Market Trends of Aircraft Engines Industry
Commercial Aviation to Dominate the Global Market Share During the Forecast Period
The commercial aircraft segment currently holds a significant market share and is expected to continue its dominance during the forecast period, owing to a large number of commercial aircraft deliveries across the world, which are generating demand for aircraft engines. The backlog of the aircraft OEMs is expected to support the commercial engines segment to grow at a healthy rate during the forecast period. The demand for narrow-body aircraft is expected to recover faster than for wide-body aircraft as domestic demand is expected to return to pre-pandemic levels earlier than the international passenger demand.
Technological advancements in new-generation passenger aircraft make it possible for them to fly longer distances. Players are emphasizing increasing the fuel efficiency of passenger aircraft while increasing their range, as airlines are looking to procure such aircraft for their fleets. In February 2022, Safran Helicopter Engines signed a Memorandum of Understanding (MoU) with ST Engineering to conduct a study on the use of Sustainable Aviation Fuel (SAF) in helicopter engines. The study aims to assist helicopter operators in switching from conventional fossil fuels to SAF. Similarly, Airbus entered a partnership with CFM International in February 2022 to develop a hydrogen-fueled aircraft engine with the aim of introducing zero-emission aircraft by 2035. Such plans are anticipated to propel global market growth.
Asia-Pacific Region Expected to Witness the Highest Growth During the Forecast Period
The industry analysis shows that Asia-Pacific is expected to witness the highest growth in the global market during the forecast period due to the strong demand for domestic air travel in developing economies. Due to the faster growth of domestic passenger traffic, low-cost airlines in the region are strengthening their aircraft fleet with new-generation aircraft to support their route expansion plans. Such robust aircraft orders as part of fleet modernization plans of the airlines in the region are expected to increase the market value and demand for aircraft engines over the coming years.
Furthermore, due to geopolitical tensions in the region, countries are increasing their investments to strengthen their aerial capabilities with the procurement of advanced aircraft and replace their aging aircraft. For instance, in June 2023, India and the US announced the agreement between Hindustan Aeronautics Limited (HAL) and GE Aerospace to produce fighter jet engines for the Indian Air Force (IAF). The deal takes place in the context of efforts by the IAF to improve its capabilities and capacities. The IAF is in the process of procuring 114 multi-role fighter jets (MRFA), along with acquiring additional numbers of Light Combat Aircraft (LCA) Mk1A, followed by LCA Mk2. GE's F404 engines are the engine used to power India's only indigenous fighter jet LCA Tejas. As of now, GE has manufactured 75 F404 engines, and another 99 are on order with LCA Mk1A.
Such fleet modernization plans will likely generate demand for advanced lightweight and fuel-efficient engines over the coming years.
