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Creating the Equation for Growth Global Commercial Aero Turbofan Engine Market, Supply Chain and Opportunities: 2011 - 2017 Lucintel Brief Published: July 2012 Lucintel 1320 Greenway Dr., Suite 870, Irving, TX 75038, USA. Tel: +1-972-636-5056, E-mail: [email protected] Copyright © Lucintel Table of Contents • Executive Summary • Market Analysis of Commercial Turbofan Engine Industry • Supply Chain Analysis of Commercial Turbofan Engine Industry • Technology Trend and Future of Commercial Turbofan Engine Industry • Growth Opportunities and Emerging Trends • About Lucintel Creating the Equation for Growth 2  Executive Summary • Commercial aero turbofan engine on new airframe deliveries totaled 1,862 units in 2011. Turbofan engine deliveries realized 1% CAGR during the 2006-2011 time frame. Engine market was US $16.7 billion in 2006 and reached $21.2 billion with CAGR of 5% during 2006-2011. • CFM International is the leading turbofan engine manufacturer in the narrow body aircraft market, capturing 62% market share of the active fleet. GE dominates in wide body aircraft with 48% share. • Major drivers of this industry include growth in air traffic, environmental regulation, the need for economization to enhance airline profitability/competitiveness, and the replacement of aging fleet. • Commercial aero turbofan engine on new airframe deliveries in terms of units is expected to growth with CAGR of 5% during the 2012-2017 time frame. • Some of the emerging trends in aero engine market include: (1) use of second-generation biofuels, (2) lower maintenance cost, and (3) design & development of fuel-efficient and light weight aero engines • Titanium, nickel, and steels are the dominating materials in aero engine design – with an increasing interest in composites. • Aero engines to be qualified and released during the forecast period include the CFM LeapX and the PW1000G Geared Turbofan. The manufacturers of these engine cite the following advantages: (1) Enhanced fuel efficiency over current market offering, (2) Reduced emission of NOx and CO2 (3) Lighter weight • China Commercial aircraft COMAC C919 will be launch with CFM LeapX engine but in future China has plan to manufacture engines for the airframe domestically. Creating the Equation for Growth 3 Table of Contents • Executive Summary • Market Analysis of Commercial Turbofan Engine Industry • Supply Chain Analysis of Commercial Turbofan Engine Industry • Technology Trend and Future of Commercial Turbofan Engine Industry • Growth Opportunities and Emerging Trends • About Lucintel Creating the Equation for Growth 4 Global Commercial Aero Turbofan Engine Market Overview • An aircraft engine is the primary component of the propulsion system for an aircraft that generates mechanical and in-flight electrical power. • This market is dominated three major manufacturers: GE Aviation (a subsidiary of General Electric, based in Evendale, Ohio, US); Pratt & Whitney, (a subsidiary of United Tech-nologies Corporation, based in Hartford, Connecticut, US); and Rolls-Royce (Derby, UK). • The industry is also characterized by consortiums: International Aero Engine (Pratt & Whitney, Rolls-Royce, and MTU); CFM International (GE and Snecma); and Engine Alliance (GE and Pratt & Whitney). • Revenue-sharing partnerships play an important role in how the industry operates. Several suppliers are involved in this type of relationship with engine OEMs, including Volvo Aero, IHI, KHI, MHI, and Avio SPA. • The Trent 1000 and GEnx are the newest engines in the fleet, soon to be followed by the CFM Leap-X and PW1000G Geared Turbofan. Creating the Equation for Growth 5  Commercial Turbofan Engine OEMs on Wide Body Aircraft (Engines with Thrust Range of 60-90 K Lbs.) International Engine CFM Pratt & General Aero Engines Alliance Aircraft Rolls-Royce (JV: Snecma Whitney Electric (JV: PW, (JV: GE & & GE) RR,MTU) PW) A310 A330 A