Aircraft Leasing Market to Reach $292.06 Billion by 2029, Expanding at 8.7% CAGR
Built for executives and teams involved in growth planning, this research offers a data-driven view of the aircraft leasing industry’s direction and competitive environment.
What Is The Expected CAGR For The Aircraft Leasing Market Through 2025?
The aircraft leasing market size has grown strongly in recent years. It will grow from $193.33 billion in 2024 to $209.05 billion in 2025 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to the globalization of aviation, cost-efficiency and flexibility, market deregulation, financial benefits for airlines, and the emergence of low-cost carriers.
The aircraft leasing market size is expected to see strong growth in the next few years. It will grow to $292.06 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to the rise of emerging markets, airline cost management, economic recovery and growth, sustainable aviation initiatives, and a shift to shorter leasing periods. Major trends in the forecast period include fleet modernization, expansion of low-cost carriers, platform innovation, and shift to operating leases.
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Which Key Factors Will Influence Aircraft Leasing Market Growth Over 2025-2034?
The increasing demand for air travel is expected to propel the growth of the aircraft leasing market going forward. Air travel refers to transportation by air, typically in an airplane or helicopter. It involves using air transportation services to move from one location to another, either domestically or internationally. Aircraft leasing is a practice employed in the air travel industry where airlines lease aircraft from leasing companies instead of purchasing them outright. Leasing provides airlines with the flexibility to meet changing demand, expand or contract their fleet, and avoid the large upfront capital costs associated with purchasing aircraft. For instance, in February 2023, according to International Air Transport Association (IATA), the Canada-based trade association representing over 290 airlines worldwide, in December 2022, the global total traffic increased by 39.7% compared to December 2021. Further, European carriers saw a surge in demand of 46.5% during the same period. Therefore, the increasing demand for air travel is driving the growth of the aircraft leasing market.
Comprehensive Segment-Wise Insights Into The Aircraft Leasing Market
The aircraft leasingmarket 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
What Are The Prominent Trends In The Aircraft Leasing Market?
The advancement of technologies is a key trend gaining popularity in the aircraft leasing market. Major companies operating in the aircraft leasing market are developing advanced analytics platforms to sustain their position in the market. For instance, in April 2023, LEASEWORKS, a US-based company that provides a cloud-based software solution for aircraft leasing and asset management launched LeaseWorks Utilization Tracker, a utilization records software for lessors. The Aeris MATCH software ecosystem incorporates the tracker, which streamlines the collection of usage records from airlines operating across multiple regions and asset groups. Lessors can assure compliance by scrutinizing and auditing airline utilization data, comparing aircraft usage patterns to the fleet and regional trends, and tracking aircraft movements by country or city.
Analysis Of Key Players In 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
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What Are The Key Regional Trends 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
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