Global Next-Gen Aircraft Propulsion System Market Size study & Forecast, by Propulsion Type, Component and End-User and Regional Forecasts 2025-2035

Description

The Global Next-Gen Aircraft Propulsion System Market is valued at approximately USD 0.16 billion in 2024 and is projected to grow steadily at a CAGR of 4.80% over the forecast period 2025-2035. Next-generation aircraft propulsion systems represent a paradigm shift in aviation, integrating advanced electric, hybrid, hydrogen, and solar propulsion technologies to deliver higher energy efficiency, reduced emissions, and superior operational performance. These systems encompass sophisticated components including power generation units, power distribution networks, conversion systems, electric motors, and energy storage solutions, all engineered to enhance the reliability, safety, and environmental sustainability of modern aircraft. The market growth is propelled by escalating global initiatives toward decarbonization of aviation and the increasing adoption of innovative propulsion solutions by commercial, military, and government aviation stakeholders.

The surge in the adoption of eco-friendly propulsion technologies has created a fertile landscape for the expansion of next-gen aircraft propulsion systems. As governments and airlines intensify efforts to meet stringent emission reduction targets, there is a heightened demand for hybrid and all-electric propulsion platforms. According to the Air Transport Action Group (ATAG), commercial aviation accounted for nearly 2.4% of global CO2 emissions in 2022, highlighting the need for cleaner propulsion technologies. Concurrently, advances in energy storage systems, high-efficiency electric motors, and power management solutions are providing substantial opportunities for market participants. However, high R&D costs, technical complexity, and regulatory hurdles continue to challenge widespread deployment across all aircraft categories.

The detailed segments and sub-segments included in the report are:

By Propulsion Type:

All-Electric
Hybrid Electric
Turbo Electric
Hydrogen Propulsion
Solar Propulsion

By End-User:

Military
Commercial and Civil
Government

By Component:

Power Generation
Power Distribution
Power Conversion System
Electric Motor
Energy Storage and Supply System
Others

By Region:

North America

U.S.
Canada

Europe

UK
Germany
France
Spain
Italy
ROE

Asia Pacific

China
India
Japan
Australia
South Korea
RoAPAC

Latin America

Brazil
Mexico

Middle East & Africa

UAE
Saudi Arabia
South Africa
Rest of Middle East & Africa

Hybrid Electric Propulsion Expected to Dominate the Market

Among the various propulsion technologies, hybrid electric propulsion systems are projected to command the largest market share, owing to their ability to blend traditional fuel-based power with electric propulsion for improved fuel efficiency, extended flight range, and reduced emissions. The rising emphasis on retrofitting existing aircraft with hybrid systems, coupled with advancements in high-capacity batteries and lightweight components, is driving adoption. While hybrid electric systems dominate today, all-electric and hydrogen propulsion technologies are emerging as high-growth segments, especially in short-haul and urban air mobility applications, reflecting the industry's commitment to sustainable aviation.

Military End-User Leads in Revenue Contribution

When segmented by end-user, the military sector currently contributes the largest revenue share, fueled by defense modernization programs, unmanned aircraft developments, and the increasing integration of high-performance propulsion systems in tactical and transport aircraft. Commercial and civil aviation is witnessing steady growth as airlines adopt hybrid and all-electric propulsion for regional and short-haul operations. Government-backed research initiatives and pilot projects in solar and hydrogen propulsion further diversify revenue streams and create lucrative growth avenues across multiple aviation verticals.

The key regions considered for the Global Next-Gen Aircraft Propulsion System Market study include North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America dominates the market due to advanced aerospace manufacturing capabilities, substantial defense spending, and ongoing R&D initiatives in electric and hybrid propulsion technologies. Europe remains a key player, driven by stringent environmental regulations and the presence of leading propulsion system developers. Asia Pacific is expected to be the fastest-growing region over the forecast period, propelled by the rapid expansion of regional aircraft fleets, government incentives for clean energy aviation, and significant investments in next-generation propulsion technologies.

Major market players included in this report are:

Rolls-Royce Holdings PLC
Honeywell International Inc.
Safran S.A.
GE Aviation
Pratt & Whitney
Siemens AG
Boeing Company
Airbus S.A.S.
Moog Inc.
UTC Aerospace Systems
GKN Aerospace
Spirit AeroSystems Holdings, Inc.
Liebherr-Aerospace
BAE Systems PLC
MagniX

Global Next-Gen Aircraft Propulsion System Market Report Scope:

Historical Data - 2023, 2024
Base Year for Estimation - 2024
Forecast period - 2025-2035
Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa
Customization Scope - Free report customization (equivalent to up to 8 analysts' working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained above:

Key Takeaways:

Market Estimates & Forecast for 10 years from 2025 to 2035.
Annualized revenues and regional-level analysis for each market segment.
Detailed analysis of the geographical landscape with country-level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of the competitive structure of the market.
Demand side and supply side analysis of the market.

Chapter 1. Global Next-Gen Aircraft Propulsion System Market Report Scope & Methodology

1.1. Research Objective
1.2. Research Methodology
- 1.2.1. Forecast Model
- 1.2.2. Desk Research
- 1.2.3. Top Down and Bottom-Up Approach
1.3. Research Attributes
1.4. Scope of the Study
- 1.4.1. Market Definition
- 1.4.2. Market Segmentation
1.5. Research Assumption
- 1.5.1. Inclusion & Exclusion
- 1.5.2. Limitations
- 1.5.3. Years Considered for the Study

Chapter 2. Executive Summary

2.1. CEO/CXO Standpoint
2.2. Strategic Insights
2.3. ESG Analysis
2.4. key Findings

Chapter 3. Global Next-Gen Aircraft Propulsion System Market Forces Analysis

3.1. Market Forces Shaping The Global Next-Gen Aircraft Propulsion System Market (2024-2035)
3.2. Drivers
- 3.2.1. escalating global initiatives toward decarbonization of aviation
- 3.2.2. increasing adoption of innovative propulsion solutions
3.3. Restraints
- 3.3.1. high R&D costs, technical complexity, and regulatory hurdles
3.4. Opportunities
- 3.4.1. Growing adoption of eco-friendly propulsion technologies

Chapter 4. Global Next-Gen Aircraft Propulsion System Industry Analysis

4.1. Porter's 5 Forces Model
- 4.1.1. Bargaining Power of Buyer
- 4.1.2. Bargaining Power of Supplier
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
4.2. Porter's 5 Force Forecast Model (2024-2035)
4.3. PESTEL Analysis
- 4.3.1. Political
- 4.3.2. Economical
- 4.3.3. Social
- 4.3.4. Technological
- 4.3.5. Environmental
- 4.3.6. Legal
4.4. Top Investment Opportunities
4.5. Top Winning Strategies (2025)
4.6. Market Share Analysis (2024-2025)
4.7. Global Pricing Analysis And Trends 2025
4.8. Analyst Recommendation & Conclusion

Chapter 5. Global Next-Gen Aircraft Propulsion System Market Size & Forecasts by Propulsion Type 2025-2035

5.1. Market Overview
5.2. Global Next-Gen Aircraft Propulsion System Market Performance - Potential Analysis (2025)
5.3. All-Electric
- 5.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.3.2. Market size analysis, by region, 2025-2035
5.4. Hybrid Electric
- 5.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.4.2. Market size analysis, by region, 2025-2035
5.5. Turbo Electric
- 5.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.5.2. Market size analysis, by region, 2025-2035
5.6. Hydrogen Propulsion
- 5.6.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.6.2. Market size analysis, by region, 2025-2035
5.7. Solar Propulsion
- 5.7.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.7.2. Market size analysis, by region, 2025-2035

Chapter 6. Global Next-Gen Aircraft Propulsion System Market Size & Forecasts by End User 2025-2035

6.1. Market Overview
6.2. Global Next-Gen Aircraft Propulsion System Market Performance - Potential Analysis (2025)
6.3. Military
- 6.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.3.2. Market size analysis, by region, 2025-2035
6.4. Commercial and Civil
- 6.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.4.2. Market size analysis, by region, 2025-2035
6.5. Government
- 6.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.5.2. Market size analysis, by region, 2025-2035

Chapter 7. Global Next-Gen Aircraft Propulsion System Market Size & Forecasts by Component 2025-2035

7.1. Market Overview
7.2. Global Next-Gen Aircraft Propulsion System Market Performance - Potential Analysis (2025)
7.3. Power Generation
- 7.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.3.2. Market size analysis, by region, 2025-2035
7.4. Power Distribution
- 7.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.4.2. Market size analysis, by region, 2025-2035
7.5. Power Conversion System
- 7.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.5.2. Market size analysis, by region, 2025-2035
7.6. Electric Motor
- 7.6.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.6.2. Market size analysis, by region, 2025-2035
7.7. Energy Storage and Supply System
- 7.7.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.7.2. Market size analysis, by region, 2025-2035
7.8. Others
- 7.8.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.8.2. Market size analysis, by region, 2025-2035

Chapter 8. Global Next-Gen Aircraft Propulsion System Market Size & Forecasts by Region 2025-2035

8.1. Growth Next-Gen Aircraft Propulsion System Market, Regional Market Snapshot
8.2. Top Leading & Emerging Countries
8.3. North America Next-Gen Aircraft Propulsion System Market
- 8.3.1. U.S. Next-Gen Aircraft Propulsion System Market
  - 8.3.1.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.3.1.2. End Use breakdown size & forecasts, 2025-2035
  - 8.3.1.3. Component breakdown size & forecasts, 2025-2035
- 8.3.2. Canada Next-Gen Aircraft Propulsion System Market
  - 8.3.2.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.3.2.2. End Use breakdown size & forecasts, 2025-2035
  - 8.3.2.3. Component breakdown size & forecasts, 2025-2035
8.4. Europe Next-Gen Aircraft Propulsion System Market
- 8.4.1. UK Next-Gen Aircraft Propulsion System Market
  - 8.4.1.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.4.1.2. End Use breakdown size & forecasts, 2025-2035
  - 8.4.1.3. Component breakdown size & forecasts, 2025-2035
- 8.4.2. Germany Next-Gen Aircraft Propulsion System Market
  - 8.4.2.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.4.2.2. End Use breakdown size & forecasts, 2025-2035
  - 8.4.2.3. Component breakdown size & forecasts, 2025-2035
- 8.4.3. France Next-Gen Aircraft Propulsion System Market
  - 8.4.3.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.4.3.2. End Use breakdown size & forecasts, 2025-2035
  - 8.4.3.3. Component breakdown size & forecasts, 2025-2035
- 8.4.4. Spain Next-Gen Aircraft Propulsion System Market
  - 8.4.4.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.4.4.2. End Use breakdown size & forecasts, 2025-2035
  - 8.4.4.3. Component breakdown size & forecasts, 2025-2035
- 8.4.5. Italy Next-Gen Aircraft Propulsion System Market
  - 8.4.5.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.4.5.2. End Use breakdown size & forecasts, 2025-2035
  - 8.4.5.3. Component breakdown size & forecasts, 2025-2035
- 8.4.6. Rest of Europe Next-Gen Aircraft Propulsion System Market
  - 8.4.6.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.4.6.2. End Use breakdown size & forecasts, 2025-2035
  - 8.4.6.3. Component breakdown size & forecasts, 2025-2035
8.5. Asia Pacific Next-Gen Aircraft Propulsion System Market
- 8.5.1. China Next-Gen Aircraft Propulsion System Market
  - 8.5.1.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.5.1.2. End Use breakdown size & forecasts, 2025-2035
  - 8.5.1.3. Component breakdown size & forecasts, 2025-2035
- 8.5.2. India Next-Gen Aircraft Propulsion System Market
  - 8.5.2.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.5.2.2. End Use breakdown size & forecasts, 2025-2035
  - 8.5.2.3. Component breakdown size & forecasts, 2025-2035
- 8.5.3. Japan Next-Gen Aircraft Propulsion System Market
  - 8.5.3.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.5.3.2. End Use breakdown size & forecasts, 2025-2035
  - 8.5.3.3. Component breakdown size & forecasts, 2025-2035
- 8.5.4. Australia Next-Gen Aircraft Propulsion System Market
  - 8.5.4.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.5.4.2. End Use breakdown size & forecasts, 2025-2035
  - 8.5.4.3. Component breakdown size & forecasts, 2025-2035
- 8.5.5. South Korea Next-Gen Aircraft Propulsion System Market
  - 8.5.5.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.5.5.2. End Use breakdown size & forecasts, 2025-2035
  - 8.5.5.3. Component breakdown size & forecasts, 2025-2035
- 8.5.6. Rest of APAC Next-Gen Aircraft Propulsion System Market
  - 8.5.6.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.5.6.2. End Use breakdown size & forecasts, 2025-2035
  - 8.5.6.3. Component breakdown size & forecasts, 2025-2035
8.6. Latin America Next-Gen Aircraft Propulsion System Market
- 8.6.1. Brazil Next-Gen Aircraft Propulsion System Market
  - 8.6.1.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.6.1.2. End Use breakdown size & forecasts, 2025-2035
  - 8.6.1.3. Component breakdown size & forecasts, 2025-2035
- 8.6.2. Mexico Next-Gen Aircraft Propulsion System Market
  - 8.6.2.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.6.2.2. End Use breakdown size & forecasts, 2025-2035
  - 8.6.2.3. Component breakdown size & forecasts, 2025-2035
8.7. Middle East and Africa Next-Gen Aircraft Propulsion System Market
- 8.7.1. UAE Next-Gen Aircraft Propulsion System Market
  - 8.7.1.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.7.1.2. End Use breakdown size & forecasts, 2025-2035
  - 8.7.1.3. Component breakdown size & forecasts, 2025-2035
- 8.7.2. Saudi Arabia (KSA) Next-Gen Aircraft Propulsion System Market
  - 8.7.2.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.7.2.2. End Use breakdown size & forecasts, 2025-2035
  - 8.7.2.3. Component breakdown size & forecasts, 2025-2035
- 8.7.3. South Africa Next-Gen Aircraft Propulsion System Market
  - 8.7.3.1. Propulsion Type breakdown size & forecasts, 2025-2035
  - 8.7.3.2. End Use breakdown size & forecasts, 2025-2035
  - 8.7.3.3. Component breakdown size & forecasts, 2025-2035

Chapter 9. Competitive Intelligence

9.1. Top Market Strategies
9.2. Rolls-Royce Holdings PLC
- 9.2.1. Company Overview
- 9.2.2. Key Executives
- 9.2.3. Company Snapshot
- 9.2.4. Financial Performance (Subject to Data Availability)
- 9.2.5. Product/Services Port
- 9.2.6. Recent Development
- 9.2.7. Market Strategies
- 9.2.8. SWOT Analysis
9.3. Honeywell International Inc.
9.4. Safran S.A.
9.5. GE Aviation
9.6. Pratt & Whitney
9.7. Siemens AG
9.8. Boeing Company
9.9. Airbus S.A.S.
9.10. Moog Inc.
9.11. UTC Aerospace Systems
9.12. GKN Aerospace
9.13. Spirit AeroSystems Holdings, Inc.
9.14. Liebherr-Aerospace
9.15. BAE Systems PLC
9.16. MagniX