Propulsion Systems Market In 2029

The Business Research Company’s Propulsion Systems Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, January 6, 2026 /EINPresswire.com/ -- Propulsion Systems Market to Surpass $192 billion in 2029. In comparison, the Transport Vehicle Components which is considered as its parent market, is expected to be approximately $1,067 billion by 2029, with Propulsion Systems market to represent around 18% of the parent market. Within the broader Transport industry, which is expected to be $8,792 billion by 2029, the Propulsion Systems market is estimated to account for nearly 2% of the total market value.

Which Will Be the Biggest Region in the Propulsion Systems Market in 2029
North America will be the largest region in the propulsion systems market in 2029, valued at $68,532 million. The market is expected to grow from $51,039 million in 2024 at a compound annual growth rate (CAGR) of 6%. The strong growth in the forecast period can be attributed to the growing need for long-range missiles and favourable government initiatives.

Which Will Be The Largest Country In The Propulsion Systems Market In 2029?
The USA will be the largest country in the propulsion systems market in 2029, valued at $60,199 million. The market is expected to grow from $44,949 million in 2024 at a compound annual growth rate (CAGR) of 6%. The strong growth in the forecast period can be attributed to the growing need for long-range missiles and strategic mergers and acquisitions.

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What will be Largest Segment in the Propulsion Systems Market in 2029?
The propulsion systems market by type into air breathing and non-air breathing. The air breathing market will be the largest segment of propulsion systems market segmented by type, accounting for 71% or $136,539 million of the total in 2029. The air breathing market is supported by the widespread use of jet engines in commercial and military aircraft, advancements in turbine engine technologies for higher efficiency and lower emissions, growing demand for next-generation fighter jets with superior manoeuvrability, increasing investments in supersonic and hypersonic propulsion development, integration of air breathing engines in UAVs for enhanced range and performance and rising number of air travel passengers globally.

The propulsion systems market is segmented by application into airplanes, missiles, unmanned aerial vehicles and spacecraft. The airplanes market will be the largest segment of the propulsion systems market segmented by application, accounting for 52% or $100,615 millionof the total in 2029. The airplanes market is supported by the rising demand for fuel-efficient engines to reduce operating costs and emissions, growth in low-cost carriers across emerging economies, increasing orders for new-generation aircraft with advanced propulsion technologies, consistent rise in international and domestic air traffic, regulatory mandates for noise and emission reductions, airline investments in modernizing older aircraft fleets and expanding global fleet of commercial aircraft.

The propulsion systems market by end-user into commercial and government and military. The commercial market will be the largest segment of the propulsion systems market segmented by end-user, accounting for 57% or $110,066 millionof the total in 2029. The commercial market is supported by increasing private investments in satellite-based services and space tourism, surge in UAVs used in commercial sectors like e-commerce and agriculture, partnerships between commercial airlines and engine manufacturers for efficient fleet upgrades, strong demand for cost-effective propulsion in small launch vehicles, technological innovation in propulsion for electric and hybrid aircraft, regulatory incentives for sustainable propulsion alternatives and rising global air passenger and cargo traffic. As global air passenger and cargo traffic continue to rise, the aviation industry faces increasing pressure to enhance efficiency, reduce emissions and lower operational costs driving a transformative shift in propulsion system technologies toward more sustainable, high-performance solutions.

What is the expected CAGR for the Propulsion Systems Market leading up to 2029?
The expected CAGR for the propulsion systems market leading up to 2029 is 8%.

What Will Be The Growth Driving Factors In The Propulsion Systems Market In The Forecast Period?
The rapid growth of the global propulsion systems market leading up to 2029 will be driven by the following key factors that are expected to reshape aerospace engineering, defense capabilities, and next-generation mobility technologies worldwide.

Favorable Government Initiatives-The favorable government initiatives will become a key driver of growth in the propulsion systems market by 2029. Governments globally are offering a range of financial incentives, including subsidies, tax benefits, and grants, to lower development costs and accelerate the commercialization of electric, hybrid and hydrogen propulsion technologies. These measures enhance affordability and stimulate industry-wide innovation. National policies in countries like the U.S., Germany, China, and India mandate electrification targets, driving investment in electric and hybrid systems. Increased public funding in defense and space sectors supports the development of advanced propulsion solutions, while infrastructure investments, such as EV charging and hydrogen fueling networks, enhance adoption. As a result, favorable government initiatives are anticipated to contributing to a 1.7% annual growth in the market.

Growing Need For Long-Range Missiles- The growing need for long-range missiles will become a key driver of growth in propulsion systems market by 2029. The development of hypersonic and maneuverable missile systems is driving demand for advanced propulsion technologies like scramjets and multi-stage engines. Rising geopolitical tensions are prompting nations to upgrade missile arsenals, increasing investments in new and retrofitted propulsion systems. Additionally, growing exports of advanced missile systems to allied countries are opening new markets and strengthening global defense supply chains, collectively accelerating growth across the propulsion sector. This surge in activity is encouraging greater RAndD spending by defense contractors and fostering innovation in thermal-resistant materials. As missile capabilities evolve, propulsion technologies are becoming a critical differentiator in national defense strategies. As a result, growing need for long-range missiles is anticipated to contributing to a 1.2% annual growth in the market.

Expansion Of Aircraft Logistic Industry- The expansion of aircraft logistic industry will serve as a key growth catalyst propulsion systems market by 2029. The rise in e-commerce and global trade is boosting demand for cargo aircraft, prompting advancements in propulsion systems for better performance and reliability. To improve efficiency and reduce emissions, logistics companies are modernizing fleets with next-gen engines. These upgrades focus on enhancing fuel economy, payload capacity, and long-range capabilities. Logistics carriers are modernizing fleets for greater efficiency and lower emissions, while increased aircraft utilization is boosting the need for both new engines and MRO services. Simultaneously, the rise of regional and urban air mobility logistics is creating demand for electric and hybrid propulsion solutions. Therefore, this expansion of aircraft logistic industry is projected to supporting to a 0.7% annual growth in the market.

Increasing Adoption Of eVTOL Systems- The increasing adoption of evtol systems will serve as a key growth catalyst for propulsion systems market by 2029. The growing adoption of eVTOL aircraft, which depend entirely on electric propulsion through distributed motors, is significantly increasing demand for lightweight, high-efficiency electric propulsion units, advanced batteries, and power electronics. Urban air mobility (UAM) initiatives for short-distance, intra-city transport are further accelerating the need for scalable and reliable propulsion systems. As cities invest in air taxi infrastructure, the propulsion market is witnessing increased funding and innovation. Developers are focusing on lightweight composites, high-torque motors, and redundant designs to meet stringent performance and safety standards, driving rapid advancements in electric propulsion technology. Therefore, this increasing adoption of evtol systems will is projected to supporting to a 0.5% annual growth in the market.

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What Are The Key Growth Opportunities In Propulsion Systems Market in 2029?
The most significant growth opportunities are anticipated in the air-breathing propulsion systems market, the commercial propulsion systems market, and the propulsion systems for aircraft market. Collectively, these segments are projected to contribute over $102 billion in market value by 2029, driven by rising global air traffic, increasing demand for fuel-efficient propulsion technologies, and continuous investments in next-generation aerospace systems. This surge reflects accelerating innovation in hybrid-electric, sustainable, and high-thrust propulsion solutions that enhance performance, reduce emissions, and support modern aircraft platforms. Together, these trends are expected to reshape the broader propulsion systems industry, enabling transformative advancements in aviation efficiency, reliability, and sustainability.

The air-breathing propulsion systems market is projected to grow by $39,728 million, the commercial propulsion systems market by $32,145 million, and the propulsion systems for aircraft market by $30,212 million over the next five years from 2024 to 2029.

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