The global aircraft engine market size was valued at USD 161.6 billion in 2025 and is projected to grow from USD 170.3 billion in 2026 to USD 248 billion by 2034, exhibiting a CAGR of 4.8% during the forecast period. North America dominated the global aircraft engine market with a market share of 38.5% in 2025.
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The Aircraft Engine Market is segmented by engine type, technology, component, end-use, and offering. By engine type, the Aircraft Engine Market includes turbofan, turboprop, turboshaft, and piston engines, with turbofan engines accounting for a dominant share due to their extensive use in commercial aviation. Based on technology, the Aircraft Engine Market is divided into conventional and electric/hybrid engines, where conventional engines currently lead but hybrid propulsion is gaining attention. By component, the Aircraft Engine Market covers compressor, turbine, gearbox, exhaust nozzle, fuel system, and others, reflecting the complex supply chain of aircraft propulsion systems. In terms of end-use, the market is segmented into commercial and military aviation, with commercial aircraft contributing the largest revenue share driven by rising passenger traffic. By offering, OEM engines and aftermarket & MRO services form key segments of the Aircraft Engine Market, supported by the long operational lifecycle of aircraft engines.
MTU Aero Engines AG
United Technologies Corporation
Honeywell International Inc.
Rolls-Royce Holdings Plc
Textron Inc.
CFM International SA
International Aero Engines AG
Safran SA
General Electric Company
The Aircraft Engine Market is projected to witness steady growth in 2026, supported by increasing aircraft deliveries, rising global air passenger traffic, and expanding military modernization programs. The Aircraft Engine Market is benefiting from strong demand for fuel-efficient and lightweight propulsion systems as airlines focus on reducing operating costs and emissions. Growing investments in next-generation engine technologies, including hybrid and electric propulsion, are further accelerating innovation within the Aircraft Engine Market. In addition, the expansion of low-cost carriers and fleet modernization initiatives across emerging economies are creating significant opportunities for the Aircraft Engine Market during the forecast period.
Despite positive outlook, the Aircraft Engine Market faces several restraining factors. The high cost associated with engine development, certification, and maintenance remains a major barrier for manufacturers and operators. The Aircraft Engine Market is also impacted by long product lifecycles and extended replacement intervals, which limit frequent new engine demand. Moreover, stringent regulatory requirements related to emissions and safety standards increase compliance costs in the Aircraft Engine Market. Supply chain disruptions and volatility in aircraft production rates may further hinder the near-term expansion of the Aircraft Engine Market.
North America dominates the Aircraft Engine Market, driven by the strong presence of major engine manufacturers, advanced aerospace infrastructure, and high defense spending. The region accounted for a significant share in recent years and continues to lead the Aircraft Engine Market. Europe represents the second-largest Aircraft Engine Market due to strong aerospace manufacturing capabilities and sustainability initiatives. Meanwhile, the Asia Pacific Aircraft Engine Market is expected to grow at the fastest pace through 2026, supported by rising air travel demand, expanding airline fleets, and increasing defense budgets in countries such as China and India. Other regions including the Middle East and Latin America are gradually expanding their footprint in the Aircraft Engine Market with growing investments in aviation infrastructure.