Aerospace and Defense Propulsion System Market Size, By Type (Air-breathing [Gas Turbine & Jet Engines, Ramjets & Scramjets, Internal Combustion], Non-air-breathing [Solid Propulsion, Liquid Propulsion, Hybrid Propulsion, Electric Propulsion]), By Application, By End Use, Market Share & Forecast, 2023 - 2032

Aerospace and Defense Propulsion System Market Size

Aerospace And Defense Propulsion System Market was valued at USD 260.4 billion in 2022 and is estimated to register a CAGR of over 6.5% between 2023 and 2032. The rising global defense spending significantly drives the growth of the market.

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As countries allocate larger budgets to enhance their military capabilities and address security concerns, there is an increased demand for advanced propulsion systems to power aircraft, missiles, and other defense platforms. These systems ensure the mobility, effectiveness, and survivability of military forces. Consequently, defense spending growth directly translates into increased orders & contracts for propulsion system manufacturers, fostering innovations and investments in the sector, propelling the industry forward as it meets the evolving needs of modern defense & security environments.

Aerospace and defense propulsion systems refer to the specialized mechanisms and technologies that generate thrust or propulsion for aircraft, spacecraft, missiles, and other military vehicles. These systems encompass a wide range of engines including jet engines, rocket propulsion, and various hybrid & advanced technologies. Their primary purpose is to efficiently propel these vehicles through air and space, ensuring mission success and national security. Aerospace and defense propulsion systems play a pivotal role in modern military & aerospace applications, facilitating mobility, speed, and maneuverability in a variety of operational scenarios.

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High development costs pose a significant pitfall for the aerospace and defense propulsion system market. The extensive research, testing, and certification processes required for cutting-edge propulsion technologies demand substantial financial investments. These costs can strain budgets, limit affordability for some countries, and hinder smaller companies from entering into the market. Additionally, delays or budget overruns can disrupt production timelines and impact profitability. Balancing innovation with cost-effectiveness is crucial in navigating this challenge and ensuring the sustainability of the industry.

COVID-19 Impact

The COVID-19 pandemic impacted the aerospace and defense propulsion system market in several ways. Travel restrictions reduced commercial air travel, and budget reallocations by governments worldwide led to decreased demand for propulsion systems. Supply chain disruptions and labor shortages also hampered production, causing delays and cost overruns in defense projects. The aerospace sector faced a decline in commercial aircraft orders, affecting propulsion system manufacturers. Moreover, the economic fallout led to budget cuts in defense spending in some regions, impacting contracts and investments. While the industry showed resilience, it faced substantial challenges and uncertainties during the pandemic.

Aerospace and Defense Propulsion System Market Trends

The market is influenced by several key trends. There is a growing emphasis on sustainability and eco-friendliness, driving the development of cleaner & more fuel-efficient propulsion technologies. The rise of autonomous and unmanned systems is fueling the demand for compact & high-performance propulsion systems for drones and UAVs. Additionally, advancements in additive manufacturing and materials are leading to more lightweight & durable components. Commercial space endeavors and space exploration missions are fueling innovation in rocket propulsion, and increased digitalization and data-driven maintenance practices are enhancing the reliability and cost-effectiveness of propulsion systems, reshaping the industry landscape.

Aerospace and Defense Propulsion System Market Analysis

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Based on application, the aerospace and defense propulsion system market is categorized into missiles, aircraft, spacecraft, and Unmanned Aerial Vehicles. The Unmanned Aerial Vehicles (UAVs) segment held a business share of over 15% in 2022 and is expected to experience significant growth in the market. UAVs have applications ranging from surveillance and reconnaissance to cargo delivery along with civilian uses such as agriculture and infrastructure monitoring. There is a growing demand for propulsion systems that offer endurance and high performance, which is boosting rapid technological advancement. The absence of a crew on board allows for compact & specialized propulsion designs fostering agility and innovation. The increased allocation of budgets for defense & security purposes including UAVs is fueling segment growth within the aerospace and defense industry.

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Based on type, the aerospace and defense propulsion system market is segmented into air-breathing & non-air-breathing. The air-breathing segment dominated the market with over 70% revenue market share in 2022 and is expected to register a CAGR of over 6% during the forecast period 2023 to 2032. Air-breathing propulsion systems, such as jet engines, lead market owing to their versatility and efficiency. They offer sustained high-speed operation and are well-suited for a wide range of applications, from military fighter aircraft to commercial airliners. These systems are cost-effective for long-range missions and provide exceptional thrust-to-weight ratios.

Moreover, advancements in technology have led to improved fuel efficiency and reduced emissions, aligning with environmental concerns. Air-breathing engines are also essential for rapid response and mobility, making them a preferred choice for modern defense and aerospace applications, thereby maintaining their prominence in the market.

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North America held a significant share of over 30% in 2022 in the aerospace and defense propulsion system market. The U.S., being a participant in defense and aerospace industries, consistently allocates resources toward advanced propulsion technology to uphold its military capabilities and technological advantage. The expansion of commercial space activities, driven by private companies, such as SpaceX and Blue Origin, creates a demand for advanced propulsion systems for rockets and spacecraft. Moreover, the region houses a robust aerospace and defense industrial base with a skilled workforce and several research institutions, fostering innovations and development. These factors collectively position North America as a hub for propulsion system market progress.

Aerospace and Defense Propulsion System Market Share

Major players operating in the aerospace and defense propulsion system market are

• 3W International Gmbh
• Aero Engine Corporation of China
• CFM International
• General Electric Company
• GKN Aerospace
• Honeywell International
• Lockheed Martin Corporation
• MTU Aeroengines
• Northrop Grumman
• Orbital ATK
• Raytheon Technologies
• Rolls-Royce Holdings
• Safran S.A
• United Technologies

These players heavily invest in research to introduce innovative products & services and garner the maximum market revenue.

Aerospace and Defense Propulsion System Industry News

• In July 2023, L3Harris Technologies acquired Aerojet Rocketdyne, a hypersonic and electric propulsion manufacturing company. The deal was valued at USD 4.7 billion or USD 58 per share and is inclusive of net debt.

The aerospace and defense propulsion system market research report include in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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By Type 2018 - 2032

• Air-breathing
  • Gas turbine & jet engines
  • Ramjets & scramjets
  • Internal combustion
• Non-air-breathing    
  • Solid propulsion
  • Liquid propulsion
  • Hybrid propulsion
  • Electric propulsion

By Application, 2018 – 2032

• Missiles
• Aircraft
• Spacecraft
• Unnamed Aerial Vehicles (UAVs)

By End Use, 2018 – 2032

• Commercial
• Government & military

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • GCC
  • South Africa
  • Rest of MEA