Air Transport Used Serviceable Material Market Forecast (2024-2031)
The air transport used serviceable material market size is projected to reach US$ 4,712.64 million by 2031 from US$ 3,150.79 million in 2023. The market is expected to register a CAGR of 5.2% during 2023–2031. The changing business models and USM solutions for low-cost carriers are driving the trend in the market. The operations and business models of MRO companies are rapidly changing, which is, in turn, driven by factors such as cut-throat competition and the ever-changing global dynamics. The intensifying competition between businesses coupled with evolving airline fleets and the new entrants in the aviation industry has threatened the sustainability of the MRO companies, thereby driving the players to look for innovative business models.
Air Transport Used Serviceable Material Market Analysis
The aviation industry is continuously witnessing several significant changes in terms of manufacturing technology, MRO technology, and aircraft procurement trends. Civil airline companies, business jet owners, and regional airline companies are benefiting massively from the drop in aviation turbine fuel costs over the past few years. On the other hand, engine manufacturers are heavily emphasizing and capitalizing on the production of extended-life aircraft engines. The extended life of aircraft engines is leading to the squeezed aftermarket supply chain in the aero-engine industry. Similarly, the fall in aviation turbine fuel costs is facilitating the aircraft owners to hold their existing fleet for a longer period, which results in less teardown time for aircraft. The two factors are positively impacting on the growth of air transport using serviceable materials.
Air Transport Used Serviceable Material Market Overview
Air transport serviceable material (USM) is used on all four types of aircraft during service breakdowns of some of the major aircraft components. The USM ensures quicker time-to-installation of the product and at lesser costs. Air transport uses serviceable materials and is majorly used in the narrowbody aircrafts. The narrowbody aircraft can be as small as a single seat on either side of the aisle, and the most common variant of the narrowbody jets comprises three seats on either aisle side. Boeing 737 Airbus A318/319/320/321 are some of the popular narrowbody jet models. All the major aircraft manufacturers are engaged in the manufacturing of narrowbody aircraft, and Boeing, Airbus, Bombardier, Embraer, and Tupolev, among others, are some of the major aircraft OEMs producing narrowbody aircraft worldwide. This factor is one of the major drivers for the growing usage of USM in narrowbody aircraft globally.
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Air Transport Used Serviceable Material Market: Strategic Insights
Market Size Value in US$ 4,980.2 Million in 2018 Market Size Value by US$ 8,307.9 Million by 2027 Growth rate CAGR of 5.9% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Air Transport Used Serviceable Material Market: Strategic Insights
| Market Size Value in | US$ 4,980.2 Million in 2018 |
| Market Size Value by | US$ 8,307.9 Million by 2027 |
| Growth rate | CAGR of 5.9% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Air Transport Used Serviceable Material Market Drivers and Opportunities
Increasing Refurbishment of Existing Aircraft Drives Market Growth
The global airspace is experiencing huge demand for air travel in terms of commercial aircraft. This is leading the airlines and defense forces to keep their fleets ready with the latest technology and ensure robust components are integrated. Refurbishment of existing commercial aircrafts is a major trend prevailing in the aviation industry at present. The trend is expected to surge over the period, leading to huge opportunity for the aircraft component suppliers and the Maintenance, Repair, and Overhaul (MRO) companies. The refurbishment of aircraft includes engines, landing gears, radars and antennas, among others. The USM suppliers ensure the availability of some of the major aircraft components at lesser costs and higher reliability, which is increasing the interest among aircraft manufacturers. Thus, such programs drive the demands for air transport USM as these are low-cost alternatives available in the market.
Growing Importance of Proper Aircraft Decommissioning
As per the data from IATA, more than 15,000 commercial aircraft have been decommissioned worldwide in the last 35 years. Around 700 commercial aircraft reach their end of operational lives on average annually. Various economic factors have resulted in the early retirement of aircraft of today, where the average lifecycle of an aircraft usually varies between 20 to 36 years. Aircraft decommissioning has become a vital process that has to be managed efficiently in order to avoid any environmental and safety risks.
Air Transport Used Serviceable Material Market Report Segmentation Analysis
Key segments that contributed to the derivation of the air transport used serviceable material market analysis are product type, aircraft type, provider, and geography.
- Based on product type, the market is divided into engines, aircraft components, and airframes. Among these, the engine has the largest share in 2023. This is owing to the increasing demand for aircraft component replacement. The rising demand for surplus airline components has played a major role in reshaping the airline aftermarket strategies. The shift toward non-engine power-by-the-hour and other guaranteed service level agreements gives USM a more prominent role, which increases demand for the parts.
- Based on aircraft type, the market is divided into narrowbody aircraft, widebody aircraft, business jets, and regional jets. Among the types of aircraft, narrowbody aircraft are the largest users for USM owing to their large number of fleets in operation.
- Depending upon the provider, the market is divided into OEM and Non-OEM. Among these, OEM is expected to have the largest share in 2023.
Air Transport Used Serviceable Material Market Share Analysis by Geography
The geographic scope of the air transport used serviceable material market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America is expected to dominate the global air transport used serviceable material market during the forecast period, owing to the presence of several leading aircraft manufacturers. The major key players include Boeing, Airbus Helicopters, Gulfstream Aerospace, Lockheed Martin, Piper Aircraft, Bye Aerospace, Cirrus, Dassault Aviation, and others. The North American air transport used serviceable material market is analyzed based on different trends occurring in the US, Canadian, and Mexican aviation industry. The North American aviation sector continuously witnesses technological advancements in terms of airframe, engines, avionics, interiors, and other components. Ever ever-rising demand for air travel is continuously pushing aircraft OEMs to deliver highly technological aircraft while MRO companies are experiencing significant demand for quick MRO services.
In the current market scenario, the fall in aviation turbine fuel prices has positively impacted the growth of aircraft fleets and travel in North America. The drop in fuel prices, coupled with the delay in aircraft deliveries, has led the airlines or aircraft end-users to hold on to the existing aircraft fleet for an extended period. This has resulted in a slow aircraft retirement rate.
Air Transport Used Serviceable Material Market Report Scope
Air Transport Used Serviceable Material Market News and Recent Developments
The Air Transport Used Serviceable Material market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Air Transport Used Serviceable Material Market are listed below:
- Block Aero and the Aircraft Fleet Recycling Association (AFRA) are pleased to announce the launch of a ‘Registry-as-a-Service’ airworthiness compliance solution for serialized parts. This initiative will enhance the safety, efficiency, and traceability of aircraft parts management. This strategic partnership leverages Block Aero’s cutting-edge aviation blockchain platform to implement a state-of-the-art database solution. The registry is designed to meet the requirements of civil aviation authorities for information management and public disclosure of aircraft parts reused in the aviation aftermarket. (Source: Company Website, March 2024)
Air Transport Used Serviceable Material Market Report Coverage and Deliverables
The “Air Transport Used Serviceable Material Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Air transport used serviceable material market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Air transport used serviceable material market trends as well as market dynamics such as drivers, restraints, and key opportunities.
- Detailed PEST and SWOT analysis
- Air transport used serviceable material market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the air transport used serviceable material market.
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type ; Aircraft Type ; Provider
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
The market is expected to register a CAGR of 5.2% during 2023–2031.
The air transport used serviceable material market size is projected to reach US$ 4,712.64 million by 2031 from US$ 3,150.79 million in 2023.
The changing business models and USM solutions for low-cost carriers are driving the trend in the market.
A J Walter Aviation Limited, AAR Corp, AFI KLM & E&M, Delta Material Services, GA Telesis, LLC, General Electric, Liebherr Group, Lufthansa Technik, Pratt & Whitney, and Honeywell International Inc., and others.
Increasing Refurbishment of Existing Aircrafts Drives Market Growth.
North America is expected to dominate the air transport used serviceable material market in 2023.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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