Aircraft Engine Market to Grow at a CAGR of 4.81% from 2026 to 2034; Rising Large-scale Military Modernization Programs to Bolster Market Growth

The global aircraft engine market size was valued at USD 161.63 billion in 2025. The market is projected to grow from USD 170.34 billion in 2026 to USD 247.99 billion by 2034, exhibiting a CAGR of 4.81% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Aircraft Engine Market Size, Share, & Industry Analysis, By Engine Type (Turboprop, Turboshaft, Turbofan, and Piston Engine), By Technology (Conventional and Electric/Hybrid), By Component (Compressor, Turbine, Gear Box, Exhaust Nozzle, Fuel System, and Others), By End-Use (Commercial and Military), By Commercial (Narrow Body, Wide Body, Business Jet, General Aviation, and Civil Helicopters), By Military (Fighter, Transport, and Military Helicopter), By Offering (OEM Engine and Aftermarket & MRO), and Regional Forecast 2026-2034”.

The aircraft engine market encompasses a broad range of propulsion technologies, including, turboprop, turboshaft, and piston engines, supporting commercial, military, and general aviation. Engines power narrow- and wide-body aircraft such as the Boeing 737 MAX and Airbus A320neo, as well as the Boeing 787 Dreamliner and Airbus A350. Increased aircraft engine demand fueled by a robust rebound in global air travel, surging passenger volumes beyond historical norms, and large-scale military modernization programs prioritizing next-generation, fuel-efficient LEAP and GTF engines.

RESIDCO Finalized a USD 100 Million Financing Arrangement to Accelerate Its Engine Acquisition Strategy

In January 2026, RESIDCO announced the closure of a USD 100 million financing facility dedicated to acquiring commercial aircraft engines. The funding strengthens the company’s expansion strategy in the secondary aviation market, particularly targeting high-demand engine assets.

Rapid Recovery of Air Travel to Bolster Market Growth

A strong rebound in global air travel and rapid fleet modernization are driving the aircraft engine market growth. In December 2025, China Aircraft Leasing Group Holdings Limited (CALC) strengthened this trend by placing a firm order for 30 A320neo Family aircraft with Airbus to address strong customer demand. This deal, CALC’s fifth with Airbus, increased its total Airbus orders to 282 aircraft, with the majority belonging to the A320neo family. Looking ahead, the International Air Transport Association estimates passenger volumes could reach 8.2 billion by 2037, putting significant pressure on airlines to scale up fleets and secure new engines. Environmental regulations and efficacy targets are accelerating the phase-out of older aircraft, while an unprecedented backlog of more than 17,000 aircraft orders underscores long-term engine demand.

Despite these tailwinds, aircraft engine production bottlenecks and limited manufacturing capacity continue to restrain market growth.

Major Players Emphasize Strategic Partnerships to Maintain Their Supremacy

A small circle of industry giants dominates the global market, forming a rigid oligopoly that limits disruption and deters new competitors. CFM International, Pratt & Whitney, Rolls-Royce, and GE Aerospace collectively hold a commanding market share, consolidating both technological power and long-term customer relationships. Competition among these players is shaped by innovation rather than aggressive pricing. Superior fuel economy, next-generation engine architectures, and comprehensive aftermarket ecosystems define success, enabling aircraft engine companies to outperform rivals through value creation rather than cost-cutting.

List of Key Players Mentioned in the Report

• CFM International SA (France)
• Honeywell International Inc. (U.S.)
• GE Aviation (U.S.)
• Rolls-Royce Holdings Plc. (U.K.)
• Safran SA (France)
• International Aero Engines AG (U.S.)
• MTU Aero Engines AG (Germany)
• Textron Inc. (U.S.)
• Pratt & Whitney (U.S.)

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https://www.fortunebusinessinsights.com/industry-reports/aircraft-engine-market-101766

Key Industry Development

• March 2026: Boeing Defense Systems secured a contract exceeding USD 2 billion from the Air Force to kick off initial engine replacement activities for the B-52H Stratofortress, a critical step in extending the operational life of the long-serving Cold War-era bomber.

Further Report Findings

• North America emerged as the undisputed leader of the global market in 2025, reaching a valuation of nearly USD 62.21 billion and accounting for 38.49% of the market. This leadership is reinforced by a well-established commercial aviation ecosystem, strong military aviation activity, and highly advanced manufacturing infrastructure.
• Europe followed as the second-largest market, valued at around USD 48.02 billion in 2025 and holding a 29.71% share, driven by a strong focus on sustainability initiatives and cutting-edge aerospace technologies.
• By engine type, the turboprop segment led the aircraft engine market share in Growing passenger traffic, coupled with optimized performance and fuel efficiency on sub-500-nautical-mile routes, positions turboprops as the preferred choice for regional connectivity and underserved routes.

Table of Segmentation