Market Trends of Asia-Pacific Aircraft Engine Industry
Turbofan Engine is expected to Dominate the Market during the Forecasted Period
The turbofan segment is expected to dominate the aircraft engines market and is anticipated to dominate the market during the forecast period. Turbofan engines are most widely used in commercial and military segments. Significant investments have developed the next generation of highly efficient jet engines. These engines will most likely be equipped with long-range aircraft that travel long distances without stopping, including intercontinental flights. For instance, in June 2021, General Electric, an aircraft engine manufacturer, and Safran unveiled plans to test-build an open-bladed jet engine that can reduce fuel use and emissions by 20%. The RISE engine, positioned as a successor to the LEAP model used on the Airbus A320neo and Boeing B737 MAX, would feature a design with visible fan blades known as open-rotor and could enter service by the mid-2030s.
Air passenger traffic in the Asia-Pacific region has witnessed significant improvements and growth in recent times owing to the robust vaccination programs in several countries, which have helped the governments ease air travel regulations, leading to increased opportunities for air travel in the Asia-Pacific region. With growing aircraft orders in the commercial aircraft segment, which is majorly dominated by the turbofan engine segment, the turbofan engine segment is anticipated to register the highest CAGR during the forecasted period.
India is Projected to Exhibit the Highest Growth Rate in the Market
India is one of the fastest-growing aviation markets globally and has significant potential for growth in the future. India is the world’s fourth-largest military spender and Asia’s second-largest military spender as of 2023. India is one of the fastest-growing aviation markets in the world and has a significant potential for growth in the coming years. Also, an increase in the budget allocation for improving airport infrastructure and establishing new airports will support the development of the aviation sector over the next decade.
Indigo is the largest airline in the country (in terms of passengers carried and fleet), and as of March 2022, the airline had a domestic market share of 59%. The country's business jet purchases are comprised chiefly of pre-owned aircraft as the government is an emerging economy with comparatively lower disposable incomes. This factor is currently hindering the growth of the country's market. India has a total fleet of 253 business jets as of March 2023. Considering the developments, the country's passenger and defense aviation sector is in a sweet spot. Thus, the demand for aircraft engines will likely grow during the forecast period.
