers to select air travel as their favored means of transport. In response to this demand, airlines are investing in narrow-body and wide-body planes, driving the need for dependable and efficient engines. Fleet renewal efforts enhance this momentum, as carriers embrace newer models that provide better fuel efficiency and meet strict environmental regulations. In addition, the growing flow of cargo is catalyzing the demand for specialized freighter planes equipped with high-efficiency engines intended for extended operational life. Together, these trends are fostering an optimistic perspective for engine producers, with rise in passenger and cargo traffic acting as primary contributors to the market growth.

Digitalization and Predictive Analytics

The integration of digital technologies into engine management is bolstering the market growth, with predictive analytics and artificial intelligence (AI) transforming how airlines manage fleet performance. Real-time monitoring enables more accurate assessment of engine health, allowing operators to anticipate maintenance needs and schedule interventions with minimal disruption. This not only reduces downtime and operational risks but also extends engine lifespan, making digitally enabled solutions increasingly attractive in procurement decisions. In 2025, GE Aerospace introduced an AI-driven inspection tool specifically designed to extend narrowbody aircraft engines’ “time on wing” by predicting and preventing maintenance issues. By leveraging machine learning (ML) to improve inspection precision and reduce costs, the technology demonstrated proven results in real-world applications. Such innovations highlight the growing reliance on connected systems, reinforcing digital compatibility as a decisive factor in modern engine strategies and establishing new benchmarks for reliability, efficiency, and long-term value creation.

Defense Modernization and Military Procurement

Rising defense budgets are driving significant investment in the modernization of air forces, creating consistent demand for advanced aircraft engines. Governing bodies are prioritizing new fighter jets, transport aircraft, and unmanned systems to strengthen national security and strategic capabilities, which in turn requires engines with high thrust-to-weight ratios, resilience in extreme conditions, and seamless integration with cutting-edge avionics. This process is reinforced by the replacement of aging fleets, ensuring steady procurement cycles across global defense markets. In 2025, Mach Industries advanced this trend by launching Mach Propulsion, a dedicated division for developing high-performance jet engines tailored for UAVs and defense applications. With plans to produce up to 12,000 engines annually, supported by rapid prototyping and supply chain expansion, the initiative underscores how military demand is shaping the aircraft engine industry. Combined with lifecycle maintenance and upgrade contracts, these developments position defense as a stable, long-term driver of market growth.

Aircraft Engine Market Growth Drivers:

Expansion of Engine Leasing and Aftermarket Services

Engine leasing is gaining prominence as airlines seek cost-effective ways to manage fleet operations while avoiding the heavy capital expenditure associated with outright purchases. Leasing arrangements provide carriers with access to modern, fuel-efficient engines that enhance operational flexibility and reduce financial risk. Apart from this, the aftermarket segment, including spare parts supply, overhaul services, and component upgrades, continues to represent a critical revenue stream, as engine maintenance remains one of the largest recurring expenses for operators. This trend is reinforced by collaborative ventures aimed at expanding leasing options. For instance, in 2025, BeauTech Power Systems LLC and JALUX Inc. formed BVJ Engine Holdings LLC to lease IAE V2500-A5 and Pratt & Whitney GTF PW1100G engines, powering Airbus A320 families. The joint venture aims to offer flexible, cost-effective engine leasing solutions to airlines and MROs, enhancing fleet efficiency and minimizing downtime. Initial acquisitions will total up to $150 million, combining expertise and market reach from both partners.

Advancements in Simulation and Training Technologies

The increasing adoption of advanced simulation and training platforms is bolstering the market growth by accelerating the integration of next-generation propulsion technologies. These tools enable engineers to test engine designs, optimize performance, and assess control systems in a virtual environment, reducing development costs and shortening timelines while minimizing technical risks. By facilitating accurate modeling before physical production, simulation technologies encourage innovation and support the development of next-generation propulsion systems. Furthermore, platforms designed to be accessible for both professionals and students are helping to cultivate a skilled talent pipeline, ensuring the industry is equipped with expertise for future growth. In 2025, Controls Research LLC announced the upcoming launch of SimTurbo, a user-friendly and visually powerful jet engine simulation platform created by Paul Hoffman. The tool is designed for both engineers and students to simulate, design, and analyze jet engines and control systems in real time. It aims to bridge the gap between complex industrial tools and educational needs.

Focus on Lifecycle Cost Optimization

Airlines are placing higher importance on evaluating engine purchases based not solely on the initial acquisition cost but on the broader spectrum of lifecycle expenses that directly affect long-term profitability. Factors like fuel efficiency, frequency of scheduled maintenance, and overall overhaul costs are becoming central considerations in procurement strategies. Engines that demonstrate extended on-wing times and reduced maintenance intervals enable carriers to minimize operational disruptions and improve fleet utilization, which translates into measurable cost savings. Furthermore, the integration of advanced digital support systems, such as real-time monitoring and predictive maintenance technologies, provides operators with greater reliability and transparency in performance management. Manufacturers that can deliver these comprehensive value propositions gain a distinct competitive edge, as airlines increasingly prioritize engines that align with both economic and operational sustainability objectives. This focus drives consistent replacement of aging fleets, contributing to the market demand and accelerating innovation across engine design, manufacturing, and aftermarket services.

Aircraft Engine Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component, engine type, platform, and end user.

Breakup by Component:

• Fan
• Compressor
• Combustor
• Turbine
• Mixer
• Nozzle
• Others
   

Turbine accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes fan, compressor, combustor, turbine, mixer, nozzle, and others. According to the report, turbine represented the largest segment.

The turbine is the leading component of the aircraft engine market due to its critical role in producing thrust. The turbine helps in extracting energy from the high-velocity exhaust gases produced in the combustion chamber. This energy powers the compressor and fan, driving the overall operational efficiency of the engine. Ongoing advancements are enhancing turbine efficiency and durability, resulting in improved engine performance and reliability, thereby favoring the segment growth in the market.

Breakup by Engine Type:

• Piston and Turboprop Engine
• Turbojet Engine
• Turboshaft Engine
• Turbofan Engine
   

Turbofan engine holds the largest share in the industry 

A detailed breakup and analysis of the market based on the engine type have also been provided in the report. This includes piston and turboprop engine, turbojet engine, turboshaft engine, and turbofan engine. According to the report, turbofan engine accounted for the largest market share.

Turbofan engines feature a large fan at the front that generates additional thrust by bypassing some of the air around the engine core. This design prioritizes fuel efficiency and lower noise levels, making turbofan engines suitable for long-haul flights and reducing the impact on the environment. The market for turbofan engines is characterized by a strong emphasis on performance, efficiency, and environmental considerations. For instance, in February 2022, Airbus signed a partnership contract with CFM International to develop ZEROe Demonstrator, an A380 flying testbed to examine the efficacy of hydrogen combustion in powering turbofan jet engines.

Breakup by Platform:

• Fixed Wing
• Rotary Wing
   

Fixed wing accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the platform. This includes fixed wing and rotary wing. According to the report, fixed wing dominates the market.

Fixed-wing aircraft dominate the aircraft engine market primarily because of their extensive use in both commercial and military sectors globally. These aircraft, which include traditional airplanes with stable and fixed wings, are fundamental to commercial aviation, serving as the backbone for international and domestic travel and cargo transport. Their ability to cover long distances quickly and efficiently makes them indispensable for global connectivity. Additionally, fixed-wing aircraft are crucial in military operations, providing capabilities ranging from transport and surveillance to high-speed combat. The sheer volume of fixed-wing aircraft in operation necessitates continual advancements and investments in engine technology, focusing on enhancing fuel efficiency, reducing emissions, and increasing performance. This ongoing demand for more sophisticated and reliable engines drives the fixed-wing segment's prominence in the aircraft engine market, ensuring sustained growth and innovation in this sector.

Breakup by End User:

• Commercial Aviation
• Military Aviation
   

Commercial aviation represents the leading market segment

The report has provided a detailed breakup and analysis of the market based on the end user. This includes commercial aviation and military aviation. According to the report, commercial aviation represented the largest segment.

Commercial aircraft engines are designed to meet the rigorous demands of daily flights, emphasizing efficiency, reliability, and passenger comfort. They are subject to intense competition, with a focus on fuel efficiency and environmental sustainability. Moreover, ongoing innovations in engine technology, such as quieter and more fuel-efficient options to meet the rising need for reduced operating costs and complying with emissions regulations are driving the market. For instance, in March 2022, Safran signed an MoU with Hindustan Aeronautics Limited (HAL) to extend their cooperation and explore opportunities for new helicopter engines in civil and military markets, reflecting their commitment to the Indian Government's vision of "Atmanirbhar Bharat" towards achieving self-reliance in defence technologies and MRO (Maintenance, Repair and Overhaul). In June 2022, Russian aircraft manufacturers Sukhoi and MiG merged with United Aircraft Corporation (UAC), a Rostec subsidiary, aiming to enhance UAC's finances, improve efficiency, and reduce debts and non-production costs.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest aircraft engine market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America is a significant hub for the aircraft engine market, with the United States at the forefront. The region is home to major engine manufacturers, research facilities, and a vast network of airlines. The rising focus on technological innovation, environmental sustainability, and regulatory compliance is facilitating the market growth. Besides this, Canada also contributes to this market, primarily through its involvement in regional and smaller aircraft engines. For example, in September 2023, Honeywell launched Type J DLNA (Diple9xer/Low Noise Amplifier), a new product that can limit the effects of cellular interference on certain satellite communications systems for aircraft communications.

Leading Key Players in the Aircraft Engine Industry:

The key players in the market are actively engaged in several strategic initiatives to maintain their positions and drive innovation. They are investing heavily in research and development (R&D) activities to create next-generation engines that are more fuel-efficient, environmentally friendly, and technologically advanced. Apart from this, the leading market players are collaborating with aircraft manufacturers (OEMs) to develop integrated propulsion systems that optimize performance. These manufacturers are also exploring electric and hybrid-electric propulsion technologies as part of their commitment to sustainability. Additionally, they are focusing on expanding their global footprint to tap into emerging markets, particularly in Asia and the Middle East. For instance, in 2021, the low-cost flag carrier of Saudi Arabia, flynas, signed a multi-year RPFH deal with CFM International for the LEAP-1A engines that power the airline's fleet of 80 Airbus A320neo aircraft. In July 2023, Safran S.A. announced an investment of up to $200 million to establish three new industrial facilities in India. These facilities will focus on the creation of a commercial LEAP Engine maintenance, repair, and overhaul (MRO) center.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Barnes Group Inc.
• General Electric Company
• Honeywell International Inc.
• IHI Corporation
• Mitsubishi Heavy Industries Ltd.
• MTU Aero Engines AG
• Raytheon Technologies Corporation
• Rolls-Royce Holdings plc
• Safran S.A.
• Textron Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Aircraft Engine Market News:

• In August 2025, Deepinder Goyal's startup LAT Aerospace announced the launch of a propulsion research center in Bengaluru to develop India’s first fully indigenous gas turbine engines. The project aims to power STOL aircraft and UAVs for regional connectivity. Goyal has invested $20 million, with $50 million in total seed funding raised.
• In June 2025, Airbus and MTU Aero Engines signed an MoU at the Paris Airshow to jointly advance hydrogen fuel cell propulsion for aviation. The partnership aims to develop a zero-emission, fully electric hydrogen-powered engine, supporting Airbus' ZEROe initiative. A three-step roadmap will guide the tech maturation, alignment, and potential product development.
• In June 2025, Safran unveiled the M88 T-REX, an upgraded jet engine variant for future Rafale F5 fighter jets. It delivers 20% more thrust (9 metric tons with afterburner) compared to the current M88, while retaining its size, fuel efficiency, and modularity. The engine supports additional systems and is aligned for induction in the early 2030s.
• In June 2025, Emirates SkyCargo launched a dedicated product called "Aircraft Engines" under its new Aerospace and Engineering vertical. The service specializes in the secure, fast transport of aircraft engines using certified loadmasters, shock-absorbing dollies, and real-time tracking. It aims to meet the urgent and technical needs of aviation, defence, and space industries.
• In June 2025, Czech aerospace firm PBS Group launched its most powerful jet engine yet, the PBS TJ200, at the Paris Air Show. Designed for drones and cruise missiles, it delivers up to 2,700 newtons of thrust and features advanced FADEC control and seawater resistance. The engine is already attracting global interest and orders.
• In May 2025, Russian airline S7 announced it will begin testing its new APD-520 “Leader” aircraft engine in summer 2025, designed to power the locally developed Tango light aircraft. The APD-520 is a 200 hp, six-cylinder engine developed by S7 Technics to replace foreign engines amid sanctions.
• In June 2023, at the Paris Air Show, Safran Aero Boosters introduced HIPEX, a new line of high-performance heat exchangers with a revolutionary design that halves aerodynamic drag while maintaining thermal efficiency.
• In July 2022, CFM International partnered with Airbus to flight test CFM's next-generation open fan engine architecture. The test is scheduled to take place in the second half of this decade at Airbus' test facility in Toulouse, France.

Aircraft Engine Market Report Scope:

Key Questions Answered in This Report:

• How has the global aircraft engine market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global aircraft engine market?
• What is the impact of each driver, restraint, and opportunity on the global aircraft engine market?
• What are the key regional markets?
• Which countries represent the most attractive aircraft engine market?
• What is the breakup of the market based on the component?
• Which is the most attractive component in the aircraft engine market?
• What is the breakup of the market based on the engine type?
• Which is the most attractive engine type in the aircraft engine market?
• What is the breakup of the market based on the platform?
• Which is the most attractive platform in the aircraft engine market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the aircraft engine market?
• What is the competitive structure of the aircraft engine market?
• Who are the key players/companies in the global aircraft engine market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the aircraft engine market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global aircraft engine market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the aircraft engine industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.