The global aircraft leasing market size was valued at USD 167.5 billion in 2022. The market is projected to grow from USD 172.9 billion in 2023 to USD 317.5 billion by 2030, exhibiting a CAGR of 9.07% during the forecast period. A lease for an aircraft is a formally recorded contract between two parties, typically a lessor and a lessee. For a set amount of time, the lessor agrees to lend the lessee the aircraft in exchange for regular payments called lease payments. Sometimes, airlines lease aircraft rather than purchase them. In exchange for a monthly or yearly fee for its use, the leasing business spends its money to buy the aircraft and gives it to the operator. The tenant retains ownership. The airline pays a certain rent each month or annually to use the plane under its own name. After the lease term is up, the aircraft is returned to its owner in the final phase. The increasing trend of low-cost airlines is a significant factor driving the market growth. Fortune Business Insights presents this information in their report titled “”Global Aircraft Leasing Market, 2023–2030.””
The report offers:
- Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
- Comprehensive insights into the regional developments.
- List of major industry players.
- Key strategies adopted by the market players.
- Latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints:
Rising Passenger Air Traffic to Augment Market Growth
Rising passenger air traffic is one of the issues and a key factor driving the aircraft leasing market growth. Aircraft leasing has increased as a result of the expanding airline business and the rise of new airlines across the world that prefer to lease rather than buy their aircraft. Due to their high passenger volume and desire to simplify their cash flow and recoup from the effects of the COVID-19 pandemic, the major airline operators in countries such as Europe and the Middle East have lately begun using leased aircraft. A Boeing 777-300ER was leased from AviaAM Financial Leasing China by Emirates, one of the leading airlines in the Middle East and the entire world.
However, lack of modern airport infrastructure is a significant problem for aircraft lessors, which may hamper market growth.
Global Demand for Narrow Body Aircraft to Drive Segment Growth
Based on aircraft type, the market is classified into narrow body, wide body, and regional aircraft.
In 2021, the narrow body segment is anticipated to be the largest. The expansion is attributable to an increase in global demand for narrow-body aircraft. Budget airlines and Low-Cost Carriers (LCCs) in the airline business are primarily responsible for the increased demand. The next generation of aircraft can already fly lengthy routes, so the full-service airlines are now looking to increase the number of narrow-body aircraft in their fleets. In addition, the market for low-cost airlines has experienced a rise in demand for and purchases of these aircraft, and despite the pandemic’s effects, airlines are currently observed placing large orders. This means that within the predicted period, high growth is anticipated.
List of Key Players Profiled in the Report:
- AerCap (GECAS) (Ireland)
- Avolon (Ireland)
- BBAM (U.S.)
- Nordic Aviation Capital (Ireland)
- SMBC Aviation Capital (Ireland)
- ICBC Leasing (China)
- BOC Aviation (Singapore)
- Air Lease Corporation (U.S.)
- DAE Capital (UAE)
- Boeing Capital Corporation (U.S.)
Higher Adoption of Dry Lease will Boost Market Growth
Based on lease type, the market is segmented into wet lease, dry lease, and damp lease.
Throughout the projected period, the dry lease segment is anticipated to experience significant expansion. The segment’s expansion can be attributed to the dry lease aircraft’s affordable operation and maintenance costs. In a dry lease, the lessor gives the aircraft to the lessee without a crew, so the lessee is responsible for all operational and maintenance expenditures. Since the lessee or the airline operator has complete control over the financial element, they employ several cost-cutting strategies to make aircraft maintenance and operation affordable. Although it is believed that dry leasing would also work well for the largest airlines, dry leasing is frequently used by low-cost and budget airlines. Additionally, the increasing use of dry-leased aircraft has led to job opportunities.
Europe Dominates the Market Due to the Presence of Significant Players
In 2021, Europe dominated the aircraft leasing market share. In 2021, the market’s size was USD 94.33 billion. The existence of a significant player, Aercap is credited with the area’s expansion. More than half of the leased aircraft used by the airline sector is owned by the corporation. Due to its favorable tax structure and convenient business environment, Ireland is home to the majority of lessors. Additionally, the region has witnessed a rise in demand for leased aircraft as a result of the arrival of low-cost carriers. As a result, higher revenue growth rates are predicted during the forecast period.
Businesses Concentrate on Acquisitions and Partnerships to Get Competitive Edge
In 2021, AerCap completed the purchase of GE Capital Aviation Services (GECAS) from General Electric. More than 2,000 aircraft, more than 900 engines, and over 450 of the world’s most fuel-efficient and technologically advanced aircraft are in the combined company’s fleet. With a solid portfolio and a diverse customer base, AerCap is a market leader in all facets of aircraft leasing. Additionally, the A320ceo, Neo Family, A330, A350, 737NG, 737 MAX, and 787 aircraft make up 90% of AerCap’s fleet; these are the most popular aircraft in the world.
Key Industry Development:
December 2022 – Dubai Aerospace Enterprise (DAE) Ltd. announced that it entered into an agreement to acquire 15 Boeing 737 MAX 8 aircraft from Boeing. The order is valued at approximately USD 1.8 billion at list prices. DAE, a long-term Boeing partner, has 162 Boeing aircraft in its fleet.