The US Used Serviceable Material (USM) Market Size was estimated at 1.76 (USD Billion) in 2023. The US Used Serviceable Material (USM) Market is expected to grow from 1.83 (USD Billion) in 2024 to 2.85 (USD Billion) by 2035. The US Used Serviceable Material (USM) Market CAGR (growth rate) is expected to be around 4.1% during the forecast period (2025 - 2035)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key US Used Serviceable Material (USM) Market Trends Highlighted
Significant developments are being observed in the US Used Serviceable Material (USM) Market as a result of businesses and government organizations placing an increasing emphasis on cost effectiveness and sustainability. Organizations are actively working to adopt circular economy principles since the US is under growing pressure to promote recycling and minimize waste.
In the aerospace and defense industries, where the Department of Defense is looking at ways to maximize resources and reduce costs by using second-hand materials, this trend is promoting the use of USM across a range of industries.
As businesses see the opportunity to lower operating costs while still complying with environmental standards, opportunities are opening up in the US market. Businesses are given a platform to innovate in the recycling and refurbishment of discarded materials because to the push for sustainability initiatives.
Government initiatives that promote the use of recovered and recycled materials are also helping the industry expand by promoting the incorporation of USM into new initiatives and business ventures.
Partnerships between government organizations and commercial businesses have increased recently in an effort to expedite the acquisition and use of USM. Through these partnerships, the nation's refurbishing capabilities are growing, and the supply chain is becoming more efficient.
Better tracking and management of useable materials is also made possible by technological improvements, which aids in the decision-making process for companies considering USM investments.
The US Used Serviceable Material Market is well-positioned for future expansion as a result of the general trend toward a more resource-efficient approach and a dedication to sustainable practices.
Growing Focus on Sustainable Practices
In the US Used Serviceable Material (USM) Market, there is a rising emphasis on sustainability and reducing waste in manufacturing processes. According to the United States Environmental Protection Agency, over 292.4 million tons of waste was generated in the US in 2018, with recycling and composting accounting for 35% of that total.
This trend pushes industries to adopt more sustainable practices, leading to an increased demand for used serviceable materials, which allow companies to minimize waste while maximizing resource utilization.
Organizations such as the National Association of Manufacturers advocate for sustainable practices, promoting the advantages of utilizing USM. This growing awareness is projected to significantly influence market growth in the upcoming years as manufacturers look for environmentally friendly solutions that contribute to a circular economy.
Increasing Regulations on Material Usage
The implementation of strict regulations regarding materials used in manufacturing is a vital driver for the US Used Serviceable Material (USM) Market. For example, the Environmental Protection Agency's (EPA) regulations promote the use of recycled and reclaimed materials, encouraging manufacturers to adhere to sustainability goals.
Furthermore, Congress has been actively discussing bills that aim to bolster the promotion of recycled materials in the domestic market, showcasing a clear legislative direction toward recycling.
The rise in compliance requirements and preferences for sustainable materials is likely to accelerate the demand for used serviceable materials, pushing manufacturers to seek out USM solutions that meet these evolving regulations.
Advancements in Material Reclamation Technology
The US Used Serviceable Material (USM) Market is also being driven by rapid advancements in material reclamation technology. These innovations enhance the efficiency of reclaiming, processing, and reselling used materials, making the market more accessible for industries looking to integrate USM into their supply chain.
As the US Department of Energy highlights, the adoption of advanced recycling technologies can increase resource recovery efficiency by up to 90%. This not only improves the quality of available used serviceable materials but also encourages manufacturers to invest in these technologies, driving growth in the USM Market.
Used Serviceable Material (USM) Market Product Type Insights
The US Used Serviceable Material (USM) Market is showing significant engagement through its product type segmentation, comprising key categories such as Engine, Components, and Airframe.
As organizations and industries in the US continue to look for cost-effective solutions for maintaining and refurbishing aircraft, the demand for engine-related parts remains a notable driver in this sector, reflecting strong mechanics that lead to an expanded lifecycle for existing assets.
Components, encompassing a variety of vital parts such as landing gear and avionics, play a critical role as well, often dominating the market due to their essential function in aircraft safety and efficiency.
Moreover, Airframe segments are equally important as they entail the structural integrity of the aircraft, capturing a broad spectrum of materials from fuselage sections to control surfaces that ensure both durability and reliability.
The focus on sustainability and reduced operational costs also supports the growth of the US Used Serviceable Material (USM) Market, as organizations prioritize the reuse of existing materials over new production.
As regulatory frameworks evolve in favor of environmental accountability, the push toward the refurbishment of used materials is fostered, presenting unique opportunities for growth within each category.
The segmentation underscores the diversity in the market, where each type contributes uniquely to the overall market landscape, driven by a combination of operational necessities, safety concerns, and economic benefits.
This segmentation also allows for tailored solutions as aerospace companies adapt to changing technological trends and customer needs, ensuring that the US Used Serviceable Material (USM) Market can thrive in a competitive environment.
The intricacies of these product types illustrate a dynamic interplay between innovation and proven material reliability, serving as a fundamental pillar that supports the advancement of aviation technologies across the nation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Used Serviceable Material (USM) Market Provider Type Insights
The US Used Serviceable Material (USM) Market is characterized by its Provider Type segmentation, which consists of Original Equipment Manufacturers (OEM) and Non-OEM providers. OEMs often dominate the market due to their established brand reputation and ability to provide certified and high-quality serviceable materials.
This segment holds a significant advantage as customers typically prefer OEMs for their reliability and assurance of compatibility with existing systems. Non-OEM providers, on the other hand, cater to a growing demand for cost-effective alternatives, offering serviceable materials that are often less expensive while still meeting quality standards.
The shift toward embracing sustainable practices has led to increased attention on the non-OEM sector as companies seek to reduce waste and lifecycle costs. The market dynamics within these two provider types reflect broader trends in the US economy, where industrial sectors are increasingly focusing on resource optimization and sustainability.
As such, the Provider Type segment of the US Used Serviceable Material (USM) Market plays a crucial role in meeting diverse customer needs while adapting to changing market realities.
Used Serviceable Material (USM) Market Aircraft Type Insights
The Aircraft Type segment within the US Used Serviceable Material (USM) Market represents a critical component of the overall aviation supply chain, particularly in the context of aging fleets and the increasing demand for cost-effective maintenance solutions.
Narrow Body aircraft, traditionally favored by airlines for their operational efficiency and versatility, are a significant contributor to the USM market, as they require consistent access to affordable serviceable parts to minimize downtime.
In contrast, Wide Body aircraft serve long-haul routes and present opportunities for suppliers focusing on larger components and complex systems due to their extensive service life and higher repair costs.
Meanwhile, Turboprop aircraft, often utilized for regional flights, hold a unique position in the market, driven by their fuel efficiency and capability to operate on shorter runways, thus necessitating a specialized inventory of Used Serviceable Material.
Factors such as rising air travel demand, coupled with regulatory requirements for safety and maintenance, are driving growth across all aircraft types, making this segment pivotal in fulfilling the increasing need for sustainable and economical aviation operations in the US.
The US Used Serviceable Material (USM) Market is characterized by a dynamic environment where various competitors are actively striving to capitalize on the growing demand for refurbished components in the aerospace and defense industries.
The market trends are influenced by several factors, including increased focus on sustainability, cost-effectiveness of using serviced parts, and an upsurge in air travel leading to higher maintenance needs. In this sector, companies compete on their ability to provide high-quality, certified used components that not only meet regulatory standards but also ensure operational efficiency for end-users.
As advancements in technology and supply chain management evolve, companies within the USM market are adapting to maintain their competitive edge through innovation, strategic partnerships, and comprehensive service offerings.
CAV Aerospace has established a notable presence in the US Used Serviceable Material (USM) Market, making significant strides with its extensive portfolio of products and services tailored to meet the specific needs of aviation operators and MRO (Maintenance, Repair, and Overhaul) providers.
The company's strengths lie in its commitment to quality assurance and regulatory compliance, which resonate well with clients seeking reliable and durable refurbished components. By leveraging its expertise in the aerospace sector, CAV Aerospace has built strong relationships with key players and developed a reputation for delivering customer-centric solutions.
Its strategic initiatives involve regular engagement with customers to understand their evolving requirements, positioning the company effectively to address the growing challenges and demands within the USM market.
United Technologies has a significant foothold in the US Used Serviceable Material (USM) Market, recognized for its extensive array of aerospace products and services that cater to both commercial and military aircraft segments.
The company's strengths include a broad portfolio that encompasses auxiliary power units, landing gear components, and various avionics solutions, all of which play crucial roles in maintaining the operational efficiency of aircraft.
With a robust market presence bolstered by strategic mergers and acquisitions, United Technologies has enhanced its capabilities and product offerings within the US, thus increasing customer reliance on its services.
The commitment to research and development further underpins the company's ability to innovate and adapt to market trends, ensuring that its used serviceable materials align with evolving industry standards and regulatory requirements. This proactive approach solidifies United Technologies' market position, enabling it to acquire a competitive advantage in the dynamic landscape of the US USM market.
Recent developments in the US Used Serviceable Material (USM) Market indicate a dynamic environment, with several companies adjusting their strategies in response to rising demand for remanufactured components.
Companies like CAV Aerospace and AAR Corp are expanding their facilities to meet the growing needs of the aerospace sector. Moreover, significant growth in the market valuation is noted, fueled by increasing aircraft utilization and a notable shift toward sustainability within the industry.
As for mergers and acquisitions, there has been a notable acquisition of Collins Aerospace by Raytheon in March 2020, strengthening their market presence in the defense sector. In addition, Honeywell's strategic collaborations with eco-friendly technologies are also noteworthy.
The ongoing market changes are reflective of broader trends in the aerospace and defense sectors, driven by government initiatives promoting the use of US-manufactured components.
Over the last two years, companies such as Northrop Grumman and Boeing have reported increases in their remanufactured products, contributing to their competitive positions and overall growth. The US government's push for modernizing military and commercial fleet capabilities remains a crucial factor affecting the USM landscape.
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 | Details |
| Market Size 2018 | 1.76(USD Billion) |
| Market Size 2024 | 1.83(USD Billion) |
| Market Size 2035 | 2.85(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 4.1% (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 Billion |
| Key Companies Profiled | CAV Aerospace, United Technologies, Huntington Ingalls Industries, Magellan Aerospace, Safran, AAR Corp, Honeywell, L3Harris Technologies, Northrop Grumman, Raytheon, Collins Aerospace, Boeing, General Electric, VEI Group, Rockwell Collins |
| Segments Covered | Product Type, Provider Type, Aircraft Type |
| Key Market Opportunities | Increased demand for cost-effective solutions, Growing focus on sustainability initiatives, Expanding aerospace and defense sectors, Rise in the remanufacturing market, and Enhanced technological advancements in inventory management. |
| Key Market Dynamics | Regulatory compliance requirements, Cost-effective sourcing solutions, Increasing demand for sustainability, Supply chain disruptions, Technological advancements in refurbishment |
| Countries Covered | US |
Frequently Asked Questions (FAQ) :
The US Used Serviceable Material Market was valued at 1.83 billion USD in 2024.
By 2035, the US Used Serviceable Material Market is anticipated to reach a value of 2.85 billion USD
The market is expected to grow at a CAGR of 4.1 percent from 2025 to 2035.
The Engine segment was the largest, valued at 0.7 billion USD in 2024.
The Engine segment is expected to increase to 1.1 billion USD by 2035.
The Components segment was valued at 0.55 billion USD in 2024.
The Airframe segment is projected to reach a value of 0.9 billion USD by 2035.
Major players include United Technologies, Boeing, and Honeywell.
Growing demand for cost-effective aerospace solutions is driving opportunities in the market.
Current global scenarios may pose operational challenges and affect supply chains in the market.
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Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
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