Market Overview
Air Transport Used Serviceable Material Market is anticipated to expand from $8.5 billion in 2024 to $13.3 billion by 2034, growing at a CAGR of approximately 4.8%. USM refers to recycled, refurbished, or overhauled aircraft parts that are harvested from retired or decommissioned aircraft and then reintroduced into the aviation supply chain.
As airlines face mounting pressure to reduce maintenance costs while ensuring safety and compliance, USM has become an increasingly attractive solution. It offers a cost-effective alternative to new parts, without compromising performance or reliability, and plays a vital role in the aircraft maintenance, repair, and overhaul (MRO) ecosystem. With more than 12,000 aircraft expected to retire over the next decade, the availability of used serviceable materials will continue to expand, supporting the growth of this sector.
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Market Dynamics:
Drivers:
- Cost Optimization: Airlines and leasing companies are under constant pressure to reduce operating expenses. USM provides parts at 30–60% lower costs compared to OEM spares.
- Fleet Retirement Surge: Accelerated retirements of older aircraft due to COVID-19, sustainability regulations, and fuel inefficiency are fueling the USM supply chain.
- Sustainability Push: The aviation industry’s commitment to circular economy models and carbon footprint reduction is driving adoption of recycled materials.
- Expanding MRO Demand: Rising global air traffic and fleet expansion are boosting MRO activities, directly increasing USM demand.
Challenges:
- Certification and Quality Assurance: Strict airworthiness standards require rigorous testing, which can slow down the supply chain.
- OEM Competition: Aircraft manufacturers and OEM suppliers often discourage USM usage by offering bundled maintenance programs.
- Regional Regulatory Disparities: Variations in regulatory approvals (FAA vs. EASA) create complexities for international USM adoption.
Opportunities
- Integration of digital platforms and blockchain for traceability.
- Growth of e-commerce USM marketplaces for parts distribution.
- Strategic partnerships between airlines, MRO providers, and part-out specialists.
Market Segmentation:
| Type | Engines, Airframes, Avionics, Interiors, Landing Gears, APUs, Propellers, Rotables, Consumables |
| Product | Airframe Components, Engine Parts, Avionic Systems, Landing Gear Components, Cabin Interiors, Electrical Systems, Hydraulic Systems, Pneumatic Systems, Fuel Systems |
| Services | Repair, Overhaul, Maintenance, Logistics, Inventory Management, Quality Assurance, Technical Support, Consulting, Training |
| Technology | 3D Printing, Robotics, AI and Machine Learning, Blockchain, IoT, Augmented Reality, Virtual Reality, Big Data Analytics, Cloud Computing |
| Component | Structural Components, Engine Components, Electronic Components, Flight Control Components, Cabin Components, Landing Gear Components, Fuel System Components, Hydraulic System Components, Pneumatic System Components |
| Application | Commercial Aviation, Military Aviation, Business Aviation, Cargo Aviation, Helicopters, Unmanned Aerial Vehicles (UAVs), Spacecraft, General Aviation, Special Mission Aircraft |
| Material Type | Aluminum, Titanium, Composites, Steel Alloys, Plastics, Rubber, Ceramics, Glass, Fabrics |
| End User | Airlines, MRO Providers, OEMs, Aircraft Leasing Companies, Charter Operators, Government and Defense, Cargo Operators, Private Owners, Training Institutes |
| Process | Inspection, Certification, Dismantling, Recycling, Cleaning, Testing, Calibration, Assembly, Disassembly |
Key Players
- AJW Group
- AvAir
- AAR Corp
- AerFin
- GA Telesis
- Air Salvage International
- Vortex Aviation
- Universal Asset Management
- Airbus US Material Services
- SR Technics
- TDA
- The Component Company
- Magellan Aviation Group
- Aviation Concepts
- Airline Component Parts
- AeroVision International
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Key Players Analysis
The competitive landscape of the USM market is characterized by a mix of independent aftermarket suppliers, airline-owned divisions, and OEM-affiliated programs.
- AAR Corp. remains a market leader with a global distribution network and diversified portfolio across engines, airframes, and avionics.
- GA Telesis has strengthened its presence with strategic acquisitions and a robust logistics platform.
- AerSale Inc. focuses on aircraft part-out services and lifecycle solutions, positioning itself as a one-stop provider.
- Lufthansa Technik and Delta Material Services leverage their airline-backed MRO operations to dominate in-house and third-party USM supply.
- OEMs like Boeing and Pratt & Whitney are entering the USM space to maintain aftermarket dominance, offering certified pre-owned parts programs.
- This competitive tension between independents and OEMs is reshaping pricing strategies, service offerings, and customer loyalty.
Regional Analysis:
North America: Leads the global market, supported by a large retired aircraft base, well-established MROs, and strong FAA oversight. The U.S. is the hub for part-outs and aftermarket distribution.
Europe: Strong growth driven by EASA-certified suppliers, environmental regulations pushing sustainability, and the presence of global players like Lufthansa Technik and SR Technics.
Asia-Pacific: Fastest-growing region, fueled by rising fleets in China, India, and Southeast Asia. Increasing outsourcing of MRO activities also boosts demand for cost-efficient USM.
Middle East: Growth supported by regional carriers like Emirates and Qatar Airways adopting USM strategies to manage large fleets.
Latin America & Africa: Emerging markets with limited infrastructure but significant long-term potential as older fleets transition and cost pressures intensify.
Recent News & Developments
2024: GA Telesis launched a digital platform for blockchain-enabled traceability of used serviceable materials.
2024: Lufthansa Technik signed an agreement with several Asia-Pacific airlines to supply USM for narrowbody fleets.
2023: AerSale expanded its aircraft disassembly operations in Arizona to meet rising global demand.
Scope of the Report
This report provides a comprehensive analysis of the Air Transport Used Serviceable Material (USM) market, covering both historical data (2018–2023) and forecasts up to 2034. It examines market segmentation by aircraft type, component, end user, and region, while exploring growth drivers, challenges, and opportunities.
The study highlights the impact of fleet retirements, sustainability goals, and digitalization trends on USM adoption. It also provides in-depth profiles of key players, competitive strategies, and technological innovations such as blockchain traceability and e-commerce marketplaces.
Designed for stakeholders including airlines, lessors, MRO providers, OEMs, and investors, this report delivers actionable insights to support decision-making in a rapidly evolving aftermarket landscape. With airlines increasingly prioritizing cost efficiency and sustainability, the USM sector is set to play a pivotal role in shaping the future of aviation.
Discover Additional Market Insights from Global Insight Services:
Air Transport USM Market is anticipated to expand from $8.3 billion in 2024 to $13.0 billion by 2034, growing at a CAGR of approximately 4.8%.
Air Transport MRO Market is anticipated to expand from $82 billion in 2024 to $145 billion by 2034, growing at a CAGR of approximately 5.9%.
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Transportation as a Service market is anticipated to expand from $2.12 billion in 2024 to $10.4 billion by 2034, growing at a CAGR of approximately 17.2%.
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