Aircraft Nacelle And Thrust Reverser Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Material Type (Stainless Steel, Composites, Nickel Chromium, Alloy), By Component Type(Aircraft Nacelle, Thrust Reverser), By Engine Type (Turboprop, Turbofan, Turbojet), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.01 Billion
CAGR (2026-2031)	6.33%
Fastest Growing Segment	Composites
Largest Market	North America
Market Size (2031)	USD 7.24 Billion

Market Overview

The Global Aircraft Nacelle And Thrust Reverser Market will grow from USD 5.01 Billion in 2025 to USD 7.24 Billion by 2031 at a 6.33% CAGR. The Global Aircraft Nacelle And Thrust Reverser Market centers on the manufacturing of aerodynamic engine housings and the mechanical deceleration systems used during landing. Market growth is primarily propelled by the urgent global necessity for fleet modernization and the escalating demand for lightweight, fuel-efficient aircraft to meet environmental standards. This upward trajectory is reinforced by substantial forward orders within the commercial aviation sector. According to the International Air Transport Association, in 2024, the global backlog for new aircraft reached a record high of approximately 17,000 units, underscoring the sustained demand for these essential structural components.

However, market expansion is currently threatened by persistent supply chain volatility affecting the availability of critical raw materials. Manufacturers face profound challenges regarding the timely procurement of titanium and composite materials, which leads to production bottlenecks and inflated operational costs. These disruptions significantly hamper the ability of component suppliers to align their output with the aggressive delivery schedules required by original equipment manufacturers.

Key Market Drivers

The rising global demand for new commercial aircraft serves as the foremost catalyst driving the Aircraft Nacelle and Thrust Reverser Market. As airlines aggressively accelerate fleet expansion strategies to match post-pandemic traffic recovery, original equipment manufacturers are increasing production rates, creating a direct surge in requirements for propulsion structures. This volume-centric growth is evidenced by robust long-term forecasts. According to The Boeing Company, July 2024, in the 'Commercial Market Outlook 2024-2043', the aviation industry is projected to require 43,975 new commercial airplanes over the next 20 years. Such extensive backlog necessitates a sustained industrial ramp-up for nacelle integrators. Highlighting this sector's momentum, according to Safran, in 2024, the company reported that its Propulsion division achieved an organic revenue growth of 26.7% in the previous fiscal year, driven by vigorous civil engine activity.

Concurrently, the increasing adoption of lightweight composite materials is reshaping the technological landscape of nacelle manufacturing. To comply with rigorous fuel efficiency targets and noise abatement standards, suppliers are replacing traditional metallic components with advanced carbon fiber and ceramic matrix composites. This material evolution forces nacelle providers to invest heavily in automated fiber placement and resin transfer molding capabilities. The financial impact of this shift is distinct within the supply chain. According to Hexcel Corporation, January 2024, in the '2023 Annual Report', commercial aerospace sales increased by 17.2% compared to the prior year, a growth trajectory attributed largely to the demand for composite-rich widebody and narrowbody aircraft programs.

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Key Market Challenges

Persistent supply chain volatility affecting the availability of critical raw materials constitutes a significant challenge for the Global Aircraft Nacelle And Thrust Reverser Market. The manufacturing process for these components is highly dependent on the consistent procurement of specialized inputs, particularly titanium and advanced carbon composites. When the supply of these materials becomes erratic, production lines for engine housings and mechanical deceleration systems face immediate delays. These disruptions prevent component suppliers from meeting the rigid delivery schedules mandated by original equipment manufacturers. As a result, manufacturers incur higher operational costs due to production inefficiencies and the necessity of securing materials at premium rates, which negatively impacts profit margins and slows industrial output.

The direct consequence of these raw material shortages is a tangible reduction in the number of finished aircraft entering the market. This constraint on market growth is evidenced by recent delivery metrics. According to the International Air Transport Association, in 2024, persistent supply chain issues limited the global aviation industry to approximately 1,583 aircraft deliveries, a total that fell short of the capacity needed to meet airline schedules. This shortfall underscores how the inability to timely source materials for structural parts like thrust reversers bottlenecks the final assembly process, thereby hampering the overall expansion of the market.

Key Market Trends

The Global Aircraft Nacelle And Thrust Reverser Market is undergoing a decisive technological shift from traditional hydraulic mechanisms to Electric Thrust Reverser Actuation Systems (ETRAS). This transition is driven by the industry's pursuit of more electric aircraft architectures, which eliminate heavy hydraulic piping and corrosive fluids to enhance fuel efficiency and simplify maintenance. By replacing centralized hydraulic loops with localized electric motor-driven actuators, manufacturers are achieving significant structural optimizations and improved reliability. Validating this technological momentum, according to Collins Aerospace, June 2025, in the 'Expands Aircraft Electrification Capabilities' press release, the adoption of their next-generation elecTRAS system allows for a reduction in aircraft system weight of 15-20% compared to conventional hydraulic configurations.

Simultaneously, the Implementation of Smart Nacelle Technologies for Predictive Health Monitoring is transforming the sector's value chain from pure hardware delivery to lifecycle digital services. Integrators are embedding advanced sensors within nacelle structures to capture real-time operational data, enabling operators to predict component failures and optimize overhaul schedules through performance-based agreements. This digitalization directly correlates with surging demand for data-driven maintenance solutions rather than just physical spare parts. Highlighting the financial impact of this service-oriented evolution, according to Safran, February 2025, in the 'Full-year 2024 Results' report, the company's civil aftermarket revenue increased by 24.9% year-over-year, a growth trajectory heavily supported by the expanding adoption of service contracts that leverage these monitoring capabilities.

Segmental Insights

The Composites segment is currently experiencing the most rapid expansion within the Global Aircraft Nacelle and Thrust Reverser Market due to the intensifying industry emphasis on weight reduction and operational efficiency. Original equipment manufacturers are increasingly substituting heavy metallic alloys with lightweight carbon fiber reinforced polymers to enhance overall aircraft performance. This transition is heavily influenced by rigorous environmental standards established by the International Civil Aviation Organization, which mandate lower carbon emissions and reduced noise pollution. As a result, air carriers actively seek composite-integrated structures to minimize fuel consumption and adhere to these strict regulatory frameworks, driving sustained demand for these material solutions.

Regional Insights

North America maintains a leading position in the global aircraft nacelle and thrust reverser market due to the concentrated presence of major aircraft original equipment manufacturers and engine suppliers. The region benefits from extensive aircraft production activities and a large existing fleet that requires regular maintenance. Additionally, strict compliance mandates from the Federal Aviation Administration regarding airworthiness and noise reduction drive continuous demand for system upgrades and replacements. This combination of manufacturing capability and regulatory oversight supports the sustained expansion of the regional market sector.

Recent Developments

• In June 2025, Collins Aerospace expanded its aircraft electrification capabilities in Europe by inaugurating a new engineering center of excellence in Wolverhampton, United Kingdom, and a production line in Colomiers, France. These facilities were established to advance the development and assembly of the electric Thrust Reverser Actuation System (elecTRAS), a technology designed to replace traditional hydraulic systems on next-generation nacelles. The system offers significant weight savings and simplified maintenance, contributing to improved fuel efficiency for commercial aircraft. The Colomiers site was designated to handle final assembly, enhancing the company's integration capacity for the Airbus A350 program and supporting future sustainable aviation initiatives.
• In February 2025, ST Engineering announced that it had secured S$4.3 billion in new contracts during the fourth quarter of 2024, which included a significant agreement within its commercial aerospace segment. The company signed an exclusive five-year maintenance, repair, and overhaul (MRO) contract for LEAP-1A engine nacelles with a European airline. This deal underscored the growing demand for the company’s aerospace solutions and its strong market position in supporting modern aircraft fleets. Additionally, the aerostructures and systems sub-unit received further orders for nacelles and composite floor panels to support production requirements for aircraft original equipment manufacturers.
• In November 2024, GKN Aerospace delivered the first two C-27J Spartan nacelles to Leonardo Aircraft since 2018, marking a significant milestone in the revitalization of its supply chain. The company successfully re-established complex composite and assembly manufacturing capabilities by engaging a network of over 40 suppliers. These deliveries aligned with the customer's schedule for flight testing and certification, securing business continuity for the C-27J nacelle program for the next five years. This achievement highlighted the company's commitment to providing long-term in-service support for the defense platform and demonstrated its ability to manage intricate aerostructure production.
• In April 2024, Safran Nacelles entered into a multi-year service agreement with Sky Airline to support the carrier’s Airbus A320neo family fleet, which is powered by CFM International LEAP-1A turbofan engines. Under this collaboration, the airline gained access to a shared pool of large nacelle components, ensuring the rapid availability of equipment to resolve in-service issues efficiently. The contract also included maintenance and repair operations at the company’s facility in Indianapolis, as well as engineering support for repair solutions. This partnership was established as part of the NacelleLife support program, aiming to minimize operational costs while maximizing aircraft availability.

Key Market Players

• Safran S.A.
• Spirit AeroSystems Inc.
• FACC AG
• Barnes Group Inc.
• Woodward Inc.
• GKN Aerospace
• RTX Corporation
• The NORDAM Group LLC
• Leonardo S.p.A.
• Triumph Group, Inc.,

By Material Type	By Component Type	By Engine Type	By Region
Stainless Steel Composites Nickel Chromium Alloy	Aircraft Nacelle Thrust Reverser	Turboprop Turbofan Turbojet	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Aircraft Nacelle And Thrust Reverser Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Aircraft Nacelle And Thrust Reverser Market, By Material Type:

• Stainless Steel
• Composites
• Nickel Chromium
• Alloy

• Aircraft Nacelle And Thrust Reverser Market, By Component Type:

• Aircraft Nacelle
• Thrust Reverser

• Aircraft Nacelle And Thrust Reverser Market, By Engine Type:

• Turboprop
• Turbofan
• Turbojet

• Aircraft Nacelle And Thrust Reverser Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE