Aviation Leasing Market Research Report By Aircraft Type (Wide-body aircraft, Narrow-body aircraft, Regional aircraft), By Lease Type (Operating leases, Finance leases, Sale and leaseback), By Lessee Type (Airlines, Cargo operators, Other lessees), By Lease Term (Short-term leases (less than 5 years), Medium-term leases (5-12 years), Long-term leases (more than 12 years)), By Lease Structure (Fixed-rate leases, Variable-rate leases, Hybrid leases) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) -

Global Aviation Leasing Market Overview:

The Aviation Leasing Market Size was estimated at 209.86 (USD Billion) in 2022. The Aviation Leasing Market Industry is expected to grow from 220.88(USD Billion) in 2023 to 350.0 (USD Billion) by 2032. The Aviation Leasing Market CAGR (growth rate) is expected to be around 5.25% during the forecast period (2024 - 2032).

Key Aviation Leasing Market Trends Highlighted

The aviation leasing market is undergoing a period of significant transformation driven by technological advancements, globalization, and environmental concerns. Key market drivers include the growing demand for air travel, the expansion of low-cost carriers, and the need for airlines to optimize their fleet utilization. Opportunities for growth lie in expanding into emerging markets, providing customized leasing solutions, and embracing sustainable practices. Recent trends have seen the rise of long-term leasing agreements, the integration of digitization and data analytics, and the increasing importance of environmental compliance. As the aviation industry continues to evolve, the leasing market is expected to play a crucial role in meeting the evolving needs of airlines and supporting the growth of the global air transport sector.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Aviation Leasing Market Drivers

Rising Demand for Air Travel

The aviation industry is witnessing a surge in air travel demand due to several factors, including increasing disposable income, growing tourism, and expanding global trade. This increased demand for air travel is driving the need for more aircraft, which in turn is fueling the growth of the aviation leasing market. Airlines prefer to lease aircraft rather than purchase them outright, as leasing provides them with greater flexibility and lower upfront costs. The trend is projected to continue in the next few years and support the expansion of the global aviation leasing industry.

Technological Advancements in Aircraft

Also, new technological achievements in the manufacturing and design of aircraft have promoted growth of aviation leasing market. The new models of aircraft are more fuel-efficient, have increased ranges and are generally more comfortable for passengers. Therefore, airlines that lease newer models of aircraft are able to reduce their operational costs and increase their customers' satisfaction. At the same time, the possibility to use new technologies, such as electric and hybrid-electric aircraft, in the future will boost the demand for leasing further.

Growth of Low-Cost Carriers

Another driver for growth in the aviation leasing market is the coming and further resulting growth of low-cost carriers. Most of the LCCs fly only one type of aircraft, which makes their maintenance easier and less costly. Without a need for heavy investment in initial capital, leasing allows LCCs to rapidly expand their fleets with new airplanes and serve the increasing demand for low-cost flights.

Aviation Leasing Market Segment Insights:

Aviation Leasing Market Aircraft Type Insights

The primary research on the segmentation of the global aviation leasing sector according to the aircraft type. By the end of 2023, the narrow-bodied aircraft segment is forecasted to dominate the market, with a size of USD 120.0 billion. It is also predicted to be valued at USD 180.3 billion at the end of 2032, recording a 5% CAGR over the forecast period. The growth in this market is a result of the growing demand for fuel-efficient and cost-effective aircraft from budget carriers, as well as regionals. The wide-bodied aircraft segment is anticipated to grow steadily over the next decade due to the expansion of long-haul routes and higher accessibility to air travel in developing countries.It is expected to be valued at USD 60.0 billion by the end of 2023 and USD 90.2 billion by the end of 2032, as it records a 4.8% CAGR over the forecast period. Meanwhile, the regional aircraft segment is also projected to grow by 5.5% CAGR over the forecast period, from USD 40.88 billion in 2023 to USD 60.0 billion by 2032, due to the growing demand for regional connectivity and the development of short-haul flights.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Aviation Leasing Market Lease Type Insights

The Aviation Leasing Market segmentation by Lease Type is categorized into Operating leases, Finance leases, and Sales and leaseback. Finance leases accounted for the largest revenue share of around 45.0% in 2023 and are expected to maintain their dominance throughout the forecast period. The growth of the finance lease segment can be attributed to the increasing demand for long-term financing options by airlines and lessors. Operating leases are expected to grow at a steady pace during the forecast period due to their flexibility and lower initial costs compared to finance leases.Sale and leaseback transactions are expected to gain traction as airlines seek to unlock capital from their existing aircraft assets. Additionally, the emergence of specialized lessors focusing on sale and leaseback transactions is expected to drive growth in this segment.

Aviation Leasing Market Lessee Type Insights

The Lessee Type segment of the Aviation Leasing Market is categorized into Airlines, Cargo operators, and Other lessees. Airlines account for the largest share of the market, driven by the increasing demand for air travel and the need for airlines to expand their fleets cost-effectively. Cargo operators are also a significant segment, as the growing e-commerce industry drives the demand for air cargo transportation. Other lessees include government agencies, corporate entities, and private individuals who lease aircraft for various purposes.

Aviation Leasing Market Lease Term Insights

The Aviation Leasing Market is segmented based on lease terms into short-term leases (less than 5 years), medium-term leases (5-12 years), and long-term leases (more than 12 years). Long-term leases accounted for the largest share of the market in 2023, and this trend is expected to continue over the forecast period. This is due to the fact that long-term leases provide airlines with greater flexibility and certainty in their operations. Medium-term leases are also expected to see significant growth over the forecast period as airlines seek to balance the benefits of short-term and long-term leases.Short-term leases are typically used for seasonal or temporary needs and are expected to account for a smaller share of the market over the forecast period.

Aviation Leasing Market Lease Structure Insights

The Aviation Leasing Market segmentation by Lease Structure can be categorized into Fixed-rate leases, Variable-rate leases, and Hybrid leases. Fixed-rate leases dominate the market, accounting for nearly 60% of the Aviation Leasing Market revenue in 2023, as they offer stability and predictability in lease payments. Variable-rate leases, on the other hand, expose lessees to interest rate fluctuations but can be beneficial in a declining interest rate environment. Hybrid leases combine elements of both fixed-rate and variable-rate leases, providing flexibility and risk mitigation.The market data suggests that the demand for variable-rate leases and hybrid leases is expected to increase in the coming years as airlines seek to optimize their leasing costs and manage financial risks.

Aviation Leasing Market Regional Insights

The regional segmentation of the Aviation Leasing Market offers valuable insights into the market dynamics across different geographic regions. North America is expected to dominate the market with a significant share due to the presence of major airlines and leasing companies. Europe follows closely, driven by the increasing demand for air travel and the presence of established players in the region. The Asia-Pacific (APAC) region is projected to witness substantial growth, owing to the rising demand for air travel in emerging economies like India and China. South America and the Middle East and Africa (MEA) regions are also expected to contribute to the market growth, albeit at a slower pace. The Aviation Leasing Market is projected to reach USD 250.0 billion by 2026, exhibiting a steady growth trajectory in the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Aviation Leasing Market Key Players And Competitive Insights:

Major players in Aviation Leasing Market are continuously developing strategies to retain their position and increase market share in the Aviation Leasing Market industry. Leading Aviation Leasing Market players are adopting competitive pricing strategies, innovative marketing tactics, and strategic partnerships to gain an edge over their rivals. The Aviation Leasing Market is characterized by a dynamic competitive landscape where companies are constantly innovating and adapting to market trends. The Aviation Leasing Market Competitive Landscape is expected to remain competitive in the coming years, with manufacturers focusing on product development and strategic collaborations to differentiate their offerings in the market. AerCap Holdings NV, a leading Aviation Leasing Market player, has consistently grown its market presence through acquisitions and strategic partnerships. The company has expanded its global footprint and diversified its portfolio of aircraft to meet the increasing demand for leasing services. AerCap's strong financial position and long-standing relationships with airlines enable it to offer competitive lease rates and tailor its services to meet the specific needs of its customers. The company's focus on customer service and its ability to provide customized solutions have contributed to its success in the market.Air Lease Corporation, another prominent competitor in the Aviation Leasing Market, has established a strong reputation for delivering innovative leasing solutions and maintaining a close partnership with aircraft manufacturers. The company's ability to provide flexible lease terms, asset management expertise, and technical support has attracted a loyal customer base. Air Lease Corporation's extensive global network and its focus on building long-term relationships with airlines have contributed to its competitive advantage. The company's financial stability and its commitment to sustainability have further solidified its position in the market.

Key Companies in the Aviation Leasing Market Include:

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  BOC Aviation

  
  


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  CIT Aerospace

  
  


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  Azorra Aviation

  
  


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  SMBC Aviation Capital

  
  


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  BBAM

  
  


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  Carlyle Aviation Partners

  
  


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  AerCap Holdings

  
  


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  GECAS

  
  


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  ICBC Leasing

  
  


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  China Aircraft Leasing Group Holdings

  
  


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  Air Lease Corporation

  
  


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  Avolon

  
  


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  CDB Aviation Lease Finance

  
  


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  Dubais Aerospace Enterprise

  
  


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  True Noorden

  
  

Aviation Leasing Market Industry Developments

The Aviation Leasing Market is projected to reach USD 350.0 billion by 2032, exhibiting a CAGR of 5.25% during the forecast period (2024-2032). The growth of the market is attributed to the increasing demand for air travel, the need for fuel-efficient aircraft, and the rising adoption of operating lease agreements. Key recent developments include the launch of new aircraft models by major manufacturers such as Airbus and Boeing, the expansion of low-cost carriers in emerging markets, and the growing trend towards digitalization in the aviation industry.

Aviation Leasing Market Segmentation Insights

Aviation Leasing Market Aircraft Type Outlook

• Wide-body aircraft


• Narrow-body aircraft


• Regional aircraft

Aviation Leasing Market Lease Type Outlook

• Operating leases


• Finance leases


• Sale and leaseback

Aviation Leasing Market Lessee Type Outlook

• Airlines


• Cargo operators


• Other lessees

Aviation Leasing Market Lease Term Outlook

• Short-term leases (less than 5 years)


• Medium-term leases (5-12 years)


• Long-term leases (more than 12 years)

Aviation Leasing Market Lease Structure Outlook

• Fixed-rate leases


• Variable-rate leases


• Hybrid leases

Aviation Leasing Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa