Aircraft Propulsion System Market size is anticipated to grow at a CAGR of over 10.4% between 2023 and 2032

Aircraft Propulsion System Market Size

Aircraft Propulsion System Market accounted for more than USD 250.7 million in 2022 and is expected to register a CAGR of more than 10.4% from 2023 to 2032.

The aviation propulsion systems market is growing because of the increasing trend towards electrification of aircraft propulsion. Some of the advantages of electrification are that it aligns with global environmental targets and significantly reduces greenhouse gas emissions. Besides being less noisy, electric propulsion technologies enhance the comfort of passengers and reduce noise pollution around airports.

Being less maintenance-prone and energy-efficient, they reduce operating costs. The demand for electric propulsion systems is increasing as aviation looks to become more economical and sustainable, thereby driving innovation and investment in the aircraft propulsion industry. For example, in June 2023, Japan’s Nidec Corporation and Brazil’s Embraer signed a memorandum of understanding to set up a joint venture company by the name of Nidec Aerospace LLC to design electric propulsion systems for the aerospace industry. The deal united the complementary synergies and specific areas of experience of the two companies to drive a new revolution in air mobility.

Aircraft Propulsion System Market Report Attributes
Report Attribute Details
Base Year 2022
Aircraft Propulsion System Market Size in 2022 USD 250.7 Million
Forecast Period 2023 to 2032
Forecast Period 2023 to 2032 CAGR 10.4%
2032 Value Projection USD 600 Million
Historical Data for 2018 to 2022
No. of Pages 220
Tables, Charts & Figures 279
Segments covered Type, Application, End-use Industry & Region
Growth Drivers
Growth trend towards electrification of airplane propulsion
Growing air passenger traffic
Modernization of military planes
Emphasis towards emissions reduction
Growing demand for business and regional jets
Pitfalls & Challenges
Long development and production cycles
Exorbitant cost of development and manufacturing

An aircraft propulsion system is a system that produces thrust to move aircraft forward. It normally consists of engines, for example, jet engines or propellers, that burn fuel to produce mechanical energy in the form of thrust needed to fly. The systems are necessary for aircraft movement and control in different aerospace applications.

Longer timescales can lead to delays in the implementation of advanced propulsion technologies, which will make it increasingly harder for the industry to keep pace with the evolving efficiency and environmental needs. Longer development periods also increase research and development expenses, which impact manufacturers’ overall profitability. In the highly competitive aviation industry, extended manufacturing timelines can make companies fall behind or lose market share to their competitors. In addition, because of longer timescales, it is hard to adapt to rapidly changing market and regulatory environments, which are so important in the aviation sector.

COVID-19 Impact
When the COVID-19 pandemic arrived, it was like a storm that rattled the airplane engine sector. With everyone at home and airlines reducing flights, there were many fewer planes ordered and produced. This put engine manufacturers in a difficult position as airlines delayed or even canceled their orders. But the pandemic also caused airlines to consider saving fuel and reducing costs more. This might encourage them to invest in newer, more efficient engines. But the pandemic also slowed the development and testing of new engine technologies. So, the airplane engine industry suffered heavily, but it’s not entirely bad news. It’ll recover based on how soon the airline industry is back on track and how much it matters to preserve the environment in the future.

Aircraft Propulsion System Market Trends
The creation of electric & hybrid-electric powerplants, offering cheaper and more sustainable alternatives to traditional engines, is a major element of the drive towards electrification. Electric powerplants are becoming increasingly & progressively popular, particularly in small regional aircraft & urban air mobility. These systems create quieter, more sustainable flight alternatives by utilizing electric motors & batteries to reduce pollution & fuel consumption. In light of the requirements for energy-saving air travel and the need to counter environmental degradation, the airline industry is placing large investments in electric propulsion.

The propulsion system of airplanes is relying more on advanced materials for saving weight and improving performance. Existing engine components are made with lightweight yet highly strong materials like advanced alloys and carbon composites. Besides enhancing fuel efficiency, these materials enable aircraft to shed their overall weight, which is crucial for enhanced performance and reduced fuel usage. The industry’s relentless pursuit of innovation to enhance propulsion systems’ efficiency and eco-friendliness is evident through the shift towards advanced materials.

Aircraft Propulsion System Market Share

Players operating in the aircraft propulsion system industry focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product development & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. These players also heavily invest in research & development to introduce innovative and technologically advanced solutions in the market. Some major players operating in the aircraft propulsion system industry are mentioned below

• 3W International GmbH
• Bombardier Recreational Products Inc.
• Busek Co. Inc.
• General Electric Company
• Honeywell International Inc.
• NPO Energomash
• Rolls-Royce Holdings plc.