Propulsion Systems Global Market Opportunities and Strategies to 2034

This report describes and explains the propulsion systems market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global propulsion systems market reached a value of nearly $133.09 billion in 2024, having grown at a compound annual growth rate (CAGR) of 3.97% since 2019. The market is expected to grow from $133.09 billion in 2024 to $192.42 billion in 2029 at a rate of 7.65%. The market is then expected to grow at a CAGR of 6.73% from 2029 and reach $266.43 billion in 2034.

Growth in the historic period resulted from the growing space exploration initiatives, rising uses of unmanned aerial vehicles (UAVs), growing number of aircraft deliveries and increased investment in aerospace and defense. Factors that negatively affected growth in the historic period were stringent environmental regulations and semiconductor shortages.

Going forward, the favorable government initiatives, growing need for long-range missiles, expansion of aircraft logistic industry and increasing adoption of eVTOL systems will drive the growth. Factor that could hinder the growth of the propulsion systems market in the future include lack of skilled workforce, high manufacturing cost and impact of trade wars and tariffs.

North America was the largest region in the propulsion systems market, accounting for 38.35% or $51.03 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the propulsion systems market will be Asia Pacific and South America where growth will be at CAGRs of 9.03% and 8.78% respectively. These will be followed by Western Europe and Middle East where the markets are expected to grow at CAGRs of 8.73% and 8.31% respectively.

The global propulsion systems market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 60.20% of the total market in 2024. Safran S.A. was the largest competitor with a 10.61% share of the market, followed by General Electric (GE Aerospace/CFM International) with 7.91%, Raytheon Technologies with 7.86%, Rolls-Royce Holdings plc with 7.82%, Northrop Grumman Corporation with 7.71%, L3Harris Technologies Inc. with 7.21%, Space Exploration Technologies Corp. (SpaceX) with 5.00%, IHI Corporation with 3.00%, Thales Group with 2.68% and Moog Inc. with 0.41%.

The propulsion systems market is segmented by type into air breathing and non-air breathing. The air breathing market was the largest segment of the propulsion systems market segmented by type, accounting for 72.74% or $96.81 billion of the total in 2024. Going forward, the non-air breathing segment is expected to be the fastest growing segment in the propulsion systems market segmented by type, at a CAGR of 9.02% during 2024-2029.

The propulsion systems market is segmented by application into airplanes, missiles, unmanned aerial vehicles and spacecraft. The airplanes market was the largest segment of the propulsion systems market segmented by application, accounting for 52.90% or $70.4 billion of the total in 2024. Going forward, the unmanned aerial vehicles segment is expected to be the fastest growing segment in the propulsion systems market segmented by application, at a CAGR of 11.77% during 2024-2029.

The propulsion systems market is segmented by end-user into commercial and government and military. The commercial market was the largest segment of the propulsion systems market segmented by end-user, accounting for 58.55% or $77.92 billion of the total in 2024. Going forward, the government and military segment is expected to be the fastest growing segment in the propulsion systems market segmented by end-user, at a CAGR of 8.34% during 2024-2029.

The top opportunities in the propulsion systems markets segmented by type will arise in the air breathing segment, which will gain $39.72 billion of global annual sales by 2029. The top opportunities in the propulsion systems markets segmented by application will arise in the airplanes segment, which will gain $30.21 billion of global annual sales by 2029. The top opportunities in the propulsion systems markets segmented by end-user will arise in the commercial segment, which will gain $32.14 billion of global annual sales by 2029. The propulsion systems market size will gain the most in the USA at $15.22 billion.

Market-trend-based strategies for the propulsion systems market include developing innovative electric propulsion systems to support the shift toward cleaner and more efficient mobility solutions, developing green propulsion technologies, strategic investments to advance next-generation technologies, cutting-edge technologies like advanced electric motors and strategic partnerships approach to develop advanced solutions.

Player-adopted strategies in the propulsion systems market include focus on expanding its business capabilities through strategic investment to expand its operational capabilities.

To take advantage of the opportunities, the analyst recommends the propulsion systems market companies to focus on advancing electric propulsion to meet emerging demand, focus on scaling green propulsion to meet sustainability demands, focus on strategic investment in scalable propulsion technologies, focus on advancing high-efficiency electric motor technologies, focus on non-air breathing propulsion for strategic growth, expand in emerging markets, focus on building strategic partnerships to accelerate innovation, focus on competitive and value-based pricing strategies, focus on targeted communication and strategic messaging, focus on digital channels and data-driven campaigns, focus on unmanned aerial vehicles for high-growth returns, focus on government and military propulsion for sustained growth.

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