Aircraft Engine Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Aircraft Engine Market Size - Analysis

Aircraft Engine Market Trends

According to estimates from various industry sources, the number of passengers flying every year is projected to double over the next 20 years, reaching an estimated 8.2 billion by 2037. Globalization is also acting as a driver as more companies set up offices and conduct business across borders which necessitates intercontinental travel.

This stable increase in air traffic is expected to drive significant demand for new commercial aircraft engines across all regions over the next two decades. This will continue to boost growth of the global aircraft engine market.

Market Driver - Rising Investments in Fleet Modernization and Lightweight Aircraft Engine Development

A major area of focus has been on developing lightweight aircraft structures and engines through usage of advanced composite materials and design optimizations. Similarly, aircraft engine makers are striving to build advanced lightweight engines with fewer parts through coordinated investments in engineering simulation tools, advanced alloys and additive manufacturing.

Market Challenge - High maintenance costs associated with aircraft engines

Engine overhaul processes require the engine to be removed from the aircraft as well, resulting in aircraft downtime. Additionally, unexpected engine failures also contribute to unplanned maintenance costs. With labor and material costs being high, aircraft engine maintenance poses a huge financial burden for airlines.

One of the key opportunities for the aircraft engine market is the increasing adoption of 3D-printed parts in engine manufacturing and maintenance. 3D printing or additive manufacturing allows the complex internal passages, chambers and components of an aircraft engine to be produced with precision directly from CAD files without relying on labor-intensive machining.

Wider adoption of 3D printed parts offers opportunities to optimize engine designs, reduce production cycles and costs as well as provide a boost to the aftermarket services. It has potential to be a major game changer for the aircraft engine market in the coming years.

Key winning strategies adopted by key players of Aircraft Engine Market

One of the most successful strategies adopted by GE Aviation has been continuous innovation through extensive R&D investments. GE has consistently invested over $3 billion annually in R&D since 2010. This helped GE launch new, highly fuel-efficient engine programs like the GEnx and LEAP families between 2008-2014.

Honeywell has strengthened its position through smart acquisitions and diversification beyond engines. In 2018, it acquired aircraft engine components maker UTC Aerospace Systems for $8.8 billion. This provided complementary assets like avionics, mechanical systems and gears. It has also expanded into new business segments like aviation service solutions.

Segmental Analysis of Aircraft Engine Market

In terms of engine type, turbofan engines contributes 66.4% share of the aircraft engine market in 2024, owing to significant technological advancements that have optimized their fuel efficiency. Over the past few decades, turbofan engine manufacturers like GE Aviation and Pratt & Whitney have invested heavily in research and development to reduce specific fuel consumption and noise levels of their engines.

Digital engine controls and 3D printed components have assisted engine operational optimization. These ongoing technological advancements will continue to strengthen turbofan engines' dominance in the aircraft engine market.

In terms of application, commercial aviation contributes 71.5% share of the aircraft engine market in 2024, owing to the consistent increase in air passenger traffic worldwide. The commercial aviation sector encompasses airlines, aircraft lessors, and other operators engaged in transporting passengers and cargo on commercial flights.

Moreover, its needs for high output, fuel efficient engines suitable for continuous operation align well with current technology trends. This sustained pull from the commercial aviation sector will ensure its primacy in the aircraft engine market.

Insights, By Component: Compressor Dominance Driven by Core Engine Function

Concentrated R&D is constantly undertaken by engine OEMs to optimize compressor designs for boosted performance through higher pressure ratios and maximum thermodynamic efficiency. Modern compressor technologies include axial and centrifugal multistage configurations, advanced aero profiles, compressor bleed systems, and ceramic composites. Keeping compressors compact but powerful also aids engine packaging.

Additional Insights of Aircraft Engine Market

• Hybrid-Electric Propulsion Exploration: Manufacturers are investing in hybrid-electric engine technologies to reduce environmental impact and comply with future emission regulations. This includes research into battery technologies and electric motors integrated with traditional aircraft engines.
• Asia-Pacific Growth Potential: The Asia-Pacific region is projected to witness substantial growth in the global aircraft engine market, due to increasing air travel demand and fleet expansion in countries like China and India. This surge is driven by a growing middle class and increased connectivity.
• Emphasis on Sustainable Aviation Fuels (SAFs): There's a growing trend towards adopting SAFs to reduce carbon footprints. Aircraft engine manufacturers are adapting engines to be compatible with these alternative fuels.

Competitive overview of Aircraft Engine Market

The major players operating in the aircraft engine market include General Electric Company (GE Aviation), Rolls-Royce Holding PLC, Pratt & Whitney, Honeywell International Inc., Safran Aircraft Engines, IHI Corp., Mitsubishi Heavy Industries Aero Engines Ltd, MTU Aero Engines AG, Rostec, Textron Inc., Williams International Co. LLC, CFM International, IAE International Aero Engines AG, and Engine Alliance.

Recent Developments in Aircraft Engine Market

Aircraft Engine Market Segmentation

• By Engine Type
  • Turbofan Engines
  • Turboprop Engines
  • Turboshaft Engines
  • Piston Engines
• By Application
  • Commercial Aviation
  • Military Aviation
  • General Aviation
  • Business Aviation
• By Component
  • Compressor
  • Turbine
  • Gearbox
  • Exhaust System
  • Fuel System
• By Platform
  • Fixed-wing Aircraft
  • Rotary-wing Aircraft
  • Unmanned Aerial Vehicles (UAVs)