Propulsion Systems Market Forecasts to 2030 - Global Analysis By Type (Air Breathing Engines, Non-Air Breathing Engines and Electric Propulsion Engines), By Application (Aircraft, Spacecraft and Other Applications) and By Geography

According to Stratistics MRC, the Global Propulsion Systems Market is accounted for $387.07 billion in 2023 and is expected to reach $650.58 billion by 2030 growing at a CAGR of 7.7% during the forecast period. Propulsion systems are mechanisms that generate thrust to propel vehicles forward. They convert stored energy into motion by utilizing principles like Newton's third law of motion. Examples include rocket engines, jet engines, and propellers. These systems vary in complexity and function based on the vehicle's design and intended use, enabling efficient transportation across air, water, and space.

According to IATA passenger traffic forecasts is expected to reach pre-pandemic levels by 2024 and grow at an average annual rate of 4.3% for the next 20 years.

Market Dynamics:

Driver:

Growing aerospace and defense markets

The growing aerospace and defense markets serve as significant drivers in the propulsion systems market. As these sectors expand, there is an increased demand for advanced propulsion technologies to power various aircraft, spacecraft, missiles, and defense systems. This demand fosters innovation and investment in propulsion systems, leading to the development of more efficient, reliable, and high-performance solutions. Companies within the industry are compelled to enhance their offerings to meet the evolving needs of military and commercial applications, driving further growth in the market.

Restraint:

Costs associated with the development and implementation

Research, design, testing, and manufacturing expenses can be substantial, particularly for advanced technologies like electric propulsion or hybrid systems. Additionally, stringent regulatory requirements and safety standards increase development costs. Moreover, the need for continuous innovation to improve efficiency and meet environmental regulations adds to expenses. These high upfront costs often deter investment and adoption, hindering the growth potential of propulsion technologies in various industries.

Opportunity:

Rise of electric propulsion systems in various industries

Electric propulsion offers numerous advantages, including lower emissions, reduced reliance on fossil fuels, and enhanced efficiency. With increasing environmental concerns and regulatory pressures, there's a growing demand for cleaner propulsion solutions. Additionally, electric propulsion systems often require less maintenance and offer quieter operation compared to traditional combustion engines, making them attractive for applications in aerospace, automotive, marine, and other sectors seeking sustainable and innovative propulsion solutions.

Threat:

Stringent certification processes in the aerospace industry

Meeting rigorous safety and quality standards set by regulatory bodies like the Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA) requires extensive testing and validation, leading to prolonged development timelines and increased costs. Moreover, any failure to meet these requirements can result in delays, rejections, or even grounding of aircraft, leading to significant financial losses and damage to the reputation of manufacturers, which may limit the growth of the propulsion systems market.

Covid-19 Impact:

The COVID-19 pandemic has significantly impacted the propulsion systems market. Travel restrictions, supply chain disruptions, and decreased demand for transportation services have led to a decline in orders and production for propulsion systems across various industries. Moreover, uncertainty regarding the duration and severity of the pandemic continues to affect investment decisions and market dynamics, posing ongoing challenges for propulsion system manufacturers.

The air breathing engines segment is expected to be the largest during the forecast period

The air breathing engines segment is anticipated to dominate the propulsion systems market throughout the forecast period. This dominance can be attributed to the widespread use of air breathing engines in various applications, including commercial aviation, military aircraft, and unmanned aerial vehicles. Additionally, advancements in turbofan and turboprop engine technologies, coupled with the growing demand for fuel-efficient and environmentally friendly propulsion solutions, further drive the prominence of air breathing engines in the market.

The unmanned aerial vehicles (UAVs) segment is expected to have the highest CAGR during the forecast period

The unmanned aerial vehicles (UAVs) segment is projected to exhibit the highest growth rate during the forecast period. This growth can be attributed to the increasing adoption of UAVs for various applications such as surveillance, reconnaissance, agriculture, and delivery services. As technology advances, there is a growing demand for efficient and reliable propulsion systems to power these UAVs, driving the market's growth for propulsion systems in this segment.

Region with largest share:

North America is poised to capture the largest market share in the propulsion systems market due to its robust aerospace and defense sectors, with major players investing in research and development of advanced propulsion technologies. Moreover, the presence of leading aerospace companies, technological advancements, and strong government support for aerospace initiatives contribute to the region's dominance. Additionally, increasing demand for commercial aircraft and military applications further drives the propulsion systems market in North America.

Region with highest CAGR:

The Asia Pacific region is primed for rapid growth in the propulsion systems market owing to its significant economic development, driving demand for air travel, maritime transportation, and defense capabilities. Moreover, increasing investments in the aerospace and defense sectors, coupled with the expansion of commercial aviation, contribute to the region's growth. Additionally, the emergence of countries like China and India as major players in aerospace manufacturing further accelerates the propulsion systems market in Asia Pacific.

Key players in the market

Some of the key players in Propulsion Systems Market include Aerojet Rocketdyne, AeroVironment, Inc., Airbus Group, BAE Systems plc, Blue Origin, Boeing Company, General Electric Company, Honeywell International Inc., Lockheed Martin Corporation, Mitsubishi Heavy Industries, Ltd., Northrop Grumman Corporation, Reaction Engines Ltd., Rolls-Royce Holdings plc, RUAG Group, Safran S.A., Sierra Nevada Corporation, SpaceX and Thales Group.

Key Developments:

In April 2023, Aerojet Rocketdyne has entered into a $215.6 million Cooperative Agreement with the Defense Department to increase domestic rocket propulsion manufacturing capacity to meet increased warfighter demand for tactical missile systems used by the Department of Defense (DoD).

In May 2023, Rolls-Royce announced the development of a new type of jet engine called the UltraFan. The UltraFan is said to be 25% more efficient than current jet engines, and it is expected to be introduced in 2029.

Types Covered:

• Air Breathing Engines
• Non-Air Breathing Engines
• Electric Propulsion Engines

Applications Covered:

• Aircraft
• Spacecraft
• Missiles
• Unmanned Aerial Vehicles (UAVs)
• Marine Vessels
• Automobiles
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances