Aircraft Recycling Global Market Report 2024

The aircraft recycling market size has grown strongly in recent years. It will grow from $4.74 billion in 2023 to $5.14 billion in 2024 at a compound annual growth rate (CAGR) of 8.3%. Historical growth can be attributed to fleet retirement and replacement practices, adherence to environmental regulations and sustainability objectives, initiatives promoting the circular economy, the increasing value of aircraft components as scrap material, and cost reduction strategies adopted by airlines.

The aircraft recycling market size is expected to see strong growth in the next few years. It will grow to $6.94 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. Anticipated growth is driven by expanding fleet sizes and renewal cycles, reinforced by regulatory support and standards development, the ascent of sustainable aviation initiatives, market demand for recycled materials, and heightened public awareness of environmental impact. Key trends expected in this period encompass progress in recycling technologies, strategic partnerships and collaborations, technological advancements in aircraft design, a global emphasis on green technologies, and innovations in recycling processes within the aviation industry.

The anticipated rise in retired and worn-out aircraft is poised to drive the expansion of the aerospace recycling market in the foreseeable future. Aircraft that have reached the end of their operational lifespan or have become economically unviable to maintain fall under this category. Through recycling processes, valuable components such as engines and parts can be reclaimed and reused, contributing to the profitability of recycling operations. For instance, according to estimates from the International Civil Aviation Organization (ICAO), a specialized agency of the United Nations based in Canada, approximately 600–1000 commercial aircraft are retired globally each year. Projections from ICAO and Airbus suggest a potential count of 15,000 retired aircraft by 2040. This growing number of retired and worn-out aircraft stands as a primary driver propelling the growth of the aircraft recycling market, emphasizing the increasing significance of sustainable practices within the aerospace industry.

The escalating global consciousness regarding environmental issues is anticipated to act as a catalyst for the expansion of the aerospace recycling market in the coming years. This awareness pertains to the knowledge and recognition individuals, communities, organizations, and societies have about various environmental challenges and concerns. As these environmental concerns gain prominence, governments and regulatory bodies worldwide are introducing more stringent environmental regulations and sustainability standards. Aerospace companies are consequently facing increased pressure to comply with these regulations, compelling them to embrace more sustainable practices, including recycling. For instance, the United States Environmental Protection Agency (EPA), an independent agency responsible for environmental protection matters in the U.S., has consistently dedicated itself to safeguarding public health by reducing pollutant emissions and enhancing air quality for over 50 years. The annual report, "Our Nation's Air," furnishes a comprehensive overview of the nation's air quality status and trends up to the year 2021. This heightened global consciousness regarding environmental issues serves as a driving force propelling the growth of the aircraft recycling market, underlining the mounting importance of sustainable practices within the aerospace industry.

One of the notable trends gaining traction within the aircraft recycling market is the burgeoning popularity of sustainable aircraft recycling services. Prominent companies operating in this market are actively spearheading the development of sustainable aircraft recycling services to fortify their positions. An illustrative example occurred in January 2022 when Airbus, a France-based aerospace company, entered into a Memorandum Of Understanding (MOU) with the city of Chengdu and Tarmac Aerosave, another France-based aerospace company. This collaboration was geared towards establishing a sustainable aircraft lifecycle service center in China. The agreement facilitates a wide spectrum of services including aircraft parking, maintenance, storage, conversions, upgrades, as well as recycling and dismantling for diverse types of aircraft. This strategic alliance underscores the industry's concerted efforts to enhance sustainability by incorporating eco-friendly practices within aircraft recycling operations.

Prominent companies within the aircraft recycling market are placing significant emphasis on the development of innovative aircraft recycling programs as part of their strategy to maintain market leadership. Conventional recycling initiatives often focus on reclaiming high-value components such as landing gear and engines, inadvertently neglecting a substantial volume of materials. This oversight results in the accumulation of considerable waste in landfill sites or the abandonment of materials that could otherwise generate value. For instance, in November 2021, Emirates, a UAE-based airline company, introduced a pioneering initiative labeled the "First-Of-Its-Kind Recycling Program For A380 Fleet." This program is specifically designed for Emirates Airline's fleet of Airbus A380s, known for their four engines and double-decker design. Collaborating with Falcon Aircraft Recycling based in the UAE, Emirates announced plans for an innovative approach involving "upcycling and recycling" of retired A380 aircraft. The primary aim of this program is to minimize the environmental impact associated with the deconstruction process, signifying a concerted effort by Emirates towards sustainable practices within the aircraft recycling domain.

In December 2021, AMAG Austria Metall AG, an Austria-based player in the aluminum industry, finalized the acquisition of Aircraft Philipp (ACP) for an undisclosed sum. This acquisition aligns with AMAG's strategic vision, emphasizing the development of advanced specialty products and actively working towards reducing the aerospace industry's carbon footprint. Aircraft Philipp (ACP), headquartered in Germany, specializes in aircraft recycling services.

Major companies operating in the aircraft recycling market report are Bombardier Inc., GA Telesis LLC, Evergreen Aviation Technologies Corporation, AerSale Inc., Roswell Aerospace Inc., Apple Aviation Limited, ComAv Technical Services LLC, AerFin Ltd., Jet Midwest Group LLC, Aerothrust Holdings LLC, Vallair Industry Sarl, Aviation International Recycling Ltd., Tarmac Aerosave SAS, Universal Asset Management, AeroTurbine Inc., VAS Aero Services LLC, KLM UK Engineering Limited, Air Salvage International Limited, Total Technic Limited, ARC Aerosystems, GJD AeroTech Ltd., eCube Solutions Ltd., Aerocycle Inc., Sycamore Aviation Ltd., Aircraft Part Out Company Ltd. , AELS, ELG Carbon Fibre Limited, AeroMock-Ups Inc., Regional Air Services LLC, Recycled Aircraft Materials Inc.

North America was the largest region in the aircraft recycling market in 2023. The regions covered in the aircraft recycling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aircraft recycling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary products obtained through aircraft recycling encompass engines, landing gear, and avionics. Engines stand out as particularly valuable components derived from the recycling process, often remaining in good condition after an aircraft is decommissioned. These engines can be subjected to repair, upgrades, or resale for use in other aircraft. The materials recovered through recycling include aluminum and various other metals and alloys. Aircraft recycling encompasses a range of aircraft types, including narrow-body, wide-body, and regional aircraft.

The aircraft recycling market research report is one of a series of new reports that provides aircraft recycling market statistics, including the aircraft recycling industry's global market size, regional shares, competitors with an aircraft recycling market share, detailed aircraft recycling market segments, market trends, and opportunities, and any further data you may need to thrive in the aircraft recycling industry. This aircraft recycling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The aircraft recycling market includes revenues earned by entities by providing services such as scrapping and disassembling retired aircraft, re-purposing their parts as spare parts, or scrap, non-destructive dismantling. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.