Aviation Asset Management Market size will experience an accelerated growth rate over coming years due to reducing operational costs and mitigation of unwanted expenses related to aircraft during their life cycle. Aviation asset management can be considered as a service where industry players offer end-to-end life cycle management services to several financial institutes, leasing companies, and aircraft operators. The purpose of aviation asset management is to preserve the value of aircraft assets.
Growth in aviation asset management can be attributed to the rising focus of commercial airline operators on increasing their service offerings due to rising demand for aerial cargo movement and inflight passenger. Major companies dealing with aircraft operations in the commercial airspace are looking for options to outsource aviation asset management services.
The rise in operational efficiency and reduction in fixed & variable management cost are supporting the aviation asset management market. Airline operators are looking for end-to-end service providers who can effectively manage peripheral operations of the company, allowing them to focus on core business strategies. For instance, in 2017, China Airlines associated with IFS for aviation asset management services. This contract helped China Airlines to increase its management process efficiency by 10%, A checks delivery efficiency by 3%, and 30 days average reduction of layover in scheduled aircraft maintenance.
Technological developments in various connected technologies are allowing companies to integrate their systems with cloud, the Internet of Things (IoT), predictive analysis, and other data management tools, supporting industry competition. For instance, in July 2017, IFS labs initiated a program to integrate blockchain technology with number of aviation asset management processes. A modern aircraft consists of approximately two to three million parts, which need to be managed properly for smooth operations. This generated a demand for a verifiable, secure, and traceable database protocol, which can be fulfilled by blockchain technology. In October 2018, IATA released a document stating potential application for blockchain in the aviation industry, which included certification, smart contracts, tokenization, digital ID, and provenance.
The aviation asset management market by type of aircraft is segmented into wide-body aircraft, narrow-body aircraft, and private jets. The narrow-body aircraft is expected to witness significant growth potential during the forecast period. The growth can be attributed to rising domestic air travel and introduction of Low-Cost Carriers (LCCs). Major airline operators are increasing their narrow-body aircraft fleet to cater to the rising domestic market, supporting segment growth.
The end-to-end service in the aviation asset management market will capture a significant revenue share. Changing operational trends of airline operators to outsource peripheral activities are supporting market growth. Major facilities in end-to-end asset management contracts include complete fleet management, APUs, engines & landing gears, contract & lease management for all assigned assets, various terms & conditions of lease, and other assets with respect to regulatory compliance and unified view of assets.
Asia Pacific will capture a significant market share, demonstrating an accelerated growth rate over the coming years due to the rising aviation industry across the region. Airline operators are actively increasing their operational fleet to support the market demand on regional roots. Efforts taken by regional governments to increase their manufacturing and operational capabilities in the aviation industry are attracting huge brownfield and greenfield investments, positively impacting the market.
Key players operating in the market are initiating collaborations and Memorandum of Understanding (MoU) with several aircraft manufacturers, financial institutions, and leasing companies, allowing them to provide a one-stop solution to airline operators. A high degree of market competitiveness and requirement for custom services suite as per client requirements are prompting market opportunities.
Major industry participants in the aviation asset management market include Aviation Asset Management, Inc., Aercap Holdings N.V., Acumen Aviation, Airbus Group, Air Affairs Australia Pty Ltd, Aerotargets International LLC, Asv Global, BBAM Aircraft Leasing & Management, Charles Taylor Aviation (Asset Management) Ltd, GA Telesis, GE Capital Aviation Services, Lockheed Martin Corporation, Leonardo S.P.A, Saab Ab, Skyworks Holdings, LLC, and The Boeing Company.
Market, By Type of Aircraft, 2015-2026 (USD Million)
Market, By Service, 2015-2026 (USD Million)
Market, By End-Use, 2015-2026 (USD Million)
Market, By Type, 2015-2026 (USD Million)
The above information has been provided for the following regions and countries: