Global Aircraft Engine Market to 2028: Surge in Adoption of Cost Effective and Fuel Efficient Aircraft Drives Growth

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Jun 20, 2023, 12:15 ET

DUBLIN, June 20, 2023 /PRNewswire/ -- The "Global Aircraft Engine Market: Analysis By Technology, By Platform, By Engine Type, By Component, By End User, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.

The global aircraft engine market was valued at US$80.09 billion in 2022 and is expected to be worth US$123.88 billion in 2028. The market value is expected to grow at a CAGR of 7.54% during the forecast period of 2023-2028.

An aircraft engine is a crucial component of an aircraft that generates the necessary thrust for flight. It is responsible for converting fuel into mechanical energy, which propels the aircraft forward. Aircraft engines have evolved significantly over time, with advancements in technology and engineering. Modern aircraft engines, such as turbofan engines, are known for their efficiency, reliability, and power.

The demand for aircraft engines has been steadily growing due to increasing global demand for air travel. As economies grow and people's disposable incomes rise, more individuals are opting for air transportation. This trend has led to a surge in airline fleets and the need for additional aircraft engines to power these planes.

Furthermore, emerging markets, particularly in Asia and the Middle East, have witnessed rapid expansion in their aviation sectors. These regions have experienced a rise in passenger numbers and the establishment of new airlines, which in turn drives the demand for aircraft engines.

Competitive Landscape:

The global aircraft engine market is consolidated across five companies: GE, Pratt & Whitney (owned by Raytheon), Rolls-Royce, Safran, and MTU Aero Engines. GE and Safran have a 50/50 JV called CFM International, which dominates the narrow body engine market and enjoys very high margins. GE is also the dominant player in the wide body market.

The key players in the global aircraft engine market are:

Honeywell International Inc.
General Electric Company (GE Aerospace)
Raytheon Technologies Corporation
MTU Aero Engines AG
Safran SA
Rolls-Royce Holdings Plc.
Textron Inc.

Technological advancements in the market are also bringing sustainable competitive advantage to companies, and the market is witnessing multiple partnerships and mergers. For instance, in November 2022, with the first flight of a modern aero engine powered by hydrogen, Rolls-Royce and easyJet officially announced they had achieved a new aviation milestone.

Market Dynamics

Drivers

Increasing Defense Budget
Increasing Airline Capacity
Growth in Cargo Operations
Surge in Adoption of Cost Effective and Fuel Efficient Aircraft
Increasing Commercial Aircraft Deliveries
Introduction of New Fuel Efficient Engines and Aircraft Models

Challenges

High Upfront Investments with Long-term Payback
Technological Complexity
Huge Entry Barriers

Market Trends

Digitalization and IoT Integration
Increasing Use of 3D Printed Parts in Aircraft Engines
Incorporation of Ceramic Matrix Composites (CMCs)
Need to Decarbonize Aviation

Market Segmentation Analysis:

By Technology: The report provides the bifurcation of the market into two segments based on the technology: Conventional Aircraft Engine and Hybrid Aircraft Engine. The conventional aircraft engine segment held the highest share in the market in 2022. Continuous advancements in materials, design, and manufacturing processes contribute to the development of more efficient and powerful conventional aircraft engines. These advancements enhance fuel efficiency, reduce emissions, and improve overall performance. Increased use of conventional engines in current commercial and military aircraft is further driving the demand of the segment. Combustion engines with conventional powertrains offer the best performance in terms of simple layout, well-known and approved technology and excellent performance in terms of mission range.
By Platform: The report further provides the segmentation based on the platform: Fixed Wing Aircraft Engine, Rotary Wing Aircraft Engine, and Unmanned Ariel Vehicles. During the forecast period, the rotary wing aricraft is expected to grow at the fastest CAGR. Rotary wing aircraft or helicopters are used for a wide array of applications such as commercial air transport, emergency medical transport, rescue operations, and many other military and defense applications. The growing demand for all the aforementioned applications has promoted rotary-wing aircraft from past decades. Consequently, the demand for engines for rotary aircraft engines is expected to grow consistently in the following years.
By Engine Type: The aircraft engine market is further bifurcated based on the engine type: Turbofan Engine, Turbojet Engine, Piston and Turboprop Engine and Turboshaft Engine. Turbofan Engine sector held the highest share in the market in 2022. The turbofan engines are commonly used for civil and commercial aircraft. Perpetual development in the field of civil aviation and aircraft engines has been observed for the past few years. This has drawn the attention of many major airline companies to invest in advanced turbofan engines. The demand for such engines is rising consistently due to its fuel economy and reliability of the engines. Owing to the aforementioned factors, the market for the turbofan engine is expected to grow throughout the forecast period.
By Component: The report provides the bifurcation of the market into into six segments based on the component: Combustor, Turbine, Compressor, Fan, Mixer and Nozzle. Combustor segment held the highest share in the market in 2022. The combustor is responsible for the combustion process, where fuel and air are mixed and ignited. The growth of this segment is driven by the need for more efficient and environmentally friendly engines. Stringent regulations regarding emissions and fuel efficiency have led to the development of advanced combustor technologies, such as lean-burn and low-emission designs. Additionally, the increasing demand for lightweight and durable combustors that can withstand high temperatures and pressures fuels the growth of this segment.
By End User: The report provides the bifurcation of the market into into two segments based on the end user: Commercial & Military. In 2022, commercial segment hold a dominant position in the aircraft engine market and is expected to continue the dominance during the forecasted period as well. Consistently growing trade and passenger transport among different countries has boosted the commercial aviation industry significantly. The blooming aviation industry has generated the demand for new and advanced aircraft. Manufacturers are continuously engaged in the enhancement of current engines for a more economical and comfortable aviation experience. With the perpetual growth of commercial aviation, the market segment is expected to dominate the overall aircraft engines market throughout the forecast period.
By Region: The report provides insight into the aircraft engine market based on the geographical operations, namely North America, Europe, Asia Pacific, and ROW. The North American region has emerged as a dominant player in the aircraft engine market, the aviation industry is one of the most profitable industries in North America. Major aircraft manufacturers such as Boeing and Bombardier are based in this region. The high disposable incomes of consumers in North America have contributed to the rise in air travel, which, in turn, is leading to an increase in air passenger traffic. This rise in air passenger traffic has led to an increase in the number of aircraft deliveries in this region, which is leading to the high demand for aircraft engines. The region has been benefiting from low oil prices, improved efficiency in aircraft operations, and a steady labor market. Thus, the profitability of airline owners is higher in North American countries. These are the factors due to which North America is the largest market for aircraft engines.
During the forecast period, Asia-Pacific is anticipated to expand rapidly. The Asia Pacific region has experienced significant growth in air travel demand, driven by a growing middle class, increasing disposable income, and the emergence of low-cost carriers. This surge in passenger traffic has led to increased aircraft orders and subsequent demand for aircraft engines. Many countries in Asia Pacific, including China and India, are investing heavily in airport infrastructure development. The expansion of airports and the establishment of new ones create opportunities for aircraft engine manufacturers as airlines expand their fleets.

For more information about this report visit https://www.researchandmarkets.com/r/2lggl6

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