Global Aircraft Engine Market Report 2023-2028: Digitalization, IoT Integration, and Advanced Materials Transforming the Aircraft Engine Market in the Era of Smart and Sustainable Aviation - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Global Aircraft Engine Market: Analysis By Technology, By Platform, By Engine Type, By Component, By End User, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.

The global aircraft engine market was valued at US$80.09 billion in 2022 and is expected to be worth US$123.88 billion in 2028. The market value is expected to grow at a CAGR of 7.54% during the forecast period of 2023-2028.

The demand for aircraft engines has been steadily growing due to increasing global demand for air travel. As economies grow and people's disposable incomes rise, more individuals are opting for air transportation. This trend has led to a surge in airline fleets and the need for additional aircraft engines to power these planes.

Manufacturers will focus on innovations to enhance engine performance, increase reliability, and reduce maintenance costs. Technologies such as additive manufacturing (3D printing) and advanced composite materials will likely play a significant role in the development of next-generation engines.

The North American region has emerged as a dominant player in the aircraft engine market, the aviation industry is one of the most profitable industries in North America.

Major aircraft manufacturers such as Boeing and Bombardier are based in this region. The high disposable incomes of consumers in North America have contributed to the rise in air travel, which, in turn, is leading to an increase in air passenger traffic. This rise in air passenger traffic has led to an increase in the number of aircraft deliveries in this region, which is leading to the high demand for aircraft engines.

The region has been benefiting from low oil prices, improved efficiency in aircraft operations, and a steady labor market. Thus, the profitability of airline owners is higher in North American countries. These are the factors due to which North America is the largest market for aircraft engines.

During the forecast period, Asia-Pacific is anticipated to expand rapidly. The Asia Pacific region has experienced significant growth in air travel demand, driven by a growing middle class, increasing disposable income, and the emergence of low-cost carriers.

This surge in passenger traffic has led to increased aircraft orders and subsequent demand for aircraft engines. Many countries in Asia Pacific, including China and India, are investing heavily in airport infrastructure development. The expansion of airports and the establishment of new ones create opportunities for aircraft engine manufacturers as airlines expand their fleets.

Furthermore, emerging markets, particularly in Asia and the Middle East, have witnessed rapid expansion in their aviation sectors. These regions have experienced a rise in passenger numbers and the establishment of new airlines, which in turn drives the demand for aircraft engines.

Market Dynamics:

Growth Drivers:

One of the most important factors impacting the global aircraft engine market is the increasing defense budget. Increasing defense budgets play a crucial role in driving the aircraft engine market. The defense sector heavily relies on advanced aircraft and cutting-edge technologies to maintain military superiority and ensure national security.

As defense budgets expand, governments allocate significant funds towards the development and acquisition of new aircraft, which in turn stimulates the demand for aircraft engines. Aircraft engines are the heart of any aircraft, providing the necessary power for propulsion and flight. With higher defense budgets, defense organizations can invest in research and development programs to enhance engine performance, fuel efficiency, and reliability.

These advancements lead to the creation of more powerful and technologically advanced engines, which are sought after by military aircraft manufacturers. Furthermore, the market has been growing over the past few years, due to factors such as increasing airline capacity, growth in cargo operations, surge in adoption of cost effective and fuel efficient aircraft, increasing commercial aircraft deliveries and introduction of new fuel efficient engines and aircraft models.

Challenges:

However, the market has been confronted with some challenges specifically, high upfront investments with long-term payback, technological complexity, huge entry barriers, etc. Developing and manufacturing aircraft engines requires substantial financial resources, research and development, and engineering expertise. The complex and highly regulated nature of the industry adds to the cost and time required for engine development.

Aircraft engines undergo rigorous testing, certification processes, and compliance with stringent safety standards, making the upfront investments significantly high. Moreover, the very high upfront investments required for aircraft engine development, coupled with long-term payback periods, pose a significant challenge to the aircraft engine market.

Trends:

The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as digitalization and IoT integration, increasing use of 3D printed parts in aircraft engines, incorporation of ceramic matrix composites (CMCs) and need to decarbonize aviation. With the advent of advanced sensors, data analytics, and connectivity solutions, aircraft engines are becoming smarter and more efficient than ever before.

Digitalization involves the transformation of traditional analog systems into digital ones, enabling the collection and analysis of vast amounts of data in real-time. This allows for more accurate monitoring of engine performance, predictive maintenance, and enhanced operational efficiency. By integrating IoT (Internet of Things) technologies, aircraft engines can communicate with various onboard and ground-based systems, facilitating seamless data exchange and enabling remote monitoring and control. The benefits of digitalization and IoT integration in the aircraft engine market are manifold.

Competitive Landscape:

The global aircraft engine market is consolidated across five companies: GE, Pratt & Whitney (owned by Raytheon), Rolls-Royce, Safran, and MTU Aero Engines. GE and Safran have a 50/50 JV called CFM International, which dominates the narrow body engine market and enjoys very high margins. GE is also the dominant player in the wide body market.

Market Dynamics

Growth Drivers

• Increasing Defense Budget
• Increasing Airline Capacity
• Growth in Cargo Operations
• Surge in Adoption of Cost Effective and Fuel Efficient Aircraft
• Increasing Commercial Aircraft Deliveries
• Introduction of New Fuel Efficient Engines and Aircraft Models

Challenges

• High Upfront Investments with Long-term Payback
• Technological Complexity
• Huge Entry Barriers

Market Trends

• Digitalization and IoT Integration
• Increasing Use of 3D Printed Parts in Aircraft Engines
• Incorporation of Ceramic Matrix Composites (CMCs)
• Need to Decarbonize Aviation

Competitive Landscape

• Global Aircraft Engine Market Players: Competitive Landscape
• Global Commercial Aircraft Engine Players by Market Share
• Global Aircraft Engine Market Players by Supply Chain Position
• Estimated Time on Wing Performance
• Global Aircraft Engine Market Players: Engine Options for New & Selected Old Aircrafts
• Global Aircraft Engine Market Players: Military Aircraft Engine in Production & Development

Company Profiles

• Honeywell International Inc.
• General Electric Company (GE Aerospace)
• Raytheon Technologies Corporation
• MTU Aero Engines AG
• Safran SA
• Rolls-Royce Holdings Plc.
• Textron Inc.

For more information about this report visit https://www.researchandmarkets.com/r/ud3ucj

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