Aircraft Engine Market

The Aircraft Engine Market was valued at $60.8 billion in 2021 and is estimated to grow from $75.1 Billion in 2023 to $93 Billion by 2026 at a CAGR (Compound Annual Growth Rate) of 8.9%. during the forecast period. Aircraft Engines can be used by different forms of aircraft to improve operational efficiency and be safer and more reliable. Aircraft engines are prominent in narrow-body aircraft, wide-body aircraft, private jets, transport aircraft, fighter aircraft, commercial and military helicopters, UAVs, etc.

Increasing commercial aircraft operations are most likely to drive the growth of aircraft engines in the future. Major countries in Asia Pacific, North America, and Europe are seeing a rise in military operations, which increases the demand for aircraft engines in military aircraft. Also, replacement services will also be a factor in driving the Aircraft Engine Industry. These engines will also emerge useful in UAVs.

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COVID-19 Impact on the Aircraft Engine Market

The COVID-19 and resultant lockdowns have adversely impacted the aviation industry. This pandemic has resulted in the standstill of aircraft as a mode of transport. According to the International Air Transport Association (IATA), every year, over 2 billion people take aircraft as their mode of transportation. Due to the outbreak of COVID-19, the year 2020 witnessed over 60% loss in global air traffic, which bought the aviation industry to a standstill. Several companies have already implemented policies to restrict non-essential travel to protect their employees. Remote and flexible working arrangements have been considered, and supply chains have become highly sophisticated and vital to the competitiveness of many companies. But their interlinked, global nature also makes them increasingly vulnerable to a range of risks, with more potential points of failure and less margin of error for absorbing delays and disruptions. New supply chain technologies are emerging, which can dramatically improve visibility across the end-to-end supply chain and support more supply chain agility and resiliency without the traditional overhead associated with risk management techniques.

The spread of COVID-19 has also compelled companies to implement a remote working and digital technologies for business continuation and fleet optimization. For example, aircraft companies and OEMs are using AI for predictive maintenance, intelligent scheduling, real-time analytics, and improving performance. Currently, companies like C3 AI (Redwood City, California) and Honeywell International Inc. provide software that are working on the fleet of the US Air Force and commercial aircraft carrier companies to provide data for timely maintenance using AI.

Aircraft Engine Market Dynamics

Driver: Increasing operations in commercial aircraft industry

The commercial aircraft industry majorly consists of two segments which are the passenger aircraft industry and cargo aircraft industry. In recent times both industries have seen a rapid rise in operations which provided a boost to the commercial aircraft industry. With rising air traffic, the industry has seen a leap in its market which also did hold a greater promise, but the unexpected phenomenon of Covid-19 has bought the industry to a downside with the demand aircraft as global mode of transport has gone down globally.

Industries and key players around the world are finding ways to create safer and more reliable form of transportation. Hence, a rapid rise has been noticed in the commercial aircraft industry. According to Boeing commercial market outlook 2020-2039, the airline traffic growth is expected to be more than 4% and the highest rise will be seen in the Asia Pacific region. They have also projected that they will be delivering 43,110 new commercial airlines across seven regions with the highest numbers of commercial airlines being delivered in the Asia Pacific region. This will help the industry boost in the future also help the aircraft engine market to rise during the forecasted period.

Restrain: High cost of Aircraft engine  

The cost of aviation engines is a substantial portion of the overall acquisition cost of an aircraft. High engine prices can make new aircraft prohibitively expensive for many airlines and operators. This can deter potential buyers from upgrading their fleets or purchasing new aircraft, leading to slower growth in the market. High engine costs contribute to higher operating expenses for airlines. Fuel-efficient engines can help offset these costs over time, but the initial capital outlay for expensive engines can strain an airline's financial resources, especially for smaller carriers or those in less economically developed regions. Also airlines operate in a highly competitive market, and they often need to manage tight profit margins. The high cost of aircraft engines can put pressure on airlines to either increase ticket prices or cut costs elsewhere, potentially affecting their ability to compete effectively. These loss associated with the high aircraft engine cost becomes an restrain for aircraft engine market.

Opportunity: Unmanned ariel vehicles industry

Recent times have noticed a rise in unmanned ariel vehicle operation in many regions of Europe and North America. Many of the key players from the industry such as Honeywell International, Rolls Royce PLC and Safran have been rigorously testing the capabilities of drone for commercial and military purposes in order to make it safe and efficient ariel vehicle alternative. With the increase in testing operations with a scope of needing these aircrafts for better operational efficiency there will be rise in aircraft engine for the unmanned ariel vehicle segment in the coming future. Company like Safran have already been developing technologies related to drones, recently the company developed electrical and power method for the drone start-up XSun where they powered the drone with solar sensors by winning the contract for pre series drone SX1.2.

Challenge: Stringent regulatory environment for aircraft engine manufacturing and MRO

Aviation authorities, such as the Federal Aviation Administration (FAA) in the United States and the European Union Aviation Safety Agency (EASA), imposes strict safety and certification standards for aircraft engines. Under which Manufacturers need to adhere to these regulations to ensure that engines are safe and reliable. Compliance with these stringent requirements are time-consuming and costly where Meeting rigorous regulatory standards requires extensive testing, documentation, and quality control measures. This can increase the cost of developing and certifying new engines and lead to longer development cycles. Due to which, manufacturers hesitates to invest in research and development, slowing down innovation and the introduction of new, more efficient engines to the market. Also he aviation industry's regulatory environment is highly complex and constantly evolving. Manufacturers must stay up to date with changing regulations, which can add complexity to their operations. Different countries and regions have their own sets of regulations and certification processes, leading to a fragmented regulatory landscape. The MRO segment of the aircraft engine market is also subject to strict regulatory oversight. MRO providers must comply with detailed maintenance, inspection, and repair requirements to ensure the continued airworthiness of engines. These regulations can increase operational costs for MRO facilities and lead to higher prices for their services.

Turbofan aircraft engine type is projected to witness a higher CAGR during the forecast period

A turbofan engine which is also referred to as a fanjet or bypass engine, is a jet engine variant which produces thrust using a combination of jet core efflux and bypass air which has been accelerated by a ducted fan that is driven by the jet core. The ratio of the mass of air bypassing the engine core versus the mass of the air going through the core is referred as bypass ratio. A turbofan engine that derives most of its thrust for jet engine core efflux is referred to as low bypass engine and when the engine derives most of its thrust from its fan then it is referred to as high bypass engine. The turbofan aircraft engines are projected to grow at the highest CAGR rate for the aircraft engine market during the forecast period. Turbofan engines are much more capable of flying at a higher altitude when compared to other engines, these engines also have a less amount of noise as compared to others, they are the most suitable engine for long-range flights because of their lighter weight.

The unmanned aerial vehicle is projected to witness the highest CAGR during the forecast period

Based on the aircraft type, the UAV  is projected to grow at the highest CAGR for the aircraft engine market during the forecast period. The commercial and industrial applications of UAVs are diverse and rapidly expanding. Drones are being used in agriculture, construction, surveying, infrastructure inspection, environmental monitoring, and more. The demand for UAVs in these sectors is driven by their ability to enhance efficiency, reduce costs, and improve safety whereas the Regulatory frameworks for UAVs are evolving to accommodate their increasing use in various industries. As regulations become more well-defined and supportive of commercial drone operations, it encourages businesses to invest in UAV technology. This clarity reduces uncertainty and fosters market growth. UAV technology continues to advance at a rapid pace. Improvements in battery life, sensors, communication systems, and autonomous navigation capabilities make drones more capable and versatile. These advancements open up new opportunities and use cases, driving demand.

The turbine is projected to witness the highest CAGR during the forecast period

Based on the component, the turbine is projected to grow at the highest CAGR for the aircraft engine market during the forecast period. A turbine is a rotary engine that Is used to extract energy from a flow of combustion gases. So, a turbine harnesses the kinetic energy of these gases and turns them into rotational motion. A turbine in an aircraft engine is composed of a series of blades and allows the flow of gases to enter the turbine which pushes the blade. This creates a rotational motion after which the gases are ejected which has lesser energy.

Conventional aircraft engine projected to witness the highest CAGR during the forecast period

Based on technology, the conventional aircraft engine segment is projected to grow at the highest CAGR rate for the aircraft engine market during the forecast period. A conventional aircraft is also referred as aero engine. It is the major power component for the propulsion system of the aircraft. Majority of the aircraft engines are either piston aircraft engine or a gas turbine aircraft engine. Some of major types of aircraft engines are turboprop aircraft engine, turbofan aircraft engine, turboshaft aircraft engine and piston aircraft engine.

The North American market is projected to contribute the largest share from 2021 to 2026

North America is projected to be the largest regional share of the aircraft engine market during the forecast period. The key factor responsible for North America, leading the aircarft engine market owing to the rapid growth of the technologically advanced aircraft engine in the region. In North America, the rise in manufacturing industries and growing aerospace and defence aviation industry is encouraging manufacturers of aircraft engine to introduce technologically advanced and efficient products across various aircraft type. The increasing demand for aircraft engine and the presence of some of the leading players operating in the market, such as General Electric Company, Honeywell International Inc., Collins Aerospace, and Textron Inc. are expected to drive the aircraft engine market in North America. These players are focusing on R&D to increase their product lines and using technologically advanced systems, subsystems, and other components for manufacturing Aircraft engine.

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Top Aircraft Engine Companies - Key Market Players

The Aircraft Engine Companies are dominated by globally established players such as General Electric Company (US), Safran SA (France), Honeywell International Inc (US), MTU Aero Engine (Germany), and Rolls Royce PLC (UK).

Aircraft Engine Industry Report Scope:

The study categorizes the aircraft engine market based on Type,  Component, Platform, Technology, and Region.

Aircraft Engines Market By Type

• Turboprop
• Turbofan
• Turboshaft
• Piston Engine

By Component

• Compressor
• Turbine
• Gearbox
• Exhaust System
• Fuel System
• Others

By Platform

• Fixed Wing Aircraft
• Rotary Wing Aircraft
• Unmanned Ariel Vehicles

Technology

• Conventional
• Hybrid

Aircraft Engines Market By Region

• North America
• Asia Pacific
• Europe
• Middle East
• Latin America

Recent Developments

• Safran Helicopter Engines and ST Engineering signed a Memorandum of Understanding (MoU) in February 2022 to perform research on the use of Sustainable Aviation Fuel (SAF) in helicopter engines. The study's goal is to help helicopter operators transition from traditional fossil fuels to SAF.
• Embraer, Widere, and Rolls-Royce signed a research cooperation agreement in February 2022 to perform a 12-month study and investigate breakthrough sustainable technologies for regional planes, with an emphasis on building hypothetical zero-emissions aircraft.

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