Aircraft Engines Market Report 2026

The aircraft engines market size has grown steadily in recent years. It will grow from $54.27 billion in 2025 to $56.06 billion in 2026 at a compound annual growth rate (CAGR) of 3.3%. The growth in the historic period can be attributed to growth in commercial and military aviation, technological advancements in jet and turboprop engines, rising production of fuel-efficient aircraft engines, expansion of maintenance, repair, and overhaul (MRO) services, government regulations on aviation safety and emissions standards.

The aircraft engines market size is expected to see steady growth in the next few years. It will grow to $65.1 billion in 2030 at a compound annual growth rate (CAGR) of 3.8%. The growth in the forecast period can be attributed to increasing demand for fuel-efficient and low-emission aircraft engines, growth in commercial air travel and cargo transportation, advancements in hybrid and electric propulsion technologies, rising investment in engine modernization and retrofitting programs, expansion of global mro and aftersales services for aircraft engines. Major trends in the forecast period include rise of sustainable aviation fuels (saf) and bio-kerosene integration, electrification and hybrid-electric propulsion development, digital twin and predictive maintenance for engines, lightweight materials and additive manufacturing adoption, advanced emission-reduction and nox control technologies.

The rise in air passenger traffic is expected to drive the growth of the aircraft engines market in the coming years. Air passenger traffic refers to the total number of revenue-paying passengers transported by airlines over a given period. The increase in air passenger traffic is fueled by growing urbanization, as expanding urban populations generate higher demand for air travel due to improved economic conditions and greater connectivity needs. Rising passenger volumes increase the demand for aircraft engines because airlines must expand their fleets and replace older aircraft to accommodate the growing number of travelers. For example, in December 2025, according to Eurostat, a Luxembourg-based government agency, the number of passengers transported by air in 2023 increased by 19.3% compared to 2022. Therefore, the rise in air passenger traffic is contributing to the expansion of the aircraft engines market.

Leading companies in the aircraft engines market are focusing on developing advanced technologies, such as hybrid electric engines, to address key industry requirements. Hybrid electric engines are power systems that combine traditional internal combustion engines (ICE) with electric propulsion technologies to improve fuel efficiency, reduce emissions, and enhance overall performance. For instance, in June 2024, GE Aerospace, a U.S.-based aerospace company, initiated the development of a hybrid electric demonstrator engine by modifying its existing Passport engines in partnership with NASA. This effort is part of NASA’s Hybrid Thermally Efficient Core (HyTEC) program, which aims to integrate electric motor/generators into the engine to improve performance and lower fuel consumption. Initial testing of these electric components has already been completed successfully.

In June 2025, Avio Aero S.p.A., an Italy-based manufacturing company, partnered with Safran Helicopter Engines S.A. and MTU Aero Engines AG to develop ENGHE, Europe’s next-generation military helicopter engine. Through this collaboration, Avio Aero, Safran, and MTU intend to jointly respond to the European Defence Fund’s call for a next-generation helicopter engine and advance ENGHE to strengthen Europe’s military autonomy and technological leadership. Safran Helicopter Engines S.A. is a France-based aerospace company, and MTU Aero Engines AG is a Germany-based aircraft engines and engine parts company specializing in aircraft propulsion.

Major companies operating in the aircraft engines market are General Electric Company, Rolls-Royce Limited, Honeywell International Inc., United Technologies Corporation, Safran S.A., IAE International Aero Engines AG, MTU Aero Engines, Textron Inc., Hindustan Aeronautics Limited, Klimov, Continental Motors Group, United Engine Corporation, Motor Sich, AVIC Aircraft, Aero Engine Corporation of China, Pratt & Whitney, UEC-Aviadvigatel JSC, Ivchenko-Progress, NPO Saturn, PowerJet, EuroJet Turbo GmbH, Xi’an Aero-Engine Corporation (XAEC), Guizhou Aircraft Industry Corporation (GAIC), IHI Corporation, Williams International, Austro Engine GmbH, BRP-Rotax GmbH & Co KG, Teledyne Continental Motors, Thielert Aircraft Engines GmbH, UEC Saturn, CFM International, Engine Alliance.

North America was the largest region in the aircraft engine market in 2025. North America is expected to be the fastest-growing region in the aircraft engines market during the forecast period. The regions covered in the aircraft engines market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported engine components, precision castings, and advanced materials have increased manufacturing costs and supply chain uncertainty in the aircraft engine market, raising production lead times and prices for turbofan and turboshaft programs. Commercial aviation and military engine segments sourcing parts from major manufacturing hubs in Asia and Europe are most affected, while small piston and APU suppliers also see component cost pressures. On the positive side, tariffs are incentivizing localized supply chains, investment in domestic manufacturing capacity, and strategic supplier diversification, which can strengthen regional industrial bases and long-term resilience.

The aircraft engines market research report is one of a series of new reports that provides aircraft engine market statistics, including aircraft engine industry global market size, regional shares, competitors with an aircraft engine market share, detailed aircraft engine market segments, market trends and opportunities, and any further data you may need to thrive in the aircraft engine industry. This aircraft engine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

An aircraft engine plays a vital role in the propulsion system by generating the mechanical power required for an aircraft's operation. These engines are typically powered by various fuels such as jet fuel, aviation gasoline (Avgas), jet B, and biokerosene.

The primary categories of aircraft engines available in the market include turboprop, turboshaft, turbofan, and piston engines. Turboshaft engines are a specialized type of jet engine designed to produce shaft power for driving machinery, rather than focusing on generating thrust. These engines utilize various technologies, including conventional, electric/hybrid systems, and are utilized in a range of aircraft types such as fixed-wing and rotary-wing, catering to diverse applications across general aviation, business aviation, recreational aviation, and other sectors.

The countries covered in the aircraft engines market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The aircraft engine market consists of sales of aircraft engines of various types such as jet and reciprocating engines to run the aircraft. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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