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Propulsion Systems Market


Aerospace & Defence
Marine/Others

The propulsion systems market is projected to grow from USD 244.68 Billion in 2016 to USD 337.78 Billion by 2021, at a CAGR of 6.66% between 2016 and 2021. Increase in the number of space expeditions, high efficiency offered by propulsion systems, technological advancements taking place in propulsion systems, and growing need for long-range missiles are some of the drivers, which are expected to propel the growth of the market across the globe. China, India, Brazil, Russia, and Turkey are the key countries that are expected to witness increased demand for propulsion systems during the forecast period.

Based on type, the market has been segmented into air-breathing engines, non-air breathing engines, and electric propulsion engines. The air-breathing engines segment is expected to lead the propulsion systems market in 2016. The growth of the air-breathing segment of the market can be attributed to increased use of air-breathing engines in aircraft and missiles to achieve high speed, less fuel consumption, and accuracy.

Based on application, the aircraft segment is projected to lead the propulsion systems market during the forecast period due to increasing air travel and growing need for global connectivity. Ever-increasing need for lightweight aircraft engines that offer high fuel efficiency and durability to withstand severe climatic conditions, provide optimum thrust output, and require less maintenance schedules with short turnaround time is expected to fuel the growth of the aircraft segment of the market. The unmanned aerial vehicles segment of the propulsion systems market is projected to grow at the highest CAGR during the forecast period due to increase in surveillance & security and search & rescue operations.

The North American region is estimated to account for the largest share of the propulsion systems market in 2016. Economic growth, expansion of the commercial & military aviation, and increase in the number of space expeditions are factors driving the growth of the North America propulsion systems market. Moreover, growth of the North America propulsion systems market can mainly be attributed to the rising number of military modernization programs, which emphasize on increased procurement of manned and unmanned aircraft, helicopters, and ground vehicles. The Asia-Pacific propulsion systems market is expected to grow at the highest CAGR during the forecast period, owing to increase in defense expenditures of India and China. Moreover, expansion of military command in the emerging nations has further accelerated demand for military transport aircraft, which, in turn, has fueled the demand of propulsion systems in the Asia-Pacific region.

Propulsion Systems Market

The U.S. government has drastically reduced its defense spending, owing to economic slowdown being faced by the country. According to the U.S. Department of Defense, the country solely accounted for approximately USD 650 billion of the total defense spending in 2015. The European Union, which is also recovering from economic crisis, is mulling over trimming its defense budget. In addition, the life cycle of a propulsion system varies from 35-45 years, after which it needs to be upgraded. Key players usually prefer replacement of propulsion systems over their upgradation. As such, the market for propulsion systems remains stagnant for a long period of time, thereby restraining the growth of the propulsion systems market.

The propulsion systems market is a diversified and competitive market with a large number of players operating in it. Key players in the market are General Electric Company (U.S.), Safran S.A. (France), United Technologies Corporation (U.S.), Rolls-Royce Holdings plc. (U.K.), Honeywell International Inc. (U.S.), 3W International GmbH (Germany), Orbital ATK Inc. (U.S.), and Aerojet Rocketdyne Holdings, Inc. (U.S.), among others.

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