Aircraft Leasing Market Forecasts to 2030 – Global Analysis by Aircraft Type (Narrow-Body Aircraft, Wide-Body Aircraft, Very Large Aircraft (VLA) and Regional Aircraft), Leasing Type, Security Type, End User and By Geography

Aircraft Leasing Market Forecasts to 2030 – Global Analysis by Aircraft Type (Narrow-Body Aircraft, Wide-Body Aircraft, Very Large Aircraft (VLA) and Regional Aircraft), Leasing Type, Security Type, End User and By Geography

According to Stratistics MRC, the Global Aircraft Leasing Market is accounted for $195.4 billion in 2024 and is expected to reach $409.05 billion by 2030 growing at a CAGR of 13.1% during the forecast period. Aircraft leasing is a financial arrangement in which an airline or other operator hires an aircraft from a leasing firm for a set amount of time instead of acquiring it outright. While the lessee pays regular rental costs, the leasing firm owns the aircraft and is in charge of its maintenance. Operating leases, in which the lessee rents the aircraft for a shorter period of time without eventual ownership, and finance leases, which are longer-term contracts that frequently include an option to buy the aircraft, are the two primary forms of aircraft leasing. Leasing an aircraft gives airlines flexibility, lowers capital costs, and aids in fleet management.

Market Dynamics:

Driver:

Short-Term and Flexible Leasing Options

Short-term and flexible leasing alternatives are a primary driver of growth in the aircraft leasing business, allowing airlines to adjust their fleets in response to changing demand, seasonal demands, or market conditions. Airlines are able to meet capacity requirements while minimizing long-term financial obligations thanks to these flexible terms, such operating leases. This flexibility is particularly helpful during times of fast expansion or in unpredictable economic conditions, which makes leasing an aircraft a more alluring choice for carriers looking to control costs and maintain operational flexibility, which propels market expansion.

Restraint:

Aircraft Depreciation & Residual Value Risks

Aircraft depreciation and residual value issues impose major constraints on the aircraft leasing market by causing financial uncertainty for lessees. Lessors may find it more difficult to recoup the whole investment at the conclusion of the lease period as aircraft age due to a potential drop in their resale or lease value. When demand for specific aircraft models declines or during economic downturns, this risk is particularly noticeable. In order to offset any losses, lessors can raise leasing rates, which would raise the cost of leases for airlines and change market dynamics. Thus, it hinders the growth of the market.

Opportunity:

Cost Efficiency & Financial Flexibility

Cost effectiveness and financial flexibility are primary drivers of the aircraft leasing, as leasing allows airlines to avoid the considerable capital investment required to purchase an aircraft. Airlines are able to better manage debt, allocate resources, and preserve liquidity as a result. By providing alternatives like operating leases, which often have lower upfront costs and shorter terms, leasing also gives airlines financial flexibility by enabling them to respond to changes in the market without being locked into long-term agreements. Leasing is therefore an affordable option for modernizing and growing a fleet, thus it drives the market expansion.

Threat:

Regulatory Challenges

Regulatory issues limit the aircraft leasing business by making compliance more difficult for both lessors and lessees. Cross-border leasing agreements may be complicated by the differing aviation safety, maintenance, and environmental rules in different nations. These regulatory discrepancies could result in higher expenses for certification, legal compliance, and aircraft modifications. These regulations, which airlines and leasing businesses must comply with, have the potential to slow down lease transactions, raise operating costs, and decrease the leasing process's overall effectiveness.

Covid-19 Impact:

The COVID-19 pandemic severely impacted the aircraft leasing market by causing a dramatic decline in air travel demand, leading to delayed or canceled lease agreements. Airlines faced financial difficulties, resulting in delayed payments and renegotiated lease terms. However, the crisis also accelerated the trend of leasing over purchasing, as airlines sought to minimize capital expenditure and adapt to fluctuating market conditions with more flexible fleet options.

The finance lease segment is expected to be the largest during the forecast period

The finance lease segment is expected to be the largest during the forecast period because in a finance lease, airlines can access modern, fuel-efficient aircraft with lower upfront costs compared to direct purchase. The ability to spread payments over a longer period, with an option to purchase at the lease's end, gives airlines greater financial flexibility and helps them manage cash flow. This makes finance leases particularly attractive for fleet expansion and modernization, contributing to the continued growth of the leasing market.

The cargo operators segment is expected to have the highest CAGR during the forecast period

The cargo operators segment is expected to have the highest CAGR during the forecast period as they require specialized fleets to meet rising global demand for air freight. The increasing need for efficient, flexible, and cost-effective transportation of goods, especially in e-commerce, has led cargo operators to rely more on leased aircraft. Leasing allows cargo carriers to scale their fleets quickly without high capital investment, providing the flexibility to respond to fluctuating demand. Additionally, long-term leasing options enable cargo operators to modernize their fleets with fuel-efficient models, further boosting market expansion.

Region with largest share:

North America is projected to hold the largest market share during the forecast period as the demand for leasing is increased by the region's developed aviation sector, which is marked by sizable fleets and high air travel volumes. This is because airlines aim to manage fleet modernization and development without incurring significant capital expenditures. In order to handle market swings, North American airlines are also favoring flexible leasing options more and more. The leasing business is further supported by the expanding e-commerce industry, which significantly increases demand for cargo planes.

Region with highest CAGR:

Asia Pacific is projected to witness the highest CAGR over the forecast period because air travel is expanding quickly, particularly in developing nations like China and India. Leasing provides a flexible, affordable option without requiring a sizable capital investment as airlines in the area grow their fleets to satisfy growing demand. Leasing also gives airlines access to new, fuel-efficient aircraft, which is crucial for maintaining their competitiveness. The demand for cargo aircraft is also fueled by the region's growing e-commerce, which in turn is driving the expansion of the Asia Pacific aircraft leasing market.

Key players in the market

Some of the key players in Aircraft Leasing Market include AerCap, Aerospace Industrial Development Corporation (AIDC), Air Lease Corporation (ALC), Airbus Financial Services, AviaAM Leasing, Avolon, Bank of Beijing Aircraft Management(BBAM), BOC Aviation, China Aircraft Leasing Group (CALC), DVB Bank SE, FALCON Aviation Services, GECAS (GE Capital Aviation Services), ICBC Leasing, Jetcraft, Magellan Aviation Group, Mitsubishi Corporation Aircraft Leasing, Nova Capital, Orion Aircraft Leasing, SMBC Aviation Capital and Vallair.

Key Developments:

In November 2024, Mitsubishi Corporation and Resottrust Group evaluated the establishment of a joint venture company to facilitate medical tourism to Japan and globally promote the country's advanced medical screening technologies and healthcare services.

In October 2024, Mitsubishi Corporation and Yoshimoto Kogyo Holdings Co., Ltd. have agreed to consider business co-creation, including solving consumers' health issues through “laughter”, overseas development of “comedy content”, and content production using digital transformation, and have concluded a business partnership agreement.

In September 2024, Mitsubishi Corporation, KDDI Corporation and Lawson launched an initiative to transform Lawson into ""Next-generation Convenience Store”

Aircraft Types Covered:
• Narrow-Body Aircraft
• Wide-Body Aircraft
• Very Large Aircraft (VLA)
• Regional Aircraft

Leasing Types Covered:
• Operating Lease
• Finance Lease
• Sale and Leaseback

Security Types Covered:
• Asset-Backed Security
• Non Asset-Backed Security

End Users Covered:
• Commercial Airlines
• Cargo Operators
• Government and Military
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements