The America aircraft engines market is projected to grow with a CAGR of more than 5% during the forecast period.
- The growth in demand for air travel and aerial connectivity in the North America and Latin America regions have driven the airlines to introduce new routes and increase flight movements, to cater to its growing demand. This is anticipated to generate demand for new aircraft engines in the region.
- The increasing emphasis on reduction of emissions from aircraft by regulatory bodies like the Federal Aviation Administration (FAA), International Civil Aviation Organization, and International Air Transport Association (IATA), among others are generating demand for new generation aircraft engines.
- Due to the COVID-19 pandemic, the aircraft OEMs have decreased their aircraft production and airlines are postponing their expansion plans, which will affect the market in 2020 and 2021.
Key Market Trends
Turbofan Segment is Expected to Grow with the Highest CAGR During the Forecast Period
The turbofan segment accounts for a major share in the market and is expected to witness the highest CAGR during the forecast period. This is majorly due to the orders and deliveries of major turbofan aircraft programs across commercial, military, and general aviation sectors. The military modernization plans in Latin America and North America regions as well as fleet expansion plans of airlines in the region are majorly driving the growth of the segment. Brazilian Air Force (FAB) ordered 36 Saab Gripen E/F (F-39) combat aircraft worth USD 5.4 billion in 2014. The deliveries are expected to run from 2019 to 2024. The development of advanced aircraft engines like GE9X, which are highly fuel-efficient engines is anticipated to propel the growth of the market. Also, in September 2018, Pratt & Whitney has won a USD 437 million contract to develop its adaptive propulsion technology for use on the US Air Force’s next generation of fighter jets. Such investments in turbofan engine technology are anticipated to bolster the growth of the segment during the forecast period.
North America Dominates the Market in terms of Market Share
The North America region currently dominates the market and is expected to continue its domination during the forecast period. This is mainly due to increasing passenger traffic in the United States and Canada. The increasing passenger traffic is propelling the fleet and route expansion plans of the airlines. For instance, as of March 2020, the United Airlines, one of the major airlines in the country, has 50 Airbus A321XLR, 45 Airbus A350-900, 71 737 Max 9, 100 737-10, and eight 787-9 on order. The aircraft deliveries are scheduled during the forecast period. Also, under the fleet modernization plan, the US Air Force plans to acquire a wide range of military aircraft. The US government in February 2020, announced its plan to acquire the F-15EX fourth-generation version of the F-15 fighter. These aircraft will complement the country’s fleet of F-35 fighter jet aircraft as well as combat drones planned to enter service in the coming years. Similarly, the increasing demand for military helicopter and private helicopter fleet in the US and Canada is anticipated to accelerate the growth of the aircraft engines market in the region.
The aircraft engine market in Latin America and North America region is consolidated with General Electric, Rolls-Royce Holdings PLC, Pratt & Whitney, Lycoming Engines, and Honeywell International Inc. accounting for the majority of the share in the market. CFM International, a joint venture between GE (General Electric) and Safran is the major engine provider to major commercial and military aircraft programs. The companies are investing heavily in research and development of new and advanced aircraft engine models, which are light in weight and more fuel-efficient. Also, the manufacturers have focused their investments on the development of electric engine models. For instance, Honeywell and DENSO have agreed to collaborate, for propelling the growth of urban air mobility and other aerospace market segments, by combining their capabilities to develop hybrid-electric and fully electric powertrains. Such factors are anticipated to help the companies receive new contracts from aircraft OEMs and increase their presence in the region.
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