Turboshaft Engine Global Market Report 2025

The turboshaft engine market size has grown strongly in recent years. It will grow from $5.15 billion in 2024 to $5.54 billion in 2025 at a compound annual growth rate (CAGR) of 7.6%. The growth during the historic period can be attributed to the expanding helicopter leasing market, rising interest in unmanned cargo rotorcraft, growing demand for compact engines with higher thrust, the expanding civil aviation sector in emerging economies, and increased application of engines in firefighting helicopters.

The turboshaft engine market size is expected to see strong growth in the next few years. It will grow to $7.33 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to rising demand for military helicopters, greater focus on lightweight and fuel-efficient engines, increasing government defense budgets, growing investments in urban air mobility projects, and wider integration of digital engine control systems. Key trends in the forecast period include advancements in fuel-efficient combustion systems, adoption of additive manufacturing (3D printing), upgrades in digital twin solutions, development of advanced cooling technologies, and innovation in rotorcraft propulsion systems.

The increasing defense budget is expected to drive the growth of the turboshaft engine market. Defense budgets refer to the financial resources allocated by a nation’s government for planning, developing, procuring, maintaining, and ensuring the operational readiness of its armed forces and defense infrastructure. The rising defense budgets are largely due to the growing complexity of national security threats, prompting governments to invest more in advanced technologies, training, and capabilities to maintain a strong defense posture and ensure strategic deterrence. Turboshaft engines play a crucial role by enhancing the performance, efficiency, and reliability of military helicopters and other rotary-wing aircraft, supporting the goals of modern defense programs. For example, in February 2025, the International Institute for Strategic Studies (IISS), a UK-based think tank, reported that global defense spending rose to USD 2.46 trillion in 2024 from USD 2.24 trillion in 2023. This marked a real-term growth of 7.4%, up from 6.5% in 2023 and 3.5% in 2022. As a result, the average allocation of defense spending to GDP increased to 1.9% in 2024, up from 1.6% in 2022 and 1.8% in 2023. Thus, the rising defense budget is driving the growth of the turboshaft engine market.

Key players in the turboshaft engine market are increasingly focusing on strategic partnerships to develop advanced free power turbines and high-efficiency engine components. These innovations aim to improve performance, reduce fuel consumption, and meet the rigorous reliability and safety standards required for modern military and civilian helicopters. A free power turbine (FPT) is a turbine that operates independently from the engine’s gas generator, extracting energy from exhaust gases to power an output shaft, such as a helicopter rotor, without being mechanically linked to the compressor or turbine that produces the engine’s gas flow. For example, in June 2025, Avio Aero, an Italy-based company specializing in aviation propulsion systems, partnered with Safran Helicopter Engines, a France-based manufacturer of helicopter engines, and MTU Aero Engines, a Germany-based manufacturer of commercial and military aircraft engines, to develop next-generation military helicopter engines. This collaboration is focused on delivering advanced turboshaft engines with higher power-to-weight ratios, improved fuel efficiency, durable free power turbines, modular designs, and digital monitoring systems, making maintenance easier and improving helicopter performance while supporting European strategic autonomy.

In March 2024, McFarlane Aviation, a US-based aerospace manufacturer and distributor, acquired PMA Products, Inc. to expand its portfolio of FAA-PMA-approved replacement parts. This acquisition strengthens McFarlane’s position in the general aviation aftermarket and enhances its offerings for aircraft models such as Piper, Beechcraft, Cessna, and PT6 turboshaft engines. PMA Products, Inc. is a US-based company that manufactures FAA-PMA-certified aircraft parts, including components for turboshaft engines.

Major players in the turboshaft engine market are Honeywell Aerospace Inc., GE Aerospace, Pratt & Whitney, Rolls-Royce Plc, Aero Engine Corporation of China, Kawasaki Heavy Industries (KHI), IHI Corporation, AVIC Engine Corporation, MTU Aero Engines AG, Safran Group, ITP Aero S.A. (Bain Capital), Harbin Engine Group Co. Ltd., PBS GROUP, TUSAS Engine Industries Inc., Avio Aero S.p.A., Jakadofsky GmbH, Klimov JSC, Konner S.r.l., Motor Sich JSC, Astro Mechanica.

North America was the largest region in the turboshaft engine market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and 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.

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.

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

A turboshaft engine is a type of gas turbine engine designed to convert most of its generated energy into shaft power rather than thrust. It uses a high-speed rotating shaft connected to a power transmission system and includes components such as a compressor, combustion chamber, turbine stages, and reduction gearbox to efficiently deliver mechanical energy for driving external loads. These engines are mainly used in applications requiring reliable, continuous rotational power for propulsion or operation of heavy machinery, particularly in settings demanding high power-to-weight ratios and compact, efficient energy conversion.

The primary engine types in turboshaft engines include single-spool turboshaft engines, multi-spool turboshaft engines, and turbocharged turboshaft engines. A single-spool turboshaft engine has all compressor and turbine stages mounted on a single rotating shaft, producing mechanical power efficiently through a continuous rotational axis. The fuel types for these engines include aviation turbine fuel (ATF), biofuels, diesel, and jet fuel, with power ratings below 500 hp, 500-2000 hp, and above 2000 hp. They are applied in sectors such as aerospace, defense, commercial aviation, industrial, and marine, with end-users including commercial operators, military or government organizations, original equipment manufacturers (OEMs), and maintenance, repair, and overhaul (MRO) providers.

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

The turboshaft engine market consists of sales of products such as turbojet-turboshaft hybrid engines, free-turbine turboshaft engines, geared turboshaft engines, marine turboshaft engines, and industrial turboshaft 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 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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