Commercial Aircraft Leasing Market Research Report By Aircraft Type (Narrow-body Aircraft, Wide-body Aircraft, Regional Aircraft, Cargo Aircraft), By Lease Term (Short-Term Lease (less than 5 years), Medium-Term Lease (5-10 years), Long-Term Lease (more than 10 years)), By Lessee Type (Airlines, Cargo Carriers, Aircraft Leasing Companies, Private Charter Operators), By Lease Financing Structure (Operating Lease, Capital Lease, Hybrid Lease, Sale and Leaseback) and By Regional (North America, Europe, South America, Asia Pacific, Middle East

Commercial Aircraft Leasing Market Overview:

As per MRFR analysis, the Commercial Aircraft Leasing Market Size was estimated at 75.6 (USD Billion) in 2022. The Commercial Aircraft Leasing Market Industry is expected to grow from 80.12(USD Billion) in 2023 to 135.23 (USD Billion) by 2032. The Commercial Aircraft Leasing Market CAGR (growth rate) is expected to be around 5.99% during the forecast period (2024 - 2032).

Key Commercial Aircraft Leasing Market Trends Highlighted

The Commercial Aircraft Leasing Market is in the process of evolution thanks to certain forces at play in the market. With increased demand for air travel, leasing is becoming more favorable for airlines as regards fleet management, conservation of capital outlay and discretion to market. Low cost carriers and the development of new aviation markets in the emerging regions are also increasing the number of aircraft on lease. To take advantage of these opportunities for growth, aircraft lessors are adopting new strategies including sale lease back arrangements, power by the hour deals and bespoke directed leasing at particular airlines.
At the same time deployment of modernization like digitalization and data analysis is in a way redirecting the paradigm of the industry since the stigma of waiting for decisions to be made in a room is fast fading. In fact recent developments in the markets show that there is a growing appetite for long term leasing contracts with increased number of airlines indicating a desire for fleet stability and predictability. Regulation and self-drive from the industry in efforts to be environmentally friendly are making that type of leasing popular. The lease of aircraft has gone a notch higher with the assistance of digital platforms and marketplaces where communication has improved, transparency has increased and lessors and prospective lessees are linked with ease.

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

Commercial Aircraft Leasing Market Drivers

Growing Demand for Air Travel

An increase in air travel demand is one of the key drivers FUELing the growth of the Global Commercial Aircraft Leasing Market Industry. In the next five years, the number of air passengers is slated to increase dramatically due to rising incomes, growing urbanization, and low-cost carriers. This, in turn, will lead to a high demand for commercial aircraft, which will trigger the growth of the leasing market.

Expansion of Low-Cost Carriers

The expansion of low-cost carriers is another major driver of the growth of the Global Commercial Aircraft Leasing Market Industry. Low-cost carriers typically have lower operating costs than traditional airlines, which allows them to offer lower fares to passengers. This has made air travel more affordable for a wider range of people, leading to an increase in the demand for commercial aircraft. Leasing provides a flexible and cost-effective way for low-cost carriers to acquire the aircraft they need to meet this demand.

Technological Advancements

Technological developments in the aircraft industry are not only playing a significant part in decreasing the production cost of these machines but also helping in the growth of the Global Commercial Aircraft Leasing Market Industry. In the last few years, new technologies have been developed that can make an aircraft both fuel-efficient with the use of new engines and lighter with the help of new construction materials. Moreover, implementing leasing has become a more lucrative option for such establishments, too, as leasing machines from these leasing companies allows these airlines access to the latest technologies in the aircraft with minimal investment at the start.

Commercial Aircraft Leasing Market Segment Insights:

Commercial Aircraft Leasing Market Aircraft Type Insights

The Global Commercial Aircraft Leasing Market is segmented by aircraft type, which includes narrow-body aircraft, wide-body aircraft, regional aircraft, and cargo aircraft. Each of the segments has unique market dynamics and growth potentials. Due to the smaller size and reduced operating costs of the narrow-body aircraft, they are the most dominant in the commercial aircraft leasing market. In 2023, within the narrow-body aircraft segment, there was a contribution of about 60% of the revenue value generated in global commercial aircraft leasing markets.The primary players in this market are Boeing, Airbus, And Embraer.
The significant growth drivers for narrow-body aircraft include the rise in low-cost carriers and the expansion in regional connectivity. The wide-body aircraft are used in long-haul operations and, hence, are mostly leased for long international routes. The wide-body aircraft contribute approximately 30% of the Global Commercial Aircraft Leasing Market revenue. Boeing and Airbus are the major manufacturers of wide-body aircraft. The increase in international travel led by the executives and the middle class, coupled with their need to travel comfortably and receive a premium travel experience, is a major driver of the wide-body leasing market.The regional aircraft are small in size and designed for regional and short-haul operations. Due to the low applicability of regional aircraft in some of the global markets, their contribution to the Global Commercial Aircraft Leasing Market was approximately 7% in 2023. The major regional aircraft manufacturers include ATR, Bombardier, Embraer, And De Havilland Canada. The rise in demand for inter-regional connectivity and increased access to airports accounts for key drivers of the growth of the regional aircraft leasing market. Finally, cargo aircraft are designed for freight and cargo operations, thus being critical in the global transport and logistics sectors.The cargo aircraft segment accounts for about 3% of the world’s Global Commercial Aircraft Leasing Market.
The major players in this market are Boeing and Airbus. The rise in e-commerce and the subsequent rise in the air cargo transportation market are key drivers of the future growth of cargo aircraft. In conclusion, the Global Commercial Aircraft Leasing Market is expected to grow in the near future due to the rise in air passenger travel, the increase in global trade, and the development of technology. As such, more technologies and market players should understand the market segmentation and the dynamics of each type of aircraft and make strategic moves in a timely fashion.

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

Commercial Aircraft Leasing Market Lease Term Insights

The Global Commercial Aircraft Leasing Market segmentation by Lease Term offers valuable insights into the industry's dynamics. Short-Term Lease (less than 5 years) accounted for the largest revenue share in 2023, and it is projected to maintain its dominance throughout the forecast period. This segment is driven by the increasing demand for aircraft leasing from low-cost carriers and regional airlines, which typically require planes for a shorter duration. Medium-Term Lease (5-10 years) present a significant growth opportunity as airlines seek flexibility and cost-effectiveness in their operations.Long-Term Lease (more than 10 years) is expected to witness steady growth, primarily driven by large carriers looking for long-term stability and financing solutions. Overall, the market for commercial aircraft leasing is anticipated to grow steadily in the coming years, fueled by increasing air travel demand and the need for efficient aircraft financing solutions.

Commercial Aircraft Leasing Market Lessee Type Insights

The Lessee Type segment of the Global Commercial Aircraft Leasing Market is divided into Airlines, Cargo Carriers, Aircraft Leasing Companies, and Private Charter Operators. Airlines account for the largest share of the market, driven by the need for aircraft to meet increasing passenger demand and expand their operations. Cargo Carriers are also a significant segment, as air cargo transportation continues to grow due to e-commerce and globalization. Aircraft Leasing Companies play a crucial role in financing aircraft purchases, enabling airlines and other lessees to acquire and operate aircraft without large upfront capital investments.
Private Charter Operators represent a niche segment but contribute to market growth due to the increasing demand for private air travel among high-net-worth individuals and businesses. The Global Commercial Aircraft Leasing Market revenue is expected to reach $84.43 billion in 2024, with a CAGR of 6.05% from 2024 to 2032.

Commercial Aircraft Leasing Market Lease Financing Structure Insights

The Global Commercial Aircraft Leasing Market segmentation by Lease Financing Structure includes Operating Lease, Capital Lease, Hybrid Lease, and Sale and Leaseback. Operating Lease accounted for the largest revenue share in 2023, and it is expected to continue its dominance throughout the forecast period. Operating Leases offer flexibility, lower initial costs, and the ability to upgrade aircraft more easily, making them attractive to airlines. Capital Leases, on the other hand, transfer ownership of the aircraft to the lessee at the end of the lease term, resulting in higher upfront costs but potential tax benefits.
Hybrid Leases combine elements of both Operating and Capital Leases, providing customized solutions tailored to specific airline requirements. Sale and Leaseback transactions involve airlines selling their owned aircraft to lessors and leasing them back, allowing them to raise capital while maintaining access to the aircraft. The Global Commercial Aircraft Leasing Market revenue for Operating Lease is projected to reach USD 65.23 Billion by 2032, growing at a CAGR of 5.34%.

Commercial Aircraft Leasing Market Regional Insights

The regional segmentation of the Global Commercial Aircraft Leasing Market offers valuable insights into market dynamics and growth opportunities across different geographical regions. North America holds a dominant position in the market, driven by a strong aviation industry and a growing demand for commercial aircraft leasing services. Europe follows closely, with a significant number of leasing companies and a mature aviation market. APAC region exhibits promising growth potential, fueled by rapid economic expansion and increasing air travel demand.South America and MEA regions are expected to witness steady growth in the coming years, driven by infrastructure development and growing tourism industries. This growth can be attributed to the increasing demand for air travel, the need for fleet modernization, and the flexibility and cost-effectiveness offered by aircraft leasing.

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

Commercial Aircraft Leasing Market Key Players and Competitive Insights:

Leading players in the Commercial Aircraft Leasing Market industry are primarily focused on extending their global footprint worldwide through strategic partnerships and joint ventures. In addition, such players are making considerable investments in R to enhance their product services and offerings. The Commercial Aircraft Leasing Market is expected to witness significant revenue growth over the foreseeable period on account of high air travel demand and the need for flexible financing.
The Commercial Aircraft Leasing Market is characterized by the presence of major players and very few small-scale players. Some of the key players in the market include AerCap Holdings N.V., Air Lease Corporation, and China Aviation Supplies Holding Company. These players are focused on providing airlines with a wide range of aircraft and financing options. Air Lease Corporation is a reliable aircraft leasing company with global operations. The company owns a fleet of over three hundred aircraft, including Airbus, Boeing, and Embraer models. Air Lease Corporation provides various lease terms and financing solutions to its customers. The company has a strong customer support group and ensures the provision of the highest quality of support and services to its customers.
Air Lease Corporation is anticipated to grow over the upcoming years.BOC Aviation is a leading aircraft leasing company with a global presencia. The company owns a fleet of over 600 aircraft, including such models as Airbus, Boeing, and Embraer. BOC Aviation provides a variety of lease terms and financing options for its customers. The company has a strong customer support group and ensures the provision of the highest quality of support and services to its customers. BOC Aviation is anticipated to grow over the upcoming years.

Key Companies in the Commercial Aircraft Leasing Market Include:

• Jetra


• Avolon Holdings Limited


• BOC Aviation Limited


• China Aircraft Leasing Group Holdings Limited


• AerCap Holdings N.V.


• GECAS


• Goshawk Aviation


• Castlelake Aviation


• Elix Aviation


• Dubai Aerospace Enterprise


• Carlyle Aviation Partners


• Chorus Aviation


• Air Lease Corporation


• SMBC Aviation Capital


• CDB Aviation Lease Finance

Commercial Aircraft Leasing Market Industry Developments

The commercial aircraft leasing market is projected to experience steady growth over the next decade, driven by factors such as increasing air travel demand, fleet modernization, and the expansion of low-cost carriers. In 2023, the market was valued at approximately USD 80.12 billion, and it is expected to reach USD 135.23 billion by 2032, exhibiting a CAGR of 5.99%.
Recent developments in the market include the growing popularity of sale-and-leaseback transactions, the emergence of new leasing companies, and the increasing adoption of digital technologies to streamline operations. Key players in the market include AerCap Holdings N.V., Air Lease Corporation, and BOC Aviation.

Commercial Aircraft Leasing Market Segmentation Insights

Commercial Aircraft Leasing Market Aircraft Type Outlook

• Narrow-body Aircraft


• Wide-body Aircraft


• Regional Aircraft


• Cargo Aircraft

Commercial Aircraft Leasing Market Lease Term Outlook

• Short-Term Lease (less than 5 years)


• Medium-Term Lease (5-10 years)


• Long-Term Lease (more than 10 years)

Commercial Aircraft Leasing Market Lessee Type Outlook

• Airlines


• Cargo Carriers


• Aircraft Leasing Companies


• Private Charter Operators

Commercial Aircraft Leasing Market Lease Financing Structure Outlook

• Operating Lease


• Capital Lease


• Hybrid Lease


• Sale and Leaseback

Commercial Aircraft Leasing Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa