Aviation Asset Management Market size is projected to expand at over 5% CAGR from 2022 to 2030

Aviation Asset Management Market Size
Aviation Asset Management Market size was over USD 170 billion in 2021 and is anticipated to grow over 5% CAGR from 2022 to 2030.

Increasing requirement of cargo aircrafts for cost-effective freight to drive the industry growth in the forecast period.

The expansion of various asset management services in the aviation industry, fueled by the increasing demand for cargo aircraft to facilitate swift and quick product deliveries, could drive the industry growth during the forecast period. According to a September 2022 press release by International Air Transport Association (IATA), air cargo traffic represents approximately USD 6 trillion worth of goods or 35% of global trade by value annually. Globalization as well as the need for effective freight services is increasing the industry share.

Strict government regulations to serve as a growth hindrance
The governments of various economies have been bringing in strict regulatory regimes related to aircraft quality requirements and restricting CO2 emissions, hindering business growth. Additionally, there are various audit reports indicating agencies for purchasing aircraft on the lease without sufficient reason and without correct cost data, which can serve as hindrance for aviation industry, holding back the aviation asset management market share during the analysis period.

Aviation Asset Management Market Report Attributes
Report Attribute Details
Base Year 2021
Aviation Asset Management Market Size in 2021 170 billion (USD)
Forecast Period 2022 to 2030
Forecast Period 2022 to 2030 CAGR 5%
2030 Value Projection 300 billion (USD)
Historical Data for 2018 to 2021
No. of Pages 250
Tables, Charts & Figures 346
Segments covered Type, Purchase Type, Service, End-Use
Growth Drivers %
Growing numbers of passengers choosing air travel
Growing AIcargo import and export worldwide
Government initiatives to support the operational activities in aviation industry
Trend of acquiring new and modern aircrafts on lease
Technological upgradation to keep pace with growing database of the passengers
Airline operators increasingly look for leasing services to minimize cost of ownership
Pitfalls & Challenges
Stringent government policies such as taxation, emission standards, etc
Global fuel prices volatility
Redesigning of aircrafts based on COVID norms
Geopolitical disputes affecting trade
What are the opportunities for growth in this market?

Aviation Asset Management Market Analysis
Discover more about the prominent segments defining this market

On the basis of type, the narrow body aircraft segment is expected to account for over 6% CAGR through the forecast period and achieve a significant valuation by 2030. The growth in the segment will be driven by the rising air traffic and growing domestic air transport business in developing economies. Growth in demand for Low-Cost Carrier (LCC), lower air travel cost, and brisk growth in the development of business and medical tourism will drive narrow body aircraft use of aviation asset management solutions over the next couple of years.

Based on purchase type, the finance lease segment is poised to grow in excess of 5% CAGR during the forecast period. Finance lease acquisitions allow airlines to operate newer aircraft with superior specifications than they could afford to purchase outright without any significant initial investment. Leasing organizations have been making attempts to bring flexible payment arrangements adapted to align with the cash flows of the business. This coupled with increasing commercial aircraft industry demand for Asset-Backed Securitization (ABS) will drive the aviation asset management market outlook.

Find out more about the most important segments driving this market

In terms of services, leasing service segment is expected to record tremendous growth and exceed USD 140 billion by 2030. Leasing services provide a range of advantages, including capacity flexibility, financial liquidity, quick expansion, lower maintenance costs, and fleet consistency. The continuous development in urban mobility solutions and aircraft infrastructure will drive the demand for aviation asset management in the future. In the meantime, decreasing leasing rates and continuously rising fuel prices will benefit the leasing service segment share.

“The airline sector is going to expand by over 5% annually until 2030. This is due to the fact that more and more individuals are taking to the skies, and airlines require more aircraft. Indeed, the International Air Transport Association (IATA) reports that the number of individuals flying will rise by 60% this year alone. To meet demand, airlines globally are purchasing more aircraft. They’re also leasing aircraft, which allows them to acquire new planes without having to purchase them outright. This is good news for the aviation asset management market, which assists airlines in managing their aircraft and other assets. As the airline sector expands, so too will demand for asset management services.”

Seeking region specific information?

Asia Pacific aviation asset management market held more than 50% revenue share in 2021 and is expected to increase significantly over the forecast period. The increasing investments by public-private companies and government to enhance the current airport infrastructure are responsible for the growth. The increased focus on the implementation of zero-emission technologies in the entire aviation industry with the support of the government will have a positive impact on the regional market trends.

Aviation Asset Management Market Share

Major companies in the aviation asset management market include

• Boeing Global Services
• GE Capital Aviation Services
• Aercap Holdings NV
• Airbus Group
• BOC Aviation
• Avolon

including Air Lease Corporation, ST Engineering, Dubai Aerospace, and SMBC Aviation.