Leap Engine

Leap Engine

Leap Engine represents a significant development in the aerospace industry that focuses on advanced technology that enhances fuel efficiency by using turbofans. The engine came into existence in 2016, and quickly gained traction in the market. The engine is developed by CFM International, a 50-50 joint company between GE Aerospace and Safran Aircraft Engines. The engine is built and fits all variants of Airbus A320neo, Boeing 737 MAX, and COMAC C919 passenger jets.

The Leap Engine Market is expected to grow at a steady rate of around 6.50% owing to the growing demand for more reliable and fuel-efficient engines and growing environmental regulations. Leap engine offers greater fuel efficiency as compared to previous-generation engines. The leap engine has maintained 15% to 20% improved fuel efficiency to date, which is a major factor that attracts the airlines. Major airline companies are modernizing their fleets and adopting leap engines to reduce operational costs and increase their market presence. For instance, in July 2024, Macquarie Air Finance finalized an agreement for 20 Boeing 737 MAX aircraft powered by 40 LEAP-1B engines. The company manages a fleet of more than 160 CFM-powered aircraft in service today, including both CFM56-powered Boeing 737NG and Airbus A320ceo family aircraft and LEAP-powered 737 MAX 8 and A320neo aircraft. Additionally, the growing environmental regulations to reduce CO2 emissions have fueled the demand for the leap engine. As per the report published by CFM International, there were more than 3300 leap engines in service, saving the outflow of more than 35 million tons of CO2 emissions. The engine is one of the most advanced and powerful products in the history of 50 years of CFM International. Therefore, with greater adoption of this engine by airlines the market is set to experience substantial growth in the forecast period.

• Based on engine type, the market is segmented into LEAP 1A, LEAP 1B, and LEAP 1C. The LEAP 1A segment held a significant share of the market in 2023, due to its compatibility with a wide range of aircraft and the first-move advantage. This engine is capable of Airbus various models such as the A320neo family, which includes the popular A319neo, A320neo, and A321neo models. The A320 is one of the best-selling aircraft in the world. For instance, in 2023, Airbus has delivered 735 commercial aircraft in 2023, an 11% increase on 2022. 2,319 gross orders (2,094 net), including 1,835 A320 Family and 300 A350 Family aircraft. Moreover, the LEAP 1A entered the market slightly early as compared to other engines with better fuel efficiency, which led to a higher adoption rate in the aerospace industry. Major airlines in the world are focusing on increasing their fleet due to the higher demand. Companies are actively choosing leap engines for their new aircraft. For instance, in February 2024, China Aircraft Leasing Group Holdings Limited (CALC) selected CFM International LEAP-1A engines to power an additional fleet of 20 Airbus A320neo and A321neo family aircraft, which are scheduled to begin delivery in 2026. Thus, amongst engine types LEAP 1A dominated the market.
• Based on the application, the market is segmented into commercial, business, and others. The commercial segment dominated the market and is expected to experience significant growth in the forecast period owing to the rapid growth in air travel, greater fuel efficiency, and the growing popularity of narrow-body aircraft. Global air travel has gained momentum in the last couple of years, especially after COVID-19, air travel has increased drastically which has boosted the demand for aircraft and consequently for leap engines. For instance, in 2024, according to the report published by ACI World, Global passenger traffic is expected to reach nearly 20 billion in 2042, double the 2024 projection. In 2052, global passenger traffic is expected to reach close to 25 billion, approximately 2.5 times the 2024 projection. Major airlines started modernizing their fleets, and as a matter of choice leap engines are their first choice due to greater fuel efficiency compared to other engines. For example, the leap engine can save fuel up to 15%-20%, which is highly attractive for commercial businesses. The increase in air travel due to the rising disposable income, growing tourism, recovery from post-pandemic, brand perception shift, and the growing partnership and alliances between major airlines have boosted the growth of narrow-body aircraft like the Airbus A320neo family and Boeing 737 MAX, which are the primary users of LEAP engines. Further, this has shown an imperative growth in low-cost carriers.
• For a better understanding of the market adoption of leap engine, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America held the majority share of the market in the year 2023. The major factors contributing to the growth of the market include the strong presence of major airlines that are continuously modernizing their fleet. For instance, in March 2024, American Airlines, one of the world’s largest airlines finalized various agreements with CFM International for LEAP-1B engines to power the airline’s Boeing 737 MAX 8 and MAX 10 fleet. The agreement includes the purchase of spare engines, including a new 20-year service agreement covering America’s existing and new LEAP-1B engines. Additionally, Boeing one of the major aerospace companies, being headquartered in the United States covered a significant market share in the region, which has boosted the market. Boeing has received commitments for approximately 600 additional aircraft, for a total of 1,400 engines. Furthermore, some of the common factors that boosted the demand for the market include the rising disposable income, the growth of low-cost carriers, and the growing environmental regulations. For instance, in July 2024, Nordic Aviation Capital (NAC), a global leader in aircraft leasing, announced an order for ten LEAP-1A engines to power five Airbus A321neo family aircraft. The agreement also includes options for two additional LEAP-powered A321neo family aircraft. Thus, amongst areas, North America held a significant share of the market in the year 2023.
• Some of the major players operating in the market include CFM International, General Electric Company, and Safran S.A.