Aircraft Engine And Component Leasing Market Report 2026

Aircraft Engine And Component Leasing Market Overview

• Aircraft Engine And Component Leasing market size has reached to $4.09 billion in 2025 • Expected to grow to $5.93 billion in 2030 at a compound annual growth rate (CAGR) of 7.7% • Growth Driver: Increasing Air Passenger Traffic Drives The Market Growth Due To Rising Flight Frequencies • Market Trend: Digital Aviation Asset Management Platforms Driving Aircraft Fleet Flexibility And Operational Efficiency • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Aircraft Engine And Component Leasing Market?

Aircraft engine and component leasing involves providing aircraft engines, engine modules, accessories, and other components to airlines, aircraft operators, and maintenance providers under rental or lease agreements rather than through outright ownership. It enables operators to reduce capital expenditure, obtain replacement assets during maintenance events, minimize aircraft downtime, and improve fleet availability and operational flexibility. The main leasing types of aircraft engine and component leasing include dry lease, operating lease, and finance lease. Dry lease refers to a leasing arrangement in which an aircraft or component is provided without crew, maintenance, or insurance, allowing the lessee to manage operations independently. These leasing services are available for narrowbody aircraft, widebody aircraft, regional aircraft, business aircraft, and cargo aircraft. They cover landing gear, auxiliary power units, avionics, flight control components, hydraulic components, electrical components, engine accessories, and others and are used end users by commercial airlines, cargo operators, maintenance, repair, and overhaul providers, aircraft original equipment manufacturers, government and defense organizations, business jet operators, and aircraft leasing companies.

What Is The Aircraft Engine And Component Leasing Market Growth Forecast?

The aircraft engine and component leasing market size is expected to see strong growth in the next few years. It will grow to $5.93 billion in 2030 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to growing demand for flexible engine leasing arrangements, rising engine replacement requirements from aging aircraft fleets, increasing adoption of long-term component leasing, expanding demand from emerging aviation markets, growing preference for outsourced engine and component asset management. Major trends in the forecast period include increasing adoption of flexible short-term engine leasing, rising demand for spare engine and component availability, growing preference for operating lease arrangements, expanding use of cross-border aircraft engine and component leasing, increasing demand for lease solutions to minimize aircraft downtime.

Tariff Impact On Aircraft Engine And Component Leasing Market

Tariffs are impacting the aircraft engine and component leasing market by increasing the cost of imported aircraft engines, engine accessories, avionics, hydraulic components, electrical components, and other replacement parts used by leasing and maintenance providers. This is raising maintenance and asset management costs and can increase lease rates, particularly for operators dependent on imported components across North America, Europe, and Asia-Pacific. Component-intensive segments such as engine modules, spare engines, landing gear, avionics, and engine accessories are most affected due to their exposure to international aerospace supply chains. However, tariffs are also encouraging regional sourcing, supplier diversification, domestic component manufacturing, and greater use of locally available replacement assets, strengthening long-term resilience in the market.

What Is The Driver Of The Aircraft Engine And Component Leasing Market?

The increasing air passenger traffic is expected to propel the growth of the aircraft engine and component leasing market going forward. Air passenger traffic refers to the total number of passengers traveling by air through airlines, airports, or across a region during a specified period. Air passenger traffic is increasing due to rising disposable incomes, which enable more people to afford air travel for business, leisure, and personal trips. Increasing air passenger traffic drives aircraft engine and component leasing by encouraging airlines to expand and maintain fleets, increasing demand for leased engines and components to support higher flight operations and reduce maintenance costs. For instance, in June 2026, according to the Statistics Canada, a Canada-based national statistical agency, passenger-kilometres increased by 1.5% year over year, reaching 21.7 billion. Therefore, the increasing air passenger traffic is driving the growth of the aircraft engine and component leasing industry.

Key Players In The Global Aircraft Engine And Component Leasing Market

Major companies operating in the aircraft engine and component leasing market are AerCap Holdings N.V., GE Aerospace, RTX Corporation, Avolon, Air Lease Corporation, SMBC Aviation Capital Limited, Safran S.A., Lufthansa Technik AG, Willis Lease Finance Corporation, GA Telesis LLC, BBAM Limited, China Development Bank Financial Leasing Co. Ltd., AAR CORP., Singapore Technologies Engineering Ltd., Jet Support Services Inc., AJW Group Ltd., Mitsubishi HC Capital Inc., Aero Capital Solutions Inc., Crestone Air Partners Inc., Specialized Engine Services Inc., LXA Aviation Leasing Limited, Aeolus International Limited

Global Aircraft Engine And Component Leasing Market Trends and Insights

Major companies operating in the aircraft engine and component leasing market are focusing on developing innovative solutions such as spare-engine leasing arrangements to ensure engine availability during maintenance, reduce aircraft downtime, and support uninterrupted airline operations. Spare-engine leasing arrangements refer to contractual agreements under which aircraft engines are temporarily leased to airlines or MRO providers as replacement engines while the aircraft’s original engines undergo maintenance, repair, or overhaul. For instance, in February 2026, TEAM, a Singapore-based aircraft engine leasing company, collaborated with ST Engineering to provide next-generation spare engines for use during aircraft engine maintenance. Under the initiative, TEAM will lease engines to ST Engineering, which will sub-lease the engines to airlines, enabling airlines to use replacement engines while their installed engines are undergoing maintenance. The collaboration aims to improve spare-engine availability and provide airlines with access to replacement engines without requiring them to purchase additional engine assets.

What Are Latest Mergers And Acquisitions In The Aircraft Engine And Component Leasing Market?

In July 2026, AerCap Holdings N.V., an Ireland-based aviation leasing company, partnered with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) to establish a dedicated global platform for leasing LEAP spare engines. The partnership aims to combine AerCap's aircraft engine leasing expertise with AFI KLM E&M's maintenance, repair, and overhaul (MRO) capabilities to deliver flexible LEAP spare engine leasing solutions that reduce aircraft downtime, improve fleet availability, and strengthen operational support for airlines worldwide. Air France Industries KLM Engineering & Maintenance is a France-based aircraft maintenance, repair, and overhaul (MRO) provider that offers engineering, engine overhaul, aircraft component support, and technical maintenance solutions for airlines.

What Defines the Aircraft Engine And Component Leasing Market?

The aircraft engine and component leasing market includes revenues earned by entities by providing services such as spare engine leasing, aircraft component leasing, lease management and administration, and end-of-lease management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Aircraft Engine And Component Leasing Market Report 2026?

The aircraft engine and component leasing market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the aircraft engine and component leasing industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.