Aircraft Propulsion System Market Report 2025

The aircraft propulsion system market size has grown strongly in recent years. It will grow from $55.11 billion in 2024 to $58.4 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth during the historical period can be attributed to increasing air passenger traffic, higher demand for fuel-efficient engines, growth in commercial aircraft deliveries, rising defense expenditures, a shift toward sustainable aviation, and the expansion of urban air mobility initiatives.

The aircraft propulsion system market size is expected to see strong growth in the next few years. It will grow to $72.81 billion in 2029 at a compound annual growth rate (CAGR) of 5.7%. The projected growth during the forecast period can be linked to the expansion of the global aviation industry, advancements in defense technology reminiscent of Cold War innovations, the rise of low-cost carriers, increased government investments in aerospace, and the globalization of trade and travel. Key trends expected include the development of advanced turbofan engines, implementation of boundary layer ingestion technology, use of additive manufacturing for engine components, smart engine health monitoring systems, integration of sustainable aviation fuels, and advancements in noise reduction technologies.

The growth of the aircraft propulsion system market is expected to be driven by the expansion of air cargo services. Air cargo services involve transporting goods by aircraft, offering fast and dependable shipping for both domestic and international freight. The rise in air cargo services is fueled by increasing e-commerce demand, as consumers seek quicker and more reliable deliveries. Aircraft propulsion systems contribute to this growth by enabling faster, more efficient flights that support timely cargo delivery over long distances. These systems also improve fuel efficiency and reliability, helping to reduce costs and ensure consistent operations. For example, in March 2025, the Bureau of Transportation Statistics, a US government agency, reported that air cargo revenue reached 83.82 billion revenue ton-miles in 2024, up 4.42% from 80.27 billion in 2023. Thus, the expansion of air cargo services is propelling the aircraft propulsion system market forward.

Companies in the aircraft propulsion system market are developing advanced technologies like lightweight air-cooled electric propulsion systems to boost efficiency, lower emissions, and promote sustainability. These systems eliminate the need for heavy liquid cooling setups, reducing overall weight and complexity while maintaining strong performance. For instance, in February 2023, Kite Magnetics, an Australian aerospace manufacturer, launched the 120-kilowatt KM-120 propulsion system. This compact and lightweight system delivers high power output, making it suitable for fixed-wing aircraft, eVTOLs, eSTOLs, and high-altitude platforms. The KM-120 features advanced air-cooling technology and uses Kite’s proprietary Aeroperm nanocrystalline magnetic material, which significantly decreases energy loss and increases efficiency. It is designed for seamless integration into both new aircraft designs and retrofitted existing models, supporting various electric power sources such as batteries and fuel cells.

In May 2025, Karman Space & Defense, a US aerospace and defense company, acquired Industrial Solid Propulsion (ISP) for an undisclosed sum. This acquisition aims to enhance Karman’s presence in the solid propulsion sector, broaden its capabilities in missile and space launch systems, and improve support for defense and space customers through integrated propulsion solutions. ISP is a US-based manufacturer specializing in solid rocket propulsion systems for aerospace and defense uses.

Major players in the aircraft propulsion system market are General Electric Company, BAE Systems plc, Collins Aerospace, L3Harris Technologies Inc., Safran S.A., Rolls‑Royce Holdings plc, IHI Aerospace Co. Ltd, Shenyang Aircraft Corporation, Bombardier Recreational Products Inc., MTU Aero Engines AG, ArianeGroup SAS, Aerojet Rocketdyne Holdings Inc., Industria de Turbo Propulsores S.A.U., Avio S.p.A., ZeroAvia Inc., H55 SA, Raytheon Technologies Corporation, Kratos Defense & Security Solutions Inc., Busek Co. Inc., Jetoptera Inc., Manta Aircraft SA, Turbotech SAS, and United Technologies Corporation.

North America was the largest region in the aircraft propulsion system market in 2024. The regions covered in aircraft propulsion system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the aircraft propulsion system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Aircraft propulsion systems consist of the machinery and components responsible for generating the thrust that allows aircraft to fly. These systems typically include engines such as turbojets, turbofans, turboprops, or piston engines. They are crucial for facilitating aircraft movement, enhancing performance, and ensuring fuel efficiency along with compliance with environmental regulations.

The primary categories of aircraft propulsion systems are air-breathing engines, non-air-breathing engines, and others. Air-breathing engines rely on atmospheric oxygen to combust fuel and produce thrust. Key engine types include gas turbine engines, electric or hybrid propulsion systems, rocket propulsion, and piston engines. Based on power output, these propulsion systems are classified into those producing less than 10,000 lbf, between 10,000 and 20,000 lbf, between 20,000 and 30,000 lbf, and over 30,000 lbf. These systems find applications in various platforms such as aircraft, missiles, unmanned aerial vehicles (UAVs), and spacecraft, serving diverse end users including commercial, military, and general aviation sectors.

The aircraft propulsion system market research report is one of a series of new reports that provides aircraft propulsion system market statistics, including aircraft propulsion system industry global market size, regional shares, competitors with a aircraft propulsion system market share, detailed aircraft propulsion system market segments, market trends and opportunities, and any further data you may need to thrive in the aircraft propulsion system industry. This aircraft propulsion system 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.

The aircraft propulsion system market consists of sales of piston engines, scramjets, ramjets, electric propulsion systems, propellers, nacelles, nozzles, thrust reversers, and rotary 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.

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