China Used Serviceable Material (USM) Market Size was estimated at 430.97 (USD Million) in 2023.The China Used Serviceable Material (USM) Market is expected to grow from 448.64(USD Million) in 2024 to 844.3 (USD Million) by 2035. The China Used Serviceable Material (USM) Market CAGR (growth rate) is expected to be around 5.916% during the forecast period (2025 - 2035).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The market for used serviceable materials (USM) in China is expanding significantly because of the nation's vigorous efforts to promote a circular economy and sustainable practices.
Many sectors are increasingly using reusable materials as a practical substitute for new resources as a result of the Chinese government's emphasis on waste reduction and environmental preservation.
In addition to being a reaction to legal requirements, this push for sustainability also reflects consumers' increased consciousness of the effects on the environment. As enterprises look to cut costs and improve supply chain efficiency, there are many opportunities in the China USM market.
Major USM users, the automobile and aerospace industries, are looking into ways to reduce operating costs by recycling and reusing materials. This change not only increases profitability but also assists businesses in meeting national recycling and resource optimization targets.
Furthermore, China's growing e-commerce has increased demand for packaging materials, which in turn has increased the need for recyclable and serviceable materials across a range of industries.
Innovation in processing technologies to improve the quality of used materials has been a prominent theme in recent years. Technology is increasingly being invested in to improve USM sorting, grading, and processing.
The market for USM is anticipated to witness additional developments that enhance the usage of these materials as China intensifies its emphasis on advanced manufacturing. These patterns demonstrate how USM is increasingly seen as both an affordable substitute and an essential part of building a more robust and sustainable Chinese industry.
As the Chinese government increasingly emphasizes sustainability and environmental protection, there has been a notable surge in demand for used serviceable materials (USM).
The Ministry of Ecology and Environment in China has reported a 30% increase in policies promoting the recycling and reuse of materials over the last five years. This regulatory encouragement aligns with global trends in sustainability, pushing industries to adopt USM in their operations.
Moreover, many Chinese manufacturers are now integrating recycled materials to meet both government requirements and consumer preferences for eco-friendly products.
This dynamic shift stands to significantly enhance the growth of the China-used Serviceable Material (USM) Market as businesses invest more in sustainable practices to align with national policies and meet international environmental standards.
China has long been known as the 'world's factory' and continues to maintain a robust manufacturing sector. In 2022, the National Bureau of Statistics of China reported that the industrial output growth rate reached approximately 6.5%, indicating an ongoing demand for raw materials.
As manufacturing activities intensify, the need for used serviceable materials also climbs as manufacturers look for cost-effective and sustainable solutions to source materials.
By using USM, companies not only save on production costs but also reduce their carbon footprint. This increasing reliance on USM is particularly evident in sectors such as automotive and electronics, where raw material costs continue to rise. The escalation of manufacturing in China will hence drive sectoral growth, solidifying the prospects of the China-used Serviceable Material (USM) Market.
Government Initiatives Promoting Circular Economy
The Chinese government has officially endorsed the circular economy model, which emphasizes the continuous use of resources. The Circular Economy Promotion Law was enacted to encourage the recycling and repurposing of materials. Since its implementation, there has been a 25% growth in initiatives aimed at promoting the use of USM among manufacturers.
Furthermore, government-backed programs and partnerships with organizations like the State Administration for Market Regulation aim to facilitate a smoother transition toward recycled materials.
These strides not only help reduce waste but also stimulate growth within the China-used Serviceable Material (USM) Market, enabling companies to adopt practices that align with national sustainability goals.
Used Serviceable Material (USM) Market Product Type Insights
The China Used Serviceable Material (USM) Market, a vital segment within the broader aerospace industry, is characterized by its diverse Product Type offerings, which primarily include Engines, Components, and Airframes.
Engines play a crucial role in the USM market, as their complex and expensive nature often leads to a higher demand for serviceable components, reflecting the growing trend towards sustainability and cost-efficiency in aviation.
Components, encompassing various parts necessary for aircraft functionality, are another significant aspect of the market, with a shift towards the procurement of reused parts that meet stringent quality and safety standards, allowing airlines to maintain operational efficiency while reducing expenditure.
The Airframe segment also holds substantial significance, as it entails the aircraft structure itself, which represents a major portion of the asset value in aviation. With increasing focus on the need for more eco-friendly practices, the demand for used serviceable materials from airframes is anticipated to rise, resulting in an impressive market growth trajectory.
Trends within the China Used Serviceable Material (USM) Market reflect the broader industrial shift towards resource recycling and material reuse, aligning with the country's initiatives for sustainable development and efficiency improvement across various industries.
With the aviation sector in China poised for significant expansion, the Product Type segment demonstrates a clear understanding of both market dynamics and emerging opportunities. In recent years, the Chinese government has highlighted the importance of developing the aerospace sector and creating policies that facilitate growth and innovation.
Throughout the years, ongoing investments in aviation infrastructure and increased air travel demand have further solidified the position of engines, components, and airframes as the cornerstones of the Used Serviceable Material market.
The increasing focus on aircraft longevity, paired with the rising costs of new aircraft manufacturing, have led operators to seek high-quality used materials, ultimately transforming the procurement strategies in the aviation industry and contributing to the overall growth of the China Used Serviceable Material (USM) Market.
Market participants are actively adapting to ensure compliance with regulatory standards and evolving consumer preferences, making it essential for stakeholders to streamline supply chains effectively and enhance product offerings in alignment with market demands.
Keeping track of the evolving landscape of the USM sector, companies are engaging in partnerships and collaborations to home in on technological advancements that can assure higher quality standards, expand production capabilities, and ultimately drive China’s efforts towards becoming a competitive player in the global used serviceable material landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Used Serviceable Material (USM) Market Provider Type Insights
China Used Serviceable Material (USM) Market exhibits a diverse provider-type landscape comprising Original Equipment Manufacturers (OEM) and Non-OEM providers, each contributing uniquely to market dynamics.
OEMs play a crucial role as they provide reliable and standardized materials that meet rigorous quality and safety standards, often leading to a preference among clients seeking assurance in performance and longevity. Meanwhile, non-OEM providers typically offer cost-effective solutions that appeal to budget-conscious customers, enabling broader access to necessary materials across various industries.
The balance in this segmentation creates a competitive environment, reflecting the diverse needs within the market. Trends show a growing inclination towards sustainability, with both OEM and non-OEM sectors ramping up efforts to maximize recycling and reduce waste. Regulatory developments in China further influence this sector, pushing for increased accountability in material sourcing and usage.
The ongoing industrial transformation and technological advancements continue to present significant opportunities for growth and innovation within China's Used Serviceable Material (USM) Market as stakeholders align with evolving industry standards and environmental considerations.
In summary, the strategic significance of both OEM and non-OEM providers shapes the overall growth trajectory of the market, reflecting the intricate needs and demands of varying customer segments.
Used Serviceable Material (USM) Market Aircraft Type Insights
The Aircraft Type segment within the China Used Serviceable Material (USM) Market has been a focal point for industry growth, reflecting evolving trends in aviation maintenance and supply chain efficiency. Narrow Body aircraft dominate the landscape due to their widespread use in domestic flight operations, catering to the demand for cost-effective travel solutions.
Wide Body aircraft play a critical role in long-haul flights and are significant for international travel, thus creating a steady demand for USM as operators strive to balance operational costs with performance. Meanwhile, Turboprop aircraft, although smaller in market share, serve specific regional routes, emphasizing the need for readily available parts and materials to maintain operational efficiency.
The overall segmentation illustrates a strategic adaptation to fluctuating travel patterns and operational requirements in China’s aviation sector, underscoring the critical importance of Used Serviceable Material (USM) in sustaining aircraft performance and minimizing maintenance costs across all aircraft types.
As the market continues to mature, there will be increased emphasis on regulatory compliance, efficient remanufacturing processes, and sustainable practices, thus enhancing the value proposition for each segment.
China Used Serviceable Material (USM) Market Key Players and Competitive Insights
The China Used Serviceable Material (USM) Market has been witnessing significant growth due to the increasing demand for cost-effective solutions in the aviation sector. Responding to both environmental concerns and economic constraints, companies have begun to prioritize utilized and refurbished materials to reduce reliance on new parts while maintaining operational efficiency.
This market represents a complex web of players, with competition ranging from well-established airlines to emerging service providers in the aerospace sector. As competition intensifies, understanding the strategic positioning and strengths of each player becomes vital for stakeholders looking to navigate this evolving landscape.
Sichuan Airlines has established a robust presence within the China Used Serviceable Material (USM) Market, leveraging its extensive operational network and solid brand reputation. The airline has focused on optimizing its asset management strategies, allowing for the efficient utilization of serviceable materials derived from retired or surplus aircraft.
By crafting a reliable supply chain ecosystem, Sichuan Airlines has positioned itself to offer a diverse range of serviceable parts to not only support its operational needs but also to cater to third-party clients seeking affordable solutions.
The company’s strengths lie in its skilled workforce and established partnerships within the aerospace industry, enabling it to enhance its market offerings while maintaining quality and reliability.
Air China Limited commands a significant position in the China Used Serviceable Material (USM) Market, driven by its sizeable fleet and extensive operational capabilities. The airline is known for its comprehensive offerings in the aviation sector, including maintenance, repair, and overhaul (MRO) services that feature used and refurbished components.
Air China's strategic investments in mergers and acquisitions have further bolstered its market presence, allowing for expanded access to critical USM resources. With a focus on enhancing sustainability, Air China emphasizes responsible sourcing and refurbishment practices, which resonate with modern aerospace demands.
The company’s strengths include a well-established logistics framework, operational expertise, and a dedicated client base that relies on its trusted services, resulting in a competitive edge in fulfilling the needs of airlines and maintenance organizations in China.
Key Companies in the China Used Serviceable Material (USM) Market Include
China Used Serviceable Material (USM) Market Developments
In recent months, the China Serviceable Material (USM) Market has experienced significant developments, particularly regarding growth and acquisitions within key aviation companies. Sichuan Airlines and Air China Limited reported an increase in market valuation due to rising demand for refurbished components, driven by a post-pandemic recovery in air travel.
In July 2023, Hainan Airlines officially acquired a substantial stake in Xiamen Airlines, enhancing its operational capacity in the USM sector. Meanwhile, Beijing Capital International Airport is working to expand its USM storage facilities to cater to the increasing needs of domestic airlines amid a reported growth in air traffic.
Additionally, China National Aviation Holding Company has been ramping up its USM procurement practices, contributing to a more robust supply chain. Guangzhou Baiyun International Airport and Shanghai Pudong International Airport have also invested significantly in infrastructure for the sustainability of used serviceable materials.
Over the past two to three years, the market has seen a steady uptick, with a noticeable shift towards environmentally responsible practices and improving efficiencies in maintenance, significantly impacting the overall dynamics of the aviation industry in China.
China Used Serviceable Material (USM) Market Segmentation Insights
Used Serviceable Material (USM) Market Product Type Outlook
Used Serviceable Material (USM) Market Provider Type Outlook
Used Serviceable Material (USM) Market Aircraft Type Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 430.97(USD Million) |
| MARKET SIZE 2024 | 448.64(USD Million) |
| MARKET SIZE 2035 | 844.3(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 5.916% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Sichuan Airlines, Air China Limited, Hainan Airlines, Beijing Capital International Airport, China Merchants Industry Holdings Company, China National Petroleum Corporation, Dalian Wanda Group, Xiamen Airlines, China Eastern Airlines, China National Aviation Holding Company, Guangzhou Baiyun International Airport, Shanghai Pudong International Airport, Tianjin Airlines, China Southern Airlines, China National Chemical Corporation |
| SEGMENTS COVERED | Product Type, Provider Type, Aircraft Type |
| KEY MARKET OPPORTUNITIES | Regulatory push for sustainability, Rising demand for cost-effective solutions, Expansion of aerospace and defense sectors, Growth in e-commerce distribution networks, Increased focus on circular economy practices |
| KEY MARKET DYNAMICS | Regulatory compliance challenges, Growing demand for cost-effective solutions, Increasing focus on sustainability, Evolving supply chain dynamics, Technological advancements in refurbishment |
| COUNTRIES COVERED | China |
Frequently Asked Questions (FAQ) :
The China Used Serviceable Material (USM) Market was valued at 448.64 million USD in 2024.
By 2035, the market is expected to reach a value of 844.3 million USD.
The market is expected to grow at a CAGR of 5.916% from 2025 to 2035.
The market is divided into three key segments: Engine, Components, and Airframe.
The Engine segment is projected to be valued at 150.0 million USD in 2024.
The Components segment is expected to reach a market value of 340.0 million USD by 2035.
The Airframe segment is anticipated to be valued at 118.64 million USD in 2024.
Major players in the market include Sichuan Airlines, Air China Limited, and Hainan Airlines, among others.
The growth is primarily driven by the increasing demand for cost-effective aviation solutions and sustainability initiatives.
The market outlook remains positive despite global challenges, supported by increasing transitions to sustainable practices.
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