Aerospace And Defense Propulsion System Global Market Report 2025

The aerospace and defense propulsion system market size has grown strongly in recent years. It will grow from $268.08 billion in 2024 to $285.45 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to increasing demand for commercial air travel, rising military modernization programs, growing use of unmanned aerial vehicles, expansion of satellite launch activities, and increasing government defense budgets.

The aerospace and defense propulsion system market size is expected to see strong growth in the next few years. It will grow to $369.73 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to a growing focus on sustainable aviation fuels, increasing demand for space exploration missions, expansion of electric aircraft development, growing defense spending on next-generation aircraft, and rising interest in reusable launch systems. Major trends in the forecast period include technological advancements in electric propulsion, rapid innovations in hybrid propulsion systems, developments in supersonic travel technologies, growing research and development in green propulsion, and continuous innovation in propulsion materials.

The forecast of 6.7% growth over the next five years indicates a slight reduction of 0.2% from the previous projection for this market.This marginal decrease is influenced by ongoing tariff-related uncertainties between the U.S. and its trade partners.This is likely to directly affect the US through increased costs of critical imported components such as nozzles, turbines, and thermal coatings, which are heavily sourced from countries like France and the UK, potentially reducing propulsion system performance and output timelines.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The expansion of commercial air travel is anticipated to drive the growth of the aerospace and defense propulsion system market in the coming years. Commercial air travel involves the transport of passengers or cargo for a fee, typically operated by airline companies. This sector has seen significant growth, largely driven by economic development, which increases disposable income, enabling more individuals to afford both business and leisure flights. As commercial air travel grows, so does the demand for efficient and sustainable propulsion systems in the aerospace and defense sectors. Airlines are focused on expanding capacity while minimizing emissions, spurring the development of cutting-edge, environmentally friendly propulsion technologies. For example, in March 2023, the Bureau of Transportation Statistics, a U.S.-based government agency, reported that U.S. airlines carried 853 million passengers in 2022, a 30% increase from 658 million passengers in 2021. Therefore, the continued expansion of commercial air travel is driving the growth of the aerospace and defense propulsion system market.

Key players in the aerospace and defense propulsion system market are also prioritizing the development of advanced technologies, such as high-voltage power distribution components, to support the electrification of next-generation aircraft and defense platforms. These components manage and distribute electrical power within aircraft or spacecraft, ensuring their safe and efficient operation by regulating power flow and safeguarding sensitive systems in electric propulsion systems. For instance, in October 2024, Collins Aerospace, a U.S.-based aerospace technology provider, completed the prototype development of a solid-state power controller and power distribution panel for the Clean Aviation SWITCH project. These megawatt-class components, produced in Germany, are designed to manage the high-voltage electricity required for next-generation hybrid-electric aircraft propulsion systems. The prototypes will undergo system integration testing at Collins' electric power systems lab in Rockford, Illinois, supporting the SWITCH project's goal to achieve significant CO₂ reductions in short- to medium-range aircraft through innovative hybrid-electric technologies.

In January 2025, MBDA Systems, a France-based missile manufacturer, acquired a 50% stake in Roxel, a French company specializing in solid propulsion systems for tactical and cruise missiles. The acquisition, for an undisclosed amount, is intended to enhance MBDA's control over its propulsion supply chain, accelerate innovation in solid propulsion technologies, and optimize industrial cycles to meet the increasing global demand for tactical missile systems.

An aerospace and defense propulsion system refers to the collection of technologies, machinery, and components designed to generate thrust, allowing aircraft, spacecraft, missiles, and other defense vehicles to move through air or space. These systems are essential for achieving lift-off, sustained flight, maneuverability, and overall mission success in both civilian and military settings.

The primary types of aerospace and defense propulsion systems are air-breathing and non-air-breathing. Air-breathing propulsion systems rely on atmospheric oxygen for combustion, making them highly efficient for high-speed aircraft and missiles operating at various speeds and altitudes. These systems are used in a variety of applications, including missiles, aircraft, spacecraft, and unmanned aerial vehicles (UAVs), serving end-users such as commercial entities, government agencies, and the military.

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.

The sharp increase in U.S. tariffs and resulting trade disputes in spring 2025 are significantly affecting the aerospace and defense sector. Prices for key materials such as titanium, carbon fiber composites, and avionics primarily sourced from international suppliers have surged. Defense contractors, constrained by fixed-price government contracts, are forced to absorb these rising costs. Meanwhile, commercial aerospace companies are encountering resistance from airlines over increased aircraft prices. In addition, customs delays are disrupting already tight production timelines for jets and satellites. In response, the industry is stockpiling essential materials, pursuing import waivers for defense-related goods, and working with allied nations to diversify supply chains.

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

Major players in the aerospace and defense propulsion system market are Lockheed Martin Corporation, Airbus SE, General Electric Company, Northrop Grumman Corporation, Honeywell International Inc., Pratt & Whitney, Safran S.A., L3Harris Technologies Inc., IHI Corporation, SpaceX, MTU Aero Engines AG, Moog Inc., Blue Origin LLC, ArianeGroup, ITP Aero, Rocket Lab USA Inc., Ursa Major Technologies Inc., Dawn Aerospace, Astra Space Inc., HyImpulse Technologies GmbH, and BluShift Aerospace Inc.

North America was the largest region in the aerospace and defense propulsion system market in 2024. The regions covered in aerospace and defense propulsion system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the aerospace and defense propulsion system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The aerospace and defense propulsion system market consists of sales of turboshaft engines, electric propulsion systems, and turbojet engines. 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 and 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.

This product will be delivered within 3-5 business days.