Global Next-Gen Aircraft Propulsion System Market Size study & Forecast, by Propulsion Type (All-Electric, Hybrid Electric, Turbo Electric, Hydrogen Propulsion, Solar Propulsion), Component (Power Generation, Power Distribution, Power Conversion System, E

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

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. Show more