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2024

Aviation Asset Management Market

Aviation Asset Management Market Size, Share, Competitive Landscape and Trend Analysis Report, by Aircraft Type, by Service Type, by End-Use, by Purchase Type : Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: Ravi Raj | Lalit Janardhan Katare
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The global aviation asset management market was valued at $122.5 billion in 2022, and is projected to reach $204.1 billion by 2032, growing at a CAGR of 5.5% from 2023 to 2032.

Aviation asset management is the strategic process of managing all resources associated with aviation operations, such as aircraft, engines, buildings, spare parts, and other assets, with the goal of maximizing utilization, minimizing costs, and guaranteeing both operational safety and efficiency. A variety of duties, including the purchase, leasing, upkeep, repair, and disposal of aviation assets, fall within this subject. Aviation asset management seeks to comply with industry standards and legal obligations while optimizing the value of aviation assets across their entire lifecycle. In order to make data-driven decisions and maximize asset performance, it frequently entails the usage of complex software systems and analytics.

Aviation Asset Management Market

Key Takeaways

  • On the basis of aircraft type, the wide-body aircraft segment held the largest share in the aviation asset management market in 2022.
  • By service type, the leasing service segment held the largest share in the market in 2022. 
  • On the basis of end-use, the MRO segment held the largest market share in 2022.
  • On the basis of purchase type, the finance lease segment held the largest market share in 2022.  
  • On the basis of region, North America held the largest market share in 2022.

Aviation asset management is a methodical approach to managing and maximizing all resources associated with aviation operations, such as aircraft, engines, buildings, spare parts, and other assets. This field encompasses a wide range of tasks, including risk assessment, compliance management, purchase, leasing, maintenance, repair, and utilization optimization. Maximizing the value of aviation assets over their entire lifecycle, ensuring operational effectiveness and safety, cutting costs, and coordinating asset management plans with the organization's overarching goals are the main objectives of aviation asset management. To efficiently manage aircraft assets and maximize their performance, this entails utilizing data-driven insights, cutting-edge technologies, and industry best practices.

For instance, in February 2022, SGI Aviation had a strategic partnership with Flydocs to provide a range of services, including asset management, technical consultancy, CAMO, and registration services. Flydocs is a leading provider of aircraft asset management software solutions. This partnership aims to introduce groundbreaking enhancements to Flydocs' software, enhancing its capabilities and offering innovative solutions to the aviation industry. The announcement was made during the Singapore Air Show, showcasing the commitment of both companies to advance aircraft asset management through collaborative efforts.

For instance, in October 2022, Flydocs collaborated with Lufthansa Technik to launch new lease asset management software at the Airline & Aerospace MRO & Flight Operations IT Conference. The new software will provide custom measures to continuously optimise leases and ensure a smooth and on-time handover of aircraft back to the lessor. Along with preparing aircraft and documentation for cost-efficient phase-out, it will also offer aircraft assessment where the condition of the aircraft and its documents will be reviewed to minimise risk.

The rise in demand for aircraft leasing is a significant driver of the growth of the aviation asset management industry. The total fleet size under lease agreements rises as more airlines and aircraft lessors choose leasing over full ownership. With the increase in leased aircraft, full asset management services are needed to guarantee correct maintenance, compliance with regulations, and effective use of the aircraft during the leasing term. Furthermore, focus on cost optimization has driven the demand for the aviation asset management market. However, high initial investment has hampered the growth of the aviation asset management market, smaller aviation enterprises or startups wishing to enter the asset management market find it difficult to get started because of the substantial initial cost. It is possible that these businesses may not have the financial means to invest in the software systems, hardware, and employee training needed for efficient asset management. Moreover, regulatory compliance challenges are major factors that hamper the growth of the aviation asset management market.

On the contrary, sustainable aviation initiatives in aviation asset managements is an opportunity for aviation asset management industry. Sustainability is being pushed globally in a number of industries, including aviation. There is growing pressure on airlines, lessors, and other stakeholders to embrace sustainable practices and lessen their environmental impact. Asset management companies can take advantage of this need by providing solutions that assist aviation companies in meeting their sustainability objectives.

Segment Review

The aviation asset management market is segmented on the basis of aircraft type, service type, End-Use, purchase type and region. On the basis of aircraft type, the market is divided into wide-body aircraft, narrow-body aircraft, private jets, and helicopter. By service type, it is divided into leasing service, technical service, regulatory certification, and end-to-end. On the basis of end-use, it is classified into commercial platforms, and MRO. On the basis of purchase type, it divided into direct purchase, operating lease, finance lease, sales and lease back. On the basis of region, it is analysed across North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.

By Aircraft Type

On the basis of aircraft type, the wide-body aircraft segment attained the highest market share in 2022 in the aviation asset management market. This was due to their larger size, longer range, and higher passenger capacity, wide-body aircraft usually have a higher asset value than narrow-body aircraft. As a result, maintaining wide-body aircraft accounts for a sizeable amount of the aviation sector's total asset value, which significantly increases demand for asset management services. Meanwhile, the helicopter segment is projected to be the fastest-growing segment during the forecast period. This is attributed to the fact that helicopters have diverse applications across industries such as oil and gas, emergency medical services, law enforcement, tourism, and private transportation. This broad range of uses increases the demand for helicopter assets and related management services.

Aviation Asset Management Market by Aircraft Type

By Service Type

On the basis of service type, the leasing service segment attained the highest market share in 2022 in the aviation asset management market. This be attributed to the fact that the leasing preserves liquidity and financial flexibility by enabling airlines and operators to access aircraft without having to make a sizable upfront capital commitment. Through the optimization of lease rates, reduction of maintenance expenses, and enhancement of asset value, asset management services assist lessors in optimizing the financial performance of leased assets, thus boosting overall profitability. Meanwhile, the regulatory certification segment is projected to be the fastest-growing segment during the forecast period. This is attributed to the fact that Aircraft, maintenance facilities, and operational methods may find it challenging and time-consuming to gain regulatory certification. Providing expertise and support to efficiently oversee the certification process, regulatory certification services ensure compliance with all applicable laws and regulations. This covers support with paperwork preparation, audits, regulatory relations, and compliance monitoring.

Aviation Asset Management Market by Service Type

By End-Use

On the basis of end-use, the maintenance, repair, and overhaul (MRO) segment attained the highest market share in 2022 in the aviation asset management market. This be attributed to the fact that ensuring the safety, airworthiness, and operational reliability of airplanes throughout their lives is dependent upon maintenance. Maintaining an aircraft's airworthiness and guaranteeing regulatory compliance involve a variety of operations, which are all included in MRO services. Such activities include planned maintenance, unscheduled repairs, component overhauls, and modifications Meanwhile, the commercial platform segment is projected to be the fastest-growing segment during the forecast period. This is attributed to the fact that A wide range of aviation asset management functions, including as inventory management, leasing management, aircraft records management, maintenance tracking, and regulatory compliance, are covered by integrated solutions provided by commercial platforms. These all-inclusive solutions give aviation stakeholders a one-stop shop to manage their assets more efficiently, which encourages a rise in the use of commercial platforms.

Aviation Asset Management Market by End-Use

By Purchase Type

On the basis of purchase type, the finance lease segment attained the highest market share in 2022 in the aviation asset management market. This is attributed to the fact that the finance leasing offers airlines and operators a cost-effective alternative to purchasing aircraft outright. It allows them to acquire aircraft with minimal upfront capital investment, spreading the cost over the lease term. Meanwhile, the direct purchase segment is projected to be the fastest-growing segment during the forecast period. This is attributed to the fact that direct purchase gives airlines and operators full ownership and control of aircraft assets, allowing them to customize aircraft specifications, configurations, and operational use according to their specific needs and strategies.

Aviation Asset Management Market by Purchase Type

By Region

On the basis of region, North America attained the highest market share in 2022 and emerged as the leading region in the Aviation Asset Management market. This is attributed to the fact that North America is residence to a sizable and varied fleet of private and business jets in addition to regional, wide-body, and narrow-body commercial aircraft. There is a significant need for asset management services, such as leasing, MRO, technical consulting, and regulatory compliance services, due to the large size and diversity of the fleet.

On the other hand, the Asia-Pacific region is projected to be the fastest-growing region for the Aviation Asset Management market during the forecast period. This growth is attributed to the fact that Asia-Pacific region is experiencing rapid economic growth, driving increased air travel demand and expansion of the aviation industry. As economies in the region continue to develop, there is a growing need for aviation asset management services to support the acquisition, operation, and maintenance of aircraft fleets.

Aviation Asset Management Market by Region

Competitive Analysis

The report analyzes the profiles of key players operating in the aviation asset management market such as AerCap, Airbus Services, Avolon, Acumen, Boeing Global Services, GECAS (GE Capital Aviation Services)General Electric Aviation, Lufthansa Technik, MTU Maintenance, and Rolls-Royce TotalCare. These players have adopted various strategies to increase their market penetration and strengthen their position in the Aviation Asset Management market.

Rise in Demand for Aircraft leasing

Airlines are searching for economical methods to grow their fleets due to the rising demand for air travel worldwide. When compared to outright purchasing, leasing provides airlines with a flexible option that lets them access the newest aircraft types without having to make the large financial commitment needed. The requirement for asset management services to control these leased assets rises in tandem with airlines' aircraft leasing activity. Furthermore, aircraft lessors usually keep a varied portfolio of different aircraft models and kinds that they lease to different airlines across the globe. Optimizing the performance and value of these diversified portfolios requires effective asset management. Lessors may maximize the return on investment from leased assets by managing lease agreements, keeping an eye on asset utilization, scheduling maintenance, and guaranteeing regulatory compliance with the aid of asset management services.

For instance, in May 2023, AIP Capital a newly established global aviation asset manager and investment company, has officially launched and entered into a servicing agreement with 777 Partners LLC ("777 Partners"), a diversified investment holding company headquartered in Miami, Florida. Under the agreement, AIP will serve as the exclusive asset manager for all commercial aircraft owned by 777 Partners, which includes their fleet of approximately 68 aircraft, including orders for the Boeing 737 MAX. In addition, AIP will facilitate aircraft financing for 777 Partners and airlines in which it holds ownership stakes, such as Flair Airlines and Bonza Airlines.

Moreover, aircraft leasing is a global business, with lessors and lessees operating in multiple regions and markets worldwide. As the aviation industry continues to expand globally, there is a growing demand for asset management services to support the leasing activities of airlines and lessors in diverse geographic locations. Asset management companies with a global presence and expertise in international regulations and market dynamics are well-positioned to capitalize on this trend. Therefore, rise in demand for aircraft leasing drive the demand for aviation asset management market size.

Focus on Cost Optimization

Through the reduction of maintenance costs, downtime, and inefficiencies, aircraft asset management services assist airlines and lessors in optimizing their operations. Through the implementation of proactive maintenance techniques, fleet utilization optimization, and operational process streamlining, asset management organizations enhance overall operational efficiency, resulting in financial savings for aviation stakeholders. In addition, a substantial number of airlines and aircraft lessors’ operational costs are devoted to maintenance. To reduce maintenance-related costs, asset management services prioritize streamlining maintenance plans, cutting turnaround times, and putting in place affordable maintenance solutions. Asset management organizations assist their consumers in reducing their overall maintenance costs by utilizing data analytics, predictive maintenance methods, and industry best practices.

For instance, in October 2023, EirTrade Aviation Ireland Limited has partnership with Acron to provide aviation assest management solution. This collaboration aims to bolster EirTrade's financial resources, enabling the company to further support its customers, suppliers, and consignors within the aviation industry, thereby enhancing its overall market position.

Moreover, to maximize income creation and profitability, aviation assets must be used efficiently. Asset management services provide opportunities for schedule adjustments, fleet right-sizing, and route optimization, assisting airlines and lessors in optimizing asset use. Asset management companies assist their customers in maximizing income and lowering operational expenses by making sure that aircraft are deployed in the most economical way possible. Therefore, focus on cost optimization is driving the demand for aviation asset management market share.

Technological Advancement

Aviation asset management companies may now automate and streamline a number of asset management process steps because to technological breakthroughs including digital platforms, data analytics, and automation solutions. Enhancing visibility and decision-making, digital platforms offer consolidated access to asset data, maintenance logs, and operational information. By automating repetitive processes like inventory control, maintenance scheduling, and regulatory reporting, automation systems decrease manual labor and boost operational effectiveness. In addition, aviation asset management companies can anticipate equipment breakdowns and maintenance requirements ahead of time with the use of advanced analytics and predictive maintenance solutions. Predictive maintenance systems detect possible problems and suggest preventative maintenance measures, including component replacements or repairs, to avoid expensive downtime and interruptions. They do this by evaluating historical data, sensor readings, and performance indicators.

Furthermore, aviation asset management companies are able to continuously monitor the performance and condition of aircraft and components in real time due to condition monitoring technologies like sensors and Internet of Things (IoT) devices. By offering insights into operational abnormalities, performance trends, and equipment condition, these solutions maximize asset performance and dependability and allow for proactive maintenance interventions. Therefore, technological advancement is driving the growth of aviation asset management market share.

High Initial Investment

Huge investment in hardware, software, and IT systems is frequently necessary for the implementation of complete aviation asset management solutions. In particular, for smaller aviation players with limited financial resources, setting up data centers, networking infrastructure, and software platforms might involve significant upfront expenses. In addition, a lot of aviation asset management systems are available via subscription or licensing, requiring one-time software payments or recurring membership dues. Purchasing software licenses or subscription plans can be a substantial financial commitment for airlines, lessors, and MRO providers, especially for large-scale installations or enterprise-wide implementations.

Furthermore, Resources, time, and effort are needed for staff training and the installation of new asset management systems. For asset management solutions to be successfully adopted and used, aviation stakeholders need to make investments in user education, training programs, and change management activities. The total upfront expenditure needed for asset management projects may include charges for training, consulting, and implementation. Therefore, high initial investment is hampering the growth of the aviation asset management market growth.

Regulatory Compliance Challenges

Aviation laws are often changing to reflect new developments in the industry, safety concerns, and developing technologies. Updates to policies and processes, investment in training and education, and constant monitoring are all necessary to stay on top of these changes and guarantee continued compliance. Asset management companies and their clients may have difficulties with compliance due to regulatory uncertainty or frequent changes. Furthermore, cross-border operations are common in aviation asset management, as aircraft and parts are moved between several countries. Ensuring compliance across international borders can be difficult since every nation may have different certification standards, documentation requirements, and regulatory frameworks. Obtaining permissions from several authorities and harmonizing regulatory standards can be expensive and time-consuming.

Moreover, sensitive data, such as customer information, operational data, and aircraft maintenance records, are collected, stored, and transmitted as part of aviation asset management. Asset management companies are subject to extra obligations and requirements for adhering to data security and privacy regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) in the US and the General Data Protection Regulation (GDPR) in Europe. These regulations include data encryption, access controls, and breach notification procedures. Therefore, Regulatory Compliance challenges is hampering the growth of the aviation asset management market forecast.

Sustainable Aviation Initiatives

Fleet optimization is a common component of sustainable aviation projects, which aim to minimize environmental impact and cut carbon emissions. Aviation asset management companies can be of great assistance to airlines and lessors in their efforts to switch to more fuel-efficient aircraft, implement alternative propulsion technologies (like electric or hybrid-electric), and maximize fleet utilization in order to reduce emissions per passenger mile flown. Furthermore, aviation asset management includes every stage of an aircraft's life, from purchase to retirement. Asset management companies can contribute to lowering the environmental impact of aviation operations by implementing sustainable practices throughout the aircraft lifecycle, such as environmentally friendly manufacturing processes, effective operations, and responsible end-of-life management (such as recycling and aircraft dismantling).

Moreover, investments in eco-friendly technologies, infrastructure improvements, and sustainability projects are frequently necessary for sustainable aviation activities. Through the provision of financial consulting services, the development of sustainable investment portfolios, and the connection of investors with sustainable aviation projects and efforts, asset management businesses can enable green financing and investment opportunities. Therefore, sustainable aviation initiatives are lucrative opportunity for aviation asset management market forecast.

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the Aviation Asset Management market analysis from 2022 to 2032 to identify the prevailing Aviation Asset Management market opportunities.
  • Market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the Aviation Asset Management market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global Aviation Asset Management market trends, key players, market segments, application areas, and market growth strategies.

 

Aviation Asset Management Market Report Highlights

Aspects Details
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Market Size By 2032

USD 204.1 billion

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Growth Rate

CAGR of 5.5%

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Forecast period

2022 - 2032

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Report Pages

485

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By Aircraft Type
  • Wide-Body Aircraft
  • Narrow-Body Aircraft
  • Private Jets
  • Helicopter
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By Service Type
  • Leasing Service
  • Technical Service
  • Regulatory Certification
  • End-to-End
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By End-Use
  • Commercial Platfroms
  • MRO
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By Purchase Type
  • Direct Purchase
  • Operating lease
  • Finance lease
  • Sales and lease back
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
  • Latin America  (Brazil, Argentina, Rest of Latin America)
  • Middle East and Africa  (South Africa, United Arab Emirates, Egypt, Israel, Rest of Middle East And Africa)
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Key Market Players

MTU Aero Engines AG, Airbus Services, General Electric Company, aercap, BBAM US LP, GA Telesis L.L.C, AerData B.V., avolon, Boeing, Lufthansa Technik AG

Author Name(s) : Ravi Raj | Lalit Janardhan Katare
Frequently Asked Questions?

Increased adoption of digital technologies like AI, IoT, and data analytics for efficient asset management.

MRO is the leading application of Aviation Asset Management Market

North America is the largest regional market for Aviation Asset Management

USD $204.1 billion is the estimated industry size of Aviation Asset Management

aercap, Airbus Services, avolon, Boeing, General Electric Company, Lufthansa Technik AG, MTU Aero Engines AG, AerData, B.V., BBAM US LP, and GA Telesis L.L.C

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Aviation Asset Management Market

Global Opportunity Analysis and Industry Forecast, 2023-2032