Air Transport USM Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component Type (Engine, Landing Gear, Hydraulic System, Avionics, and Others), By Aircraft Type (Wide-Body, Narrow-Body, Regional Jets, and Others), By Region & Competition, 2020-2030F

Market Overview

The Global Air Transport USM Market was valued at USD 2.82 Billion in 2024 and is expected to reach USD 3.66 Billion by 2030 with a CAGR of 4.43% during the forecast period. The Global Air Transport Used Serviceable Material (USM) Market is witnessing a significant growth trajectory, driven by the rapid expansion of the aviation industry and the rising demand for cost-effective alternatives to new parts. The USM market caters to the needs of the airline industry by providing used serviceable components, which are cost-effective and certified for re-use.

The sector's growth is driven by a significant rise in air travel demand. Recent years have witnessed a notable surge in passenger traffic globally, leading to a corresponding increase in aircraft numbers. This trend has bolstered the demand for Used Serviceable Material (USM). For instance, according to the report, in 2023, total air traffic, measured in revenue passenger kilometers (RPKs), grew by 36.9% compared to 2022, reaching 94.1% of pre-pandemic (2019) levels for the full year. December 2023 specifically saw a 25.3% increase in traffic from December 2022, achieving 97.5% of December 2019 levels. These figures underscore the robust recovery and heightened demand within the air travel sector.

Another factor contributing to the market growth is the environmental considerations associated with USM. Compared to manufacturing new parts, using serviceable materials can significantly reduce the carbon footprint, making it an eco-friendly solution. This aspect is particularly appealing to airlines aiming to meet their sustainability goals.

In terms of market segmentation, the USM market can be divided into several categories: engines, airframe systems, and components. The engines segment holds a prominent market share due to the high cost of new engines and the extensive maintenance they require.

Geographically, the North American region dominates the global USM market, with the United States being a significant contributor. The region's dominance can be attributed to the presence of a large number of airlines and MRO service providers. On the other hand, the Asia-Pacific region is expected to witness the fastest growth, driven by expanding air traffic and a growing number of low-cost carriers.

Despite its promising prospects, the global USM market faces several challenges. The most significant of these is the issue of component reliability and the potential risk associated with the use of used components. Regulatory hurdles also prove to be a roadblock, with stringent laws governing the use of used serviceable materials.

The competitive landscape of the global USM market is characterized by the presence of several key players, including major OEMs and third-party vendors. These companies employ strategies like mergers, acquisitions, and partnerships to gain a competitive edge.

Market Drivers

Cost-Efficient Maintenance Practices

The Global Air Transport Used Serviceable Material (USM) Market is driven by the imperative for cost-efficient maintenance practices within the aviation industry. Airlines and maintenance, repair, and overhaul (MRO) providers are increasingly turning to used serviceable materials as a strategic approach to minimize operational costs. Acquiring USM components, which have been carefully inspected, repaired, and certified for reuse, provides a cost-effective alternative to purchasing new parts. This approach allows operators to achieve considerable savings in maintenance budgets without compromising the safety and reliability of aircraft.

The aviation sector's constant pursuit of operational efficiency, especially in the context of cost management, positions the use of serviceable materials as a key driver. Airlines, facing the challenges of economic fluctuations and intense competition, find the adoption of USM as a prudent strategy to maintain fleet airworthiness while optimizing expenditure on maintenance and repairs.

Increasing Demand for Aftermarket Components

The rising demand for aftermarket components is a pivotal driver for the Global Air Transport Used Serviceable Material (USM) Market. As aircraft age and technological advancements prompt the continuous evolution of aviation systems, the demand for replacement parts and components in the aftermarket segment grows substantially. Airlines seek reliable alternatives to new OEM (Original Equipment Manufacturer) parts to maintain and repair their fleets.

Used serviceable materials provide a viable solution by offering high-quality, certified components that meet stringent aviation standards. The aftermarket for USM encompasses a wide range of aircraft parts, including avionics, landing gear, engines, and various other components. The flexibility and cost-effectiveness of USM options contribute to their increasing adoption by airlines and MRO providers, shaping the dynamics of the global air transport aftermarket segment.

Fleet Expansion and Diversity

The growth of global air transport, marked by fleet expansion and diversification, is a major driver for the USM market. As airlines expand their fleets to cater to increasing passenger demand and explore new routes, the need for a diverse range of aircraft components intensifies. The USM market aligns with this demand by offering a broad spectrum of serviceable materials for various aircraft types and models.

Fleet diversity, including the integration of new and used aircraft, underscores the relevance of USM in supporting mixed fleets. Airlines operating a combination of newer and older aircraft models can benefit from the availability of certified used components that cater to the specific requirements of each aircraft type. The adaptability of USM to diverse fleet compositions positions it as a strategic driver in the context of the evolving global air transport landscape. For instance, In 2024, Airbus forecasts the delivery of over 42,000 new passenger aircraft by 2043, with significant demand for 15,000 single-aisle aircraft due to the growth in global air traffic. Additionally, the forecast highlights that the market will need to address environmental concerns, with the introduction of sustainable aviation technologies aimed at reducing emissions. This forecast reflects the continued expansion of the global airline industry, alongside advancements in fuel-efficient and environmentally friendly aircraft.

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Key Market Challenges

Regulatory Compliance and Certification Complexity

One of the primary challenges confronting the Global Air Transport Used Serviceable Material (USM) Market is the complexity associated with regulatory compliance and certification processes. Regulatory bodies, such as the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA), establish stringent standards for the airworthiness of aircraft components. Ensuring that used serviceable materials meet these standards requires meticulous inspection, testing, and documentation.

The multifaceted nature of regulatory compliance poses challenges for both suppliers and users of USM. Suppliers must navigate intricate certification processes to validate the airworthiness of components, while airlines and maintenance, repair, and overhaul (MRO) providers grapple with the task of verifying the compliance of acquired USM with rigorous aviation regulations. The evolving nature of these regulations, coupled with the need for harmonization across international jurisdictions, adds layers of complexity to the USM market, influencing the procurement decisions of aviation stakeholders.

Quality Assurance and Traceability

Quality assurance and traceability are critical challenges for the USM market, as ensuring the reliability and performance of used serviceable materials requires robust systems for tracking and verifying component history. The traceability of USM involves documenting the entire life cycle of a component, including its maintenance history, repairs, and any modifications it has undergone. This traceability is essential for determining the authenticity and airworthiness of a used component.

The challenge lies in establishing and maintaining comprehensive systems that track each USM item throughout its operational life. Issues such as incomplete or inaccurate documentation, inconsistent data standards, and gaps in traceability can compromise the quality assurance of USM. Maintaining a high level of confidence in the quality and reliability of used components is paramount to overcome the skepticism sometimes associated with the adoption of USM in the aviation industry.

Market Perception and Stakeholder Confidence

The perception of the reliability and safety of used serviceable materials poses a significant challenge for the Global Air Transport USM Market. While USM undergoes rigorous inspection, repair, and certification processes, there can be lingering concerns among aviation stakeholders regarding the use of components that have previously been in service. Building and maintaining confidence in the market, especially among airlines, lessors, and passengers, requires addressing perception challenges and dispelling misconceptions.

Stakeholder confidence is closely tied to transparent communication, industry-wide education, and the demonstration of the efficacy of USM through successful operational experiences. The challenge is not only to ensure the technical reliability of USM but also to actively engage with stakeholders to foster a positive perception of its value and safety within the aviation ecosystem.

Key Market Trends

Integration of Digital Technologies

A prominent trend in the Global Air Transport Used Serviceable Material (USM) Market is the increasing integration of digital technologies to enhance operational efficiency and streamline supply chain processes. The adoption of digital platforms, data analytics, and Internet of Things (IoT) solutions is transforming how stakeholders manage and track USM components throughout their lifecycle. Digital technologies facilitate real-time monitoring of component conditions, maintenance history, and inventory levels, enabling more informed decision-making.

Digitalization contributes to improved traceability and transparency in the USM market, addressing challenges related to quality assurance and compliance. Automated tracking systems and digital platforms enhance communication and collaboration among suppliers, airlines, and maintenance providers, reducing lead times and enhancing overall supply chain management. As the industry embraces Industry 4.0 principles, the integration of digital technologies emerges as a key trend, driving operational efficiency and promoting data-driven decision-making in the USM market.

Sustainable Practices in Aircraft Maintenance

The Global Air Transport USM Market is witnessing a growing emphasis on sustainable practices in aircraft maintenance. Airlines and MRO providers are increasingly recognizing the environmental impact of aviation operations and are exploring ways to integrate sustainability into their maintenance strategies. This trend aligns with broader industry initiatives to reduce carbon emissions and enhance overall environmental responsibility.

Used serviceable materials play a role in sustainable aviation practices by contributing to the circular economy. Reusing components through meticulous inspection, repair, and certification processes reduces the demand for new manufacturing, minimizing the carbon footprint associated with production. The trend towards sustainable practices extends beyond regulatory compliance, with airlines and industry stakeholders proactively incorporating environmentally conscious approaches into their USM procurement and maintenance strategies.

Focus on Component Repair and Overhaul (CRO)

A discernible trend in the Global Air Transport USM Market is the increasing focus on Component Repair and Overhaul (CRO) capabilities. Airlines and MRO providers are recognizing the value of building in-house or outsourced CRO capabilities to extend the lifespan of components and optimize maintenance costs. CRO involves the systematic inspection, repair, and restoration of components, aligning with the industry's goal of maximizing the utility of serviceable materials.

The emphasis on CRO is driven by the desire to enhance cost-effectiveness in maintenance operations and reduce reliance on new component procurement. Investing in CRO capabilities allows stakeholders to address specific maintenance needs, tailor solutions to their fleet requirements, and achieve greater control over the repair processes. This trend reflects a strategic shift toward a more comprehensive and proactive approach to component maintenance within the USM market.

Segmental Insights

Component Type Insights

In 2024, the engine segment emerged as the dominating component type in the Global Air Transport USM (Used Serviceable Material) market. This dominance is attributed to the high cost and critical nature of engine components, making the demand for serviceable and cost-efficient alternatives essential for airline operators. Engines are the most complex and expensive parts of an aircraft, requiring regular maintenance, repair, and replacement to ensure operational safety and efficiency. The increasing adoption of used serviceable materials for engine maintenance stems from the growing pressure on airlines to reduce operational costs amid fluctuating fuel prices and competitive market dynamics.

The engine segment also benefits from the availability of certified USM, which ensures adherence to stringent regulatory standards while providing cost savings. The rise in aircraft retirements and part-outs is fueling the supply of high-quality used engine components, creating a robust secondary market. Furthermore, the growing fleet of aging aircraft, particularly in regions with cost-conscious operators, contributes to a sustained demand for affordable engine solutions. This trend is particularly significant in narrow-body aircraft, widely used for short- and medium-haul routes, where engine maintenance constitutes a substantial portion of operational expenditures. The prominence of the engine segment in the USM market underscores its pivotal role in balancing cost efficiency with safety and reliability, solidifying its leadership in 2024.

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Regional Insights

North America stand as the dominant region in the global Air Transport Used Serviceable Material (USM) market. This leadership is driven by several key factors, including the presence of major airlines, a robust aviation infrastructure, and a mature market for aircraft maintenance, repair, and overhaul (MRO) services.

The region's extensive fleet of both narrow-body and wide-body aircraft generates a consistent demand for USM. North American airlines, such as American Airlines, Delta, and United, prioritize cost-effective maintenance strategies, significantly driving the market for used serviceable materials. These airlines benefit from a well-established network of MRO providers that offer comprehensive services, including the sourcing and supply of USM.

Moreover, the availability of a large inventory of retired aircraft in North America contributes to a steady supply of USM. The region's regulatory framework also supports the use of USM, ensuring high standards of safety and quality, which bolsters confidence in these materials among airlines and maintenance providers.

The economic advantages of USM, such as cost savings and shorter lead times, further cement North America's position as a leader in this market. As the aviation industry continues to evolve, North America's dominance in the global Air Transport USM market is likely to persist, driven by its strategic emphasis on efficiency and sustainability in aircraft maintenance practices.

Recent Development

• In July 2024, Boeing announced plans to acquire Spirit AeroSystems for approximately USD7.7 billion, or USD37.25 per share, in a strategic move to enhance its aerospace manufacturing capabilities. The acquisition is expected to bolster Boeing's supply chain and operational efficiency.

• In Dec 2023, AerFin plans to expand its engine maintenance services to include V2500 quick turn maintenance, addressing the increasing demand due to delays in new aircraft deliveries and engine recalls. This initiative aims to provide efficient maintenance solutions for aging narrowbody aircraft, helping operators extend lease commitments during a period of high uncertainty in the aviation market.

• In March 2024, Honeywell announced its intention to acquire Civitanavi Systems S.p.A., to enhance its autonomous operations in aerospace and expand its European footprint. The acquisition aims to integrate Civitanavi's high-precision inertial navigation and stabilization solutions into Honeywell's commercial, military, and space platforms, supporting long-term growth.
• In 2024, Aircraft engine MRO demand is skyrocketing, with shop turnaround times up 35% for legacy engines and 150% for new-generation engines compared to pre-pandemic levels. MRO slot wait times have increased by 2-6 months, disrupting fleet availability. While the industry recovers from pandemic-related capacity cuts, engine MRO demand is expected to peak in 2026, with a near 17% shortfall by decade’s end. Labor shortages, supply chain issues, and deferred aircraft retirements are contributing factors. MRO providers are investing in capacity expansion, technology, and USM to manage demand.

Key Market Players

• AerFin Limited
• The Boeing Company
• General Electric Company
• Honeywell International Inc.
• GA Telesis, LLC
• Meggitt PLC
• MTU Aero Engines AG
• RTX Corporation 
• Rolls-Royce plc
• AAR Corp.

Report Scope:

In this report, the Global Air Transport USM market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Air Transport USM Market, By Aircraft Type:

o   Wide-Body

o   Narrow-Body

o   Regional Jets

o   Others

·         Air Transport USM Market, By Component Type:

o   Engine

o   Landing Gear

o   Hydraulic System

o   Avionics

o   Others

·         Air Transport USM Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe & CIS

§  France

§  Germany

§  Spain

§  Italy

§  United Kingdom

o   Asia-Pacific

§  China

§  Japan

§  India

§  Vietnam

§  South Korea

§  Thailand

§  Australia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

o   South America

§  Brazil

§  Argentina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Air Transport USM Market.

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Company Information

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