We analyzed the aero engine business to see how the market has been evolving since 2000. The chart below shows how market shares have been changing. What we see is useful to understand the impact among the competing OEMs. Particularly those focused on only a few aircraft programs.
Let’s take a look at the major OEMs.
- CFM – being an engine provider for the 737 and A320 certainly has helped catapult this company into #1. Every year we see them with a rising market share. The chart is useful to show just how big CFM’s footprint has become. The popularity of the these two aircraft programs should see the CFM share stay robust.
- GE – primarily a maker of big engines, and being the main engine on the 777 has helped GE grow its share year after year. The forthcoming 777X is only going to help grow the company’s footprint.
- P&W – what a difference between 2000 and 2014. In 2000 P&W was doing well, no doubt on the back of the MD-80 which sold very well. But as that aircraft aged and was retired plus a decline in PW4000 sales, P&W lost share year after year. However we have put P&W’s other interest alongside to give a better understanding of the firm’s much bigger role. PWC and IAE are strong sources of business. These firms have helped offset declining market share of the mother company.  PWC makes the most popular turboprops in commercial use. Fortunately the years of market share decline were well spent investing in the GTF, and once these engines start delivery next year, we expect to see P&W’s share rise again.
- EA – This OEM is only found on the A380 and is not visible in the chart. In 2014 there were 85 A380s that are EA powered and they are dwarfed here. But their impact is obviously way higher in aircraft terms. The recent loss to Rolls-Royce on Emirates has not been fully played out we understand. The Paris Air Show will be interesting.
- Rolls-Royce – this OEM has held a steady market share, between 11% and 15% over the period. Focusing on bigger engines, Rolls has been doing well on the A330 and now is exclusive on A350 and A330neo. Rolls has also secured its future on the A380 with a recent win of the Emirates order. Focusing on big engines means Rolls has lost out on the 150-200 seat market, where it used to have a good share on 757s.
- Russian programs – in line with the decline in orders for Russian aircraft, the engine makers have suffered. In 2000 the various Russian OEMs had an 11% market share but this is down to 2% by 2014.
It strikes me that while Rolls-Royce is concentrating on the larger aircraft market, Pratt & Whitney is doing the exact opposite by concentrating on the smaller aircraft market.
Thanks Addison for another insightful post.
PWC has been around for a while on the wings of ATR, EMB-120, Dash8, Fokker 50, MA-60 and others. It seems that PWC should have a relevant share before 2009. Could you please give us some color on why PWC only appears in 2009?
The graph doesn’t separately show the Pratt & Whitney Canada share before 2009. Was it combined with the overall P&W share before that year?
Its odd – you make a great point. Our data source we have may not be useful prior to 2009 on TPs from what I see.
Bernard – see the reply to Victor, I think it answers your question too.
Does the graph show market share based on numbers of engines delivered or value? Obviously, Trent 1000’s are worth more than CFM56’s, so how to interpret the graph is significantly affected by this question.