Aircraft Engine And Component Leasing Market Global Report 2026

The aircraft engine and component leasing market size has grown strongly in recent years. It will grow from $4.09 billion in 2025 to $4.42 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to increasing airline preference for asset-light fleet operations, rising aircraft engine maintenance requirements, growing demand for replacement engines during unscheduled removals, expanding commercial aircraft fleets, and increasing need to reduce aircraft downtime.

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, and 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, and increasing demand for lease solutions to minimize aircraft downtime.

The increasing air passenger traffic is expected to propel the growth of the aircraft engine and component leasing market in the coming years. 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 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 market.

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.

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 provide 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.

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.

North America was the dominant region in the aircraft engine and component leasing market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the aircraft engine and component leasing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the aircraft engine and component leasing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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