Air Transport Used Serviceable Material Market 2025–2033

Key Insights into the Air Transport Used Serviceable Material Market

The global Air Transport Used Serviceable Material Market was valued at $7.9 billion in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 4.31% through the forecast period of 2025–2033. This sustained growth trajectory reflects the increasing operational and economic pressures on commercial carriers, MRO providers, and lessors to optimize maintenance expenditure while ensuring airworthiness compliance.

Used serviceable materials (USMs) — which include engines, airframe components, avionics, and auxiliary systems harvested from retired or parted-out aircraft — represent a cost-effective alternative to new original equipment manufacturer (OEM) parts. With new aircraft delivery backlogs at major OEMs extending beyond five years in some categories, airlines and MRO facilities are increasingly turning to the USM supply chain to bridge the gap. This macro tailwind is one of the most powerful demand drivers shaping the market through 2033.

The post-pandemic recovery in global air traffic has been a central catalyst. The International Air Transport Association (IATA) reported that global revenue passenger kilometers (RPKs) surpassed pre-pandemic levels by 2023, accelerating the aging of older-generation aircraft that are now candidates for part-out. Aircraft types such as the Boeing 737NG, Airbus A320ceo, and wide-body platforms like the Boeing 777-200 are increasingly entering part-out programs, generating high-value USM inventory.

From a segment perspective, engine USMs command the largest revenue share, driven by the extraordinarily high cost of new powerplant procurement and the extensive serviceable life of certified engine modules. Component USMs — encompassing landing gear, avionics, and hydraulic assemblies — form the second-largest category by value.

Geographically, North America remains the most mature market, bolstered by a dense ecosystem of part-out specialists, MRO operators, and aviation regulators with well-defined airworthiness directives (ADs) for USM re-certification. Asia-Pacific is the fastest-growing region, driven by rapid fleet expansion and the parallel need for cost-efficient maintenance solutions in emerging aviation markets such as India and Southeast Asia.

Key players including Delta Material Services, AAR Corporation, GA Telesis LLC, and Lufthansa Technik are scaling USM trading and certification capabilities. The competitive landscape is also shaped by the Aviation Aftermarket Services Market dynamics, with consolidation activity intensifying as larger entities acquire part-out specialists to vertically integrate supply chains.

Looking ahead, the market's forward trajectory will be shaped by regulatory harmonization across jurisdictions, digital traceability platforms for USM provenance documentation, and the emergence of sustainability mandates that incentivize circular-economy approaches in aviation — all contributing to a structurally robust demand environment through 2033.

Engine Segment Dominance in the Air Transport Used Serviceable Material Market

The engine segment holds the commanding revenue position within the Air Transport Used Serviceable Material Market, accounting for an estimated share exceeding 40% of total market value in 2024. This dominance is underpinned by several structural factors that are unlikely to erode materially over the forecast horizon.

Aircraft engines are among the most capital-intensive components in commercial aviation. A single new CFM56-7B engine — the workhorse of the Boeing 737NG — carries a list price in the range of $10–14 million, while new-generation LEAP-1A and LEAP-1B powerplants command even higher valuations. For carriers operating on thin margins, the ability to source serviceable engine modules, life-limited parts (LLPs) with remaining cycles, and rotable engine accessories at 40–60% of new-part cost is a compelling proposition. This price arbitrage is the principal economic rationale for the engine USM segment's market leadership.

The Aircraft Engine MRO Market is deeply intertwined with USM engine activity. Shop visit volumes, driven by on-condition maintenance and time-based overhaul intervals, generate consistent demand for used serviceable engine modules. Airlines and MRO shops routinely acquire used engines as "feedstock" to harvest modules with sufficient remaining service life for installation into overhauled engines — a practice known as the "power-by-the-hour" shop visit support model.

Major players anchoring the engine USM segment include General Electric's aviation division, which maintains a broad portfolio of used engine assets; Pratt & Whitney, which supports its PW4000 and V2500 legacy engine families through USM channels; and AFI KLM E&M, whose part-out operations and engine teardown capabilities generate significant USM inventory. GA Telesis LLC and AAR Corporation are also highly active in engine USM trading, with both firms operating dedicated teardown facilities.

The supply side of engine USMs is primarily fueled by the accelerated retirement of older-generation aircraft. The global fleet of A320ceo and 737NG aircraft is in progressive retirement as operators transition to neo and MAX variants. Airlines and lessors are increasingly choosing to part out aircraft that would otherwise require expensive C-checks or D-checks, channeling the resulting engine and module inventory into the USM marketplace.

On the demand side, MRO shops in emerging markets — particularly in Asia-Pacific, the Middle East, and Latin America — are voracious consumers of engine USMs. Regional carriers operating narrow-body fleets with limited MRO budgets find USM engine support particularly attractive. The Aerospace MRO Market, which underpins the bulk of engine USM demand, was valued at over $80 billion globally in recent estimates and continues to expand in line with fleet growth.

The engine segment's share is expected to remain stable or slightly consolidate as wide-body retirements pick up pace in the mid-2020s, with GE90 and Trent 800 engines from retiring 777-200ER aircraft entering part-out streams. This will broaden the engine USM inventory available in the market, potentially compressing unit prices for specific engine families while increasing overall market volume. Regulatory frameworks from the FAA, EASA, and equivalent bodies provide clear airworthiness certification pathways for engine USMs, reducing adoption friction and supporting sustained segment dominance through 2033.

Key Market Drivers and Constraints Shaping the Air Transport Used Serviceable Material Market

Several high-impact drivers and structural constraints define the competitive and demand dynamics of the Air Transport Used Serviceable Material Market.

Driver 1 — OEM Delivery Backlogs and New Part Scarcity: Boeing and Airbus collectively held order backlogs exceeding 14,000 aircraft as of early 2024, translating into delivery wait times of 7–10 years for certain aircraft types. This supply constraint on new aircraft forces airlines to extend the operational life of existing fleets, directly amplifying demand for USMs as cost-effective maintenance inputs. The Commercial Aircraft Components Market is under parallel strain, with new OEM part lead times for select avionics and structural components extending to 18–24 months, further incentivizing USM adoption.

Driver 2 — Fleet Retirement Wave: The global retirement of legacy aircraft has accelerated. According to industry tracking data, more than 4,000 aircraft were in storage or in various stages of part-out by 2023–2024. Each retirement candidate is a potential source of hundreds of serviceable components. This structural supply input ensures USM inventory availability remains robust.

Driver 3 — Airline Cost Optimization Pressures: Operating margins for commercial carriers remain under pressure from fuel price volatility and labor cost inflation. USMs typically offer 40–70% savings versus new OEM parts for equivalent serviceable life, making them a preferred procurement option for cost-conscious maintenance departments.

Constraint 1 — Regulatory and Documentation Complexity: USMs must meet stringent airworthiness certification requirements. FAA Form 8130-3 and EASA Form 1 documentation chains must be traceable and unbroken. Any gap in provenance documentation renders a part unserviceable for certified use, creating significant supply-side friction. This documentation burden disproportionately affects smaller part-out operators.

Constraint 2 — Digital Traceability Investment Costs: The transition toward blockchain-based and digital ledger traceability systems — while reducing fraud risk and documentation errors — requires significant capital investment from USM traders and MRO providers. Firms that cannot absorb these costs face competitive disadvantage.

Constraint 3 — Geopolitical Trade Barriers: Export control regulations (ITAR, EAR) and bilateral aviation safety agreements (BASAs) complicate cross-border USM trade, particularly for defense-adjacent components and certain avionics systems, adding compliance cost layers.

Competitive Ecosystem of the Air Transport Used Serviceable Material Market

The Air Transport Used Serviceable Material Market features a diverse competitive landscape spanning OEM-affiliated entities, independent MRO providers, and specialized USM trading houses. Key players are profiled below:

• Delta Material Services: A subsidiary of Delta Air Lines, Delta Material Services operates one of the largest airline-owned USM trading operations globally, leveraging the parent carrier's fleet retirements to generate proprietary USM inventory while trading externally. The firm has positioned itself as a vertically integrated USM supplier with direct airline relationships.

• General Electric: GE's aviation segment maintains significant exposure to the USM engine market through its part-out programs and certified used engine modules, particularly for the CF6, GE90, and CFM56 families. GE leverages its OEM status to provide traceability documentation that commands premium pricing in the secondary market.

• AFI KLM & E&M: A joint venture MRO entity, AFI KLM E&M operates dedicated teardown and USM trading operations, focusing on Airbus and Boeing wide-body platforms. Its scale and engineering expertise enable high-value component harvesting and re-certification.

• GA Telesis LLC: GA Telesis is a globally recognized USM trader and aircraft teardown specialist, operating facilities across North America, Europe, and Asia-Pacific. The firm has built a diversified USM portfolio spanning engines, airframes, and components, supported by proprietary digital asset management systems.

• AAR Corporation: AAR Corporation integrates USM trading into its broader MRO and supply chain business, providing airlines and operators with certified USM parts alongside complementary repair and overhaul services. Its distribution network spans multiple continents.

• Lufthansa Technik: One of the world's leading MRO providers, Lufthansa Technik maintains an active USM procurement and redistribution capability, supporting its large client base of international carriers with cost-optimized part sourcing strategies.

• Pratt & Whitney: Pratt & Whitney's aftermarket division actively manages USM inventory for its legacy engine families, including the PW4000 and V2500, providing certified serviceable modules to MRO shops globally and capturing aftermarket revenue from aging fleets.

• Honeywell International Inc.: Honeywell participates in the USM market primarily through its avionics and auxiliary power unit (APU) product lines, offering exchange programs and certified serviceable units for its extensive installed base of aviation electronics and APUs.

• Liebherr Group: Liebherr's aerospace division supplies USMs for landing gear systems, air management systems, and electronics, supporting airlines seeking cost-efficient alternatives to new OEM parts for Liebherr-manufactured systems.

• J Walter Aviation Limited: A specialized USM broker and trader, J Walter Aviation focuses on sourcing and distributing certified used components across narrow-body and wide-body platforms, with particular strength in the European and Middle Eastern markets.

Recent Developments & Milestones in the Air Transport Used Serviceable Material Market

• January 2024: GA Telesis LLC announced the completion of a major Boeing 777-200ER part-out program in partnership with a Middle Eastern carrier, generating an estimated inventory of over 3,000 individual serviceable components across engines, avionics, and structural systems.

• March 2024: AAR Corporation expanded its USM trading capabilities with the opening of a new component teardown and serviceable parts distribution center in Miami, Florida, targeting Latin American airline customers seeking cost-efficient maintenance solutions.

• May 2024: Lufthansa Technik entered into a multi-year USM supply agreement with a major Southeast Asian low-cost carrier, providing certified serviceable engine modules and rotable components to support the carrier's growing narrow-body fleet operations.

• August 2024: The European Union Aviation Safety Agency (EASA) issued updated guidance on digital documentation requirements for USM airworthiness certification, mandating enhanced electronic traceability for components entering the European market from 2025 onward.

• October 2024: Delta Material Services announced a strategic partnership with a leading aviation data analytics firm to implement blockchain-based provenance tracking for its USM inventory, enhancing certification documentation integrity and reducing fraud risk.

• December 2024: Honeywell International Inc. launched an expanded certified serviceable APU exchange program targeting Asia-Pacific MRO operators, capitalizing on surging regional demand for cost-efficient power unit alternatives to new OEM purchases.

• February 2025: AFI KLM E&M completed the teardown of its tenth Airbus A380 unit, extracting high-value RR Trent 970 engine modules and premium cabin components for redistribution through its global USM trading network.

Regional Market Breakdown for the Air Transport Used Serviceable Material Market

The Air Transport Used Serviceable Material Market exhibits distinct regional demand profiles shaped by fleet composition, regulatory maturity, and economic conditions.

North America: North America commands the largest regional revenue share, estimated at approximately 35–38% of global market value in 2024, underpinned by a dense ecosystem of part-out operators, MRO facilities, and a well-established FAA regulatory framework for USM certification. The United States hosts the majority of commercial aircraft teardown activity globally, with operators like Delta Material Services, AAR Corporation, and GA Telesis maintaining large teardown facilities. Regional CAGR is estimated at approximately 3.5–3.8%, reflecting market maturity.

Europe: Europe represents the second-largest regional market, with strong demand from legacy full-service carriers seeking USM cost savings, and a robust MRO ecosystem led by Lufthansa Technik and AFI KLM E&M. EASA's rigorous certification standards have paradoxically strengthened the European USM market by establishing clear airworthiness pathways. The region's CAGR is estimated at 3.8–4.1%, with growth driven by accelerating wide-body retirements and increasing low-cost carrier USM adoption.

Asia-Pacific: Asia-Pacific is the fastest-growing regional market, with an estimated CAGR of 5.5–6.0% through 2033. Rapid fleet expansion in India, China, Southeast Asia, and Oceania is generating substantial USM demand from carriers seeking to control maintenance costs. The Aviation Leasing Market is particularly active in this region, and lessors are increasingly channeling retired aircraft into USM programs. The Aircraft Airframe Structures Market similarly benefits from regional fleet growth feeding demand for airframe USMs.

LAMEA (Latin America, Middle East & Africa): This composite region exhibits heterogeneous dynamics. The Middle East, anchored by Gulf carriers and growing MRO hubs in the UAE and Qatar, represents a high-value demand pocket. Latin America — particularly Brazil and Mexico — is a growing consumer of narrow-body USMs. Africa's market remains nascent but shows potential driven by fleet modernization initiatives. Combined CAGR for LAMEA is estimated at 4.2–4.8%, with the Middle East sub-region outperforming.

The Airline Fleet Management Market trends across all regions reinforce USM demand, as fleet managers increasingly incorporate USM procurement strategies into total cost of ownership models, supporting broad-based global market expansion.

Pricing Dynamics & Margin Pressure in the Air Transport Used Serviceable Material Market

Pricing within the Air Transport Used Serviceable Material Market is governed by a complex interplay of supply availability, remaining service life, part certification status, and OEM new-part list prices. USMs are typically priced as a percentage of the new OEM list price (NLP), with discounts ranging from 30% to 70% depending on the component type, remaining hours/cycles, and documentation completeness.

Engine USMs command the highest absolute transaction values, with serviceable engine modules trading at $500,000 to several million dollars depending on engine type and remaining serviceable life. Component USMs — avionics, landing gear assemblies, hydraulic actuators — typically trade at 40–60% of NLP. Airframe structural USMs occupy the lower end of the value spectrum on a per-unit basis but generate volume-driven revenue for teardown operators.

Margin structures across the value chain vary significantly. Aircraft part-out operators — who acquire end-of-life aircraft, perform teardowns, and certify components — typically achieve gross margins of 25–40% on high-value items such as engines and avionics, but face significant capital lock-up during the teardown and certification process. USM distributors and brokers, who purchase certified inventory and redistribute it to MRO shops and airlines, operate on thinner margins of 10–20%, competing on inventory breadth and delivery speed.

Commodity cost cycles indirectly affect pricing power. When jet fuel prices spike, airlines accelerate retirements of fuel-inefficient older-generation aircraft, increasing USM supply and putting downward pressure on prices for parts associated with those aircraft types. Conversely, new OEM part price inflation — driven by titanium, nickel alloy, and composite material cost escalation — widens the price gap between new and used parts, enhancing USM price competitiveness and seller margins.

The Aviation Parts Distribution Market is experiencing pricing rationalization as digital trading

Air Transport Used Serviceable Material Market Segmentation

• 1. Aircraft Type
  • 1.1. Very Large
  • 1.2. Wide-Body
  • 1.3. Narrow-Body
  • 1.4. Regional Transport
• 2. Product Type
  • 2.1. Engine
  • 2.2. Component
  • 2.3. Airframe
• 3. Distribution Channel
  • 3.1. OEM
  • 3.2. Aftermarket
• 4. Region
  • 4.1. North America
  • 4.2. Europe
  • 4.3. Asia-Pacific
  • 4.4. LAMEA

Air Transport Used Serviceable Material Market Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific