Aircraft Propulsion System Market Expected to Reach $84.5 Billion by 2033

According to a new report published by Allied Market Research, titled, “Aircraft Propulsion System Market," The aircraft propulsion system market size was valued at $50.8 billion in 2023, and is estimated to reach $84.5 billion by 2033, growing at a CAGR of 5.4% from 2024 to 2033.

An aircraft propulsion system refers to the mechanism that is responsible for powering an aircraft by creating forward motion and through the interaction of mechanical, thermodynamic, or electric processes. Aircraft propulsion system includes technologies such as piston engines, jet engines, or electric motors to meet the thrust requirements for different types of flight.

The aircraft propulsion system industry is segmented into engine type, aircraft type, end user, and region. By engine type, the market is segmented into gas turbine engines, electric/hybrid propulsion, rocket propulsion, and piston engines. By aircraft type, the market is divided into piston airplane, turboprop airplane, and business jet. Based on end user, the market is segmented into commercial , military, and general. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The aircraft propulsion system market share is governed by factors such as growing advancement in the electric and hybrid aircrafts, increase in air travel, and growing orders of new aircraft from developing countries. However, stringent government regulations and high maintenance cost hinder the growth of the market. Furthermore, modernization of military aircrafts, and increase in sales of personal aircrafts are expected to provide lucrative growth opportunities for the aircraft propulsion system market during the forecast period.

In addition, the market is highly competitive, with several key players dominating the industry. Prominent manufacturers focus on innovation, product differentiation, and strategic partnerships to maintain their market positions. Market leaders include companies such as Rolls-Royce Holdings plc., General Electric Company, Pratt & Whitney, Hanwha Group, Kawasaki Heavy Industries, Ltd., CFM International, Safran SA, Honeywell International Inc., MTU Aero Engines AG, Busek Co. Inc, Northrop Grumman, 3W International GmbH, Lockheed Martin Corporation., Williams International, and IHI AEROSPACE Co., Ltd.

In recent years, there has been growing advancement in the electric and hybrid aircrafts technology as they have lower operational costs, and improved fuel efficiency. Moreover, government and regulatory bodies are further promoting the use of electric and hybrid aircrafts. In addition, the growing aviation industry is now focusing on sustainability and development of electric propulsion systems, to achieve this they are utilizing lightweight materials which allows manufacturers to create aircraft with lower environmental footprints.

In addition, growing focus on sustainability and increasing progress in electric propulsion systems, such as use of lightweight materials, allow manufacturers to create aircraft with lower environmental footprints. Growing research, increasing financial investments, and industry collaborations foster continuous innovation, expanding the frontiers of electric and hybrid aviation technologies. For instance, in October 2023, a substantial subsidy of about $205 million was allocated for the development of hydrogen fuel cell systems and related equipment. Such initiative aims to support the progress of components essential for electric aircraft.

Moreover, in June 2023, Airbus SE and STMicroelectronics signed an agreement for the development of technologies related to hybrid and electric aircrafts. The company also announced that the collaboration is expected to cater to advancement in research on the next generation of semiconductors, which will be extensively used in hybrid and fully electric aircraft such as the ZEROe demonstrator and CityAirbus NextGen.

Similarly, in June 2022, Honeywell International Inc. conducted successful tests on a one-megawatt generator tailored for hybrid electric aircraft. The generator is 280 pounds and gives 97% efficiency, which is capable of powering an entire neighbourhood block. The new generator offers compact design, low weight, and increased fuel efficiency. In addition, electric and hybrid aircrafts demand for effective energy storage solutions such as advanced batteries or hybrid power systems. Therefore, there is surge in the development of state-of-the-art energy storage technologies, specifically designed to meet the distinct needs of electric aviation industry. Such developments are expected to drive the growth of the market during the forecast period.

KEY FINDINGS OF THE STUDY

• By engine type, the electric/hybrid segment is anticipated to exhibit significant growth in the aircraft propulsion system market growth in the near future.
• By aircraft type, the business jet segment is anticipated to exhibit significant growth in the aircraft propulsion system market trends in the near future.
• By end user, the commercial segment is anticipated to exhibit significant growth in the aircraft propulsion system analysis in the near future.