Aircraft Engines Industry to Reach USD 183.4 Billion by 2035; Asia-Pacific Leads Growth Amid Rising Air Travel Demand

The global aircraft engines market is set for robust expansion over the next decade, projected to grow from USD 78.2 billion in 2025 to USD 183.4 billion by 2035, reflecting a compound annual growth rate (CAGR) of 8.9%, according to a new report by Fact.MR. This growth is fueled by surging demand for fuel-efficient aircraft, accelerated fleet modernization, and advancements in next-generation propulsion technologies aimed at reducing carbon emissions.

Post-Pandemic Recovery and Technological Advancements Drive Growth

The aviation sector’s recovery following the COVID-19 pandemic has prompted airlines worldwide to upgrade and expand their fleets, particularly in developing regions where air travel demand is rising rapidly. Modern turbofan engines, hybrid-electric systems, and open rotor technologies are at the forefront of this expansion, offering enhanced fuel efficiency, lower noise, and reduced environmental impact.

“Engine innovations such as geared turbofans and hybrid-electric propulsion are redefining operational efficiency and sustainability in aviation,” said a Fact.MR analyst. “The next decade will see widespread adoption of greener, quieter, and more reliable engine technologies.”

To access the complete data tables and in-depth insights, request a sample report here: Request Sample Report 

Regional Market Trends

Asia-Pacific is expected to dominate the market, driven by rapid commercial aviation growth in China, India, and Southeast Asia. Domestic aircraft initiatives, such as China’s COMAC program, and rising tourism are spurring demand for both imported and locally manufactured engines.

North America maintains a strong share due to established aerospace manufacturers including GE Aerospace, Pratt & Whitney, and Honeywell. Strategic programs, like the U.S. Air Force’s modernization efforts and the FAA’s sustainable aviation initiatives, are accelerating the deployment of advanced engine technologies.

Europe’s market growth is supported by Safran, Rolls-Royce, and EU-backed R&D initiatives, such as Clean Sky 2 and Horizon Europe, promoting hybrid-electric and ultra-efficient engines. Meanwhile, the Middle East & Africa are experiencing accelerated growth through fleet modernization programs by carriers in the UAE and Saudi Arabia and improved regional aviation infrastructure.

Country Insights

• United States: With a CAGR of 7.8% from 2025 to 2035, the U.S. leads in both commercial and defense aviation, driven by programs like the F-35 and B-21 Raider and strong government incentives for green propulsion.
• China: Exhibiting the fastest CAGR of 10.2%, China benefits from growing commercial and military demand, domestic aircraft initiatives, and strategic partnerships with global OEMs.
• France: Achieving an 8.5% CAGR, France leverages its advanced aerospace ecosystem and sustainability-focused R&D programs to maintain steady growth in the European market.

Engine Type and Technology Segmentation

Turbofan engines dominate the market in revenue due to their superior fuel efficiency, thrust-to-weight ratio, and reduced noise, making them ideal for both narrow- and wide-body aircraft. In contrast, electric and hybrid-electric engines are emerging as the fastest-growing segments, driven by environmental regulations, urban air mobility applications, and ongoing R&D investment.

Conventional engines remain the primary technology in use across global fleets, owing to their reliability and proven performance. However, hybrid and electric propulsion technologies are gaining traction, promising lower emissions, quieter operations, and cost-effective long-term performance.

Key Market Drivers

1. Rising Air Travel Demand: Increasing urbanization, expanding middle-class populations, and tourism growth are prompting airlines to invest in fleet expansion and modernization.
2. Sustainability Initiatives: Stricter emissions regulations and green aviation targets are fueling the development of low-emission, fuel-efficient engines.
3. Technological Innovation: Geared turbofans, hybrid-electric, and open rotor engines are enhancing operational efficiency and passenger comfort.
4. Government Support: Incentives and funding programs in North America and Europe encourage investment in R&D for next-generation engines.

Challenges Facing the Market

Despite strong growth prospects, the industry faces high R&D costs, complex regulatory compliance, and supply chain vulnerabilities. Transitioning to alternative propulsion technologies while maintaining conventional engine production also strains resources, particularly for smaller manufacturers.

Competitive Landscape

Global leaders shaping the market include GE Aerospace, Pratt & Whitney, Rolls-Royce, Safran, and Honeywell. These players are increasingly investing in sustainable and next-generation engine technologies, strategic partnerships, and digital innovations to remain competitive.

Outlook: Accelerating Towards a Greener Future

The aircraft engines market is evolving beyond traditional propulsion, embracing hybrid-electric and fully electric solutions. By 2035, the industry is expected to deliver engines that not only enhance performance and fuel efficiency but also significantly reduce aviation’s carbon footprint.

“As airlines and OEMs prioritize sustainability and efficiency, engine innovation will be the cornerstone of global aviation growth,” the Fact.MR analyst added.

For a detailed market table, segment analysis, and country-specific forecasts, request the full Fact.MR report.

Check out More Related Studies Published by Fact.MR:

Aircraft Refurbishing Market  https://www.factmr.com/report/aircraft-refurbishing-market 

Aircraft Fuel Cells Market  https://www.factmr.com/report/aircraft-fuel-cells-market 

Aircraft Engine Hoists Market  https://www.factmr.com/report/aircraft-engine-hoists-market 

Aircraft Seat Upholstery Market https://www.factmr.com/report/3867/aircraft-seat-upholstery-market 

Purchase Full Report for Detailed Insights

For access to full forecasts, regional breakouts, company share analysis, and emerging trend assessments, you can purchase the complete report here: Access Full Report – Aircraft Engines Market

Have a specific Requirements and Need Assistant on Report Pricing or Limited Budget please contact us - sales@factmr.com

About Fact.MR

Fact.MR is a global market research and consulting firm, trusted by Fortune 500 companies and emerging businesses for reliable insights and strategic intelligence. With a presence across the U.S., UK, India, and Dubai, we deliver data-driven research and tailored consulting solutions across 30+ industries and 1,000+ markets. Backed by deep expertise and advanced analytics, Fact.MR helps organizations uncover opportunities, reduce risks, and make informed decisions for sustainable growth.