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The Used Serviceable Material (USM) market, operating within the aerospace and defense industries, is influenced by diverse factors that shape its dynamics, growth trajectory, and competitive landscape. These include economic issues, technological advancement, regulating environment, sustainability issues, customer demands and industry alliances respectively.
The USM market is driven by economic components. Another important driver under USM components they are cost effective compared to the new OEM (Original Equipment Manufacturer) parts. The idea of seeking cheaper alternatives that provide quality componentry is triggered by economic pressures as well as budget and cost-saving constraints experienced by aerospace and defense entities. USM is the valid answer which can help organization to reduce cost of maintenance and repair but without affecting safety and performance of airplane that they use.
USM market is affected much by technology advancements. Development of modern remediation methods and test protocols alongside improvements in reverse engineering capabilities facilitate an upgrade in the quality of the USM constituents. Nevertheless, improvements in refurbishing processes guarantee that USM components match OEM standards at minimum; this provides longer operation life and reliability of operation. Technological innovation continues to be an important driver of differentiation for USM providers, enabling them to competitively position their solutions.
Within the USM market, regulatory structures, as well as overall standards of compliance, are sculpturing the landscape of the market. The certification and safety standards for aviation components are subject to structural regulations such as those imposed by the Federal Aviation Administration (FAA) or European Union Aviation Safety Agency (EASA). USM providers need to comply with these regulations, thus, making refurbished parts to meet high standards safety and quality standards to get a customer’s approval and gain regulatory approval.
Sustainability initiatives and environmental issues likewise read into the USM market. Increase in the pressure of reducing carbon footprint and waste thereby propelling the market growth of aerospace and defense industries, acting as a catalyst. USM assists in sustainability initiatives, as the components are preserved, thereby eliminating the need for new manufacturing, and ensuring it minimizes the production of wastes. Serviceable material reuse and refurbishment gives fit environmental goals; as such USM has been appealing to institutions who are driven by environmental objectives.
Market demand controlled by customer preferences and collaborative efforts from industry of the USM sector. Customer demand for reliable, cost-effective, and readily available components drives the growth of the USM market. USM providers that prioritize customer satisfaction, offer personalized services, and tailor solutions to meet specific requirements gain a competitive edge. Collaborations and partnerships with OEMs, MRO (Maintenance, Repair, and Overhaul) providers, or industry stakeholders foster knowledge exchange, technological advancements, and market reach, shaping the USM market landscape.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2023 | USD 7.183 Billion |
| Growth Rate | 4.10% (2024-2032) |
Used Serviceable Material Market Highlights:
Used Serviceable Material (USM) Market Overview
Used Serviceable Material (USM) Market Size was valued at USD 7.1829 Billion in 2023. The used serviceable material (USM) market industry is projected to grow from USD 7.4773989 Billion in 2024 to USD 10.3123201131109 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.10% during the forecast period (2024 - 2032). The increased number of retired aircraft and the demand for MRO services are the main market drivers of the rise of used serviceable material (USM) resources. Increased market demand is caused by strongly emphasizing aviation safety and aircraft modernization programs.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Used Serviceable Material (USM) Market Trends
- Increased use of USM during aircraft repair and maintenance is driving the market growth
As the cost of running the aircraft is already rising due to the rise in fuel prices, replacing damaged parts with new ones will incur significant costs. Because it provides reconditioned, extremely reliable parts at a cheaper price, the used serviceable material (USM) business has thus begun to grow. For instance, AAR Corporation and Fortress Transportation and Infrastructure Investors announced a deal focusing on the modular repair and refurbishment of CFM56-7B and CFM56-5B engines in 2020. Additionally, for the distribution of USM in 2021, Next Level Aviation has teamed up with the producer of aviation engines, Pratt & Whitney CSA. Boeing also added the used serviceable material business sector to its service portfolio in 2019. As a result, the market CAGR for used serviceable material (USM) is expected to grow due to the increased use of USM during aircraft repair and maintenance.
The demand for commercial aircraft operating in the world's airspace is extremely high. This forces the military and aviation industries to maintain fleets equipped with the most advanced technology and reliable components. The aviation sector is currently characterized by a major trend involving refurbishing existing commercial aircraft. Over the forecast period, the trend is anticipated to pick up steam, creating a wealth of potential for MRO and suppliers of aviation components. Among other things, airplanes are being updated with new engines, landing gears, radars, and antennas. The USM suppliers guarantee the availability of key aviation components at lower costs and improved dependability, raising interest among aircraft manufacturers. As a result, these programs increase demand for air transportation USM because there are low-cost alternatives on the market. Additionally, various aviation sector stakeholders have entered the USM market for air travel. Aircraft OEMs, component suppliers, and MOs have all entered the industry, fostering its expansion. Thus, driving the used serviceable material (USM) market revenue.
Used Serviceable Material (USM) Market Segment Insights
Used Serviceable Material (USM) Product Type Insights
The used serviceable material (USM) market segmentation, based on product type includes engine, components and airframe. The engine segment dominated the market mostly due to rising wide-body engine part demand from engine MROs. Engine OEMs like General Electric and Pratt & Whitney significantly dominate the market for USMs based on engines. By acquiring parts and integrating them into the customer's engine using their expertise, these businesses ensure that the cost of the engine remains cheaper than that of newer engines.
Used Serviceable Material (USM) Provider Type Insights
The used serviceable material (USM) market segmentation, based on provider type, includes OEM and non-OEM. The non-OEM category generated the most income. MRO service companies and suppliers of specialty components make up the non-OEM category. Buying an airplane is to keep it in service for a longer period. Therefore, fleets of older aircraft that have been in service for more than 10 years or more are still without the most recent technological advancements.
Figure 1: Used Serviceable Material (USM) Market by Provider Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Used Serviceable Material (USM) Aircraft Type Insights
The ly used serviceable material (USM) market segmentation, based on aircraft type, includes narrow body, wide body and turboprop. The wide body category generated the most income due to the gradual expansion of long-haul travel and the demand for newer, more efficient wide-body aircraft programs, such as the A350 and B787, replacing aging A330ceos and B777s. In addition, airlines will be entirely focused on lowering material costs as air traffic begins.
Used Serviceable Material (USM) Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American used serviceable material (USM) market area will dominate this market. The US and Canada are the two most important nations in this region. The US government is making significant investments in the infrastructure needed for USMs for commercial and defence applications to improve operational accuracy, shorten operational times, and lower risk factors. During the anticipated period, the region's market for used serviceable material (USM) would expand due to increased aircraft and aftermarket parts.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: USED SERVICEABLE MATERIAL (USM) MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe used serviceable material (USM) market accounts for the second-largest market share. The presence of numerous aircraft manufacturers, component manufacturers, MRO providers, and particularly component suppliers is due to this region's expansion. Furthermore, the key drivers of expanding the used serviceable material market size in the European region are the rise in commercial aircraft production and the rise in aftermarket MRO providers for aircraft. Further, the German used serviceable material (USM) market held the largest market share, and the UK used serviceable material (USM) market was the fastest growing market in the European region
The Asia-Pacific Used serviceable material (USM) Market is expected to grow at the fastest CAGR from 2023 to 2032 because of the expansion of the fleet of commercial airplanes. The largest fleet size is another factor in the increase. Asia's emerging economies have experienced the quickest fleet increase in several years, eventually elevating the area to the top of the market. China, Japan, and India are among the nations that make up these regions, and they significantly contribute to their expansion and size. Moreover, China’s used serviceable material (USM) market held the largest market share, and the Indian used serviceable material (USM) market was the fastest growing market in the Asia-Pacific region.
Used Serviceable Material (USM) Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the used serviceable material (USM) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, used serviceable material (USM) industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the used serviceable material (USM) industry to benefit clients and increase the market sector. In recent years, the used serviceable material (USM) industry has offered some of the most significant advantages to market. Major players in the used serviceable material (USM) market attempting to increase market demand by investing in research and development operations include Delta TechOps (US), Collins Aerospace (US) and Aviall (US).
The MRO section of Delta Air Lines, known as Delta TechOps (Technical Operations), has its main office at Atlanta, Georgia's Hartsfield-Jackson International Airport. The more than 900 airplanes that make up the Delta Air Lines fleet are maintained by Delta TechOps, which has more than 9,600 people and 51 maintenance stations located all over the world. Delta TechOps is the second-largest MRO provider in North America and the seventh-largest ly. In addition to servicing the Delta Air Lines fleet, it offers MRO solutions and support to more than 150 third-party operators ly.
Collins Aerospace is a division of the worldwide aerospace and defence technology company Raytheon Technologies Corp.. The business offers, among other things, displays, information management systems, flight control, and electrical goods. Additionally, it provides services including upkeep, repairs, components, and post-purchase assistance. Applications in both the public and private sectors use the systems and goods from Collins Aerospace. UTC Aerospace Systems and Rockwell Collins came together to form Collins Aerospace.
Key Companies in the used serviceable material (USM) market include
- Delta TechOps (US)
- Collins Aerospace (US)
- Aviall (US)
Used Serviceable Material (USM) Industry Developments
November 2019: The True Choice; Overhaul contract between SAFAIR and GE Aviation for the upkeep, repair, and overhaul of the CFM56-7B engines that drive its Boeing 737-800 planes fleet was extended and enlarged. Throughout the arrangement, the new one is worth more than $70 million (USD).
October 2019: AFI KLM E&M is establishing a specialized business to find airplanes and manage their dismantling so that the assets recovered may be used to assist its maintenance operations.
Used Serviceable Material (USM) Market Segmentation
Used Serviceable Material (USM) Product Type Outlook
- Engine
- Components
- Airframe
Used Serviceable Material (USM) Provider Type Outlook
- OEM
- Non-OEM
Used Serviceable Material (USM) Aircraft Type Outlook
- Narrow Body
- Wide Body
- Turboprop
Used Serviceable Material (USM) Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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