PUBLISHER: The Insight Partners | PRODUCT CODE: 1874025
PUBLISHER: The Insight Partners | PRODUCT CODE: 1874025
The market for air transport used serviceable materials is anticipated to grow from US$ 3.27 billion in 2024 to US$ 4.71 bllion by 2031, reflecting a compound annual growth rate (CAGR) of 5.58% during the period from 2031 to 2031. This growth is largely driven by the evolving business models and used serviceable material (USM) solutions tailored for low-cost carriers. The operations and business strategies of Maintenance, Repair, and Overhaul (MRO) companies are undergoing rapid transformations, influenced by fierce competition and shifting global dynamics. The increasing rivalry among companies, along with the modernization of airline fleets and the entry of new players into the aviation sector, poses challenges to the sustainability of MRO firms, prompting them to explore innovative business models.
Analysis of the Air Transport Used Serviceable Material Market
The aviation sector is undergoing significant transformations in manufacturing technologies, MRO practices, and aircraft procurement trends. Civil airline operators, business jet owners, and regional airlines have greatly benefited from the decline in aviation turbine fuel prices in recent years. Conversely, engine manufacturers are focusing heavily on producing extended-life aircraft engines. The longevity of these engines is constraining the aftermarket supply chain within the aero-engine sector. Additionally, the reduction in aviation turbine fuel costs allows aircraft owners to retain their fleets longer, resulting in decreased teardown times for aircraft. These two factors are positively influencing the growth of the air transport used serviceable materials market.
Overview of the Air Transport Used Serviceable Material Market
Used serviceable materials (USM) in air transport are utilized across all four aircraft categories during service interruptions involving key aircraft components. USM facilitates faster installation times and reduced costs. Primarily, USM is utilized in narrowbody aircraft, which can range from single-seat configurations on either side of the aisle to the more common three-seat arrangements. Notable narrowbody jet models include the Boeing 737 and the Airbus A318/319/320/321. Major aircraft manufacturers, including Boeing, Airbus, Bombardier, Embraer, and Tupolev, are actively producing narrowbody aircraft, which significantly drives the demand for USM in this segment globally.
Strategic Insights
Drivers and Opportunities in the Air Transport Used Serviceable Material Market
Market Growth Driven by Increased Aircraft Refurbishment
The global airspace is witnessing a surge in demand for air travel, particularly in the commercial aircraft sector. This trend compels airlines and defense forces to maintain their fleets with the latest technologies and ensure the integration of robust components. Currently, the refurbishment of existing commercial aircraft is a prominent trend in the aviation industry, expected to grow significantly, creating substantial opportunities for aircraft component suppliers and MRO companies. Refurbishment efforts encompass engines, landing gears, radars, and antennas, among other components. USM suppliers provide essential aircraft parts at lower costs and with greater reliability, which is attracting interest from aircraft manufacturers. Consequently, these refurbishment programs are driving demand for air transport USM as they offer cost-effective alternatives in the market.
Importance of Effective Aircraft Decommissioning
According to IATA data, over 15,000 commercial aircraft have been decommissioned globally in the past 35 years, with approximately 700 commercial aircraft reaching the end of their operational lives each year. Various economic factors have led to the premature retirement of modern aircraft, whose average lifespan typically ranges from 20 to 36 years. Efficient management of aircraft decommissioning has become crucial to mitigate environmental and safety risks.
Segmentation Analysis of the Air Transport Used Serviceable Material Market
The air transport used serviceable material market analysis is segmented by product type, aircraft type, provider, and geography.
Geographical Analysis of the Air Transport Used Serviceable Material Market
The geographical scope of the air transport used serviceable material market report is segmented into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America is projected to lead the global air transport used serviceable material market during the forecast period, attributed to the presence of several prominent aircraft manufacturers. Key players include Boeing, Airbus Helicopters, Gulfstream Aerospace, Lockheed Martin, Piper Aircraft, Bye Aerospace, Cirrus, Dassault Aviation, and others. The North American market is analyzed based on trends in the aviation industries of the US, Canada, and Mexico. The aviation sector in North America consistently experiences technological advancements in airframes, engines, avionics, interiors, and other components. The growing demand for air travel continues to drive aircraft OEMs to produce highly advanced aircraft, while MRO companies face increasing demand for rapid MRO services.
In the current market landscape, the decline in aviation turbine fuel prices has positively influenced the growth of aircraft fleets and travel in North America. The reduction in fuel prices, combined with delays in aircraft deliveries, has led airlines and aircraft end-users to retain their existing fleets for longer periods, resulting in a slower aircraft retirement rate.
Scope of the Air Transport Used Serviceable Material Market Report
Recent Developments in the Air Transport Used Serviceable Material Market
The Air Transport Used Serviceable Material market is assessed through qualitative and quantitative data obtained from primary and secondary research, including significant corporate publications, association data, and databases. Recent developments in the Air Transport Used Serviceable Material Market include:
Coverage and Deliverables of the Air Transport Used Serviceable Material Market Report
The report titled "Air Transport Used Serviceable Material Market Size and Forecast (2021-2031)" provides a comprehensive analysis of the market, covering the following areas: