Aircraft Engines Market Size, Trends, Share, Growth, and Opportunity Forecast, 2025 - 2032 Global Industry Analysis By Type (Turbofan, Turboprop, Turboshaft, and Piston Engines), By Component (Compressor, Turbine, Combustor, and Fan Blades), By Technology (Conventional, Hybrid, and Electric), By End-Use Industry (Commercial Aviation, Military Aviation, Business Aviation, and General Aviation), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

Aircraft Engines Market Size and Forecast 2025 to 2032

The Global Aircraft Engines Market was valued at USD 86.43 Billion in 2024 and is anticipated to reach a value of USD 175.07 Billion by 2032 expanding at a CAGR of 9.3% between 2025 and 2032. The growth of this market is being driven by increased air passenger traffic, rising defense spending worldwide, and growing demand for fuel-efficient and sustainable engine technology. The rapid adoption of newer technologies, such as hybrid and electric propulsion systems, is projected to transform the aircraft engine market in the near future.

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The aircraft engine market is crucial to worldwide aviation, since it powers commercial, military, and general aviation aircraft. Aircraft engines are developed to satisfy the needs of modern aviation, assuring dependability, performance, and efficiency while reducing environmental impact. The market is primarily driven by expanding air passenger traffic, increased defense spending, and growing demand for next-generation aircraft engines that lower emissions and improve fuel efficiency.

With a constant focus on lowering operational costs and meeting rigorous emission rules, aircraft engine manufacturers are investing extensively in R&D for novel propulsion systems, such as hybrid and electric technology. The advent of sustainable aviation fuel (SAF) and cleaner engine technology has also gained traction, providing viable answers for meeting environmental laws. These advancements are spurring industry innovation, allowing companies to manufacture engines that mix high performance, fuel efficiency, and sustainability.

How AI is Transforming Aircraft Engines Market

Artificial intelligence (AI) is transforming the aircraft engine sector by increasing operational efficiency, streamlining maintenance procedures, and optimizing fuel use. Predictive maintenance is a crucial area where AI is having an influence. AI-powered systems continuously monitor engine performance by analyzing massive volumes of sensor data, allowing for real-time diagnostics and spotting possible issues before they become costly breakdowns. This reduces downtime and increases the total lifespan of engine components like turbines and compressors.

AI also aids in optimizing fuel consumption. Artificial intelligence systems can enhance fuel efficiency and cut emissions during flights by monitoring flight patterns, weather conditions, and engine performance. This is critical for airline operators looking to reduce operational expenses while also achieving sustainability objectives. Furthermore, AI improves design and testing processes by simulating various operational scenarios and optimizing engine configurations to maximize performance and safety.

In terms of security, AI helps to improve engine cybersecurity by monitoring digital systems for potential threats and reducing risks in real time. With AI's ability to scan enormous data sets and give meaningful insights, aircraft engine makers are increasingly turning to AI-based solutions to optimize operations, increase safety, and meet changing industry standards.

Aircraft Engines Market Major Driving Forces

·         Growing Air Passenger Traffic: The global increase in air travel demand, particularly in emerging nations, is pushing the need for modern, efficient aircraft engines to support expanding commercial aviation fleets. As airlines seek to modernize their fleets with fuel-efficient engines, the demand for innovative propulsion systems grows.

·         Military Modernization and Defense Spending: Several countries are increasing their defense spending, resulting in greater investments in modern military aircraft, such as new engine technology for fighter jets, drones, and helicopters.

·         Technological Advancements: The transition to hybrid and electric propulsion technologies is revolutionizing the aircraft engine sector. This technical transition is being pushed by the demand for engines with higher fuel efficiency, lower emissions, and lower operating costs.

·         Stringent Emission Standards: To limit carbon emissions, international organizations such as the International Civil Aviation Organization (ICAO) have enacted severe standards. This is encouraging airplane manufacturers to invest in engines that use sustainable aviation fuel (SAF) and meet global environmental criteria.

Aircraft Engines Market Key Opportunities

·         Hybrid and electrical propulsion systems: The continued research and development of hybrid and electric aircraft engines creates considerable potential opportunities. These propulsion systems have the ability to reduce fuel consumption, pollutants, and noise levels, addressing environmental concerns as well as operating efficiency.

·         Expansion in Emerging Economies: Emerging economies, notably in Asia Pacific and Latin America, are witnessing tremendous growth in air travel demand. This opens up potential for aviation engine manufacturers to increase their presence in these countries by supplying engines for new commercial and military aircraft.

·         Sustainable Aviation Fuel (SAF) Integration: The use of SAF into traditional and next-generation aviation engines offers the ability to minimize carbon footprints. Aircraft engine makers can profit on this by producing engines that are optimized for SAF use while also meeting sustainability requirements.

·         Advanced Materials for Lighter Engines: The development of lightweight, durable materials, such as advanced composites, opens up new potential for designing aircraft engines that are more fuel-efficient and cost-effective, decreasing overall aircraft weight and boosting performance.

Aircraft Engines Market Key Trends

·         The push to reduce carbon emissions and fuel consumption has accelerated the development and implementation of hybrid and electric aircraft engines. This tendency is projected to accelerate, particularly in the regional and urban air mobility sectors.

·         To comply with environmental requirements, airlines and aircraft manufacturers are prioritizing sustainable practices, such as developing engines that can run on sustainable aviation fuel (SAF) and featuring energy-efficient designs.

·         Additive manufacturing (3D printing) is gaining popularity in the fabrication of intricate aviation engine components. This enables lightweight designs, increased efficiency, and cost reductions in engine manufacturing processes.

·         The combination of AI, IoT, and big data analytics is transforming engine maintenance by enabling real-time monitoring and predictive maintenance, resulting in reduced downtime and increased operating efficiency.  

Region-wise Market Insights

North America accounted for the largest market share at 38.7% in 2024 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 9.7% between 2025 and 2032.

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North America held the greatest market share of 38.7% in 2024, worth USD 33.45 billion. The region benefits from high demand for commercial aircraft engines as air travel increases, as well as major military investments. The United States, in particular, leads in terms of both commercial and military aviation engine demand, with major manufacturers like General Electric and Pratt & Whitney driving innovation.

·         In March 2025, Pratt & Whitney is accelerating its research into rotating detonation engines (RDEs), which offer potential for higher efficiency and power in jet propulsion systems compared to conventional designs. The company is collaborating with NASA and the U.S. Air Force to develop this advanced technology, focusing on improving fuel consumption, reducing emissions, and extending engine life.

Asia Pacific is expected to increase at the quickest CAGR of 9.7% during the forecast period, led by rising passenger air traffic in China, India, and Japan. The fast expansion of low-cost carriers (LCCs) and increased defense spending in the region are driving up demand for aircraft engines.

Europe is focusing on sustainability, with manufacturers aiming to reduce carbon emissions with hybrid and electric engines. In addition, the region's robust defense sector is driving demand for military aircraft engines. Whereas, Latin America, the Middle East, and Africa are emerging markets for airplane engines, with rising investments in aviation infrastructure and fleet modernization. These regions are seeing a sustained increase in air passenger traffic and defense spending, which will drive future growth potential.

Recent Developments

·         In February 2025, Rolls-Royce offered India a proposal to co-develop and co-design jet engines, allowing India full ownership of intellectual property (IP). This partnership aims to strengthen India’s defense manufacturing sector while enhancing technological capabilities.

·         In January 2025, Safran Aircraft Engines has completed the acquisition of Component Repair Technologies (CRT), based in Ohio. This acquisition expands Safran's maintenance, repair, and overhaul (MRO) network, allowing CRT to serve as a center for repairing large engine components in the Americas. The move is part of Safran’s €1 billion investment plan to increase MRO capacity and workforce, addressing the growing demand for CFM56 and LEAP engines. This acquisition enhances Safran’s presence in the global aviation market.

·         In September 2024, NASA and GE Aerospace are collaborating on the development of hybrid-electric propulsion systems for future airliners. This partnership, part of NASA’s Electrified Powertrain Flight Demonstration (EPFD) project, aims to reduce carbon emissions and improve fuel efficiency in commercial aviation. The project will leverage GE's engine technologies and NASA’s aeronautics expertise to advance hybrid-electric propulsion, which could revolutionize the aviation industry by making it more sustainable. Test flights of hybrid-electric systems are planned for the coming years to meet NASA’s environmental goals.

Market Competition Landscape

The global aviation engine industry is extremely competitive, with leading competitors constantly attempting to improve their market positions through innovation and strategic collaborations. Key participants in the commercial and military aircraft engine industries include General Electric Aviation, Rolls-Royce Holdings, and Pratt & Whitney, all of which use modern engine technologies and prioritize fuel efficiency.

These market leaders are investing extensively in R&D to create engines that are compatible with hybrid-electric propulsion systems and sustainable aviation fuel (SAF), establishing themselves as pioneers in the green aviation revolution. Companies are also using methods such as mergers and acquisitions, collaborations with defense groups, and increased manufacturing capacity to meet rising demand.

Furthermore, Safran Aircraft Engines and MTU Aero Engines are developing as major players in the European industry, with a focus on electric propulsion and ecologically efficient solutions. Mitsubishi Heavy Industries and IHI Corporation are gaining popularity in Asia Pacific, delivering engines for domestic and international aviation programs.

Key players in the global aircraft engines market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         General Electric Aviation

·         Rolls-Royce Holdings

·         Pratt & Whitney

·         Safran Aircraft Engines

·         MTU Aero Engines

·         CFM International

·         Mitsubishi Heavy Industries

·         IHI Corporation

·         Honeywell International

·         Engine Alliance

·         Aviadvigatel

·         Kawasaki Heavy Industries

·         Williams International

·         AECC (Aero Engine Corporation of China)