Asset-Backed Securities Industry Statistics 2025: Market Size, Trends, and ESG Impact

In the world of finance, asset-backed securities (ABS) have become a cornerstone, enabling investors to access revenue streams from diverse asset classes like auto loans, mortgages, and student loans. ABS provides a unique opportunity to bundle these assets into marketable securities, giving investors exposure to cash flow-generating assets while offering businesses access to liquidity. By 2025, the ABS market is poised to grow even further, thanks to a combination of financial innovation, investor interest, and regulatory adaptations. This article delves into the latest market statistics, key trends, and significant developments that shape the ABS landscape today.

Editor’s Choice: Key Trends

• The global ABS market size is projected to surpass $2.34 trillion by the end of 2025, maintaining a CAGR of 5.9% over the past decade, supported by sustained demand for structured finance products and diversified collateral pools.
• The US ABS market remains dominant, with $1.71 trillion in securities issued in 2025, accounting for approximately 73% of global market share, driven by strong activity in auto loans, credit cards, and student debt securitizations.
• Auto loan ABS continues to lead issuance volume, reaching $268 billion in 2025, an annual increase of 7.2%, propelled by higher vehicle financing rates, especially in the used car market and EV financing segments.
• Student loan ABS rose to $56.5 billion in 2025, marking a 13% increase from the previous year, driven by rising education costs, refinancing activity, and alternative lenders securitizing private student loans.
• Mortgage-backed securities (MBS) remain a key component, with new issuances totaling $418 billion in 2025, supported by refi-backed pools, despite continued affordability challenges in the housing market.
• Credit card ABS issuance dipped slightly to $98 billion in 2025, reflecting tighter consumer credit, higher delinquency rates, and a shift in spending toward debit and BNPL options.
• The European ABS market grew by 11.5% year-over-year, reaching a total value of $670 billion in 2025, aided by regulatory clarity under STS frameworks and rising demand from institutional investors seeking yield in securitized assets.

Asset-Backed Securities Market Size

• The global ABS market reached approximately $2.23 trillion by the end of 2025, marking a continued post-pandemic growth trajectory fueled by strong investor demand, credit innovation, and increased securitization of non-traditional assets.
• In 2025, the market grew by an estimated 13.5% year-over-year, surpassing the $2 trillion mark, with growth driven by the expansion of digital asset-backed securities, tokenized real-world assets, and higher institutional allocations.
• The US ABS market remains dominant, expanding to over $1.71 trillion in 2025, accounting for roughly 76% of global ABS issuance, supported by high volumes in auto, student loan, and credit card securitizations.
• Emerging markets like China and India are increasingly becoming active participants, with ABS issuance projected to rise by 20% annually in these regions.

• The European ABS market reached $495 billion in 2025, led by the UK, Germany, and the Netherlands, as improved economic conditions, reformed STS regulations, and investor appetite for structured fixed income drive recovery.
• The auto loan ABS segment continues to represent the largest share, accounting for 26% of the total global ABS market in 2025, underpinned by strong used car financing demand, EV growth, and leasing-backed securitizations.
• The rising interest in green ABS, tied to sustainable infrastructure, EVs, and energy-efficient buildings, is expected to contribute over $108 billion to the market in 2025, supported by a CAGR of 13.2% and increasing ESG mandates.

Asset-Backed Securities Market Trends

• Digital securitization continues to accelerate in 2025, with blockchain-based ABS platforms tokenizing over $38 billion in assets, including mortgages, auto loans, and invoice receivables, enhancing transparency, efficiency, and secondary market liquidity.
• The demand for green ABS and socially responsible investments (SRI) has surged, with $67 billion worth of green ABS issued globally in 2025, driven by ESG mandates and sustainable finance incentives.
• Non-performing loan (NPL) securitizations are gaining traction in Europe, with $36 billion in NPL ABS issued in 2025, a 20% rise year-over-year, fueled by regulatory pressures and portfolio deleveraging by European banks.
• Synthetic ABS issuance expanded by 17% in 2025, as financial institutions increasingly use derivative-backed structures to manage risk, optimize capital ratios, and meet Basel IV requirements.
• Auto loan ABS remained strong, with $268 billion issued in 2025, reflecting a 7.2% year-over-year increase, fueled by growth in used car financing, electric vehicle loans, and buy-now-pay-later auto plans.
• Interest rate volatility continues to impact issuance patterns—credit card ABS fell by 8% in 2025, with volume at $98 billion, as consumers shift to installment financing and debit usage increases.
• Hybrid ABS, combining asset types such as auto loans, credit cards, and personal loans, reached $174 billion in 2025, showing a 16% increase, as investors seek diversified, risk-balanced structured products.

Asset-Backed Securities Market Forecast

• In 2025, the market is expected to reach $2,597.65 billion, reflecting steady expansion.
• The market is forecasted to grow at a CAGR of 6.6% over the five-year period.

The upward trend signals strong investor demand and increasing securitization activity across global markets.

Types of Asset-Backed Securities

• Auto loan ABS continues to dominate, accounting for 42% of total ABS issuance in the US in 2025, driven by strong vehicle financing demand, particularly in used cars and EVs. Issuance volume reached approximately $268 billion.
• Residential mortgage-backed securities (RMBS) represent 28% of the global ABS market, with new issuances totaling $418 billion in 2025, as investor interest remains high due to lower default rates and robust housing demand in key markets.
• Commercial mortgage-backed securities (CMBS) climbed to $164 billion in issuance for 2025, supported by continued investment in logistics centers, data centers, and mixed-use properties, especially in North America and APAC.
• Credit card receivable ABS accounts for 19% of total US ABS issuance in 2025, with over $98 billion securitized, reflecting steady consumer revolving credit behavior despite higher borrowing costs.
• Student loan ABS rose to $56.5 billion in 2025, making up 11% of the US ABS market, as higher tuition costs, refinancing activity, and private lending expansion continue to drive growth.
• Equipment lease ABS grew to $22.5 billion in 2025, a 12.5% year-over-year increase, as businesses pursue asset-backed financing for technology, transportation, and industrial equipment upgrades.
• Esoteric ABS, including aircraft leases, data royalties, solar receivables, and film rights, expanded globally to $34 billion in issuance in 2025, with institutional investors seeking non-correlated, high-yield asset classes.

Major Asset Classes in ABS

• Auto loan ABS remains a leading asset class, with $268 billion issued in 2025, reflecting a 7.2% growth from the previous year. This growth is driven by strong demand for vehicle financing, particularly in the used and electric vehicle markets, coupled with stable default rates.
• Residential Mortgage-Backed Securities (RMBS) totaled $418 billion in issuance for 2025, supported by continued demand in urban and suburban housing markets, despite moderating refinancing activity and elevated interest rates.
• Credit card receivables ABS saw $98 billion in issuance in 2025, marking a 2% decline as consumers shifted toward debit, BNPL, and alternative payment methods amid persistently high credit card APRs.
• Student loan ABS rose to $56.5 billion in 2025, accounting for approximately 11% of the U.S. ABS market, driven by rising tuition costs, private loan refinancing, and increased securitization by non-bank lenders.
• Commercial Mortgage-Backed Securities (CMBS) recorded $164 billion in new issuances, as the logistics, warehousing, and mixed-use property sectors continued to outperform other commercial segments in 2025.
• Equipment lease ABS issuance grew to $22.5 billion in 2025, up 12.5% year-over-year, as businesses expanded capital expenditures on technology, medical devices, and industrial equipment through asset-backed financing.
• Esoteric ABS, covering aircraft leases, music royalties, litigation finance, and solar receivables, reached $34 billion in global issuance in 2025, reflecting strong investor appetite for non-correlated, alternative asset-backed securities.

Investor-Friendly Features of Securitized Credit

• Liquidity: ABS offers higher liquidity compared to traditional bonds, with investors able to trade them easily in secondary markets, making them attractive for those seeking flexible investment options.
• Diversification: ABS provides access to a wide variety of asset classes, allowing investors to diversify their portfolios across sectors like auto loans, credit card receivables, and mortgage-backed securities.
• Credit enhancement: Most ABS come with built-in credit enhancement features, such as over-collateralization or reserve funds, providing investors with a buffer against potential losses.
• Stable returns: ABS typically offers fixed-rate coupon payments, providing investors with predictable and stable returns, which is especially appealing during periods of market volatility.
• Customizable risk exposure: With ABS, investors can choose tranches with varying risk profiles, from senior tranches, which offer lower risk and lower returns, to junior tranches, which offer higher returns but also carry more risk.
• Regulatory oversight: The Dodd-Frank Act and similar regulations have imposed stringent requirements on ABS issuers, ensuring greater transparency and reducing the likelihood of market disruptions.
• Green ABS opportunities: Investors are increasingly drawn to green ABS, which allows them to align their investment strategies with Environmental, Social, and Governance (ESG) objectives, providing both financial returns and social impact.

Breakdown of Asset-Backed Securities by Type

• Residential mortgage-backed securitizations dominate the market, making up 64% of all asset-backed securities.
• Auto ABS and collateral loan obligations each represent a significant 12% share.
• Credit card loan ABS accounts for 6%, reflecting its steady role in the ABS landscape.
• Consumer loan ABS contributes 4%, showing modest participation in the market.
• Nonperforming loan ABS comprises just 2%, indicating limited securitization of distressed debt assets.

Role of Financial Institutions and Major Issuers

• JPMorgan Chase remains the largest global ABS issuer, with over $162 billion in issuance in 2025, maintaining its leadership in auto loans, RMBS, and credit card ABS, and expanding its securitization footprint across consumer and corporate debt pools.
• Citibank reported a 9.5% increase in ABS issuance, reaching $131.5 billion in 2025, fueled by growing demand in consumer credit, corporate lease securitizations, and BNPL-linked receivables.
• Bank of America issued $97 billion in ABS in 2025, accounting for nearly 15.4% of the US ABS market, with its portfolio expanding in prime RMBS, subprime auto ABS, and equipment leasing-backed securities.
• Wells Fargo maintained its strong presence in the CMBS sector, issuing $55 billion in commercial mortgage-backed securities in 2025, driven by renewed investor interest in logistics, data centers, and multifamily housing securitizations.
• Goldman Sachs expanded its issuance of esoteric ABS, reaching $24 billion in 2025, securitizing niche assets such as aircraft leases, fintech receivables, music royalties, and intellectual property-backed debt, broadening its alternative ABS strategy.
• In Europe, Deutsche Bank increased ABS issuance by 18% year-over-year, totaling $53 billion in 2025, with significant allocations toward auto ABS, green securitizations, and consumer lending-backed deals under updated EU STS guidelines.
• Santander Consumer USA continued to lead in auto loan ABS, issuing $34.2 billion in 2025, reflecting strong demand for subprime vehicle financing and consistent investor appetite for asset-backed auto portfolios in North America.

Asset-Backed Securities Market Outlook (2025–2034)

• The global asset-backed securities (ABS) market is expected to grow from $7,264.30 billion in 2025 to $11,743.57 billion by 2034.
• The market will expand at a CAGR of 5.48% during the forecast period from 2025 to 2034.
• Key asset classes include residential mortgages, commercial mortgages, and auto loans.
• Security structures are segmented into pass-through securities, CMOs (Collateralized Mortgage Obligations), and CDOs (Collateralized Debt Obligations).
• ABS products are rated AAA, AA, and A, with maturities categorized as short-term (<1 year), medium-term (1–5 years), and long-term (>5 years).
• Regional markets include North America, Europe, South America, Asia Pacific, and the Middle East & Africa.
• Key players in the ABS market include Credit Suisse, Citi, Wells Fargo, RBC, Barclays, and Deutsche Bank.

Asset-backed Securities Market Outlook

• The global ABS market is projected to grow by 6% annually, reaching $2.5 trillion by 2025, driven by technological advancements and increased demand for green ABS.
• The rise of digital securitization platforms is expected to enhance market efficiency, potentially reducing issuance costs by 15% and opening the market to new investors.
• Emerging markets in Asia and Latin America are expected to contribute significantly, with 20% growth forecasted annually as financial infrastructure improves in countries like China, India, and Brazil.
• AI integration in credit analysis and securitization processes is expected to streamline asset evaluation and trading, further enhancing the ABS market’s attractiveness to institutional investors.
• The ESG trend in ABS is likely to accelerate, with $100 billion in green and sustainability-linked ABS expected to be issued by 2025, aligning with global shifts toward socially responsible investment.

Composition of the Bond Market by Type

• Public sector bonds dominate the market, accounting for a significant 80% of the total bond issuance.
• Corporate bonds represent 10%, indicating a solid share from private sector financing.
• Covered bonds make up 9%, typically backed by high-quality assets like mortgages.
• Asset-backed securities (ABS) form just 1%, reflecting their relatively smaller role in the broader bond market landscape.

Recent Developments

• Increased issuance of green ABS: In 2025, over $67 billion worth of green ABS was issued globally, driven by growing ESG-focused investor mandates and securitization of renewable energy, EV leasing, and green mortgages.
• SOFR adoption solidified: Following the full transition from LIBOR, SOFR-based pricing mechanisms now underpin 100% of new ABS deals in the US, leading to greater transparency, consistency, and improved investor confidence in 2025.
• Blockchain technology adoption: Tokenized ABS structures have gained traction, with over $5.6 billion in tokenized ABS transactions executed in 2025, primarily in real estate, auto, and invoice receivables, enhancing settlement speed and transparency.
• Regulatory updates in the EU: The European Union’s CRR III and finalized STS revisions in 2025 have introduced enhanced capital treatment incentives, promoting higher-quality, standardized ABS issuance across Europe and encouraging investor participation.
• Synthetic ABS growth: Synthetic ABS issuance increased by 22% in 2025, as banks leveraged credit risk transfer tools to improve capital efficiency amid tightening Basel IV requirements.
• AI-driven securitization platforms: The adoption of AI-based platforms in structuring and servicing ABS deals has cut processing times by 29% in 2025, enabling faster deal structuring, credit risk scoring, and investor reporting automation.
• Emerging markets expansion: China and India continued to post strong growth, with ABS issuance rising by 12.8% in 2025, as both markets expand consumer credit, auto lending, and fintech-originated asset pools into the securitization space.

Conclusion

The asset-backed securities (ABS) market continues to evolve, driven by innovation, regulatory reforms, and increasing investor interest in sustainable investments. With the rise of green ABS, AI integration, and the expansion of digital securitization platforms, the ABS market is set for robust growth. As both traditional and emerging markets embrace new technologies and ESG criteria, the future of ABS promises both diversity and resilience in the face of economic and environmental challenges.