What Has Been the Growth of the Aircraft Leasing Market So Far?
The aircraft leasing market has seen considerable growth due to a variety of factors.
•Recent years have seen a robust increase in the aircraft leasing market size. It is projected to expand from $193.33 billion in 2024 to $210.4 billion in 2025, reflecting a compound annual growth rate (CAGR) of 8.8%.
The growth observed in the historic period can be credited to factors such as the internationalization of aviation, cost-effectiveness and adaptability, market liberalization, financial advantages for airlines, and the surfacing of budget-friendly carriers.
What Are the Future Growth Projections for the Aircraft Leasing Market?
The aircraft leasing market is expected to maintain its strong growth trajectory in upcoming years.
• The value of the aircraft leasing market is forecasted to experience a significant increase in the coming years, expanding to a robust "$294.88 billion by 2029 with a compound annual growth rate (CAGR) of 8.8%.
This growth projected within the forecast period is tied to several factors such as the surge in upcoming markets, efficient management of airline costs, economic rebound and development, initiatives for sustainable aviation, and a transition towards leasing durations that are less prolonged. The prediction period is characterized by notable trends including modernization of fleets, growth in low-cost airline services, innovative platforms, and a transition towards operating leases.
Which Factors Are Boosting Growth In The Aircraft Leasing Market?
The growth of the aircraft leasing market is projected to be driven by the rising requirement for air travel. The term 'air travel' refers to the movement of individuals via an aircraft such as an airplane or helicopter, either domestically or globally. The aircraft leasing strategy is one used in the air travel sector where airlines rent aircraft from leasing corporations rather than buying them outright. This leasing process provides airlines with the adaptability to adapt to fluctuating demand, to expand or reduce their fleet, and to evade the significant upfront capital costs that come with purchasing aircraft. For instance, in February 2023, the International Air Transport Association (IATA), a trade association based in Canada representing more than 290 airlines globally, noted that in December 2022, there was a 39.7% increase in global total traffic compared to December 2021. Notably, European carriers experienced a demand increase by 46.5% during the same frame. Thus, the escalating need for air travel is bolstering the advance of the aircraft leasing market.
What Key Areas Define The Segmentation Of The Global Aircraft Leasing Market?
The aircraft leasing market covered in this report is segmented –
1) By Leasing Type: Wet Leasing, Dry Leasing
2) By Security Type: Asset-Backed Security (ABS), Non-ABS
3) By Aircraft Type: Narrow-body, Wide-body, Other Aircraft Types
Subsegments:
1) By Wet Leasing: ACMI Wet Leasing (Aircraft, Crew, Maintenance, Insurance), Seasonal Wet Leasing
2) By Dry Leasing: Operating Dry Leasing, Finance Dry Leasing
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How Are Emerging Trends Reshaping The Dynamics Of The Aircraft Leasing Market?
Innovations in technology are emerging as a prominent trend in the aircraft leasing industry. Large firms engaged in the aircraft leasing business are creating advanced analytical tools to maintain their market standing. For example, LEASEWORKS, an American firm offering a cloud-based program for aircraft leasing and asset management, introduced the LeaseWorks Utilization Tracker, a software for utilization records of lessors, in April 2023. This tracker is a part of the Aeris MATCH software ecosystem and simplifies the process of gathering usage records from airlines functioning across various regions and asset groups. Through the close examination and auditing of airline utilization data, comparison of aircraft usage patterns with fleet and regional trends, and monitoring of aircraft movements by country or city, lessors can ensure compliance.
Who Are the Key Players in the Aircraft Leasing Market?
Major companies operating in the aircraft leasing market include:
• AerCap Holdings N.V.
• Air Lease Corporation
• BOC Aviation Limited
• Aviation Capital Group LLC
• BBAM LLC
• GE Capital Aviation Services LLC
• CIT Group
• International Lease Finance Corporation
• Dubai Aerospace Enterprise Ltd.
• Nordic Aviation Capital A/S
• Avolon Holdings Limited
• Industrial and Commercial Bank of China Limited
• Sumitomo Mitsui Finance and Leasing Company Limited
• Lease Corporation International
• Vista Global Holding Limited
• Chapman Freeborn Holdings Ltd.
• SMBC Aviation Capital
• CDB Aviation
• Aircastle Ltd.
• Macquarie AirFinance Ltd.
• Aergo Capital Ltd.
• Apollo Aviation Group
• Castlelake LP
• Carlyle Aviation Partners Ltd.
• Falko Regional Aircraft Limited
• Goshawk Aviation Limited
• Jackson Square Aviation Limited
• Mitsubishi UFJ Lease & Finance Company Limited
• ORIX Aviation
• Seraph Aviation Management Limited
• SkyWorks Capital LLC
• Altavair LP
What Is The Most Dominant Region In The Aircraft Leasing Market?
Asia-Pacific was the largest region in the aircraft leasing market in 2024. North America is expected to be the fastest-growing region in the global aircraft leasing market during the forecast period. The regions covered in the aircraft leasing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
