Asset-Backed Securities - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The asset-Backed securities market size is expected to increase from USD 2.46 trillion in 2025 to USD 2.61 trillion in 2026 and reach USD 3.47 trillion by 2031, growing at a CAGR of 5.86% over 2026-2031. This report is Segmented by Underlying Asset (Auto Loan and Lease ABS, Student Loan ABS, and More), by Issuer Type (Bank-Sponsored / Financial Institutions, Captive Finance Companies, and More), and by Geography (North America, South America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

Global Asset-Backed Securities Market Trends and Insights

Robust Investor Demand for Yield and Diversification

The asset-backed securities market continued to benefit from institutional demand as investors sought spread income beyond conventional government and corporate fixed-income instruments. February 2026 ABS issuance reached USD 36.9 billion, well above the prior three-year February average of USD 23.8 billion, indicating that investor demand absorbed supply despite seasonal constraints. Demand was broad across subprime auto, personal loans, solar ABS, aircraft loan and lease pools, and digital infrastructure, which reduced reliance on any single collateral segment. The Federal Reserve’s Flow of Funds data also showed that ABS issuers’ net financial asset acquisitions climbed from USD 129.3 billion in 2024 to USD 194.0 billion in 2025, pointing to deeper and more persistent capital allocation into structured credit vehicles. This demand profile has helped keep spreads tight on investment-grade tranches and has reinforced the place of the asset-backed securities market in liability-matched portfolios. A wider investor base, now including insurance general accounts and sovereign investors, should keep the asset-backed securities market supported, even if individual collateral categories experience periods of uneven performance.

Growth in Non-Bank Lending Pipelines

The asset-backed securities market is drawing more collateral from non-bank originators because these lenders lack deposit funding and must rely more heavily on capital markets execution to scale. India’s securitization market reached INR 2.55 lakh crore, or approximately USD 30.6 billion, in FY2026, and NBFC originations rose 30% year over year, which offset a sharp decline in bank-led originations. In Australia, non-bank lenders also strengthened their role, with 42 public ABS deals totaling AUD 23.1 billion (USD 15.48 billion) in 2025, up from 38 deals totaling AUD 18.5 billion (12.40 billion) in 2024. In the United States, unsecured consumer loan ABS issuance reached a record USD 25.6 billion in 2025, up 54% from USD 16.6 billion in 2024, reflecting the growing role of fintech and marketplace lenders in generating securitizable loan pools. This expansion matters for the asset-backed securities market because it not only increases issuance volume but also widens the collateral base and brings in issuers that operate outside traditional bank origination channels.

Higher Regulatory Complexity Across Cross-Border Structures

The asset-backed securities market faces a significant restraint due to the growing complexity of cross-border compliance and reporting rules. The SEC’s 2025 concept release on ABS disclosures sought market input on expanded asset-level disclosures for registered ABS, which signaled that compliance expectations may rise further for public transactions. In Europe, the June 2025 proposal to amend the EU Securitization Regulation introduced reporting requirements that increase the burden on non-EU originators seeking European capital, especially when transactions must align with EU-prescribed templates. This matters because smaller or first-time issuers usually lack the reporting infrastructure that larger sponsors already maintain, which can raise structuring costs and narrow investor access. Over time, supervisory clarity may improve market consistency, but in the medium term, the asset-backed securities market is likely to see higher friction for cross-border deals than for domestic issuances.

Other drivers and restraints analyzed in the detailed report include:

• Expansion of Green and Sustainable Securitization
• Issuance Migration Into Data Center and Infrastructure-Linked Collateral
• Credit Deterioration in Subprime Consumer Collateral

Segment Analysis

Auto loan and lease ABS accounted for 36.57% of the asset-backed securities market in 2025, reflecting its deep origination base, liquid secondary trading, and broad investor familiarity with collateral performance across prime and subprime tiers. Toyota Motor Credit, Ford Motor Credit, and Ally Financial continued to support this leadership through repeat issuance programs, and Ally returned with a USD 1.1 billion prime auto ABS backed by 59,907 receivables during 2025 and 2026 issuance activity. Credit card ABS faced a temporary pause in early 2026 after the proposed 10% APR cap created uncertainty, but Synchrony Financial returned with a USD 500 million transaction in March 2026, indicating that issuer access remained intact after the brief interruption. Student loan ABS continued to face policy-related constraints amid uncertainty around federal loan programs, while equipment lease and loan ABS remained important for mid-market manufacturing and technology lessors seeking capital-efficient funding. Consumer and personal loan ABS recorded especially strong momentum in 2025, with unsecured consumer loan ABS issuance rising to a record USD 25.6 billion, up 54% from 2024, underscoring the growing role of fintech-originated receivables in the asset-backed securities industry.

Other or niche ABS is projected to grow at 8.89% CAGR from 2026 to 2031, making it the fastest-growing underlying asset segment in the asset-backed securities market. This category includes data center receivables, aircraft leases, music royalties, and franchise loans, all of which are benefiting from stronger investor acceptance of contracted and recurring cash flow structures. Data center and fiber network ABS reached USD 7.4 billion in the United States issuance in the first two months of 2026 alone, which indicated that infrastructure pools are moving into a more programmatic part of the asset-backed securities industry. Apollo’s USD 1.765 billion Concord music catalog ABS in July 2025 and its USD 500 million Chord Music Partners transaction in April 2026 showed that royalty-backed structures are no longer isolated deals and are being placed with stronger investor conviction. Aviation-linked ABS also became more repeatable, as Apollo affiliate PK AirFinance completed USD 2 billion in cumulative aircraft loan ABS issuance between July 2024 and May 2025, which helped lower execution risk for investors evaluating non-traditional collateral.

Complete Report Scope:

• By Underlying Asset
  • Auto Loan and Lease ABS
  • Credit Card Receivables ABS
  • Student Loan ABS
  • Equipment Lease and Loan ABS
  • Consumer / Personal Loan ABS
  • SME / Commercial Business Loan ABS
  • Other / Niche ABS (e.g., Aircraft Leases, Franchise Loans, Royalty-Backed, Data Center Receivables, etc.)
• By Issuer Type
  • Bank-Sponsored / Financial Institutions
  • Captive Finance Companies
  • Specialty Finance / Non-Bank Lenders
  • Other (e.g., Corporate Originators)
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • India
    • China
    • Japan
    • Australia
    • South Korea
    • South East Asia (Singapore, Malaysia, Thailand, Indonesia, Vietnam, and Philippines)
    • Rest of Asia-Pacific
  • Middle East and Africa
    • United Arab Emirates
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of Middle East and Africa

Geography Analysis

North America accounted for 68.79% of the asset-backed securities market in 2025, maintaining its position as the clear regional leader. The region’s scale rests on the deep United States securitization infrastructure, a mature investor base, durable disclosure norms, and long-standing legal precedent on bankruptcy-remote special-purpose vehicles. Kroll Bond Rating Agency projected United States ABS new issuance at approximately USD 385.2 billion in 2026, up 5% from 2025, indicating that the asset-backed securities market in the region still has volume momentum. Canada continued to contribute institutional-quality auto and residential collateral, while Mexico and South America remained earlier-stage ABS markets outside a deeper Brazilian domestic framework. A further advantage for North America is execution speed, as AI-enabled platforms are shortening the time between origination and issuance and reinforcing the region’s leadership in the asset-backed securities market.

Europe remained active in 2025 and 2026, with issuance moving above post-global financial crisis records and the region working to narrow its long-standing gap with the United States. Regulatory reform was central to that effort, as the June 2025 amendment proposal to the EU Securitization Regulation sought to streamline due diligence and simplify parts of the STS framework for market participants. This direction matters because the asset-backed securities market in Europe has historically been constrained as much by process burden as by investor appetite. Spain was one of the more active national markets during 2025 and 2026, and new transactions from auto lenders in Poland and Islamic finance originators in the United Kingdom widened collateral diversity. Data center securitization also began to gain traction in Europe following earlier United Kingdom and German transactions, signaling broader convergence between digital infrastructure funding and the asset-backed securities market.

Asia-Pacific is projected to grow at 8.47% CAGR from 2026 to 2031, making it the fastest-growing regional segment in the asset-backed securities market. China recorded 2,435 new asset securitization transactions in 2025 with total issuance of CNY 2.33 trillion, while corporate ABS remained the dominant structure in the market’s product mix. India’s FY2026 securitization volume reached approximately USD 30.6 billion, and the originator base expanded to more than 190 participants, which showed that market depth is improving alongside scale. Australia is also becoming more important, with non-banks representing the majority of issuers, and total public issuance is expected to remain in the AUD 75 billion to AUD 80 billion range in 2026, while the country is also poised for its first data center securitization. Middle East and Africa remained at an earlier stage, but transactions such as Senelec’s 2025 utility receivables securitization in Senegal showed that the asset-backed securities market is gradually extending into frontier jurisdictions through more bespoke structures.

List of Companies Covered in this Report:

• JPMorgan Chase and Co.
• Citigroup Inc.
• Bank of America Corporation
• Wells Fargo and Company
• Goldman Sachs Group, Inc.
• Morgan Stanley
• Barclays PLC
• Deutsche Bank AG
• BNP Paribas SA
• UBS Group AG
• BlackRock, Inc.
• PIMCO
• Apollo Global Management, Inc.
• KKR and Co. Inc.
• PAGAYA TECHNOLOGIES LTD.
• Synchrony Financial
• Toyota Motor Credit Corporation
• Ford Motor Credit Company LLC
• Ally Financial Inc.
• American Express Company

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support