Twin Turboprop Leasing Market Forecasts to 2030 – Global Analysis By Twin Turboprop Type (Light Twin Turboprop, Small Twin Turboprop, Medium Twin Turboprop and Heavy Twin Turboprop), Lease Type (Dry Lease and Wet Lease), Application and By Geography

According to Stratistics MRC, the Global Twin Turboprop Leasing Market is accounted for $6.27 billion in 2024 and is expected to reach $10.92 billion by 2030 growing at a CAGR of 9.7% during the forecast period. Renting or leasing twin-engine turboprop aircraft, which are frequently utilized for special missions, cargo transportation, and regional travel, is known as twin turboprop leasing. Popular among regional airlines, charter operators, and businesses needing flexible aviation solutions, these aircraft are renowned for their fuel efficiency and capacity to fly on shorter runways. Moreover, leasing is a wise decision for operators looking for flexible and affordable fleet options because twin turboprops are especially valued for their dependability, lower operating costs when compared to jets, and suitability for routes requiring frequent takeoffs and landings.

According to the International Civil Aviation Organization (ICAO), the global demand for regional air transport is expected to grow at an annual rate of 4.5% over the next decade, driven by the need for improved connectivity in emerging markets.

Market Dynamics:

Driver:

Increased need for local connectivity

Twin turboprop leasing is significantly influenced by the increasing focus on regional air travel, especially in emerging markets. Due to their ability to fly on shorter runways and in rough terrain, twin turboprops are perfect for connecting many underserved and remote areas with major cities for dependable air transportation. Investments in regional connectivity are being prioritized by governments and aviation authorities across different regions, which is increasing demand. Additionally, operators can swiftly deploy these aircraft to satisfy local demands through leasing, eliminating the lengthy lead times involved in acquisition and delivery.

Restraint:

High operating and maintenance expenses

While twin turboprops are generally less expensive for short-haul flights, they still have high maintenance and operating costs, which may deter smaller operators or startups from leasing twin turboprops, especially in highly competitive markets. Frequent inspections, repairs, and component replacements, such as engine overhauls, can be expensive, especially for older aircraft models. Operators leasing these aircraft must account for maintenance costs, which are frequently not covered in standard lease agreements. Furthermore, the rising cost of labor and spare parts, as well as the limited availability of skilled technicians for some turboprop models, can create additional financial burdens.

Opportunity:

Growing interest in private and charter flights

There are a lot of opportunities in the twin turboprop leasing market due to the growing popularity of private and charter flights. High-net-worth individuals, corporate travelers, and niche tourism markets favor these aircraft because they are affordable for small groups visiting places that are not accessible by larger commercial flights. Moreover, demand for charter services has increased due to the post-pandemic shift toward private travel for safety and health reasons. Leasing twin turboprops allows operators to rapidly scale their fleets. There are also opportunities in medical evacuation (medevac) services, where twin turboprops are frequently utilized to move medical supplies and patients in difficult-to-reach places.

Threat:

Competition from growing aircraft technologies

Twin turboprops could be threatened by the development of fully electric and hybrid-electric aircraft. Operators may choose aircraft with more contemporary features, lower operating costs, and fewer emissions as these new technologies become economically feasible. Traditional turboprop fleet leasing companies run the risk of losing market share to rivals who make more sophisticated propulsion system investments. Additionally, the need for manned twin turboprops may be further disrupted by the growing interest in unmanned aerial vehicles (UAVs) for surveillance and cargo delivery missions.

Covid-19 Impact:

The COVID-19 pandemic had a significant effect on the twin turboprop leasing market because it forced airlines to ground their fleets and reduce costs due to global travel restrictions, decreased passenger demand, and general economic uncertainty. Regional carriers, which are the main users of twin turboprops, were particularly hard hit financially, which resulted in lease terminations, deferred payments, and fewer fleet expansions. Leasing companies also saw a decrease in demand for new leases and an excess of grounded aircraft, which led to a decline in lease rates and revenue. However, the market began to recover after the pandemic, as the cost-effectiveness and fuel efficiency of turboprops made them appealing for resuming regional operations, particularly in short-haul and domestic markets.

The Dry Lease segment is expected to be the largest during the forecast period

The Dry Lease segment is expected to account for the largest market share during the forecast period due to its affordability and broad use by operators and airlines looking for more operational flexibility. A dry lease arrangement is a great option for seasoned operators with pre-existing infrastructure and experience because it only leases the aircraft; the lessee is responsible for crew, maintenance, and insurance. Moreover, in order to meet the growing demand for short-haul travel without committing to long-term financial obligations, regional carriers, charter firms, and operators growing their fleets particularly favor this kind of lease.

The Emergency Medical Services (EMS) segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the Emergency Medical Services (EMS) segment is predicted to witness the highest growth rate because of the growing need for quick medical transportation and air ambulances, particularly in isolated and underdeveloped areas. Because they can access shorter runways, perform well in inclement weather, and offer affordable options for urgent medical missions, twin turboprop aircraft are ideal for emergency medical services (EMS) operations. Additionally, twin turboprops are becoming more and more popular in the emergency medical services industry due to improvements in onboard medical equipment and configurations.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share, driven by the strong demand for affordable, short-haul flights and its vast regional aviation network. Twin turboprops are a great option for connecting smaller airports because of the region's great geographic diversity, which includes isolated and underserved areas. Dominance in the market is further supported by the existence of significant leasing firms, well-established regional carriers, and a strong maintenance and operational infrastructure. Furthermore, the region's dominance in the market is also a result of the expanding use of twin turboprops in specialized applications like aerial surveys, cargo transportation, and emergency medical services.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. The growing need for regional connectivity, especially in developing nations like India and Southeast Asia, is what is driving this expansion. The demand for effective, smaller aircraft that can operate from regional airports has increased as infrastructure is improved and air travel becomes more affordable for a growing middle class. The demand for twin turboprop aircraft is being further increased by the region's government’s significant investments in aviation infrastructure. Moreover, Asia Pacific is a crucial area for market expansion because of these factors taken together.

Key players in the market

Some of the key players in Twin Turboprop Leasing market include Bombardier, AerCap Holdings N.V., Textron Aviation Inc, Nordic Aviation Capital, De Havilland Canada, ATR Inc, BOC Aviation, Air Tractor, Inc., Cessna, Air Lease Corporation, CDB Aviation, Aviation Capital Group, SMBC Aviation Capital, Bristow Group and Antonov.

Key Developments:

In October 2024, AerCap Holdings N.V. announced that it has signed lease agreements with Azerbaijan Airlines (""AZAL"") for six new Airbus CFM LEAP powered aircraft, including three A320neos and three A321neos which are scheduled to deliver in 2026. The lease agreements were signed by Samir Rzayev, President of Azerbaijan Airlines CJSC, and Peter Anderson, Chief Commercial Officer of AerCap.

In September 2024, China Development Bank Financial Leasing Co., Ltd. (CDB Aviation) has signed a major deal with Boeing for 50 737-8 (MAX 8) aircraft. The company’s board announced the purchase, positioning it as a strategic move to modernize its fleet. CDB Leasing and its subsidiary, CDB Aviation Lease Finance DAC, executed the agreement with Boeing.

In November 2023, Textron Aviation announced an agreement with BAA Training for the purchase of 48 Cessna Skyhawk aircraft, expected to be delivered in 2026. The deal, inked at the Dubai Airshow, substantially expands BAA Training's existing fleet, offering increased capacity for students, streamlining the flight training process and ensuring an overall enhanced student experience.

Twin Turboprop Types Covered:
• Light Twin Turboprop
• Small Twin Turboprop
• Medium Twin Turboprop
• Heavy Twin Turboprop

Lease Types Covered:
• Dry Lease
• Wet Lease

Applications Covered:
• Regional Passenger Transport
• Aerial survey and Mapping
• Emergency Medical Services
• Cargo
• Training
• Other Applications

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