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, 2019-2029F

Market Overview

Global Air Transport USM Market was valued at USD 2.70 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.43% through 2029. 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). 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.

Sustainable Aviation Practices

The Global Air Transport Used Serviceable Material (USM) Market is influenced by the aviation industry's commitment to sustainable practices. As environmental considerations become more prominent, airlines are seeking ways to extend the lifecycle of aircraft components, aligning with principles of circular economy and resource efficiency. USM supports these sustainability objectives by promoting the reuse of serviceable components that would otherwise be discarded.

By opting for USM, airlines contribute to the reduction of material waste and the environmental impact associated with the production of new parts. This sustainability-driven approach resonates with both industry stakeholders and environmentally conscious passengers, fostering a positive image for airlines adopting USM solutions. The desire to balance economic considerations with ecological responsibility positions sustainable aviation practices as a significant driver in the USM market.

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.

Regulatory Support and Certification Processes

The USM market is significantly influenced by regulatory support and the rigorous certification processes governing the aviation industry. 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, including those designated as used serviceable materials.

The USM market thrives on a robust certification process that ensures the quality, safety, and reliability of components. Regulatory bodies work in tandem with industry stakeholders to establish guidelines and standards for the inspection, repair, and certification of USM components. This support instills confidence among airlines and MRO providers, encouraging the adoption of USM as a reliable and compliant solution for maintaining airworthy fleets.

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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.

Evolving Aircraft Technologies and Compatibility

The constant evolution of aircraft technologies presents a challenge for the Global Air Transport USM Market in terms of ensuring compatibility with newer aircraft models. As aviation systems advance, introducing new materials, avionics, and structures, the compatibility of USM with the latest technologies becomes crucial. Aircraft manufacturers regularly incorporate innovative designs and materials, leading to the development of newer components that may not align seamlessly with legacy USM.

Ensuring that used serviceable materials remain relevant and compatible with a diverse fleet of aircraft, including the latest models, requires continuous adaptation and innovation in the USM market. This challenge underscores the need for a dynamic approach to inventory management and an agile response to the evolving technological landscape of the aviation industry.

Supply Chain Vulnerabilities and Global Logistics

The Global Air Transport USM Market faces challenges associated with supply chain vulnerabilities and the complexities of global logistics. The sourcing, acquisition, and distribution of used serviceable materials involve a global network of suppliers, brokers, and MRO providers. Disruptions in the supply chain, whether due to geopolitical factors, natural disasters, or global events, can impact the availability and cost-effectiveness of USM.

Global logistics challenges, including customs regulations, transportation constraints, and lead times, add complexity to the USM market. Delays in the procurement and delivery of USM components can affect the operational efficiency of airlines and MRO providers. Addressing supply chain vulnerabilities requires strategic risk management, diversified sourcing strategies, and collaborative efforts among industry stakeholders to ensure the reliable and timely availability of USM across the global aviation network.

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.

Market Consolidation and Strategic Partnerships

A notable trend in the Global Air Transport USM Market is the increasing trend toward market consolidation and the formation of strategic partnerships among industry players. The USM market, characterized by a network of suppliers, brokers, and MRO providers, is witnessing a shift toward collaboration and consolidation to enhance competitiveness and capitalize on synergies. Strategic partnerships enable stakeholders to leverage complementary strengths, share resources, and collectively address market challenges.

Consolidation in the USM market involves mergers and acquisitions, allowing companies to expand their product portfolios, strengthen their global presence, and achieve economies of scale. The formation of strategic alliances fosters innovation and the development of comprehensive solutions that cater to the evolving needs of the aviation industry. As the USM market matures, the trend towards consolidation and partnerships is expected to play a pivotal role in shaping the competitive landscape and optimizing supply chain dynamics.

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.

Emergence of E-commerce Platforms for USM Trading

An emerging trend in the Global Air Transport USM Market is the development of e-commerce platforms dedicated to the trading of used serviceable materials. These digital marketplaces provide a centralized and transparent platform for buyers and sellers to engage in USM transactions. The shift towards e-commerce in the USM market mirrors broader trends in the aviation industry, where digital platforms are increasingly becoming the preferred mode of conducting business.

E-commerce platforms for USM streamline the procurement process, offering features such as real-time inventory visibility, online bidding, and secure payment systems. These platforms enhance market accessibility, allowing smaller operators and MRO providers to participate in the USM market more effectively. The trend towards digital marketplaces reflects the industry's commitment to embracing technological advancements and optimizing the efficiency of USM transactions in a digital ecosystem.

Segmental Insights

Aircraft Type Analysis

The wide-body aircraft segment is experiencing rapid growth in the global Air Transport Used Serviceable Material (USM) market. These aircraft, known for their large capacity and long-haul capabilities, are increasingly favored by airlines to meet rising passenger demand and enhance operational efficiency. The growth is driven by the expanding global air travel market, particularly in emerging economies, and the ongoing replacement of older fleets with more fuel-efficient models.

Airlines are focusing on cost-effective maintenance solutions, fueling the demand for USM. Wide-body aircraft, such as the Boeing 777 and Airbus A350, require substantial parts and components, creating a robust market for used serviceable materials. The advantages of USM, including cost savings, reduced lead times, and environmental benefits through recycling, are particularly appealing in managing the maintenance costs of these larger aircraft.

Additionally, the COVID-19 pandemic accelerated the retirement of older aircraft, increasing the availability of USM in the market. As the aviation industry recovers, the demand for wide-body aircraft USM is expected to continue its upward trajectory, supported by the growing emphasis on sustainable practices and efficient fleet management. This segment's expansion reflects the broader trends in global aviation toward modernization and sustainability.

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Regional Insights

North America stands 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.

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   Asia-Pacific

§  China

§  India

§  Japan

§  Indonesia

§  Thailand

§  South Korea

§  Australia

o   Europe & CIS

§  Germany

§  Spain

§  France

§  Russia

§  Italy

§  United Kingdom

§  Belgium

o   North America

§  United States

§  Canada

§  Mexico

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Turkey

§  Saudi Arabia

§  UAE

Competitive Landscape

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

Available Customizations:

Global Air Transport USM Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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