Aircraft Engine Leasing Market to Grow at 4.81% CAGR Through 2028

The demand for advanced engine technologies, driven by a focus on fuel efficiency and environmental sustainability are the factors driving market in the forecast period 2024-2028.

According to TechSci Research report, “Aircraft Engine Leasing Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Aircraft Engine Leasing Market stood at USD 9,788.14 Million in 2022 and is anticipated to grow with a CAGR of 4.81% in the forecast period, 2024-2028. The global aircraft engine leasing market has become a pivotal component of the aviation industry, offering airlines a flexible and cost-effective alternative to purchasing new engines outright. This market involves the temporary transfer of aircraft engines from lessors to lessees for a predetermined period, enabling airlines to adapt their fleets to changing demand and technological advancements without the financial burden of ownership.

One of the primary drivers of the aircraft engine leasing market is the substantial upfront cost associated with buying new engines. Leasing allows airlines to conserve capital, allocate resources more efficiently, and enhance their financial flexibility. This is particularly crucial for both established carriers looking to expand their fleets and new entrants seeking entry into the competitive aviation landscape.

The market is characterized by the presence of major leasing companies specializing in providing a diverse range of engine types and models to accommodate various aircraft sizes and requirements. These lessors play a critical role in meeting the diverse needs of airlines globally, offering a mix of engine options that cater to different operational profiles, whether for short-haul regional flights or long-haul intercontinental routes.

The demand for leased aircraft engines is influenced by the cyclical nature of the aviation industry. Airlines often turn to leasing to navigate through economic downturns, fluctuating passenger demand, or other external factors that impact their operational needs. This flexibility allows them to scale their fleets up or down based on market conditions without the long-term commitments associated with ownership.

Moreover, the market is responsive to technological advancements in aircraft engine design. Airlines are increasingly prioritizing fuel efficiency, reduced emissions, and improved performance. Lessors, therefore, strive to keep their portfolios updated with the latest engine models equipped with cutting-edge technology to meet the evolving environmental and operational standards of the industry.

Despite the positive trends, the aircraft engine leasing market faces challenges, including regulatory complexities, maintenance considerations, geopolitical factors, and the impact of global events such as the COVID-19 pandemic on air travel demand.

Browse over market data Figures spread through 257 Pages and an in-depth TOC on " Global Aircraft Engine Leasing Market.”

North America stands as a major hub for the aircraft engine leasing market. The region boasts a well-established aviation industry, with key players in engine leasing headquartered here. The market is characterized by a diverse range of engine types catering to the needs of various airlines, including legacy carriers and low-cost operators. Regulatory support and a competitive landscape contribute to the innovation and growth of the market in North America.

Europe & CIS is a significant player in the aircraft engine leasing landscape, particularly with major leasing companies located in aviation hubs such as Ireland. The region's market benefits from a dense network of airlines, encompassing both legacy and low-cost carriers, seeking flexible fleet solutions. Environmental considerations and stringent emissions regulations drive the demand for newer, more fuel-efficient engines. The European market reflects a commitment to sustainability and continuous fleet modernization.

The Asia-Pacific region has experienced rapid growth and is emerging as a dominant force in the aircraft engine leasing market. The booming aviation industry in countries like China and India, along with the rise of low-cost carriers, contributes to the region's significance. Airlines in Asia-Pacific actively seek leasing options for fleet expansion, reflecting the demand for modern and fuel-efficient engines. Government initiatives and infrastructure development further support the market's growth in this dynamic region.

The Middle East and Africa play essential roles in the global aircraft engine leasing market. The strategic location of Middle Eastern airlines as global connecting hubs drives demand for various engine types to serve diverse routes. In Africa, the market is influenced by unique challenges and opportunities, such as varied landscapes and different levels of aviation development. Leasing provides flexibility for airlines in these regions to adapt to changing market conditions.

Major companies operating in Global Aircraft Engine Leasing Market are:

• RTX Corporation (Pratt & Whitney) 
• Rolls-Royce & Partners Finance Limited
• AerCap Holdings N.V.
• MTU Aero Engines AG
• SMBC Aero Engine Lease B.V. 
• Willis Lease Finance Corporation
• FTAI Aviation Ltd
• Engine Lease Finance Corporation
• Shannon Engine Support Ltd.
• Falko Regional Aircraft Limited

Download Free Sample Report

Customers can also request 10% free customization in this report.

“While the aircraft engine leasing market has seen robust growth globally, regional dynamics significantly influence its trajectory. Asia-Pacific's ascendancy is noteworthy, driven by a booming aviation industry and a strong focus on fleet modernization. Industry experts anticipate continued expansion, emphasizing the pivotal role of regional insights for stakeholders navigating this dynamic and evolving market,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“Aircraft Engine Leasing Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Engine Type (Turbofan, Turboprop, Piston, Turboshaft), By Leasing Period (5 Years to 10 Years, Less than 5 Years, Above 10 Years), By Aircraft Type (Narrow-Body Aircraft, Wide-Body Aircraft, Regional Aircraft, Others), By Application (Commercial, Military), By Region, Competition, 2018-2028”, has evaluated the future growth potential of Global Aircraft Engine Leasing Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Aircraft Engine Leasing Market.

Contact

Techsci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

M: +13322586602

Email: [email protected]

Website: www.techsciresearch.com