Airbus has said it will test folding wings for the next generation of its bestselling planes, as the world’s largest planemaker races to work out the shape of future commercial aircraft by the end of the decade.

Longer, thinner wings made of light but strong composite materials offer the promise of energy savings but present a problem for manufacturers because they will not fit in airports around the world, many of which are already at or near full capacity.

“The value of being able to fold the wings is huge,” said Sue Partridge, the head of Airbus’s wing of tomorrow programme, speaking at the Farnborough airshow, south-west of London, where the global industry gathers for a major conference every two years.

Folding wingtips offer a solution. Boeing has already installed them on its larger 777X, which has two aisles, but the technology has not been used on any single-aisle planes. Boeing is also looking at new technologies, including using a “truss” to brace longer wings.

Airbus said it will fit extensions of about four or five metres to the wings of one of its A321neo planes to test how different shapes cope in real-world conditions in the second half of next year. The model is part of the A320 family of aircraft, the bestselling model of all time.

The European manufacturer and its bitter US rival Boeing are gearing up to make the next generation of planes after decades of selling their respective A320 and 737 models. Both companies are looking at technologies that they hope will significantly cut down energy usage, including new engines, hybrid electric systems and longer wings.

Airbus is about to start the assembly of the wing extension in its factory in Broughton, north Wales. However, its first phase of tests will only include the bolts that will fix it in place and not yet the hinges that will allow it to fold up.

The company has said it will decide on the shape of its new aircraft by 2030. Partridge said Airbus already knows that the next generation will use relatively heavy engines with a large diameter and that the wings will be bent like a gull’s for extra aerodynamic benefit.

Airbus and Boeing will also have to choose new engines. Airbus is considering whether to go with covered engines that encase the fan blades, or an “open fan” option with the blades exposed.

The British manufacturer Rolls-Royce is hoping to break into the market for higher-selling single-aisle planes, also known as narrowbodies, when Airbus and Boeing make their next generation. The Rolls-Royce chief executive, Tufan Erginbilgiç, on Tuesday told reporters at Farnborough that the company had only two years to persuade the plane manufacturers to choose its engines.

He urged the UK government under its new prime minister, Andy Burnham, to back the company’s investments in its UltraFan engine programme. The new chancellor, John Healey, was previously the defence secretary and so “understands Rolls-Royce and our agenda”, Erginbilgiç added. However, the plea for subsidy from the highly profitable manufacturer will have to be weighed against Burnham’s other spending priorities such as social care and ending rough sleeping.

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Rolls-Royce is developing two variants of its UltraFan engine – one for larger, widebody jets and another narrowbody version. Erginbilgiç said it was worth supporting because it was the “single biggest opportunity for the next 50 years” for economic growth for the UK, and that it would “transform advanced manufacturing” in the country.

“We would like to do it in the UK because it is our origin,” Erginbilgiç said. “But we have other options.”

Kevin Craven, the chief executive of ADS Group, a lobby group for the British aerospace and defence industry, said the UK government should “focus on the champions for UK aerospace” in trying to win “probably the most consequential decision in our industry”.