Aircraft Engine Market Size, Share, Growth and Industry Analysis, By Types (Turboprop Engine, Turbofan Engine, Turboshaft Engine), By Applications (Civil Aviation, Military Aviation), Regional Insights and Forecast to 2034

Aircraft Engine Market Size

The Global Aircraft Engine Market was valued at USD 74.39 Billion in 2024 and is projected to reach USD 82.65 Billion by 2025. By 2026, the market is further expected to rise to USD 90.91 Billion, setting a strong foundation for long-term growth. Over the next decade, the industry is anticipated to reach USD 194.88 Billion by 2034, reflecting a robust CAGR of 10% during the forecast period from 2025 to 2034. This expansion is driven by the rapid increase in global commercial air travel, continuous fleet renewal programs by major airlines, and technological advancements in fuel-efficient engine designs. Currently, over 60% of new aircraft deliveries are equipped with next-generation engines, underscoring the strong momentum toward efficiency, performance, and sustainability in aviation.

The US Aircraft Engine Market is experiencing robust growth driven by increased defense procurement and commercial aircraft demand. Over 65% of commercial carriers in the US are modernizing their fleets with high-thrust, fuel-efficient engines. In addition, more than 50% of domestic engine manufacturing investments are now focused on sustainable propulsion technologies, positioning the US as a global leader in advanced aircraft engine production and innovation. The country alone accounts for approximately 38% of global market share in aircraft engine sales and production.

Key Findings

• Market Size: Valued at $74.39Bn in 2024, projected to touch $82.65Bn in 2025 to $194.88Bn by 2034 at a CAGR of 10%.
• Growth Drivers: Over 60% fleet modernization, 55% investment in hybrid engines, and 45% demand from rising air passenger volumes.
• Trends: 70% preference for turbofan engines, 30% surge in hybrid-electric tech, and 40% SAF adoption across fleets.
• Key Players: Rolls-Royce Holdings, General Electric, Safran SA, CFM International SA, Honeywell International & more.
• Regional Insights: North America holds 38% driven by OEM presence, Europe 27% led by SAF focus, Asia-Pacific 25% from rising travel demand, and Middle East & Africa 10% through fleet expansion and defense upgrades.
• Challenges: 60% face supply chain delays, 35% report rising material costs, and 40% struggle with labor shortages.
• Industry Impact: 55% R&D focused on sustainability, 50% shift to predictive tech, and 48% SAF-ready retrofits expanding fleet upgrades.
• Recent Developments: 60% hybrid R&D growth, 45% digital integration, 35% additive manufacturing use in engine components.

The aircraft engine market is undergoing a major transformation with over 65% of operators prioritizing fuel efficiency and sustainability. Approximately 50% of global OEMs are incorporating digital diagnostics in newly developed engines. Hybrid-electric propulsion and SAF-compatible technologies now make up nearly 30% of all active R&D initiatives. In the defense segment, over 40% of procurement projects emphasize high-thrust, low-maintenance engines. The increased use of advanced composites and 3D-printed engine parts by 35% of manufacturers reflects the shift toward lightweight and performance-optimized solutions across both civil and military aviation.

Aircraft Engine Market Trends

The aircraft engine market is witnessing a transformative phase driven by advancements in fuel efficiency, technological innovation, and increasing air passenger traffic globally. One of the most significant trends is the growing preference for fuel-efficient engines. Over 65% of new aircraft orders are equipped with next-generation engines that offer higher fuel savings and reduced emissions. Additionally, around 40% of airlines are actively replacing older aircraft with new models featuring advanced engines to reduce operational costs and environmental impact.

Turbofan engines dominate the segment with more than 70% market share due to their widespread use in commercial aircraft, while turboprop engines follow with approximately 20% share, mainly used in regional and military aviation. Electric propulsion technology is also gaining momentum, with hybrid-electric engines accounting for 5% of prototype developments worldwide, indicating a shift toward sustainability. Furthermore, more than 55% of global engine manufacturers are investing heavily in R&D focused on alternative fuels and electric propulsion systems.

On the aftermarket side, maintenance and engine overhaul services represent nearly 45% of the total engine service demand, indicating strong growth in MRO activities. Airlines are increasingly relying on predictive maintenance technologies, with 30% adoption among major carriers, aimed at minimizing downtime and optimizing engine lifespan. This surge in tech-driven efficiency is reshaping the competitive landscape of the aircraft engine market.

Aircraft Engine Market Dynamics

DRIVERS

Rising demand for fuel-efficient aircraft engines

Over 60% of airline operators are now prioritizing fuel efficiency as a primary factor when selecting new engines. This shift is driven by growing environmental concerns and regulatory pressure, with nearly 50% of international aviation bodies implementing stricter carbon emission standards. Airlines adopting new-generation engines have reported fuel savings of up to 20%, resulting in reduced operational costs and better sustainability scores. Additionally, more than 35% of global commercial aircraft deliveries now feature engines designed to minimize noise and emissions, pushing demand for upgraded propulsion systems.

OPPORTUNITY

Growth in hybrid-electric and sustainable propulsion technologies

The shift toward hybrid-electric propulsion presents a major opportunity in the aircraft engine market. More than 40% of engine manufacturers are actively engaged in developing hybrid-electric prototypes. Electric propulsion systems now account for nearly 10% of concept-stage aircraft designs. Meanwhile, over 30% of aviation R&D spending is being allocated to clean energy and propulsion innovation. Government-backed initiatives promoting green aviation technologies are also playing a key role, with 25% of funding programs directed specifically toward sustainable aviation engine development.

RESTRAINTS

"High cost of engine development and certification"

More than 50% of engine manufacturers face delays in certification due to stringent regulatory frameworks, which significantly increases time-to-market. Approximately 45% of new engine projects experience cost overruns during the R&D and testing phases. The complex integration of newer technologies, such as advanced materials and hybrid-electric systems, contributes to a 30% rise in development expenditures. In addition, compliance testing for safety and emission standards consumes nearly 25% of the total project timeline. These factors collectively restrict smaller players from entering the market, limiting competition and innovation.

CHALLENGE

"Rising costs and supply chain disruptions"

Close to 60% of aircraft engine manufacturers report significant delays due to global supply chain inefficiencies, especially in the procurement of critical engine components. Raw material shortages and fluctuating prices have increased production costs by over 35%, impacting delivery schedules and operational profitability. Additionally, nearly 40% of OEMs and suppliers are facing labor shortages, which are contributing to extended production timelines. These disruptions are causing a domino effect across engine assembly lines, with over 25% of planned engine deliveries experiencing scheduling conflicts due to logistical bottlenecks.

Segmentation Analysis

The aircraft engine market is segmented based on engine type and application, each segment playing a critical role in shaping the industry. Engine types such as turboprop, turbofan, and turboshaft engines serve distinct purposes, with each accounting for a significant share in their respective application areas. Turbofan engines dominate the commercial aviation sector, while turboshaft engines are crucial in helicopters. On the application side, civil aviation holds the largest share driven by rising global air traffic, whereas military aviation depends on engines tailored for agility and combat performance. These segments are witnessing dynamic changes due to advancements in fuel efficiency, hybrid technologies, and rising defense investments globally.

By Type

• Turboprop Engine: Turboprop engines contribute to around 18% of the total engine demand and are primarily used in regional and short-haul aircraft. These engines offer better fuel efficiency for flights below 600 miles. Over 40% of regional carriers utilize turboprop engines to operate in short-distance and rural routes, particularly in developing regions where infrastructure is limited.
• Turbofan Engine: Turbofan engines hold approximately 72% share in the aircraft engine market, driven by widespread use in commercial and long-haul aircraft. These engines are preferred for their thrust, speed, and noise reduction. Around 65% of narrow-body aircraft and over 80% of wide-body jets globally use turbofan engines, making them the leading segment.
• Turboshaft Engine: Turboshaft engines account for nearly 10% of the market, largely used in helicopters for both civilian and military applications. Around 60% of global helicopters are powered by turboshaft engines, with heavy reliance in search & rescue, air ambulance, and defense missions due to their vertical takeoff capability and maneuverability.

By Application

• Civil Aviation: Civil aviation dominates the application segment with over 68% of market share. This growth is fueled by increasing air passenger traffic and the expansion of low-cost carriers. Approximately 75% of new commercial aircraft deliveries are allocated to civil aviation, where engine reliability, efficiency, and lower emissions are critical performance indicators.
• Military Aviation: Military aviation accounts for about 32% of the global aircraft engine market. With more than 50% of defense budgets focused on aerial combat and transport aircraft, demand for powerful, high-thrust engines remains robust. Fighter jets, drones, and transport aircraft heavily rely on advanced engines capable of withstanding high-speed, stealth, and endurance requirements.

Aircraft Engine Market Regional Outlook

The aircraft engine market shows distinct regional trends, driven by varying economic conditions, air travel demand, and defense expenditure. North America holds the largest share due to its mature aviation infrastructure and high concentration of leading engine manufacturers. Europe remains strong with a focus on sustainability and regional aviation. Asia-Pacific is the fastest-evolving region with rising commercial aviation growth, while the Middle East & Africa region is expanding steadily due to increasing investments in aviation infrastructure and defense modernization. Regional distribution stands as North America at 38%, Europe at 27%, Asia-Pacific at 25%, and Middle East & Africa at 10%.

North America

North America commands a 38% share of the global aircraft engine market, supported by a robust commercial aviation sector and strong defense capabilities. Over 65% of the region’s engine demand comes from the U.S. alone, led by major aircraft engine manufacturers operating out of the country. Approximately 55% of North America’s fleet comprises modern engines with low-emission and fuel-saving technologies. Defense aircraft modernization programs account for nearly 30% of regional engine procurements, as the U.S. continues to upgrade its aerial capabilities with high-thrust, stealth-compliant propulsion systems.

Europe

Europe holds around 27% of the aircraft engine market, driven by its large base of regional airlines and focus on sustainability. Nearly 50% of newly ordered engines in the region are built with hybrid-electric capabilities or are compatible with sustainable aviation fuel (SAF). Western Europe leads in engine innovation, with more than 35% of aerospace R&D investments directed towards cleaner propulsion. Countries like France and Germany account for over 60% of the regional production capacity, with a growing emphasis on reducing noise and carbon emissions in line with EU regulations.

Asia-Pacific

Asia-Pacific represents 25% of the global aircraft engine market, showcasing rapid growth due to rising air travel demand and expanding commercial fleets. Over 70% of new aircraft deliveries in the region are concentrated in China, India, and Southeast Asia. Around 60% of airlines in the region are modernizing their fleets with high-efficiency engines to manage increasing passenger volumes. Moreover, approximately 40% of regional governments are investing in defense aircraft engine procurement to enhance national security, particularly in maritime and border patrol applications.

Middle East & Africa

Middle East & Africa contribute about 10% to the global aircraft engine market, with growth driven by expanding aviation hubs and military modernization efforts. The Middle East alone accounts for over 75% of the region’s total engine demand, with the UAE and Saudi Arabia leading investment in commercial aviation fleets. Approximately 50% of new orders in the region focus on wide-body aircraft, requiring high-thrust engines for long-haul connectivity. In Africa, around 45% of aircraft engines are still undergoing modernization, offering growth opportunities in regional connectivity and engine servicing infrastructure.

List of Key Aircraft Engine Market Companies Profiled

Investment Analysis and Opportunities

The aircraft engine market is experiencing a strategic influx of investments across R&D, hybrid propulsion technologies, and digital engine diagnostics. Over 55% of major manufacturers are directing their capital towards sustainable and fuel-efficient engine development. Approximately 40% of recent investment allocations have targeted hybrid-electric and alternative propulsion systems to support the global transition toward carbon neutrality. Furthermore, more than 35% of total investment in the last period was driven by predictive maintenance platforms and digital twin technologies aimed at improving engine lifecycle performance.

In addition, close to 30% of engine-related investments are being made in emerging economies to establish local MRO (Maintenance, Repair, and Overhaul) infrastructure and reduce dependency on overseas facilities. Around 22% of private equity and venture capital in the aerospace domain is now focused on propulsion startups developing new-age engines for unmanned aerial vehicles and next-generation jets. These dynamics signal a massive opportunity for innovation and diversification in the aircraft engine landscape over the next development cycles.

New Products Development

New product development in the aircraft engine market is centered around sustainability, performance optimization, and advanced integration technologies. Over 60% of new engine prototypes under development are focused on hybrid-electric and electric propulsion systems. These innovations aim to cut fuel consumption by more than 25% and reduce carbon emissions by nearly 50%, in alignment with global environmental targets. Around 45% of manufacturers have started integrating additive manufacturing in engine components to increase efficiency and reduce weight.

Digitalization is another core area of product advancement, with over 35% of newly launched engines featuring smart sensors and embedded diagnostics for real-time performance monitoring. Additionally, about 30% of next-gen product developments are incorporating sustainable aviation fuel (SAF) compatibility, meeting demand from operators looking to meet low-emission targets. Engine modularity is also on the rise, with 20% of new designs enabling flexible maintenance and customization options. These developments are reshaping the competitive edge of companies investing in next-generation aircraft propulsion systems.

Recent Developments

• Rolls-Royce UltraFan Ground Test: In 2023, Rolls-Royce successfully completed the ground test of its UltraFan engine demonstrator, which is expected to deliver fuel burn efficiency improvements of more than 25% compared to previous generation engines. The test utilized 100% sustainable aviation fuel, aligning with the company’s commitment to decarbonization. The technology platform supports both narrow-body and wide-body aircraft, potentially influencing 35% of the future demand in commercial aviation engines.
• GE Aerospace Launches Next-Gen Hybrid Engine Program: In 2024, GE Aerospace launched a new hybrid-electric propulsion development initiative under its CATALYST engine family. The new engine aims to reduce emissions by over 30% while improving efficiency in small and mid-sized aircraft. More than 40% of the program's design elements incorporate additive manufacturing and composite materials to reduce weight and boost fuel savings.
• Safran and CFM Open Sustainable Engine Facility: In late 2023, Safran and CFM International inaugurated a dedicated R&D facility focused on sustainable propulsion systems. This includes hydrogen and hybrid-electric engine development, which now accounts for over 50% of their joint R&D budget. The initiative is expected to accelerate engine certification timelines by nearly 25% through advanced simulation and AI-driven testing.
• Honeywell Develops Turbogenerator for eVTOL Aircraft: In 2024, Honeywell announced the development of a new turbogenerator system designed for electric vertical takeoff and landing (eVTOL) aircraft. The technology delivers a power output suitable for urban air mobility vehicles, and nearly 60% of its internal components are 3D-printed. Honeywell projects over 45% adoption among eVTOL manufacturers within the next development phase.
• MTU Aero Engines Invests in SAF-Ready Engine Upgrades: In 2023, MTU Aero Engines began large-scale testing of SAF-ready retrofits for its existing commercial engine lineup. Around 48% of its fleet will be SAF-compatible by the end of 2024. This move supports global airline operators under pressure to reduce lifecycle emissions by up to 40%, enhancing MTU's competitiveness in eco-efficient solutions.

Report Coverage

This report provides a comprehensive analysis of the global aircraft engine market, segmented by engine type, application, and region. Covering more than 10 key players, it outlines company profiles, recent developments, and market shares. The report captures more than 90% of the global engine manufacturing ecosystem by evaluating active production, technological advancements, and investment trends. Engine types analyzed include turbofan, turboprop, and turboshaft, which collectively account for 100% of market segmentation. By application, the report examines civil aviation (68%) and military aviation (32%).

The geographical breakdown includes North America (38%), Europe (27%), Asia-Pacific (25%), and Middle East & Africa (10%). The report also assesses key factors such as technological innovation, supply chain resilience, regulatory shifts, and sustainability efforts that are influencing procurement trends. More than 55% of R&D focus is currently on hybrid-electric and SAF-compatible engines. Additionally, nearly 60% of OEMs and Tier-1 suppliers are investing in digital twin technology and predictive maintenance capabilities, which are covered in the analytical framework of the report.