Aircraft Engine & Part Market to Reach USD 95 Billion by 2035 at 2.7% CAGR Driven by Fleet Expansion and Engine Modernization

The global Aircraft Engine & Part Market continues to evolve as aviation operators, OEMs, and component manufacturers navigate rising air travel demand, fleet modernization efforts, and accelerated innovation in propulsion technologies. According to recent industry estimates, the market was valued at USD 70.9 billion in 2024, and is projected to reach USD 72.9 billion in 2025, eventually climbing to USD 95 billion by 2035. This trajectory reflects a consistent CAGR of approximately 2.7% during the 2025–2035 forecast period. The expansion underscores the aviation sector’s resilience and renewed investment momentum following years of operational and supply chain disruptions.

Market Overview

The aircraft engine & part market represents one of the most critical segments of the global aerospace industry, driven by the need for efficient propulsion systems, advanced component manufacturing, and durable aftermarket support. The push toward next-generation aircraft, coupled with heightened emphasis on fuel efficiency and emissions reduction, is encouraging manufacturers to expand R&D capabilities. As fleet operators shift toward technologically advanced platforms, the demand for engines with extended lifecycles, predictive maintenance modules, and low operating cost structures continues to strengthen market fundamentals.

Key Growth Drivers

One of the strongest forces propelling the market forward is the consistent rise in global air traffic. Commercial airlines are increasing fleet size to meet expanding passenger volumes, particularly in emerging regions where airport infrastructure investment is accelerating. Beyond passenger travel, increasing cargo operations and the rapid expansion of the e-commerce ecosystem are bolstering requirements for specialized aircraft engines and high-performance components.

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Another significant growth stimulus stems from ongoing fleet renewal initiatives. Airlines worldwide are retiring older, less efficient aircraft in favor of modern narrow-body and wide-body models that rely on advanced propulsion technologies. This shift creates steady demand for new engine architectures, lighter engine parts, and materials engineered to withstand intense operational environments. Additionally, the surge in sustainable aviation fuel (SAF) adoption and continued regulatory emphasis on carbon-neutral aviation are prompting companies to invest in engine designs compatible with alternative fuel blends.

Emerging Trends Shaping the Landscape

A prominent market trend is the increased adoption of digital twins and predictive analytics across engine maintenance and lifecycle management. Manufacturers and MRO (maintenance, repair, and overhaul) providers are leveraging data-driven modeling to enhance component durability, reduce downtime, and optimize performance across fleets. This trend is supported by the integration of IoT-enabled sensors within engine systems, enabling real-time monitoring and precise diagnostics.

Another notable trend is the rising interest in hybrid-electric and hydrogen-ready propulsion technologies. While still in developmental stages, these technologies have captured global attention, supported by news from several aerospace companies announcing new prototype engines and collaborations aimed at reducing aviation’s carbon footprint. The long-term potential of these innovations is expected to reshape the engine manufacturing value chain, opening new opportunities across material science, thermal management, and electrical system components.

Market Opportunities Ahead

A major growth opportunity lies in the aftermarket segment, which continues to outperform OEM sales in several regional markets. As aircraft utilization rates rise, demand for heavy maintenance, component replacements, and engine overhauls is climbing steadily. Suppliers offering competitive long-term service agreements are well-positioned to strengthen market footprint and profitability.

There is also growing opportunity in lightweight composite engine parts, as manufacturers increasingly prioritize efficiency and performance optimization. Emerging markets across Asia-Pacific, the Middle East, and Latin America are expected to play a pivotal role, driven by expanding aviation fleets and favorable government strategies supporting aerospace manufacturing zones. The rise of defense modernization programs in multiple countries further elevates demand for advanced engine solutions and specialized components.

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Future Outlook and Industry Sentiment

Looking ahead, the aircraft engine & part market is anticipated to maintain stable growth, influenced by a combination of technological innovation, global fleet expansion, and modernization of aviation infrastructure. The projected growth to USD 95 billion by 2035 reflects ongoing confidence across OEMs, suppliers, and airline operators. As sustainable propulsion, automation, and high-performance materials continue to transform industry standards, market participants are expected to see increased investment opportunities and stronger competitive differentiation.

The long-term outlook also highlights the vital role of strategic partnerships, as leading aviation firms collaborate to accelerate new engine development while addressing supply chain vulnerabilities. With a focus on reliability, efficiency, and environmental performance, the next decade is set to usher in a new era of engine technology evolution.

In conclusion, the aircraft engine & part market stands at a defining moment, shaped by steady demand recovery, rising technological adoption, and an industry-wide commitment to efficiency and sustainability. The coming years promise continued expansion, strategic innovation, and significant value creation for stakeholders positioned to leverage these transformative trends.

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