LEAP Engine Market Research Report—Global Forecast till 2030

Leap Engine Market Research Report: Based on By Engine Type (LEAP 1A, LEAP 1B, and LEAP 1C) and By Region (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa)- Forecast till 2030

ID: MRFR/A&D/9347-HCR | January 2023 | Region: Global | 100 Pages         

Leap Engine Market Synopsis


The global aviation industry at present is growing at a faster rate owing to evolution in industrial technologies such as Industry 4.0, 3D additive manufacturing, better propulsion system, and others. In addition, the demand for leap engines is subject to grow at a faster rate owing to the rising demand for aircraft’s better performance, weight to thrust ratio, greater engine efficiency, and others. Moreover, the trend of air transportation due to key advantages such as faster mode of operation is propelling the demand for LEAP engines market in the aviation industry.


LEAP (Leading Edge Aviation Propulsion) engine Industry is a new generation aircraft engine designed, produced, and supported by CFM International (a joint venture between GE Aviation and Safran Aircraft Engines) and officially launched as LEAP-X on 13 July 2008. It is intended to be a successor to the CFM56-5B and CFM56-7B.


The LEAP engine has been chosen by the world’s largest aircraft manufacturers such as Airbus, Boeing, and COMAC to be equipped with their new single-aisle aircraft. LEAP engines represent the perfect combination of the most advanced technologies matched with the renowned reliability and low maintenance cost of the CFM 56 engine.


COVID-19 Analysis


The COVID-19 epidemic has left its mark on almost every industry on the planet. Consequently, the impact on the aviation and automobile industries is significant. The key reason for the impact is owing to restrictions on movement and cross border travelling. Due to travel restrictions, the demand for air travel has reduced drastically during the first three quarters in every region resulting in fewer flight operations. Fewer flights have caused a severe impact on the service sector thus declining the demand for flights. This has resulted in the grounding of more aircraft and a reduction in the demand for aircraft manufacturing. A few other reasons include disruption in the supply chain is also one of the key reasons for declining revenue during the period.


The emergence of COVID-19 had a negative impact on the consumers of the global LEAP engine market. Owing to the decline in raw materials imports and subsequent production of LEAP engine components in the markets of various Economies, the LEAP engine market witnessed a delivery backlog.


LEAP Engine Market Dynamics


The rising awareness regarding the nitrogen oxides (NOx) emission in the aerospace industry, several advantages such as better performance with high dispatch reliability time, and the exponential development seen in the aerospace and defense industry are some of the drivers fueling great interest in the LEAP Engine market.


DRIVER

  • Better performance with high dispatch reliability time (99.98%)


Leap engines mainly categorized into Leap- 1A/1B/1C are considered more energy efficient in terms of fuel consumption. It is estimated that the engines deliver 15% more efficiency in terms of fuel consumption in comparison to previous generation engines such as CFM56 engines.


The key factor that drives the LEAP Engine market growth for these engines is owing to their life-cycle maintenance costs and dispatch reliability. Moreover, it is also anticipated leap engines are designed to be a successor for CFM56 engines under the program CFM56 to deliver 99.98% dispatch reliability.


Accordingly, leap engines allow the aircraft to be more stable during its transit and also allow the operator to invest less towards engine maintenance thus reducing the maintenance cost. Furthermore, owing to gaining access to air superiority, the aviation companies have increased their research programs and are in a race of building more energy-efficient aircraft and engines which is ultimately propelling the demand for leap engines.



  • Increasing preferences for travelling among millennials


Millennials born between 1980 and 2000 are expected to have a population count of 1.8 billion which is 23% of the current global population. Asia is estimated to hold a quarter of the global population of millennials. According to U.S. Global Investors, Inc. data, 74% of US citizens have prioritized their travelling in comparison to purchasing any goods and products. Owing to rising spending power among millennials is attributed to be a key factor for the rise in travelling frequencies. In addition, according to World Economic Forum, there will be a rise in the spending power among millennials located in the US with a rate of 10% by the year 2025. Accordingly, the rise in travelling trends is anticipated to be a key factor in the rise in demand for more aircraft within the aviation industry.


Furthermore, such a rise in demand is estimated to boost LEAP Engine market  Additionally, it is estimated that 1 out of 4 millennials’ posts on social media seeking travel destination preferences show enthusiasm and interest in travelling. In addition, budget is the top concern among millennials is likely to opt for cheaper traveling options which is adding the key reason for the aircraft operators to move towards fuel-efficient engines. Concluding the above statements, the overall driving factors such as fuel efficiency and low budget for maintenance are considered as driving the LEAP Engine market growth for leap engines.


OPPORTUNITY

  • Growing civil aviation industry and introduction of 3D manufacturing technology


It is estimated leap engine is the first engine to be manufactured by using additive manufacturing technology. The initiative was taken in order to manufacture more complex and denser yet lighter aircraft. Owing to the additive manufacturing approach, the manufacturers were able to manufacture 25% lighter fuel nozzles that are estimated to be more durable than products being manufactured through conventional methods. The key factor includes a better propulsion system and less environmental pollution in the perusal of safety and emission concerns.


Accordingly, in the near future, with advancements in manufacturing technology, aircraft engine manufacturers will be able to produce more efficient engines which will ultimately lower the aircraft and traveling costs. Therefore, additive manufacturing and other technologies will be an opportunity for manufacturers to estimate the demand for leap engines during the forecast period.


RESTRAINT

  • High rate of backlog in clearing the old orders


It is anticipated that there has been a rise in the percentage of backlog among the manufacturer of leap engines to cater to the demand of its customers. For instance, American Airlines on July 20, 2011, signed a deal with Boeing to purchase 100 Boeing 737 aircraft for its aviation fleet. In order to fulfill the requirement, Boeing signed a deal with CFM International for LEAP-1A and LEAP-1B at USD 29 million. CFM International by July 2018 identified that the LEAP had a long pending backlog with 16,300 sales during the past eight years. Therefore, owing to the rise in backlogs, there have been losses to the companies also.


For instance, in 2020, GE Aviation lost 1,900 orders valued to be USD 13.9 billion. In addition, the backlog has resulted in the cancellation of the deal by Boeing for 1,000 Boeing 737 Max aircraft which were to be fitted with Leap-1B engines. Concluding the above information, the backlog is a common concern for aircraft and engine manufacturers. Also, natural causes such as Covid-19 have been one of the key contributors to such delays and is anticipated to be a restraining factor for the LEAP engine market growth of leap engines.


Segmentation


LEAP Engine market has been segmented based on engine type, and region.


The engine segment segments are further divided into LEAP 1A, LEAP 1B, and LEAP 1C. These engines are manufactured and designed according to Leading Edge Aviation Propulsion technology and is a joint venture program between GE Aviation and Safran Aircraft Engines. In addition, LEAP-1A, LEAP-1B and LEAP-1C engines have been jointly certified by EASA (European Aviation Safety Agency) and FAA (Federal Aviation Administration). Moreover, based on specifications each engine is dedicated to a specific aircraft that operates it. Such as LEAP 1A is dedicated to Airbus 320neo, LEAP 1B to Boeing 737 MAX, and LEAP 1C to COMAC C919.


The global LEAP Engine market has been analyzed for five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.


Regional Analysis


The geographic analysis of the global LEAP Engine market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.


On the basis of regional analysis, the North American region is estimated t cater largest Leap Engine Market share owing to the presence of major players such as GE Electricals and end-user such as Boeing. In addition, the Europe region is the second most revenue-generating region. Moreover, the Asia-Pacific region is anticipated to be the fastest-growing region owing to the rise in the number of travelers and the concentration of a large population.


North America is expected to be the largest Leap Engine Market for LEAP Engines during the forecast period. The regional market growth is primarily driven by the high product demand from the players based in the US. It is expected that approximately 10,000 aircraft would be in service in the region by 2035, which is expected to create additional opportunities for the players operating in the North America LEAP engine market. Moreover, the increasing revenues of airlines headquartered in the region are also projected to boost the growth of the market.


In Europe, regional Leap Engine Market growth is primarily driven by the UK, Germany, France, and Italy. In 2017, there were approximately 5,000 aircraft in the region; the number is expected to reach over 8,000 fleets by 2035. However, the COVID-19 pandemic has reduced the air passenger traffic in the region, and airlines are witnessed substantial losses in 2020. Although, with enhanced medical facilities, government support, and credit facilities available, the situation is expected to improve over time.


Asia-Pacific is gaining prominence in the global aviation industry and is projected to become the world’s leading market for air travel. Additionally, according to Airbus SAS, by 2035, it is expected that more than 16,000 aircraft would be delivered in Asia-Pacific, which is expected to impact the growth of the regional LEAP Engine Market positively.


Competitive Analysis


LEAP engines are designed, produced, and marketed by CFM International (A 50/50 joint company between GE (US) and Safran Aircraft Engines (France)). The company is continuously focusing and investing heavily in research and development activities to further improve its product. It also emphasizes entering the long-term supply contract with prominent aircraft manufacturers.


Key Developments


In November 2021, Akasa Air, led by billionaire investor Rakesh Jhunjhunwala, announced the purchase of CFM LEAP-1B engines to power its Boeing 737 MAX airplanes. The agreement is valued at nearly USD 4.5 billion, the agreement also includes spare engines and long-term services.


In March 2022, UK-based Jet2 plc selected CFM International’s advanced LEAP-1A engines to power its order for up to 75 Airbus A321 NEO aircraft. The order includes spare engines and a long-term services support agreement.


Key Players


LEAP Engine market are designed, produced, and marketed by CFM International (A 50/50 joint company between GE (US) and Safran Aircraft Engines (France)). The key players in the LEAP engine market are CFM International, GE Aviation, and Safran Aircraft Engines.


Intended Audience



  • Aircraft Manufactures

  • Aircraft engine Companies

  • Technology consultants

  • Investors and venture capitalists

  • Chief financial officers



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Frequently Asked Questions (FAQ) :

LEAP Engine market are designed, produced, and marketed by CFM International (A 50/50 joint company between GE (US) and Safran Aircraft Engines (France)). The key players in the LEAP engine market are CFM International, GE Aviation, and Safran Aircraft Engines.

North America is expected to be the largest Leap Engine Market for LEAP Engines during the forecast period

Better performance with high dispatch reliability time (99.98%), Increasing preferences for travelling among millennials