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Aviation Asset Management Market Size, By Type (Aircraft {Wide Body Aircraft, Narrow Body Aircraft, Private Jets}, Helicopter), By Purchase Type (Direct Purchase, Operating Lease, Finance Lease, Sale & Lease Back (SLB)), By Service (Leasing Service, Technical Service, Regulatory Services, End-to-End), By End-Use (Airline Operators, Leasing Companies, Cargo Operators, MRO Service Providers, Commercial Platforms), Industry Analysis Report, Application Potential, Competitive Market Share & Forecast, 2022 – 2030

  • Report ID: GMI4747
  • Published Date: Sep 2022
  • Report Format: PDF

Industry Overview

Aviation Asset Management Market size was worth more than USD 170 billion in 2021 and is projected to expand at over 5% CAGR from 2022 to 2030. Surging demand for cargo aircrafts for efficient freight to bolster the industry growth during the forecast period.
 

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The proliferation of several asset management services across the aviation sector, driven by the surging requirement for cargo aircraft to ensure agile and fast product deliveries, may propel the industry growth over the projection period. Based on a September 2022 press release by International Air Transport Association (IATA), air cargo movements account for roughly USD 6 trillion worth of goods or 35% of global trade by value per year. Globalization along with the demand for efficient freight services is augmenting the industry share.
 

Strict government regulations to act as a growth barrier

The governments across several economies have been introducing stringent regulatory frameworks pertaining to aircraft quality standards and limiting CO2 emissions, impeding industry expansion. In addition, there are numerous audit reports pointing toward agencies acquiring aircraft on the lease without proper justification and lacking accurate cost data, which may act as barrier for aviation industry, restraining the aviation asset management market share over the analysis timeframe.
 

Reduced costs of air travel to support the proliferation of narrow-body aircraft

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Based on type, the narrow body aircraft segment is anticipated to exhibit over 6% CAGR during the study period and record a sizeable valuation by 2030. The segment growth can be credited to the surging air traffic and the booming domestic air travel industry across emerging economies. The increasing demand for Low-Cost Carrier (LCC), diminishing air travel expenses, and the rapid proliferation of business and medical tourism will boost the adoption of aviation asset management solutions for narrow body aircraft in the forthcoming years.
 

Low upfront investments to support the growth of the finance lease segment

In terms of purchase type, the finance lease segment is set to expand at over 5% CAGR over the forecast period. Finance lease purchases enable airlines to use newer aircraft with higher specifications than they could actually buy without involving any large upfront investment. Leasing companies have been putting in efforts to introduce flexible payment structures tailored to match the business's cash flow. This, in tandem with the growing demand for Asset-Backed Securitization (ABS) across the commercial aircraft industry will stimulate the aviation asset management market outlook.
 

Cost-effective advantages to propel the demand for leasing services

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With regard to services, leasing service segment is poised to register significant growth and surpass USD 140 billion by 2030. Leasing services offer a set of benefits, such as capacity flexibility, financial liquidity, rapid expansion, reduced maintenance costs, and fleet consistency. The ongoing advancements in urban mobility solutions and aircraft infrastructure will spur the demand for aviation asset management in the foreseeable future. Meanwhile, declining leasing rates and constantly increasing fuel cost will favor the leasing service segment share.
 

Rebounding air travel to bring lucrative gains to airline operators

Regarding end-use, the airline operators segment is poised to depict a CAGR of over 5% from 2022 to 2030, owing to the upsurge in air traffic which has accelerated the demand for commercial and passenger aircraft. As per IATA 2022, the total revenue passenger kilometer (RPK) is likely to recover by almost 60% in FY2022. Looking at this trend, the airline operators across the globe have been focusing on increasing their fleet size. The ease of financial leasing and acquisition of new aircraft to aid the expanding air traffic will create new growth prospects for the aviation asset management market in the coming years.
 

Increasing infrastructural investments to support the business expansion across the Asia Pacific

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Asia Pacific aviation asset management market accounted for over 50% revenue share in 2021 and is anticipated to grow substantially through the projected timeframe. The growth is attributed to the escalating investments by government and public-private firms focused on improving the existing airport infrastructure. The growing emphasis on the adoption of zero-emission technologies across the aviation sector backed by government support will positively influence the regional market landscape.
 

Strategic partnerships to strengthen the competitive landscape

Major companies in the aviation asset management market include Boeing Global Services, GE Capital Aviation Services, Aercap Holdings NV, Airbus Group, BOC Aviation, Avolon, and others, including Air Lease Corporation, ST Engineering, Dubai Aerospace, and SMBC Aviation.
 

These market participants are focusing on creating joint value by entering into strategic partnerships and leveraging new technologies to address the growing demand for air travel as well as enhance customer experience. For instance, in February 2022, AirAsia inked a partnership agreement with Avolon, an Ireland based aircraft leasing company, to lease a minimum of 100 VX4 eVTOL aircraft. This deal is anticipated to help the former to revolutionize the air travel experience by delivering advanced air mobility to passengers, allowing the airline to stay ahead of the competition.
 

Impact of COVID-19 on the aviation asset management market trends

The onset of the COVID-19 pandemic financially devastated the aviation asset management industry, especially during the first half of 2020, when the viral transmission was at its apex. Restrictions on domestic and international travel due to the stringent lockdown measures across several economies resulted in financial losses and severely impacted the market growth.
 

However, with the pandemic entering its endemic stages and governments introducing necessary measures to offer a much-needed boost to the aviation sector, the aviation asset management market is set to witness appreciable growth in the future.
 

Aviation Asset Management Market research report includes in-depth coverage of the industry with estimates & forecasts in terms of “USD” from 2018 to 2030 for the following segments:

By Type

  • Aircraft
    • Wide body aircraft
    • Narrow body aircraft
    • Private jets
  • Helicopter

By Purchase Type

  • Direct purchase
  • Operating lease
  • Finance lease
  • Sale & Lease Back (SLB)

By Service

  • Leasing service
  • Technical service
  • Regulatory services
  • End-to-End

By End-Use

  • Airline operators
  • Leasing companies
  • Cargo operators
  • MRO service providers
  • Commercial platforms

The above information is provided on a regional and country basis for the following:

North America

  • U.S.
  • Canada

Europe

  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands

Asia Pacific

  • China
  • India
  • Japan
  • South Korea
  • ANZ

Latin America

  • Brazil
  • Mexico
  • Argentina

MEA

  • Saudi Arabia
  • UAE
  • South Africa
  • Israel

 

Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The market size for aviation asset management exceeded USD 170 billion in 2021 and is likely to exhibit over 5% CAGR from 2022 to 2030, due to the proliferating demand for asset management services across the aviation sector.
The finance lease segment could depict more than 5% CAGR over the forecast period, attributed to the presence of a flexible payment structure and low upfront investments.
The airline operators segment is speculated to witness more than 5% CAGR from 2022 to 2030, owing to the surging air traffic and increasing acquisitions of new aircraft through financial leasing.
Notable players in the aviation asset management market include Boeing Global Services, GE Capital Aviation Services, Aercap Holdings NV, Airbus Group, BOC Aviation, Avolon, and others, including Air Lease Corporation, ST Engineering, Dubai Aerospace, and SMBC Aviation.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 21
  • Tables & Figures: 346
  • Countries covered: 20
  • Pages: 250
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