Air Transport USM Market Trends

Air Transport USM Market Overview

The Air Transport USM Market size was valued at USD 5773 million in 2024 and is expected to reach USD 8427.69 million by 2033, growing at a CAGR of 4.3% from 2025 to 2033.

The Air Transport Used Serviceable Material (USM) market is experiencing significant growth, driven by the increasing demand for cost-effective maintenance solutions and sustainable practices in the aviation industry. As of 2022, the global air transport USM market was valued at approximately USD 7.6 billion, with projections indicating a rise to USD 11.9 billion by 2032. North America holds a dominant position, accounting for around 38% of the market share in 2022.

The engine segment leads the market, capturing the majority share due to the high costs associated with new engine components and the availability of certified used parts. The OEM segment is also expected to show noticeable growth, as original equipment manufacturers increasingly participate in the USM market to offer cost-effective solutions. The growing trend towards sustainable practices in aviation further propels the air transport USM market, as airlines seek to reduce waste and carbon emissions by reusing serviceable materials.

Key Findings

Driver: The primary driver of the air transport USM market is the increasing demand for cost-effective maintenance solutions, as airlines aim to reduce operational expenses without compromising safety and reliability.

Top Country/Region: North America stands as the leading region in the global air transport USM market, driven by a mature aviation infrastructure and a strong presence of major airlines and MRO providers.

Top Segment: The engine segment dominates the market, benefiting from the high costs of new engine components and the availability of certified used parts that meet stringent regulatory standards.

Air Transport USM Market Trends

The air transport USM market is witnessing several notable trends that are shaping its growth trajectory. One significant trend is the increasing adoption of USM by airlines and MRO providers to achieve cost savings. By utilizing serviceable components from retired or decommissioned aircraft, airlines can significantly reduce maintenance and operational expenses. This approach is particularly beneficial for older aircraft models, where the cost of new parts can be prohibitively expensive. Another trend is the growing emphasis on sustainability within the aviation industry. As airlines face increasing pressure to reduce their environmental footprint, the use of USM aligns with broader sustainability goals by minimizing waste generation and reducing the demand for new manufacturing. This practice supports a circular economy, extending the lifecycle of aircraft parts and contributing to more environmentally responsible operations.

Technological advancements are also influencing the USM market. Innovations such as AI-driven inspection tools and enhanced certification protocols are ensuring that USM parts meet or exceed regulatory standards. These developments build trust among stakeholders, fostering market growth by assuring the quality and reliability of used components. Strategic partnerships and mergers are further shaping the market landscape. Major players are entering into collaborations to leverage each other's resources and expand their market presence. For instance, in June 2021, Pratt & Whitney partnered with Next Level Aviation to sell USM for aircraft engines, strengthening their position in the global USM market.

Air Transport USM Market Dynamics

DRIVER

Increasing demand for cost-effective maintenance solutions.

Airlines are under constant pressure to minimize operating costs while maintaining high safety and reliability standards. The adoption of USM provides a viable solution by offering serviceable components at a fraction of the cost of new parts. This approach is especially advantageous for older aircraft models, where sourcing new parts can be challenging and expensive. By utilizing USM, airlines can extend the operational life of their fleets, optimize maintenance budgets, and improve overall profitability.

RESTRAINT

Quality and reliability concerns of used components.

Ensuring the quality and reliability of USM components is crucial in the aviation industry. There may be concerns about the condition and performance of used parts, especially if they have undergone multiple repairs or come from sources with unknown maintenance practices. The perception of lower reliability compared to new OEM parts can restrain the broader adoption of USM. Additionally, OEMs may provide incentives for airlines to use new parts to maintain warranties, creating barriers for USM providers in the competitive aviation industry.

OPPORTUNITY

Growth in sustainable aviation practices.

The aviation industry is increasingly focusing on sustainability, aiming to reduce its environmental impact. USM plays a significant role in this endeavor by promoting the reuse of serviceable components, thereby minimizing waste and conserving resources. As airlines and MRO providers seek to align with environmental regulations and corporate sustainability goals, the demand for USM is expected to rise. This trend presents opportunities for USM suppliers to expand their offerings and cater to the growing market for eco-friendly aviation solutions.

CHALLENGE

Regulatory compliance and certification complexities.

Navigating the complex regulatory landscape is a significant challenge for the USM market. Ensuring that used components meet stringent safety and quality standards requires thorough inspection, testing, and certification processes. These procedures can be time-consuming and costly, potentially offsetting the cost benefits of using USM. Additionally, variations in regulatory requirements across different regions can complicate the global distribution and acceptance of USM, posing challenges for suppliers aiming to operate in multiple markets.

Air Transport USM Segmentation

The air transport USM market is segmented by type and application. By type, the market includes engine, components, airframe, and others. By application, it is divided into OEM and aftermarket segments.

By Type

Engine: segment holds a significant share of the USM market, driven by the high costs associated with new engine components. The availability of certified used engine parts ensures adherence to regulatory standards while providing cost savings. The rise in aircraft retirements and part-outs fuels the supply of high-quality used engine components, creating a robust secondary market. 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.
Components: segment encompasses various aircraft parts, including avionics, landing gear, and flight control systems. The demand for used components is driven by the need for cost-effective maintenance solutions and the availability of serviceable parts from retired aircraft. MRO providers play a crucial role in refurbishing and certifying these components to meet safety standards.
Airframe: segment includes structural elements of the aircraft, such as fuselage sections, wings, and doors. The use of USM in airframe maintenance offers cost savings and supports sustainability by reducing the need for new manufacturing. However, the adoption of used airframe components may be limited by concerns over structural integrity and the complexity of certification processes.
Other: This category includes miscellaneous parts and systems not covered in the primary segments. The demand for these components varies based on specific maintenance needs and the availability of serviceable parts from retired aircraft.

By Application

OEM: are increasingly participating in the USM market to offer cost-effective solutions and support their customers' maintenance needs. By providing certified used components, OEMs can maintain customer relationships and generate additional revenue streams. The involvement of OEMs in the USM market also helps ensure the quality and reliability of used parts.
Aftermarket: segment encompasses independent suppliers and MRO providers offering used serviceable materials. This segment plays a vital role in supplying cost-effective maintenance solutions, particularly for older aircraft models. Aftermarket providers often specialize in sourcing, refurbishing, and certifying used components to meet regulatory standards and customer requirements.

Air Transport USM Regional Outlook

The air transport USM market exhibits varying performance across different regions.

North America

stands as the dominant region in the global air transport 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.

Europe

holds a significant share in the air transport USM market, supported by a strong aviation industry and a growing emphasis on sustainability and circular economy principles. Countries such as Germany, the UK, and France are home to major airlines, MRO facilities, and aircraft manufacturers that actively participate in the sourcing, certification, and utilization of used serviceable materials.

Asia Pacific

region is emerging as a high-growth area in the air transport USM market, driven by rapid fleet expansion, rising air travel demand, and a growing number of low-cost carriers. Countries like China, India, Japan, and Southeast Asian nations are witnessing a surge in commercial aviation activity, creating increased demand for cost-effective maintenance solutions.

Middle East & Africa

with its strategic aviation hubs in the UAE, Qatar, and Saudi Arabia, represents a growing market for USM. The region is home to globally recognized airlines and MRO service providers that are increasingly incorporating USM into their operations to optimize maintenance costs and reduce turnaround times. Africa, while still in early stages of market development, holds long-term potential. Many airlines on the continent operate older aircraft, making the availability of cost-effective USM parts particularly beneficial. However, the market faces hurdles such as limited MRO infrastructure, certification challenges, and regulatory inconsistencies that need to be addressed to support wider adoption.

List of Top Air Transport USM Companies

Pratt & Whitney
TES Aviation Group
General Electric
AAR Corp
Lufthansa Technik (LHT)
MTU Aero Engines
A J Walter Aviation
AFI KLM E&M
GA Telesis
AirLiance Materials

Pratt & Whitney: is one of the leading players in the air transport USM market, offering extensive engine maintenance solutions that include used serviceable materials. As of 2024, the company managed over 13,000 engines globally, with its USM division supporting a large share of aftermarket services for V2500 and PW1000G engines.

TES Aviation Group: maintains a strong market presence with its dedicated USM solutions for various engine types. The company supports over 2,000 aircraft engines globally and reported the dismantling and recertification of more than 400 engines for used components between 2023 and 2024.

Investment Analysis and Opportunities

The air transport USM market is attracting rising levels of investment as airlines, OEMs, and MRO service providers strive to reduce operational costs and enhance supply chain efficiency. The growing aircraft fleet retirement rate is one of the primary factors influencing investment trends, as more than 13,000 aircraft are projected to retire by 2035, significantly contributing to the global USM supply pool. Aircraft lessors and asset management firms are also entering the USM ecosystem to monetize end-of-life aircraft through parts harvesting. Between 2023 and 2024, over 500 aircraft were dismantled, creating considerable inventory for USM providers. Investors are also looking at advanced teardown facilities and digital platforms that improve inventory management, traceability, and quality assurance of USM parts. In 2023, global investments in USM-focused MRO hubs increased by 18%, especially in North America and Asia. For example, AAR Corp expanded its teardown and USM processing facility in Miami by 25%, enabling the company to manage more than 100 aircraft teardowns annually. Similarly, GA Telesis invested $40 million in expanding its Component Solutions Group, enhancing its capability to support next-generation aircraft components.

Opportunities also exist in AI and blockchain integration for tracking part histories, certifications, and real-time inventory. Digital platforms are expected to support faster transactions and build customer trust. Blockchain-based traceability systems saw a 30% adoption increase among USM suppliers between 2022 and 2024. Moreover, increasing demand from low-cost carriers and regional airlines provides new commercial opportunities. These operators, especially in Asia-Pacific and Latin America, rely on affordable maintenance options to maintain profitability, making USM a critical component of their maintenance strategies. Environmental sustainability is another investment trigger. Airlines are seeking to meet ESG targets by reducing waste and extending the lifecycle of aircraft components. As a result, over 60% of global airline sustainability reports in 2023 mentioned the use of recycled aircraft parts, including USM.

New Product Development

Innovation in air transport USM is being driven by advancements in certification processes, traceability, and digitization. In 2023, the industry saw a surge in technology-based solutions aimed at increasing reliability and compliance for used components. Over 35% of USM companies reported integrating digital records for parts history to streamline approval and installation processes. One key development was Lufthansa Technik’s launch of AVIATAR-based component tracking tools. These tools enabled customers to verify the entire lifecycle of parts, from dismantling to recertification, enhancing transparency. By Q4 2023, more than 1,500 components had been certified using this digital chain of custody. Another milestone in innovation was the automation of teardown operations. MTU Aero Engines deployed robotic systems in its engine dismantling lines, achieving a 22% increase in processing efficiency and reducing human error in parts removal. These systems allow the harvesting of smaller yet high-value components previously overlooked in manual processes.

Smart warehousing and inventory management systems are also transforming product offerings. TES Aviation Group introduced RFID-based part tracking, reducing lead times by 15% and improving part traceability. Meanwhile, A J Walter Aviation expanded its predictive analytics software to forecast part demand based on global aircraft usage patterns, increasing inventory turnover by 18% between 2023 and 2024. New packaging solutions for USM were introduced in 2024 to ensure quality maintenance during transport and storage. These include vacuum-sealed anti-moisture packaging and shock-absorbing containers designed to comply with EASA and FAA shipping standards. Adoption of these solutions rose by 28% over 2023 figures. Additionally, proprietary component repair kits tailored for USM were developed to standardize refurbishment practices. AAR Corp launched modular repair kits for Airbus A320 and Boeing 737 landing gear components, cutting repair cycle times by 30% and reducing maintenance costs by up to 18%.

Five Recent Developments

Pratt & Whitney, in October 2023, opened a new engine teardown facility in Kansas, expanding its capacity to process over 200 engines annually and supply thousands of serviceable components to its USM program.
TES Aviation Group partnered with Etihad Engineering in early 2024 to develop a joint USM supply chain, targeting over 5,000 components annually for A330 and B777 aircraft platforms.
AAR Corp announced in December 2023 the acquisition of more than 30 retired Airbus A320 aircraft for USM harvesting, aiming to support fleet sustainment for low-cost carriers across the Americas.
GA Telesis completed a $40 million expansion of its Component Solutions Group in March 2024, which included doubling its inventory and adding digital certification tools for rapid customer deployment.
Lufthansa Technik launched a pilot blockchain-based system for parts traceability in 2023, with 10,000 components processed under the system by Q1 2024, significantly increasing buyer confidence.

Report Coverage of Air Transport USM Market

The report on the air transport USM market provides an in-depth analysis of market trends, industry dynamics, and competitive landscapes across global regions. It covers a wide range of components including engines, airframes, avionics, and interior fittings, offering a comprehensive view of how used serviceable materials are transforming aircraft maintenance economics. This analysis encompasses commercial aircraft types such as narrow-body, wide-body, and regional jets, evaluating the varying levels of USM adoption across each category. For instance, as of 2024, narrow-body aircraft accounted for over 65% of total USM demand due to their higher operational frequency and quicker component wear-out rates. The scope also includes segmentation by application, covering both OEMs and the aftermarket. OEMs are increasingly entering the USM space to recapture value from retired fleets and to retain service contracts, while the aftermarket segment remains the dominant channel, accounting for nearly 75% of transactions by volume. The report details geographic distribution, highlighting North America as the largest USM market with over 40% of dismantling and distribution centers, followed by Europe with its stringent regulatory oversight and expanding sustainable practices.

Asia-Pacific is also covered extensively due to its rapid fleet growth and emerging teardown infrastructure. Supply chain analysis within the report tracks the entire lifecycle of USM—from aircraft retirement and disassembly to part inspection, recertification, and resale. Over 600 MRO and logistics firms globally are involved in this supply chain, with over 45% based in the U.S. and Europe. Furthermore, the report evaluates technological advancements that are streamlining USM operations. Key technologies include AI-driven inspections, predictive analytics for inventory forecasting, and digital certification platforms—all of which have grown in adoption by over 20% in the past year. Environmental considerations are also explored, particularly how USM contributes to carbon emission reduction by reducing the need for new part production. This supports airline sustainability initiatives and regulatory compliance with carbon-neutral mandates.