Overview of the Aerospace Engine Industry
The aerospace engine market is characterized by a high concentration of market share among a few dominant players. The four giants in this sector – Rolls-Royce, Pratt & Whitney, CFM International, and General Electric – collectively hold 99% of the global market. Each of these companies has developed unique strengths and specializations, particularly evident in their dominance in specific segments such as narrowbody and widebody aircraft engines.
CFM International
CFM International, a joint venture between General Electric (GE) Aerospace and Safran Aircraft Engines, exemplifies successful collaboration in aerospace technology. Founded in 1974, CFM International was established to support and manufacture the CFM56 engine series. Despite a challenging start with no orders until five years after its founding, strategic decisions such as powering the re-engined Douglas DC-8s and subsequently the Boeing 737 Classic and the USAF’s KC-135 tanker fleet turned its fortunes. The CFM56 engine series has since become the best-selling jet engine worldwide, with over 33,000 units delivered. The successor to the CFM56, the LEAP engine, launched in 2008, further solidified CFM’s market position. It became the exclusive engine option for the Boeing 737 MAX and a primary choice for the Airbus A320neo family and the COMAC C919.
Pratt & Whitney
With a legacy spanning over a century, Pratt & Whitney has been at the forefront of several significant advancements in engine technology. It introduced the Geared Turbofan (GTF) engine, a revolutionary development in the industry. The GTF engine, known for its efficiency and noise reduction capabilities, powers a diverse range of aircraft including the Embraer E2, Airbus A220, A320neo family, and MC-21. Despite facing reliability issues that affected its market perception temporarily, Pratt & Whitney has managed an extensive inspection and correction campaign to enhance the GTF’s performance and reliability.
General Electric
As one of the oldest players in the industry, General Electric has contributed significantly to the advancement of aero-engine technology. GE’s engines power a significant portion of the widebody aircraft fleet, including exclusive agreements with the Boeing 777 and 747-8, and as a major supplier for the Boeing 787 Dreamliner. The company’s GE9X engine, used in Boeing’s 777X, holds the record for the most powerful commercial aircraft engine ever built. GE’s involvement in CFM International further underscores its pivotal role in the aerospace engine market.
Rolls-Royce
Rolls-Royce, synonymous with British engineering excellence, has been a key player in aerospace engines since World War I. Its engines have powered some of the most iconic aircraft, including the Concorde and the Airbus A350 with its Trent XWB engines. Despite facing challenges during the pandemic, Rolls-Royce has made significant strides towards recovery and innovation, particularly with its UltraFan technology, which promises substantial improvements in fuel efficiency.