GCC Used Serviceable Material (USM) Market Size was estimated at 233.44 (USD Million) in 2023.The GCC Used Serviceable Material (USM) Market is expected to grow from 243.02(USD Million) in 2024 to 400.0 (USD Million) by 2035. The GCC Used Serviceable Material (USM) Market CAGR (growth rate) is expected to be around 4.635% during the forecast period (2025 - 2035).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The market for used serviceable materials (USM) in the GCC is expanding significantly due to a number of causes. The region's growing emphasis on sustainability is one of the main factors propelling the market.
In line with their larger environmental objectives, the governments of the GCC nations are enforcing stringent laws and providing incentives to encourage recycling and material reuse.
Additionally, as companies look for affordable material solutions, the economic diversification initiatives being adopted by countries like Saudi Arabia and the United Arab Emirates are increasing demand for USM.
The increasing number of collaborations between the public and commercial sectors concentrating on material recovery and waste management is one of the market's opportunities. The USM market might be further supported by initiatives targeted at creating effective waste processing facilities.
Furthermore, the GCC's logistics and transportation industries are expanding steadily, which creates an ideal environment for USM businesses to thrive. This makes it simpler to distribute and obtain usable materials.
In order to improve transparency and cut waste, there has been a recent trend toward the usage of digital platforms for tracking and selling spent materials. In order to better manage USM supply chains, businesses are embracing technology innovations like blockchain and IoT.
This trend guarantees that resources are supplied responsibly while also speeding up the material procurement process. The drive to increase USM commerce and awareness will probably intensify as GCC countries continue to place a high priority on a circular economy, setting up the sector for future expansion and innovation.
The GCC Used Serviceable Material (USM) Market is witnessing significant growth due to the expanding aviation sector in the region. The Gulf Cooperation Council (GCC) has seen a robust growth in air travel, with passenger traffic projected to grow at an average annual rate of 5.4% in the coming years.
For instance, airports in the UAE and Saudi Arabia are investing heavily in infrastructure, facilitating an increase in aircraft operations. Major players like Emirates and Qatar Airways are continually expanding their fleets, resulting in a higher turnover of aircraft parts and materials.
This accumulation of used serviceable materials drives demand in the USM market, as airlines prefer to utilize reliable refurbished parts to maintain operational efficiency and reduce maintenance costs.
With the rising need for cost-effective solutions in aircraft maintenance and repair, the GCC Used Serviceable Material (USM) Market is anticipated to thrive, reflecting the significant potential for growth attributed to the aviation industry.
Governments in the GCC region are increasingly promoting sustainability and environmental awareness, which is acting as a major catalyst for the GCC Used Serviceable Material (USM) Market.
For example, Saudi Arabia's Vision 2030 and the UAE's National Agenda emphasize the importance of recycling and reusing resources to minimize waste. These initiatives encourage companies to adopt practices that focus on sustainability, thereby increasing the demand for USMs.
The effective policy frameworks and regulations designed to promote renewable practices would drive up the consumption of used serviceable materials in various industries, including aviation and manufacturing, as organizations look to align with governmental sustainability goals, leading to significant market growth.
The consistent rise in the cost of new aircraft components is boosting the GCC Used Serviceable Material (USM) Market. Aircraft parts often face steep price increases due to global supply chain disruptions and increased demand spurred by rising air traffic. Consequently, airlines and maintenance facilities are being pushed to seek alternative sources for parts, such as USM.
The replacement cost for engine components and electronic systems can reach millions of dollars, prompting organizations to turn to certified used parts as a cost-effective solution. This trend is particularly prevalent in the GCC, where airlines are tasked with maintaining competitiveness while managing operational costs, further enhancing the demand for materials that are serviceable.
The Product Type segment of the GCC Used Serviceable Material (USM) Market plays a crucial role in determining the overall dynamics and revenue generation within this market. Focused on essential elements such as Engine, Components, and Airframe, this segment reflects the diverse applications of USM across various sectors, particularly aviation and defense.
The Engine segment is recognized for its significant contribution, as engines can be refurbished and re-certified at a fraction of the cost of new units, making them highly attractive to operators looking to manage budgets effectively.
Components, which include various aircraft parts such as landing gear and avionics, also hold considerable importance as they can be repaired and reused, endowing operators with the advantage of extending asset life without incurring prohibitive costs related to new purchases.
Furthermore, the Airframe category dominates the market due to the substantial investment associated with airframe structures and the growing preference for sustainable practices in aviation. In the GCC region, the push for modernization and cost-efficiency within airline operations is driving the demand for USM.
Initiatives by regional governments to promote sustainability in aviation further enhance the relevance of the Product Type segment. This shift towards used serviceable materials not only optimizes cost-efficiency but also aligns with global trends towards environmental conservation, showcasing a growing awareness of resource recovery.
As these sub-segments precipitate growth, they also navigate challenges like stringent regulatory environments and the need for continuous quality assurance, which, when effectively managed, can provide significant opportunities for expansion in the GCC Used Serviceable Material (USM) Market.
The increasing reliance on used material due to economic pressures and environmental considerations paints a promising picture for the evolution of the Product Type segment in the years to come, thereby cementing its significance in the global market landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The GCC Used Serviceable Material (USM) Market displays a compelling division into Provider Types, mainly comprising OEM and Non-OEM.
The OEM segment typically leads the market, owing to its association with quality and reliability, particularly in industries where regulatory compliance and safety are crucial. In the GCC, where stringent standards are enforced, customers often trust OEM products for their proven track record.
Conversely, the Non-OEM segment has been gaining traction due to its cost-effective solutions and variety, appealing to businesses looking to optimize budgets without compromising too much on quality.
This segment often serves a broader array of sectors, which further diversifies the GCC Used Serviceable Material (USM) Market landscape. The ongoing trend towards sustainable practices has also driven market dynamics, as both provider types are under pressure to implement eco-friendly practices, offering significant growth opportunities.
Moreover, technological advancements are influencing the offerings, with an emphasis on digital platforms for better accessibility of services and materials, shaping consumer preferences as market competitiveness intensifies.
The Aircraft Type segment within the GCC Used Serviceable Material (USM) Market encompasses a variety of aircraft categories, notably narrow-body, wide-body, and Turboprop planes.
Narrow Body aircraft have a substantial presence in the market due to their efficiency in domestic and regional flights, making them significant in cost-saving measures for airlines. Their lightweight design contributes to lower fuel consumption, thereby enhancing their appeal in the competitive GCC aviation sector.
On the other hand, Wide-body aircraft, essential for long-haul operations, consist of more advanced technologies and higher capacity, which continuously drives demand for USM as airlines seek to maintain operational efficiency and serviceability.
Lastly, Turboprop aircraft present a viable option for short-haul routes, offering versatility and lower operational costs, which further adds to the diversity of the GCC Used Serviceable Material (USM) Market.
The growth in aviation traffic within the GCC due to tourism and business travel serves as a vital driver for this segment, indicating the potential for increasing demand for used serviceable materials to keep fleets efficient and reliable.
GCC Used Serviceable Material (USM) Market Key Players and Competitive Insights
The GCC Used Serviceable Material (USM) Market is characterized by its complexity and competitive dynamics, driven by a growing demand for sustainability and efficient resource management among various industries.
The market includes a range of players, including manufacturers, service providers, and recyclers who specialize in providing refurbished or reclaimed materials for various applications, including construction, manufacturing, and energy.
Companies operating in this space are increasingly adopting innovative strategies to enhance their service offerings and improve operational efficiency, as well as focusing on environmental regulations and the need to reduce waste. This environment has fostered a competitive landscape where differentiation through quality, reliability, and technological advancements is paramount.
Veolia has established a formidable presence in the GCC Used Serviceable Material (USM) Market, positioning itself as a leader in waste management and resource recovery services. The company leverages its extensive expertise in environmental services to provide innovative solutions tailored to the unique demands of the GCC region.
Veolia’s strengths lie in its comprehensive approach to sustainability, including waste reduction strategies and the efficient recycling of materials. By utilizing state-of-the-art technology and methods, Veolia has successfully created a robust network of operations across the GCC that enhances its effectiveness in managing USM.
The company's commitment to quality and compliance with local regulations has reinforced its reputation as a reliable partner for organizations seeking to optimize resource use and minimize environmental impact.
Abu Dhabi National Oil Company plays a significant role in the GCC Used Serviceable Material (USM) Market, leveraging its vast experience in the oil and gas sector. The company is known for its strategic focus on enhancing sustainability practices and has been increasingly involved in the reprocessing and recycling of materials derived from its operations.
Its key services in the USM space include the recovery of valuable materials from decommissioned assets and waste management solutions tailored to the energy sector. The company's strong presence in the GCC is further strengthened through various partnerships and collaborations, aimed at promoting resource efficiency in alignment with environmental regulations.
Abu Dhabi National Oil Company has also engaged in mergers and acquisitions that allow it to expand its capabilities and market reach, thereby reinforcing its competitive edge in the USM landscape within the region.
GCC Used Serviceable Material (USM) Market Developments
Recent developments in the GCC Used Serviceable Material (USM) Market reflect a growing focus on sustainability and resource optimization among major players. Companies like Veolia and Engie are increasingly collaborating on waste management and recycling initiatives to promote the circular economy, with significant investments aimed at enhancing serviceable material recovery.
In a notable transaction reported in September 2023, Abu Dhabi National Oil Company (ADNOC) entered into a joint venture with General Electric to improve manufacturing capabilities related to serviceable materials, enhancing operational efficiencies.
Additionally, Qatar Petroleum has made headlines for its efforts in reducing environmental impact through upgraded serviceable materials in their production processes.
The market has seen a valuation increase attributed to regulatory support from governing bodies in the GCC, promoting the use of recycled materials and sustainable practices, which has led companies like SABIC and Saudi Arabian Oil Company to ramp up their USM strategies significantly.
In the past two to three years, key happenings include the merger of Petrofac and Wood PLC in early 2022, which has consolidated their positions in the market. Overall, the focus on sustainability and innovative partnerships underscores the dynamic nature of the GCC USM Market.
GCC 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 | 233.44(USD Million) |
| MARKET SIZE 2024 | 243.02(USD Million) |
| MARKET SIZE 2035 | 400.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.635% (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 | Veolia, Abu Dhabi National Oil Company, Qatar Petroleum, Al Jomaih Energy and Water Company, Engie, Saudi Arabian Oil Company, Kuwait Oil Company, SABIC, Bahrain National Oil Company, Schneider Electric, Wood PLC, Petrofac, General Electric, Oman Oil Company, Gulf Petrochemicals Industries Company |
| SEGMENTS COVERED | Product Type, Provider Type, Aircraft Type |
| KEY MARKET OPPORTUNITIES | Growing aerospace industry demand, Increasing regulatory support, Rising focus on sustainability, Expanding repair and refurbishment services, Strengthening regional supply chains |
| KEY MARKET DYNAMICS | Growing sustainability awareness, Regulatory compliance pressure, Increasing remanufacturing demand, Rising cost of raw materials, Expanding industrial applications |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ) :
The GCC Used Serviceable Material (USM) Market is expected to be valued at 243.02 million USD in 2024.
By 2035, the GCC Used Serviceable Material (USM) Market is anticipated to reach 400.0 million USD.
The expected CAGR for the GCC Used Serviceable Material (USM) Market from 2025 to 2035 is 4.635%.
In 2024, the 'Components' segment is anticipated to lead the market, valued at 90.0 million USD.
The Engine segment of the GCC Used Serviceable Material (USM) Market is expected to be valued at 130.0 million USD in 2035.
The main applications include engines, components, and airframes within the aerospace and energy sectors.
Notable players in the market include Veolia, Abu Dhabi National Oil Company, and Saudi Arabian Oil Company.
The market size for the Airframe segment is expected to reach 73.02 million USD in 2024.
The GCC Used Serviceable Material (USM) Market is poised for growth, driven by rising demand in the energy sector and the need for cost-effective solutions.
Challenges include regulatory compliance and fluctuating oil prices impacting the energy sector demand.
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