Press release
Aircraft Engine Market to Reach USD 187.4 million by 2032, Growing at a CAGR of 7.53% says Credence Research
Market OutlookThe Global Aircraft Engine Market is projected to grow from USD 104.6 million in 2024 to an estimated USD 187.4 million by 2032, with a compound annual growth rate (CAGR) of 7.53% from 2025 to 2032. This significant growth trajectory reflects the increasing demand for air travel, advancements in aerospace engineering, and the ongoing modernization of aircraft fleets across commercial, military, and cargo sectors.
Aircraft engines serve as the critical power source for fixed-wing and rotary-wing aircraft, transforming fuel into thrust to facilitate flight. The market plays a crucial role in the global aerospace ecosystem, impacting airline efficiency, environmental sustainability, and national defense capabilities. In today's geopolitical and economic landscape, the market has gained renewed relevance due to the rise in defense budgets, commercial fleet expansion, and the push toward more fuel-efficient and lower-emission engines.
As nations invest heavily in next-generation aircraft technologies and private air travel experiences a resurgence, the aircraft engine market is poised to become even more dynamic. Moreover, with hybrid-electric propulsion systems gaining attention and major engine manufacturers investing in R&D, the coming years will likely witness transformative shifts in engine design and performance metrics. This evolving market presents substantial opportunities for OEMs, suppliers, and governments aiming to improve operational efficiency, reduce carbon emissions, and meet the demands of an increasingly connected world.
Preview the report with a detailed sample and understand how it can benefit your business strategy. Request a free sample today https://www.credenceresearch.com/report/aircraft-engine-market
Market Drivers
Rising Demand for Fuel-Efficient Engines
Aircraft engine manufacturers are increasingly focusing on fuel efficiency due to volatile fuel prices and regulatory pressure. Fuel accounts for nearly 30-40% of airline operating costs, making efficiency a top priority. Technological advances like geared turbofan engines, advanced composite materials, and better airflow designs are driving the shift toward next-gen fuel-efficient engines. This trend supports both cost savings and environmental commitments. The growing urgency for climate-conscious aviation also pressures OEMs to innovate propulsion systems with lower carbon footprints. Airlines are actively replacing older aircraft with models powered by high-efficiency engines to cut operational expenses. In parallel, governments are introducing incentives and mandates for cleaner aircraft operations. These factors combined make fuel efficiency a pivotal driver of long-term market momentum.
Fleet Expansion and Aircraft Deliveries
Major airlines across the globe are expanding their fleets to meet the growing demand for air travel and cargo movement. According to recent industry estimates, global air passenger traffic is expected to double over the next 20 years. Consequently, original equipment manufacturers (OEMs) are receiving massive aircraft engine orders. OEMs like Airbus and Boeing have extensive backlogs, prompting high demand for compatible, high-performance engines from companies such as GE Aviation, Rolls-Royce, and Pratt & Whitney. Fleet modernization programs are being rolled out in both developed and emerging markets. Additionally, the rise of low-cost carriers in Asia-Pacific and Latin America is boosting single-aisle aircraft purchases. As new aircraft are delivered, engine sales and long-term service agreements grow in parallel. This continuous renewal of global fleets strongly supports sustained engine demand.
Rising Military Spending and Combat Aircraft Procurement
Global defense spending is surging, with countries like the U.S., China, India, and Russia investing heavily in modernizing their air forces. This includes procurement of next-gen fighter jets and military helicopters that require powerful, advanced engines. The demand for turboshaft and turbofan engines in military aircraft is directly supporting market growth, particularly in Asia-Pacific and North America. Nations are developing indigenous fighter jet programs, such as India's AMCA and South Korea's KF-21, driving localized engine development. Military transport and reconnaissance aircraft also contribute to engine orders. Furthermore, geopolitical tensions are accelerating strategic procurement of air defense assets. Defense modernization initiatives around the world are expected to maintain high demand for advanced propulsion systems.
Technological Advancements and Hybrid Engine Development
Innovation is at the core of market growth. Manufacturers are now developing hybrid-electric propulsion systems and engines that integrate digital twin technology, predictive maintenance, and AI-powered diagnostics. These innovations reduce lifecycle costs, improve safety, and support sustainability goals, fostering long-term growth opportunities in both civil and military aviation segments. Hybrid-electric and hydrogen-powered engines are now being tested for short-haul applications. This technological leap also reduces emissions and aligns with net-zero carbon goals. The integration of digital technologies improves operational reliability and real-time monitoring. Collaborations between aerospace firms, tech companies, and academic institutions are accelerating innovation in this domain.
Market Challenges
High Development and Maintenance Costs
Developing a new aircraft engine involves billions in R&D investment. The high capital requirement, coupled with lengthy development timelines, often poses a barrier to new entrants and limits innovation to a few established players. Even routine maintenance and overhauls are costly and complex, reducing affordability for smaller operators. These costs are further compounded by expensive certifications and testing. Additionally, warranty and performance guarantees raise the financial burden for manufacturers. Operators must also allocate capital for spare parts and skilled labor for servicing. This cost-intensive nature restricts access to cutting-edge propulsion solutions for budget-constrained regions.
Supply Chain Disruptions
The aircraft engine market is highly sensitive to global supply chains. From rare earth metals to precision components, the manufacturing process depends on complex logistics. Recent geopolitical tensions, pandemic-related shutdowns, and raw material shortages have exposed vulnerabilities that hinder timely deliveries and escalate costs. The concentration of suppliers in specific regions creates systemic risk. Freight bottlenecks and export restrictions further destabilize the production timeline. These disruptions not only delay aircraft deliveries but also inflate engine production costs. Companies are now reassessing supply strategies to build more resilient sourcing networks.
Stringent Environmental Regulations
While sustainability is a growth driver, compliance with ever-tightening environmental standards adds significant pressure on engine makers. The need to meet carbon emissions targets set by international bodies like ICAO requires costly innovations, re-certifications, and process upgrades, creating delays and compliance burdens. OEMs face a dilemma between pushing performance and reducing emissions. New emission benchmarks require re-engineering existing product lines. The push for sustainable aviation fuels (SAFs) also requires engine redesigns for compatibility. Regulatory complexity across different markets further complicates global compliance strategies.
Skilled Workforce Shortages
Building and maintaining advanced aircraft engines require highly skilled aerospace engineers and technicians. However, a global shortage of skilled labor in this sector is becoming increasingly evident, threatening both manufacturing capacity and after-market service reliability across regions. Training new personnel takes years, creating a talent pipeline gap. Many skilled workers are nearing retirement without enough replacements. This shortage also increases labor costs and delays project execution. The lack of specialized skills particularly affects emerging economies trying to scale up domestic engine manufacturing.
Market Opportunity
Growth in Emerging Economies
Emerging markets in Asia-Pacific, Latin America, and Africa are witnessing an increase in air travel due to urbanization and a growing middle class. These regions are investing in airport infrastructure and new aircraft, opening up opportunities for engine manufacturers to tap into new revenue streams. National carriers are expanding aggressively to meet mobility needs. Regional connectivity programs are also catalyzing fleet expansions. Additionally, governments are encouraging aerospace manufacturing through tax incentives and foreign direct investment. As air traffic demand rises, so does the demand for localized engine manufacturing and servicing facilities.
Development of Sustainable Aviation Fuel (SAF) Engines
The industry is focusing on engines that can run efficiently on Sustainable Aviation Fuel (SAF). As governments and aviation bodies push for carbon-neutral operations by 2050, there is a strong market opportunity for engine models that are SAF-compatible, offering a competitive edge to innovators. SAF-compatible engines also qualify for government subsidies and green financing. Airports are increasingly integrating SAF into fuel supply chains. Airlines are entering long-term SAF supply agreements, driving the need for compatible propulsion systems. OEMs that lead in this space will likely capture early market share in green aviation.
Advancements in Digital Twin and Predictive Analytics
The adoption of digital twins and predictive analytics in engine performance monitoring presents a significant opportunity. These technologies help optimize maintenance, improve safety, and reduce downtime, making them attractive value additions for both commercial and military applications. Real-time insights reduce unexpected engine failures. Predictive systems optimize maintenance intervals and reduce costs. Airlines benefit from better fleet uptime and fuel savings. Engine makers also gain from real-time data that enhances product design and aftermarket service offerings.
Retrofit and Modernization Programs
Many airlines are investing in retrofitting older aircraft with modern engines to improve efficiency and lifespan. This opens up a lucrative aftermarket for engine upgrades, replacement parts, and maintenance services, thereby offering continuous revenue even after original equipment sales. Retrofit programs are particularly active in North America and Europe. These initiatives extend aircraft service life while reducing emissions. MRO providers and OEMs are collaborating to deliver turnkey engine upgrade solutions. These long-tail service contracts offer recurring revenues over years.
Market Segmentation
Based on Aircraft Type
• Fixed Wing Aircraft
• Rotary Wing Aircraft
Based on Engine Type
• Turboprop
• Turbofan
• Turboshaft
• Piston Engine
Based on End User
• Commercial Aircraft
• Military Aircraft
• Others
Based on Region
• North America
o U.S.
o Canada
o Mexico
• Europe
o UK
o France
o Germany
o Italy
o Spain
o Russia
o Belgium
o Netherlands
o Austria
o Sweden
o Poland
o Denmark
o Switzerland
o Rest of Europe
• Asia Pacific
o China
o Japan
o South Korea
o India
o Thailand
o Indonesia
o Vietnam
o Malaysia
o Philippines
o Taiwan
o Rest of Asia Pacific
• Latin America
o Brazil
o Argentina
o Peru
o Chile
o Colombia
o Rest of Latin America
• Middle East & Africa
o GCC Countries
o South Africa
o Rest of the Middle East and Africa
Regional Analysis
North America
North America holds a dominant position in the aircraft engine market due to strong demand from both the commercial and military sectors. The presence of key players like GE Aviation, Pratt & Whitney, and Honeywell Aerospace, along with robust government defense spending, supports continued innovation. The U.S. also leads in R&D investment and exports of aircraft engines worldwide. Strong aviation infrastructure and established MRO hubs further reinforce the region's lead. Additionally, defense procurement programs in the U.S. and Canada bolster the military segment. Strategic partnerships with global OEMs contribute to high production capacity and innovation.
Europe
Europe is another significant contributor, led by Rolls-Royce and Safran Aircraft Engines. The region benefits from collaborative R&D programs across the EU and a growing focus on green aviation. Environmental regulations drive innovation in sustainable engines, while nations like France, Germany, and the UK invest in defense modernization and air cargo. The EU's push for SAF adoption is accelerating compatible engine demand. European OEMs are also investing in hydrogen and hybrid-electric propulsion technologies. Government subsidies and aviation decarbonization policies support a thriving innovation ecosystem. Local airlines' fleet renewal also contributes to steady demand.
Asia Pacific
Asia Pacific is the fastest-growing region, driven by increasing air passenger traffic, rising airline fleets, and expanding defense budgets. China's AECC is making substantial advancements in indigenous engine development. India, Japan, and South Korea are also investing in next-gen military aircraft, offering new market potential for OEMs and joint ventures. Countries are focused on building domestic aerospace capabilities. Growing demand for regional jets and low-cost carriers supports turboprop and narrow-body engine demand. Partnerships with global players are accelerating local production. The region's economic momentum and defense spending make it a long-term growth driver.
Latin America and Middle East & Africa
These regions are gradually expanding their aviation sectors. In Latin America, Brazil leads in regional aviation and engine MRO activities. Meanwhile, the Middle East sees strong demand for wide-body aircraft engines due to the international operations of carriers like Emirates and Qatar Airways. Africa's market is smaller but gaining traction through infrastructure development and regional connectivity programs. Oil-rich GCC countries are investing in defense fleets and airline modernization. Latin America's emerging low-cost carrier market is spurring engine sales. African nations are entering partnerships to build domestic aviation capabilities. Though relatively smaller, these markets are rapidly evolving.
Top Companies
• General Electric (GE) Aviation
• Rolls-Royce Holdings plc
• Pratt & Whitney (Raytheon Technologies Corporation)
• Safran Aircraft Engines
• Honeywell Aerospace
• MTU Aero Engines AG
• IHI Corporation
• Aero Engine Corporation of China (AECC)
• Klimov (United Engine Corporation)
• Engine Alliance (GE Aviation and Pratt & Whitney Joint Venture)
Recent Developments
• In July 2025, GE Aerospace received U.S. government authorization to restart exports of its LEAP-1C and CF34 engines to China's COMAC. This approval marks a critical step in reviving engine supply for the C919 and C929 aircraft, potentially easing trade tensions between the U.S. and China.
• In June 2025, Rolls-Royce secured an order from AviLease for 20 Trent XWB-97 engines, designated to power ten Airbus A350F freighter jets. This transaction formed part of a broader announcement where Rolls-Royce revealed it had clinched contracts for 142 aircraft engines that month, reinforcing its leadership in high-thrust engine solutions for cargo operations.
Reasons to Purchase this Report:
• Gain in-depth insights into the market through both qualitative and quantitative analyses, incorporating economic and non-economic factors, with detailed segmentation and sub-segmentation by market value (USD Billion).
• Identify the fastest-growing regions and leading segments through analysis of geographic consumption trends and the key drivers or restraints affecting each market.
• Track the competitive landscape with updated rankings, recent product launches, strategic partnerships, business expansions, and acquisitions over the past five years.
• Access comprehensive profiles of key players, featuring company overviews, strategic insights, product benchmarking, and SWOT analyses to assess market positioning and competitive advantages.
• Explore current and projected market trends, including growth opportunities, key drivers, challenges, and limitations across developed and emerging economies.
• Leverage Porter's Five Forces analysis and Value Chain insights to evaluate competitive dynamics and market structure.
• Understand how the market is evolving and uncover future growth opportunities and emerging trends shaping the industry.
Related Reports -
Aircraft Tires Market- https://www.credenceresearch.com/report/aircraft-tires-market
Aircraft Doors Market- https://www.credenceresearch.com/report/aircraft-doors-market
Follow Us:
https://www.linkedin.com/company/credenceresearch/
https://www.facebook.com/CredenceResearch
Credence Research Europe LTD - 128 City Road, London, EC1V 2NX, UNITED KINGDOM
Credence Research is a viable intelligence and market research platform that provides quantitative B2B research to more than 2000 clients worldwide and is built on the Give principle. The company is a market research and consulting firm serving governments, non-legislative associations, non-profit organizations, and various organizations worldwide. We help our clients improve their execution in a lasting way and understand their most imperative objectives.
This release was published on openPR.
Permanent link to this press release:
Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Aircraft Engine Market to Reach USD 187.4 million by 2032, Growing at a CAGR of 7.53% says Credence Research here
News-ID: 4138728 • Views: …
More Releases from Credence Research Inc.

Magnetic Building Blocks Market to Reach USD 1910.8 million by 2032, Growing at …
Market Overview
The Global Magnetic Building Blocks Market is projected to grow from USD 894 million in 2024 to an estimated USD 1,910.8 million by 2032, exhibiting a strong compound annual growth rate (CAGR) of 9.96% from 2025 to 2032. This impressive growth trajectory reflects a rising global demand for educational and interactive toys that support STEM (science, technology, engineering, and mathematics) learning from an early age.
Magnetic building blocks have evolved…

Flow Meter Market to Reach USD 14,364 million by 2032, Growing at a CAGR of 6.7% …
Market Overview
The Global Flow Meter Market is projected to grow from USD 8,550 million in 2024 to USD 14,364 million by 2032, reflecting a compound annual growth rate (CAGR) of 6.7%. This growth is driven by increasing demand for accurate fluid measurement technologies across key industries such as oil & gas, pharmaceuticals, water treatment, and chemicals. As industries undergo rapid digitization and infrastructure upgrades, flow meters are becoming essential tools…

Automatic Goat Waterer Market to Reach USD 503.35 million by 2032, Growing at a …
Market Outlook
The Automatic Goat Waterer market size was valued at USD 229.52 million in 2018, increased to USD 323.45 million in 2024, and is anticipated to reach USD 503.35 million by 2032, at a CAGR of 5.29% during the forecast period. This growth trajectory reflects the increasing demand for automated livestock management solutions, particularly in the goat farming sector.
Automatic goat waterers have transformed traditional animal hydration systems, offering efficient, hygienic,…

Fat Filled Milk Powder Market to Reach USD 18,259.1 million by 2032, Growing at …
Market Outlook
The Fat Filled Milk Powder Market is projected to grow from USD 8,899 million in 2024 to an estimated USD 18,259.1 million by 2032, with a compound annual growth rate (CAGR) of 9.4% from 2024 to 2032. This significant growth reflects a global shift toward cost-effective dairy alternatives. Fat filled milk powder (FFMP), made by combining skimmed milk powder with vegetable fats, replicates the functional properties of whole milk…
More Releases for Aircraft
Private Plane Market Analysis By Top Keyplayers - American Champion Aircraft, Bu …
The "Private Plane Market" is expected to reach USD xx.x billion by 2031, indicating a compound annual growth rate (CAGR) of xx.x percent from 2024 to 2031. The market was valued at USD xx.x billion In 2023.
Growing Demand and Growth Potential in the Global Private Plane Market, 2024-2031
Verified Market Research's most recent report, "Private Plane Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2030," provides an in-depth…
Aircraft Lighting Systems Market : Commercial Aircraft, General Aviation and Pri …
According to a new report published by Allied Market Research, titled, "Aircraft Lighting Systems Market," The aircraft lighting systems market was valued at $1.5 billion in 2020, and is estimated to reach $2.3 billion by 2030, growing at a CAGR of 4.9% from 2021 to 2030.
𝐑𝐞𝐪𝐮𝐞𝐬𝐭 𝐑𝐞𝐩𝐨𝐫𝐭 𝐒𝐚𝐦𝐩𝐥𝐞 𝐏𝐃𝐅 : https://www.alliedmarketresearch.com/request-sample/2405
The aircraft lighting system industry holds a great potential in the future, owing to the rise in the global aviation…
Aircraft Refurbishing Market : Very light aircraft, Wide body aircraft, Narrow b …
The global aircraft refurbishing market was valued at $456.7 million in 2021, and is projected to reach $932.5 million by 2031, growing at a CAGR of 7.2% from 2022 to 2031.
Sample Report with Latest Industry Trends - https://www.alliedmarketresearch.com/request-toc-and-sample/9465
COVID-19 scenario analysis:
Aircraft refurbishing market might be among those exceptions of industries which are surviving despite COVID-19 pandemic, even more demand is expected to soar post pandemic.
Aircraft refurbishing market as a whole was…
Aircraft Refurbishing Market : Very light aircraft, Wide body aircraft, Narrow b …
The global aircraft refurbishing market was valued at $456.7 million in 2021, and is projected to reach $932.5 million by 2031, growing at a CAGR of 7.2% from 2022 to 2031 by Refurbishing Service (Interior, Exterior), by Aircraft Type (Very light aircraft, Wide body aircraft, Narrow body aircraft, Large body aircraft, VIP aircraft), by Type (Passenger to freighter, Commercial Aircraft Cabin, VIP Cabin Refurbishing), by End Use (Government, Commercial): Global…
Global Aircraft Line Maintenance Market By Aircraft Type: Narrow Body Aircraft ( …
According to the latest research by SkyQuest Technology, the Global Aircraft Line Maintenance Market was valued at USD 18.38 billion in 2021, and it is expected to reach USD 28.53 billion by 2028, with a CAGR of 5.80% during the forecast period of 2022 - 2028. The research provides up-to-date Aircraft Line Maintenance market analysis of the current market landscape, latest trends, drivers, and overall market environment.
Get full report…
Aircraft Cables Market End User (Commercial Aircraft, Private Aircraft, Defense …
Aircraft cable is a type of cable, which mainly finds application in the aircraft industry. The high strength and versatile aircraft cable can also be used for various pushing and pulling applications that includes sheaves, pulleys, and winches among others. The size of the aircraft cable is between 0.047 inches to 0.375 inches, and constructed in various strand namely 1X7 strand, 1X19 strand, 7X7 strand, and 7X19 strand.
Get Sample…