Industry Analysis
The global aircraft engine market size stood around USD 90,431.9 million in 2022 and is estimated to reach USD 227,502.3 Million by 2032, with a CAGR of 9.67% in the forecast period, 2023-2032. An aircraft engine is part of the propulsion system that generates mechanical power. Aircraft engines might be gas turbines or light piston engines.
The expansion of the aircraft engine market is anticipated to grow with the rise in air passenger traffic during the forecast period. The total number of passengers flying had grown by 19% as of 2020. Several airlines are replacing their fleets with new aircraft to manage the growth in air traffic, which increases the demand for new engines. As per IATA, there will be 8.2 billion travelers worldwide by 2037. As a result, the surge in air travel is expected to fuel the growth of the aircraft engine market.
Market Dynamics
This section covers the market drivers, opportunities, restraints, and challenges.
- Drivers
- Rising demand for fuel-efficient aircrafts engines
Airlines are focused on having engines with improved fuel efficiency. Certain aircraft released pollutants like nitrous oxide can be reduced by using engines with improved fuel economy. The fuel is also influenced by the size of the aircraft; the larger the aircraft, the more fuel it will consume. As a result, aircraft manufacturers like Airbus and Boeing are working to develop the most fuel-efficient aircraft designs.
Nonetheless, many airlines still believe that smaller aircraft are more fuel-efficient. The Boeing 787 and Airbus A350 are examples of smaller twin-engine wide body that are believed to be more fuel-efficient. As a result, their demand is rising across the aircraft industry. Because it provides the best balance, the Rolls-Royce Trent XWB engine was created expressly for the Airbus A350. Advantages of this engine include fuel efficiency, a longer lifespan, reduced weight, and superior aerodynamics, which are critical for aircraft engines requiring less fuel while they are operating.
- Worldwide increase in aircraft deliveries and in airline passengers
The growth in global aircraft traffic, fleet modernization program that incorporates fuel-efficient engines, and a gradually accelerating rate of engine deliveries by manufacturing companies have all been implemented to encourage commercial opportunism in the aircraft engine industry. In March 2022, Boeing and Airbus delivered 41 and 63 commercial aircraft respectively. In comparison to the 77 Boeing and 125 Airbus deliveries in the first quarter of 2021, Boeing had delivered 95 aircraft and Airbus had delivered 142 as of 2022. The first three months of previous year's totals were surpassed by Boeing and Airbus by 18 and 17 deliveries, respectively.
While optimizing their manufacturing processes, enterprises are expanding their production capacity. Boeing delivered 41 aircraft in March 2022, including one 777F, three 767s, and 37 737s (35 MAX/ 2 NG). The official production rate for the 737 program is now 27 per monthand it is almost at the short-term target of 31 per month. According to Reuters, Boeing intends to raise 737 productions to 38 aircraft per month in the first half of 2023 and to 47 aircraft per month by the end of the year. Additionally, the demand for aircraft engines has been primarily driven by commercial travel and increased defense spending, particularly in the US.
- Restraints
- Changing consumer dynamics
Both population increase and economic expansion are primarily driven by an aging and a growing middle-class population. The global economy is anticipated to expand by 3% per year by 2035, but airline traffic is anticipated to increase by 6% annually. The second stage of evolution is the advent of low-cost airlines with affordable prices on the busiest routes. They have significantly expanded air travel in Europe, which currently accounts for about 40% of all travel on the continent and 25% of all travel worldwide. These companies have a significant impact on airline fares by compelling foreign carriers to reduce ticket prices.
- Opportunities
- Growing demand for electric aircraft engines
The introduction of aircraft for urban air mobility, as well as the growing use of electric aircraft for cargo transport and other specialized aerial jobs, are the main factors driving the growth of aircraft engines. Around 915 million tons of carbon dioxide were produced by international flights in 2019, according to the Air Transport Action Group (ATAG). The global aircraft industry generates 2% of all human-caused CO2 emissions.
The size of the global aircraft fleet and air traffic are both expected to grow, which will cause these numbers to increase even further. Therefore, the aircraft industry urgently needs electric aircraft to reduce its carbon footprint. The volume of emissions produced by aircraft is expected to have tripled by 2050, according to the International Civil Aircraft Organization, the Federal Aircraft Administration, and the European Union Aircraft Safety Agency. These organizations have called for sustainable alternatives to aircraft fuel.
- Rising demand for zero-emission aircraft
Traditional aircraft use a lot of jet fuel, which results in significant increases in CO2 emissions as well as the amount of other chemicals and pollutants in the environment. Emissions caused by sulfur aerosols and water contrails have a significant impact on global warming. These elements necessitate immediate action from the leading aircraft companies (Airbus, Boeing, and others) to switch to cleaner fuels (hydrogen or battery packs), from the government to establish regulations to track the emissions produced by current aircraft, and from the private sector to implement policies to support the impending introduction of carbon-neutral aircraft.
According to Fox News, United Airlines started using lighter paper to print its in-flight magazine in 2018, which helped to cut the magazine's weight by 1 ounce. United Airlines operated 744 mainline 210-seat aircraft. In the same year, this technique lowered gasoline consumption by 170,000 gallons, resulting in a profit. More than half of all money is spent on fuel due to the low profit margins in the aircraft industry and the rising demand for aircraft. Hence, an electric engine, which may take the place of a traditional aero plane engine, has the potential to significantly lower fuel expenditures while also protecting the environment.
- Challenges
- Stringent regulatory environment for aircraft engine manufacturing and MRO
A barrier to adopting aircraft engines is the cost of implementation. The primary considerations in adopting any new technology are cost and ROI. The company's administration is curious whether adopting new technology will result in company improvements. The ROI for approving aircraft engines is not clear, a number of businesses are hesitant to adopt the new technology.
Aircraft engines can result in significant cost savings for a business. It can also help modernize the company's operations and reduce storage costs. Digitally signed documents take up far less space than original documents signed with pen and paper. The cost savings from eliminating paper documents can be substantial. Furthermore, using digital technology reduces the cost, effort, and time required to process labor-intensive documents.
- Inadequate supply chain and growing backlogs
Cross-border trade, the unexpected COVID-19 outbreak by the end of 2019, the adoption of trade and travel restrictions overseas in 2020 and 2021, and the Ukraine-Russia war in 2022 have all presented significant challenges. Governments all across the world are moving away from relying on European trade blocs and prioritizing the interests of countries in Asia Pacific, Africa, and the Middle East. The infrastructure for inter-European trade has undergone a major transformation that has resulted in significant economic losses.
Type Insights:
The turbine engine segment is further segmented into turboprop, turbofan, and turboshaft. According to a report published by the US Federal Aircraft Administration (FAA), fuel efficiency has been a primary driving force in the development of turbofan engines. Turbofan engines have larger bypass ratios, which indicates that a greater amount of air bypasses the engine's combustion chamber result in superior fuel economy. According to the FAA, new turbofan engines can save up to 16% more fuel than older engine designs. Environmental regulations are another driving force in the turbofan segment. The International Civil Aircraft Organization (ICAO) has established targets for lowering aircraft emissions of CO2, NOx, and other pollutants. Turbofan engines are being developed with technologies such as lean-burn combustion, innovative materials, and enhanced aerodynamics to meet these regulations.
Platform Insights:
On the basis of Platform, the aircraft engine market has been segmented into fixed wing, rotary wing, and UAV. The fixed wing segment accounted for the largest market share of XXX% in 2023. According to the US Federal Aircraft Administration (FAA), fixed-wing aircraft engines must meet stringent performance, safety, and efficiency criteria. Manufacturers are always innovating new technologies to improve engine performance, such as increased thrust and fuel efficiency. Airlines and operators are looking for engines with low operating costs and good reliability, which has resulted in longer maintenance intervals and fewer emissions. Fixed-wing aircraft accounted for 89% of all general aircraft shipments in the US as of September 2021, with the majority powered by piston engines, while bigger commercial aircraft largely powered by turboprop and turbofan engines.
Component Insights:
On the basis of component, the aircraft engine market has been segmented into compressor, turbine, gear box, exhaust nozzle, fuel system, and others. The turbine segment accounted for the largest share in 2022 and is projected to dominate the market during the forecast period. Many factors influence the turbine sector of aircraft engines, including efficiency, dependability, weight, and performance. These elements are crucial for the development of aircraft engines that match modern aircraft requirements.
Technology Insights:
By technology, the aircraft engine market has been segmented into conventional engine and electric/hybrid engine. The conventional engine segment accounted for a larger share in 2022 and is projected to dominate the market during the forecast period. Major aircraft engine producers currently control the majority of the market for conventional aircraft engines. Yet, as the need for greater functionality from a normal aircraft engine grows, a number of new businesses are creating ground-breaking technologies to create aircraft engines that are more reliable and efficient than those already in use. Typically, petrol turbines or piston engines are used in aircraft. Turboprop, turbofan, turboshaft, and piston engines are the most common types of aircraft engines. These traditional aircraft engines are used in wide-body and small-body commercial aircraft, unmanned aerial vehicles (UAVs), military aircraft, helicopters, and helicopter-like aircraft. As a result, the need for conventional aircraft engines will increase as the aircraft industry needs more commercial and military aircraft.
Regional Forecast:
Based on region, the global aircraft engine market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
North America:
North America is estimated to dominate the global market with a share of over XXX% of total market in 2023. The US, Canada, and Mexico are considered under North America for market analysis. North America is home to significant aircraft manufacturers like Boeing and Bombardier. The airline industry's competitiveness has increased among carriers during the start of the twenty-first century. Low-cost airlines must operate aircraft with more seats in order to operate the aircraft for less per available seat kilometer, particularly on local routes. The local government is forced to support regional airports and enforce public service obligations on certain routes since air links are crucial for the local economy. With its thorough examination of the primary aerospace industry, this ground-breaking collaboration between the National Air and Space Museum and the American Institute of Aeronautics and Astronautics charts the development of the compact gas turbine engine.
Europe:
Countries such as France, Germany, Spain, Italy, the UK, Russia, and the Rest of Europe are considered under Europe for market analysis. In the European commercial sector, aircraft engines are expected to be installed in newly constructed commercial aircraft at a rapid pace in order to meet the growing passenger load on airlines. Increased defense spending on fighter jets, military helicopters, single-engine planes, and emergency medical services helicopters. As a direct response to Russia's invasion of Ukraine, member states have already announced an increase in their defense spending reaching more than USD218billion in the coming years. Overall, EU defense spending increased by 20%. Without a coherent plan, the increase in spending risks producing further fragmentation and undoing the benefits made thus far. The European Defense Fund's first request for proposals resulted in the selection of 61 collaborative defense research and development projects, which the commissions announced plans to support around USD1.3 billion in total EU funding in July 2022.
Asia Pacific:
The aircraft engine market in Asia Pacific is expected to grow at the highest CAGR during the forecast period. As a result, the country now has a tremendous demand for fighter jets and military helicopters. The region's expanding air passenger traffic has boosted the requirement for new aircraft purchases, which is expected to support the market's expansion. In order to handle the rising air traffic, several airlines are modernizing their fleets with new aircraft, which calls for new engines.
The income generated by the aircraft sector in the region increased (nearly by 50% in India). As a result, there has been a momentary sharp decline in the demand for both aircraft and aircraft engines. Due to the favorable government policies and easy access to low-cost manual resources, Singapore has developed into a global hub for MRO activities. An extensive and diverse ecosystem that offers complete nose-to-tail services for avionics, parts, and engines is present in Singapore.
South America:
The South American market for aircraft engines is expected to grow steadily during the forecast period. Due to the increase in local air traffic, there is an increasing need for commercial aircraft. Commercial helicopters and aircraft production rates have increased. With this increase, the demand for aircraft engines is expected to grow in this region.
Middle East & Africa:
Despite the fact that air travel, aircraft manufacturing, and purchases are all on the rise, 400 to 600 commercial aircraft units are retired, ruled out (due to age), and destroyed each year, resulting in a ton of trash. There are 1,000 tons of carbon fiber, 1,800 tons of alloys, 30,000 tons of aluminum, and 600 tons of other scrap materials among the massive amount of rubbish. In response to growing environmental concerns, government organizations and aerospace businesses such as Pratt & Whitney have devised innovative methods to replace existing, newly obtained raw materials used in the production of aircraft parts with recycled and renewable resources. As a result, many nations' measures to expand the use of USM. This, in turn, will propel the aircraft engine market during the projection.
Leading Companies:
Companies operating in the global aircraft engine market are implementing strategies such as mergers & acquisitions, business expansions, collaborations, partnerships, joint ventures, and new product launches to increase their market share. The growing number of competitors in the market across regions is expected to further fuel market expansion. Rising expenditures in product capabilities and company expansion by renowned suppliers are projected to support the market. Many market participants are witnessing promising opportunities in developing nations like China and India, where the vast population are combined with recent advancements in a range of industries.
Some prominent players in the global aircraft engine market include:
- General Electric Company (US)
- Rolls-Royce Plc (UK)
- Collins Aerospace (US)
- Safran SA (France)
- Honeywell International, Inc (US)
- UEC Aviadvigatel (Russia)
- IHI Corporation (Japan)
- Engine Alliance LLC (US)
- Textron Inc (US)
- International Aero Engines (US)
- MTU Aero Engines (Germany)
- Pratt and Whitney (US)
- Barnes Group Inc (US)
Recent Developments:
- In July 2022, the twin-engine, large-utility turboprop Cessna SkyCourier has started to be produced at Textron Aircraft 's Wichita manufacturing site.
- In February 2022, a new facility in Bengaluru constructed by Pratt & Whitney specifically for providing contract engineering services.
Market Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2032. Therefore, Quince Market Insights has segmented the global aircraft engine market report on the basis of Type, Platform, Component, Deployment, Organization size, Industry Verticals and region:
By Type (Revenue, USD Million, 2019-2023)
- Turbine/Non-Piston Engine
- Turboprop
- Turbofan
- Turboshaft
- Piston Engine
- Straight Or In-Line Piston Engine
- Rotary Piston Engines
- V-Type Piston Engine
- Radical Piston Engine
- Horizontally Opposed Piston Engine
By Platform (Revenue, USD Million, 2019-2032)
- Fixed Wings
- Rotary Wings
- UAV
By Component (Revenue, USD Million, 2019-2032)
- Compressor
- Turbine
- Gear Box
- Exhaust Nozzle
- Fuel System
- Fuel Tank
- Fuel Pump
- Fuel Filter
- Fuel Gauge
- Fuel Line
- Fuel Injector
- Electric Control Unit
By Technology (Revenue, USD Million, 2019-2032)
- Conventional Engine
- Electric/Hybrid Engine
Regional Outlook (Revenue, USD Million, 2019-2032)
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Asia Pacific
- China
- India
- Japan
- Australia & New Zealand
- South Korea
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- South Africa
- Rest of Middle East & Africa
What Does This Report Provide?
This report provides a detailed understanding of the global aircraft engine market from qualitative and quantitative perspectives during the forecast period. The report also provides dynamic indicators with potential impact on the market during the forecast period and an in-depth analysis of the leading companies operating in the market. The major market drivers, challenges, and opportunities for the global aircraft engine market have been covered in the report. This report further includes the market shares of the leading companies operating in the global market, along with their production capacities and the growth strategies adopted by them.
Reasons To Buy This Report:
- Market size estimation of the global aircraft engine market on a regional and global basis
- The unique research design for market size estimation and forecast
- Profiling of major companies operating in the market with key developments
- Broad scope to cover all the possible segments helping every stakeholder in the market
Customization:
We provide customization of the study to meet specific requirements:
- By Segment
- By Sub-segment
- By Region/Country
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