Propulsion Systems Global Market Report 2025

A propulsion system is a machine that generates a propelling or driving force, following Newton's third law of action and reaction, to facilitate forward motion in an object. Propulsion systems are employed to generate thrust for accelerating spacecraft and artificial satellites.

Propulsion systems are divided into air-breathing and non-air breathing types. Air-breathing systems use oxygen from the atmosphere in fuel combustion and find applications in missiles, aircraft, spacecraft, and unmanned aerial vehicles. These propulsion systems are utilized by end-users in commercial, government, and military sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are placing significant strain on the transport sector, especially in areas such as fleet maintenance and logistics. Increased duties on imported commercial vehicles, tires, and engine parts have driven up operating costs for trucking and freight firms, forcing them to either raise shipping rates or accept lower profit margins. Airlines and maritime operators are also under pressure, as tariffs on aircraft components and shipbuilding materials have pushed capital expenditures higher. Meanwhile, retaliatory tariffs in key export markets have weakened demand for U.S.-manufactured transportation equipment, further squeezing revenues. To cope, the industry is turning to fuel efficiency measures, alternative supply sources, and greater automation to manage rising costs while maintaining dependable service.

The propulsion systems market research report is one of a series of new reports from The Business Research Company that provides propulsion systems market statistics, including propulsion systems industry global market size, regional shares, competitors with a propulsion systems market share, detailed propulsion systems market segments, market trends and opportunities, and any further data you may need to thrive in the propulsion systems industry. This propulsion systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The propulsion systems market size has grown strongly in recent years. It will grow from $323.91 billion in 2024 to $340.51 billion in 2025 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to software implementation, initial global market expansion, material innovations for efficiency, autonomous features integration, hybrid propulsion introductions.

The propulsion systems market size is expected to see strong growth in the next few years. It will grow to $443.93 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to software and AI integration, innovations in lightweight materials, stringent emission standards, fuel cell advancements. Major trends in the forecast period include electrification dominance, hybridization advancements, fuel cell technology development, efficiency and emission standards, autonomous and connected propulsion.

The forecast of 6.9% growth over the next five years reflects a modest reduction of 0.6% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through tariffs on propulsion modules, especially for hybrid and electric systems sourced from China, South Korea, and Germany, which may delay powertrain electrification initiatives.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing defense expenditure is anticipated to drive the growth of the propulsion systems market in the coming years. Defense expenditure refers to the financial resources allocated by a country for military operations and resources. As defense spending rises, the demand for propulsion systems is expected to increase, given their critical role in various applications, including rockets, unmanned aerial vehicles, satellite launch vehicles, and aircraft. For example, in April 2023, the Stockholm International Peace Research Institute (SIPRI), a Sweden-based organization focused on arms control and non-proliferation, reported that Russian military spending rose by an estimated 9.2% in 2022, reaching approximately $86.4 billion. This accounted for 4.1% of Russia's GDP, up from 3.7% in 2021. Consequently, the growth in defense expenditure is expected to enhance the demand for propulsion systems during the forecast period.

The significant driver for the propulsion systems market is the escalating air traffic. The term 'air traffic' refers to the movement of aircraft through airspace, encompassing take-offs, landings, and overall navigation of planes, helicopters, and other aerial vehicles. Propulsion systems are essential in providing the thrust required for aircraft to achieve and sustain flight, influencing factors such as operational efficiency, fuel economy, and environmental impact in the aviation sector. In March 2023, according to the Bureau of Transportation Statistics, US airlines experienced a substantial increase in passenger traffic in 2022, transporting 194 million more passengers compared to the previous year, marking a 30% year-on-year increase. Over the January to December 2022 period, US airlines handled 853 million passengers (unadjusted), a notable rise from 658 million in 2021 and 388 million in 2020. This surge in air traffic is a key driver propelling the growth of the propulsion systems market.

Major companies in the propulsion systems market are concentrating on new technologies, particularly advanced electric motors, to improve efficiency, lower emissions, enhance performance, and facilitate the shift towards more sustainable energy sources. Advanced electric motors are high-performance devices that employ innovative technologies, including permanent magnets and enhanced cooling systems, to achieve higher efficiency and power density. For example, in April 2024, ZeroAvia, a US-based producer of hydrogen fuel cell systems, introduced electric and hydrogen aviation components. These components are essential technologies for developing sustainable aviation and are designed to aid in the transition from conventional fossil fuel-powered aircraft to eco-friendly alternatives.

A notable trend in the propulsion systems market is the increasing focus on introducing hydrogen propulsion systems. Major companies are investing in the development of propulsion systems that utilize hydrogen as a fuel source for powering various machinery and vehicles. In December 2023, Marelli Europe S.p.A., an Italy-based company, launched an advanced hydrogen propulsion system featuring specific injectors with patented designs and an advanced engine control unit tailored for hydrogen engines. These engines, functioning similarly to traditional endothermic engines but using hydrogen as fuel, result in zero CO2 emissions. The Marelli fuel system meets stringent engine requirements, ensuring precision, efficiency, performance, easy integration, and complexity reduction.

In January 2024, Yamaha Motor Co. Ltd., a Japan-based manufacturer known for producing motorcycles, motorboats, and outboard motors, acquired Torqeedo for an undisclosed amount. This acquisition is intended to enhance Yamaha's portfolio of electric propulsion technologies and reinforce its position in the expanding market for sustainable marine solutions. Torqeedo, based in Germany, specializes in manufacturing electric motors and propulsion systems for boats.

Major companies operating in the propulsion systems market include General Electric Company, Daihatsu Diesel Mfg. Co Ltd., Raytheon Technologies Corporation, The Boeing Company, Airbus SE, Northrop Grumman Corporation, Honeywell International Inc., Mitsubishi Heavy Industries Ltd., Safran S.A., L3Harris Technologies Inc., Rolls-Royce Holdings plc, Thales Alenia Space, IHI Corporation, Yanmar Co Ltd., Space Exploration Technologies Corp, Rafael Advanced Defense Systems Ltd., Moog Inc., Aerojet Rocketdyne Holdings Inc., OHB System AG, Nishishiba Electric Co Ltd., VACCO Industries Inc., Sitael S.p.A., CFM International, MSNW LLC, Busek Co Inc., Ad Astra Rocket Company, 3W International GmbH, Accion Systems Inc., Ariane Group, LTS Marine Ltd., CU Aerospace LLC

North America was the largest region in the propulsion systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the propulsion systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the propulsion systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The propulsion system market consists of sales of the propeller, the turbine (or jet) engine, the ramjet, and the rocket. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Propulsion Systems Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on propulsion systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for propulsion systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The propulsion systems market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Type: Air Breathing; Non-Air Breathing
• 2) By Application: Airplanes; Missiles; Unnamed Aerial Vehicles; Spacecraft
• 3) By End-User: Commercial; Government & Military
• Subsegments:
• 1) By Air Breathing: Turbojet; Turbofan; Ramjet; Scramjet
• 2) By Non-Air Breathing: Liquid Propellant; Solid Propellant; Hybrid Propellant; Electric Propulsion
• Companies Mentioned: General Electric Company; Daihatsu Diesel Mfg. Co Ltd.; Raytheon Technologies Corporation; The Boeing Company; Airbus SE; Northrop Grumman Corporation; Honeywell International Inc.; Mitsubishi Heavy Industries Ltd.; Safran S.A.; L3Harris Technologies Inc.; Rolls-Royce Holdings plc; Thales Alenia Space; IHI Corporation; Yanmar Co Ltd.; Space Exploration Technologies Corp; Rafael Advanced Defense Systems Ltd.; Moog Inc.; Aerojet Rocketdyne Holdings Inc.; OHB System AG; Nishishiba Electric Co Ltd.; VACCO Industries Inc.; Sitael S.p.A.; CFM International; MSNW LLC; Busek Co Inc.; Ad Astra Rocket Company; 3W International GmbH; Accion Systems Inc.; Ariane Group; LTS Marine Ltd.; CU Aerospace LLC
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.