Jet engine market is anticipated to grow at a considerable CAGR of 6.4% during the forecast period (2024-2031). A jet engine is a reaction engine that produces thrust by expelling a fast-moving stream of heated gas. Jet engines are also called gas turbines. Growing demand for gas turbines across end-user industries is a key factor driving the growth of the global jet engine market.

Market Dynamics

Rising Air Travel Demand: A Key Driver of the Global Jet Engine Market

The global jet engine market is experiencing a significant upswing, primarily driven by the surging air travel demand. This demand, exceeding pre-pandemic levels in several regions, is fueling the need for new airplanes, which translates directly to an increased demand for jet engines. For instance, In May 2023, The International Air Transport Association (IATA) had reported robust demand growth for air travel in March 2023. Global traffic is currently at 88.0% of March 2019 levels. Domestic traffic increased 34.1% from the previous year, with total domestic traffic in March 2023 at 98.9% of the March 2019 level. International traffic increased 68.9% from March 2022 to March 2023, with carriers in the Asia-Pacific region leading the way once again. International RPKs reached 81.6% of March 2019 levels, while the load factor at 81.3% exceeded the March 2019 level by 10.1 percentage points.

This surge in demand is particularly prominent in emerging economies like India.According to International Trade Administration one of the industries in India that is expanding the fastest is civil aviation; by 2030, there will be more than 500 million domestic and international air travelers in India, and by 2047, it might lead the world in aviation sales.In the first half of 2023 (January–June), domestic airlines carried over 76 million passengers, up from 57 million in the same time the year before, according to the Directorate General of Civil Aviation.

Looking forward, the rising demand for air travel is expected to continue in the coming years, creating a lucrative market for jet engine manufacturers.

Aircraft Modernization Fuels Jet Engine Market Growth

Aircraft modernization is emerging as a potential driver of the jet engine market growth. Modernization offers a more economical alternative to acquiring new aircraft, allowing airlines to extend lifespan, improve capabilities, and optimize fleet management at a lower cost. 

In December 2023, Pentagon officials announced that East Hartford-based Pratt & Whitney will remain the sole source for upgrades of the F-35 jet engine. A number of follow-on contracts for the Engine Core Upgrade program have been awarded by the Department of Defense this week, extending the company's work in supplying engines exclusively for the next seven years. The contracts will begin a few months into the fiscal year 2024 and run until the end of 2031.This trend will undoubtedly positively impact the jet engine market as end users increasingly embrace upgrades as part of their modernization strategies.

Market Segmentation

Our in-depth analysis of the global jet engine market includes the following segments by type and by application:

• Based by type, the market is sub-segmented into turbofan engine, turbojet engine and others (turboprop, turboshaft and ramjet).

• Based on application the market is augmented into Military Aviation and Civil Aviation.

Turbofanemerges as the fastest growing Sub-segment

Based on the type, the global jet engine market is sub-segmented into turbofan engine, turbojet engine and others. The turbofan engine holds the largest market due to its adaptability, fuel efficiency, and capacity to power a variety of aircraft, ranging from regional jets to massive airliners. This market dominance is further supported by the resurgence of air travel, which has led airlines to increase the size of their fleets and rely more heavily on aircraft powered by turbofans. Additionally, manufacturers and airlines place a high value on fuel efficiency, and newer models of turbofan engines, such as geared turbofans, offer notable improvements in this vital area when compared to their predecessors. Lastly, ongoing advances in material science and engine design have led to the development of lighter, more efficient, and quieter turbofan engines, further driving market growth.

Military Aviation Holds a Considerable Market Share

The growing demand for advanced jet engines for military applications is a key factor driving the the growth of this market segment. A renewed focus on supersonic and hypersonic technology for military applications is also driving market demand, posing technological challenges and new market opportunities for manufacturers. Moreover, replacement cycles for aging military aircraft are creating new demand; as legacy fighter jets and other military platforms reach the end of their lifespan, they must be upgraded or completely replaced with modern counterparts. This necessitates the production of new jet engines to power these next-generation aircraft.For instance in September 2023, DoD announced to use the $450,000 award from the Naval Research Laboratory to build a hypersonic engine that can change its design while in flight in order to maximize performance.

Regional Outlook

The global jet engine market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

North America Holds the Considerable Market Share

• Expanding E-commerce and cargo transportation in the region. According to US Census Bauru the estimate of U.S. retail e-commerce sales for the fourth quarter of 2023 totaled $324.8 billion, an increase of 19.5 percent (±1.1%) from the third quarter of 2023. 

• Increasing Focus on Sustainable Aviation in US and dropping emission. According to white house press release Biden administration new actions aim to produce three billion gallons of sustainable fuel, reduce aviation emissions by 20% by 2030.

Global Jet Engine Market Growth by Region 2024-2031

Twin Pillars of Growth: Rising Affluence and Infrastructure Investments Fueling the Asia Pacific Aviation Sector

The Asia Pacific aviation sector is experiencing a significant resurgence fueled by several key factors. The government investments in aviation infrastructure in emerging economies such as India & China is making significant contribution to the regional market growth. For instance, China government is spending $170 billion on airport expansion plan. According to Department for Promotion of Industry and Internal Trade India is expected to become the third largest civil aviation market in the world by 2032, which is a testament to its rapid growth and the attractive investment opportunities in airports and aviation infrastructure in the country. These factors, coupled with advancements in aircraft design and increasing regional trade, contribute to the promising outlook for the Asia Pacific aviation sector, thereby contributing to the global jet engine market..

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global jet engine market include Honeywell International Inc., GE Aerospace (The General Electric Company), Pratt & Whitney (RTX Corporation), Safran SA, Rolls-Royce plcamong others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in October 2023, Honeywell announced that Embraer has successfully tested 100.0% sustainable aviation fuel (SAF) in Honeywell's HTF7500 turbofan engine on its Praetor 600 aircraft. This is a significant test since it is the first time Honeywell's business jet engines have flown 100.0% SAF.

The Report Covers

• Market value data analysis of 2023and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global jet engine market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.