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Europe Aircraft Engine Market Outlook Through 2033

Europe Aircraft Engine Market Outlook Through 2033
The European aircraft engine market is projected to experience steady growth over the coming decade. Valued at USD 21.26 billion in 2024, the market is expected to reach USD 30.13 billion by 2033, reflecting a compound annual growth rate (CAGR) of 3.95% from 2025 to 2033. This expansion is driven by increasing demand for new-generation commercial aircraft, ongoing fleet modernization efforts, and the strong presence of global original equipment manufacturers (OEMs) within the region.
Market Dynamics and Regional Developments
Drivers of Market Growth
The market’s growth is primarily supported by several key factors. Airlines across Europe are actively renewing their fleets to accommodate rising passenger volumes and to transition towards quieter, more fuel-efficient engines. The adoption of next-generation turbine engines, which offer enhanced fuel efficiency, reduced emissions, and greater durability, remains a central trend. Additionally, Europe’s commitment to sustainable aviation is accelerating investments in hybrid-electric propulsion systems, engines compatible with sustainable aviation fuels (SAF), and the use of lightweight materials to improve overall efficiency.
Military advancements also play a significant role in shaping the market. Technological progress in propulsion systems, including the development of high-thrust and adaptive-cycle engines for next-generation fighter programs, is enhancing the region’s defense capabilities. Furthermore, collaborative innovation is deepening as European OEMs partner with global engine manufacturers to co-develop critical engine modules and advance testing capabilities, fostering a more integrated aerospace ecosystem.
Challenges Facing the Sector
Despite positive momentum, the aircraft engine market in Europe faces notable challenges. Supply chain constraints have become a significant concern, highlighted by recent engine reliability issues experienced by carriers such as Cebu Pacific and widespread groundings related to Pratt & Whitney’s geared turbofan (GTF) engines affecting airlines like Wizz Air. These disruptions have led some operators to revise expansion plans and defer aircraft deliveries, potentially dampening short-term growth prospects. In response, industry players are increasingly focusing on vertical specialization in high-impact segments, such as heavy-duty transport, reflecting similar trends observed in the European fuel cell market.
Segment and Regional Insights
Turbine engines dominated the market in 2024, owing to their critical role in both commercial and military aviation, where superior performance and reliability are paramount. Within the end-user segments, civil and commercial aviation accounted for 58.5% of the regional market share in 2024, driven by increased aircraft deliveries and the adoption of fuel-efficient propulsion systems by European airlines.
Regionally, France leads the market with a 25.5% share in 2024, supported by a robust aerospace ecosystem and the prominent role of Safran in engine manufacturing and research and development. The United Kingdom is expected to maintain a significant market share, underpinned by Rolls-Royce’s global leadership in wide-body engines and its investments in next-generation propulsion technologies. Germany remains a key contributor, with MTU Aero Engines providing expertise in high-pressure turbine modules and advanced military engine programs. Spain is anticipated to experience healthy growth, fueled by increased participation in European aerospace consortia and expanding component manufacturing capabilities. Sweden is also poised for notable expansion, driven by sovereign military propulsion programs and innovation in fighter-engine technology.
Competitive Landscape
The European aircraft engine market is characterized by the dominance of global aerospace giants alongside regional leaders specializing in turbine technology, military propulsion, and commercial engine development. Companies are intensifying efforts in areas such as hybrid-electric propulsion research, SAF readiness, additive manufacturing, and long-term service solutions. These initiatives are critical for maintaining competitiveness amid evolving market dynamics and operational challenges.

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