Air Transport USM Market - By Product (Engine, Component, Airframe), By Provider (OEM, Aftermarket), By Aircraft (Narrowbody Jet, Widebody Jet, Turboprop, Regional Jet) & Forecast, 2024 - 2032

Air Transport USM Market Size

Air Transport USM Market was valued at USD 7.9 billion in 2023 and is estimated to register a CAGR of over 4.5% between 2024 & 2032. The market is expected to witness a growing demand for air transport USMs due to the rising demand for more air transport.

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For instance, in June 2023, a report released by the International Air Transport Association (IATA) stated that the overall air travel growth will continue to rise resulting in more aircraft being used. According to IATA, the total traffic in March 2023 rose 52.4% compared to March 2022. Domestic traffic witnessed 34.1 increase in comparison to March 2022 and the total March 2023 domestic traffic reached 98.9% of the March 2019 levels. This increasing demand for air travel across the globe drives the growth of market as USM provides a cost-effective alternative for airlines to quickly obtain parts, ensuring the timely maintenance of aircraft to meet the growing passenger demand.
 

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The growing focus of airlines on cost reduction is also one of the major drivers of growth for the air transport USM market. Used Serviceable Materials (USMs) are less expensive than new OEM components, saving costs between 50% and 80%. This cost advantage is extremely appealing to airlines trying to reduce operational expenditures and increase profits. Also, the aviation sector is extremely competitive, and airlines have tight profit margins. Rising fuel prices, airport taxes, and other operating expenditures make USM an appealing choice, allowing airlines to remain competitive while successfully managing costs. For instance, in October 2023, ST Engineering introduced a new program that provides cost-effective component options for old aircraft. The company aims to use its huge inventory of used parts and skills to repair & refurbish them, providing cost-effective alternatives to new components.
 

The air transport USM market is facing a major challenge due to its highly stringent regulatory compliances, potentially slowing down market growth. To meet regulatory standards, used components must be thoroughly inspected, tested, and documented. This significantly increases the time, effort, and expense of the procedure compared to new components, discouraging certain vendors from joining the market. Along with this, different countries and regulatory agencies follow their set of laws and standards for USM, which adds uncertainty and complexity to international operations. Airlines and providers need to manage a variety of rules, which increases compliance obligations, thereby hindering market growth.

Air Transport USM Market Trends

The air transport USM industry is witnessing a trend driven by significant technological advancements. Advancements in NDT techniques such as ultrasonic testing, eddy current testing & thermography enable precise and reliable evaluations of worn components, assuring structural integrity and operation. This increases trust in the use of USM while complying with severe regulatory regulations. Also, sensor-based monitoring and data analytics technologies provide more accurate predictions of component failures, thereby offering proactive maintenance methods and early intervention with used parts. This lowers downtime and improves the efficiency of the existing components.

For instance, in September 2023, Safran Landing Systems partnered with SkyTech, a developer of AI-powered predictive maintenance solutions, to use SkyTech's AI & IoT platform for landing gear maintenance. The partnership aims to optimize landing gear repair schedules, minimize costs, and increase operational efficiency by using predictive sensor data analysis. These technological advancements will drive the market growth in the coming years.

Air Transport USM Market Analysis

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Based on provider, the market is divided into OEM and aftermarket. In 2023, the OEM segment accounted for a market share of over 60%. OEMs have developed reputations for quality, dependability, and safety in the aviation business. Airlines frequently rely on them for used components, given their skill in constructing and servicing certain aircraft models. OEMs leverage their strong brand reputation and credibility to offer USM parts with the assurance of quality and reliability. Customers are often more inclined to purchase USM parts from OEMs due to their established track record in aircraft manufacturing and support. Furthermore, OEMs ensure that their parts meet the same rigorous standards as new parts, including regulatory compliance and airworthiness requirements. This commitment to quality and safety enhances the trust and confidence of airlines and regulatory authorities in OEM-provided USM.

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Based on product, the market is categorized into engine, component, airframe, and others. The engine segment currently holds a high market share of around 44% in the market. Airplane engines are the most expensive and complicated components of an airplane, making them ideal for cost-effective replacements using USM solutions. Replacing them with new ones can be prohibitively expensive, resulting in airlines opting for Used, Serviceable Engines (USEs). Engine-related USM suppliers offer quick turnaround times for engine parts, minimizing aircraft downtime and maximizing operational efficiency for airlines. These suppliers invest in engine acquisition strategies to build a substantial inventory portfolio for regional and narrowbody platforms. For instance, in July 2023, AerFin, an aircraft and engine aftermarket solutions provider took delivery of 11 CFM56 and nine V2500 engines. The company's portfolio covers the CFM56-5B/5C/7B, CF34-8, CF6, RB211 and V2500 platforms. This shows the company's commitment to support its growing global customer base with premium used-serviceable material (USM).

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North America led the global air transport USM market with a major share of over 38% in 2023. North America has a large and aging fleet of airplanes, creating a significant demand for cost-effective maintenance and repair solutions. For instance, in May 2021, the U.S. Air Force announced to retire 201 aircraft in 2022, to reinvest savings from not operating and maintaining those aircraft into research and development. Along with this, airlines in North America compete aggressively seek cost-efficiency. USM solutions offer considerable cost savings over new components, making them very appealing. Also, North America is home to major aircraft manufacturers including Boeing, Airbus Americas, Bombardier Aerospace and USM suppliers including GA Telesis, AerSale, HEICO Corporation contribute considerably to market development and innovation.

Air Transport USM Market Share

AAR Corp. and Boeing Company hold a significant market share of over 15% in the market. AAR Corp. leverages its global sourcing expertise to obtain high-quality, cost-effective used serviceable material from a varied network of vendors globally. The company uses effective distribution networks to ensure that USM items are delivered to airline consumers on schedule.

Boeing forms strategic partnerships and alliances with USM suppliers, aftermarket service providers, and MRO (Maintenance, Repair, and Overhaul) companies to enhance its USM offerings. These collaborations enable Boeing to broaden its product portfolio, improve supply chain efficiency, and better serve customers' needs.

Air Transport USM Market Companies

Major players operating in the air transport USM industry are

• A J Walter Aviation Limited
• AAR Corp.
• AerSale Inc.
• AJ Walter Aviation Limited
• Boeing Company
• Delta TechOps
• GA Telesis, LLC
• General Electric
• HEICO Corporation
• Liebherr Group
• Satair

Air Transport USM Industry News

• In November 2023, GA Telesis Engine Services' U.S. SPAH Facility received the FAA Part 145 Air Agency Certificate. With this significant achievement, the joint venture will supply the airline sector with quick-turnaround jet engine repair and play an important role in improving performance reliability.
   
• In October 2023, Airbus and Satair announced the SmartParts platform for a secure & transparent used aircraft parts marketplace. The platform is a digital marketplace for buying and selling certified used aircraft parts. The platform also uses blockchain technology to provide safe and transparent transactions, promoting confidence & traceability in the USM market.

The air transport USM market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Provider

• OEM
• Aftermarket

Market, By Aircraft

• Narrowbody jet
• Widebody jet
• Turboprop
• Regional jet

Market, By Product

• Engine
• Component
• Airframe
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA