Air Transport USM Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Air Transport Used Serviceable Material (USM) Market is projected to expand from USD 2.93 Billion in 2025 to USD 3.84 Billion by 2031, reflecting a compound annual growth rate of 4.61%. This sector focuses on the supply of recertified aircraft systems and components harvested from retired airframes, offering operators a financially viable alternative to new parts from original equipment manufacturers for overhaul and maintenance tasks. The market is primarily propelled by the urgent need to curtail airline operating costs and the operational mandate to sustain aging fleets during a period of severe new aircraft production delays. Consequently, carriers are extending the operational lives of their current assets, which intensifies the demand for secondary market components to ensure fleet readiness and mitigate costly aircraft downtime.

However, market expansion is significantly hindered by a critical shortage of high-quality inventory caused by deferred aircraft retirements. Because airlines are retaining older vessels for longer periods to offset delivery shortfalls, the volume of dismantled airframes - which serves as the essential feedstock for USM - has declined. Data from the International Air Transport Association indicates that in 2024, the global backlog of unfulfilled new aircraft orders hit a record high exceeding 17,000 units. This structural bottleneck restricts the number of aircraft entering the dismantling process, thereby directly limiting the supply of serviceable parts necessary to satisfy the industry's escalating demand.

Market Drivers

The utilization of Used Serviceable Material (USM) to alleviate new part supply chain disruptions and extended lead times stands as the most prominent factor currently reshaping the market. With Original Equipment Manufacturers (OEMs) encountering significant production bottlenecks for structural components and engines, carriers are increasingly sourcing secondary market parts to bypass long wait times and guarantee fleet availability. This transition signifies a strategic realignment in sourcing, as operators prioritize recertified used parts over unavailable factory-new components to prevent operational paralysis and keep aircraft in service. The impact of this shift is highlighted by the performance of major aftermarket suppliers; according to AAR Corp's 'Fiscal Year 2024 Results' from July 2024, sales to commercial customers increased by 23% year-over-year, a growth trend explicitly linked to the rising demand for used serviceable materials and parts supply solutions.

Additionally, the escalating airline demand for cost-efficient maintenance and overhaul options acts as a critical driver, intensified by the financial burdens of operating older, less efficient aircraft. As carriers extend the service lives of existing airframes, the frequency of component replacements and heavy maintenance visits increases, creating a need for affordable alternatives to expensive new parts to safeguard narrow operating margins.

The International Air Transport Association reported that in 2024, the average age of the global commercial fleet reached a record high of 14.8 years, compelling carriers to balance strict budget constraints with rigorous safety standards. Furthermore, the International Air Transport Association's June 2024 'Global Outlook for Air Transport' forecast that the industry’s return on invested capital would reach only 5.7% in 2024, falling short of the average cost of capital. Consequently, procuring cost-effective USM has become indispensable for airlines aiming to preserve financial viability while managing the intensive maintenance required for prolonged-service assets.

Market Challenges

The expansion of the Global Air Transport USM Market is currently restricted by an acute shortage of high-quality inventory stemming from deferred aircraft retirements. This sector is heavily dependent on a consistent influx of retired airframes to produce the recertified components needed by operators. However, because airlines are forced to retain aging vessels in active service to sustain capacity, the pipeline for dismantling has effectively dried up. This retention of older assets eliminates the primary source of feedstock, resulting in a severe supply shock that hinders USM providers from leveraging the industry's robust demand for lower-cost maintenance alternatives.

As a result, the market encounters a hard ceiling on revenue growth, as suppliers are unable to secure sufficient inventory volumes to facilitate transactions. This bottleneck is directly attributable to the production challenges plaguing original equipment manufacturers, which impede fleet renewal initiatives. According to the International Air Transport Association, global aircraft deliveries in 2024 dropped to just 1,254 units, falling significantly below the levels necessary for normal industry turnover. This delivery deficit compels carriers to indefinitely postpone scrappage decisions, ensuring that the airframes essential for component harvesting remain in operation rather than entering the secondary supply chain.

Market Trends

The market is being reshaped by the strategic consolidation of USM providers through mergers and acquisitions, as companies aim to expand repair capabilities and secure component supply lines. Large aftermarket integrators are aggressively purchasing specialized repair shops to establish vertically integrated entities, enabling them to internalize component recertification and control feedstock. This structural evolution allows providers to deliver comprehensive component support while establishing high barriers to entry for smaller rivals. This trend was exemplified when a major aftermarket provider significantly broadened its portfolio; according to AAR Corp's March 2024 press release regarding the 'AAR completes acquisition of Triumph Group's Product Support business,' the company finalized the $725 million purchase of Triumph Group’s Product Support business, directly enhancing its global repair footprint and access to serviceable inventory.

Furthermore, the expansion of USM utilization to support passenger-to-freighter conversions has arisen as a distinct growth vector that operates independently of standard fleet maintenance cycles. As operators transform aging passenger aircraft into cargo vessels, the economic feasibility of these programs depends heavily on integrating secondary market components for avionics upgrades, landing gear, and engines. Using new OEM parts for these conversions often undermines the return on investment, establishing USM as the exclusive sourcing standard for this segment. This opportunity is highlighted by long-term industry projections; according to Boeing’s 'World Air Cargo Forecast 2024' released in November 2024, the sector is expected to require 1,840 freighter conversions over the next two decades, driving sustained consumption of recertified material for these extensive modification programs.

Key Players Profiled in the Air Transport Used Serviceable Material (USM) Market

• AerFin Limited
• The Boeing Company
• General Electric Company
• Honeywell International Inc.
• GA Telesis, LLC
• Meggitt PLC
• MTU Aero Engines AG
• RTX Corporation
• Rolls-Royce PLC
• AAR Corp.

Report Scope

In this report, the Global Air Transport USM Market has been segmented into the following categories:

Air Transport USM Market, by Component Type:

• Engine
• Landing Gear
• Hydraulic System
• Avionics
• and Others

Air Transport USM Market, by Aircraft Type:

• Wide-Body
• Narrow-Body
• Regional Jets
• and Others

Air Transport USM Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Air Transport USM Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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