Commercial aircraft leasing market to record USD 14.50 Bn growth

posted on 15th March 2022 by Eddie Saunders
Commercial aircraft leasing market to record USD 14.50 Bn growth

The global commercial aircraft leasing market has the potential to grow by USD 14.50 billion between 2020 and 2025.

The market observed a year-over-year growth of 8.71% in 2021.

However, the growth momentum is expected to decelerate at a CAGR of 9% during the forecast period.

The report provides a comprehensive analysis of market size, YOY growth rates, and market behavior through 2025.

Find out more about the report coverage. Download a Free Sample Now

The 120-page report segments the commercial aircraft leasing market by type (wet lease and dry lease) and geography (APAC, EuropeNorth AmericaSouth America, and MEA).

The wet lease segment is expected to generate maximum revenue in the market throughout the forecast period.

Wet leasing enables airline operators to extend their operations into regions where airlines do not have legal permission to operate under their own name.

Also, in the wet lease agreement, the company that owns and manages the aircraft fleet provides aircraft, crew, maintenance, and insurance services (ACMI) to the lessee.

Such benefits are driving the growth of the segment.

APAC will have the largest share of the market.

The market currently holds 43% of the global market share and is expected to dominate the market in terms of growth throughout the forecast period.

The growth of the commercial aircraft leasing market in APAC is driven by the increasing flow of investments in the aviation industry in the region.

In addition, commercial airline operators in the region are focusing on expanding their operations due to the increasing number of passengers.

These factors are driving the growth of the regional market. China and Japan are the key markets for commercial aircraft leasing in APAC.

The market is driven by the strong market position of Irish and Chinese lessors.

Ireland offers high capital allowance rates and low withholding rates to companies operating in the aircraft leasing industry.

This is encouraging many international players to conduct core leasing operations from Ireland.

Similarly, the presence of favorable regulatory policies has resulted in the rapid growth of the aircraft leasing industry in China.

For instance, as of 2020, there were more than 7,000 bank leasing companies in China.

Besides, many Chinese companies are increasingly resorting to acquisition as a means of business expansion.

Such developments are fostering the growth of the global commercial aircraft leasing market.

In addition, the influence of taxes on aircraft leasing is anticipated to boost the growth of the commercial aircraft leasing market.

Major Five Commercial Aircraft Leasing Companies:

  • AerCap Group: The company offers a portfolio of over 1044 commercial aircraft worldwide to be leased.
  • Air Lease Corp.: The company is engaged in purchasing and leasing commercial aircraft to its valued airline customers worldwide.
  • Avolon Aerospace Leasing Ltd.: The company is involved in the leasing of commercial aircraft. The company has a fleet of around 842 aircraft with operations in more than 60 countries.
  • BANK OF CHINA: The company offers a number of different aircraft to clients through their subsidiary BOC Aviation along with financial and technical assistance.
  • BBAM US LP: The company provides a range of commercial aircraft from their fleet of Airbus, Boeing, and Embraer aircraft to over 90 carriers worldwide.