Air Transport Used Serviceable Material (USM) Market By Component Type (Engines, Avionics, Airframes, Landing Gear, Interiors, Others); By Aircraft Type (Narrow-Body, Wide-Body, Regional, Cargo); By Provider Type (OEM-Affiliated, Independent Distributors, MROs, Leasing Companies); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), Segment Revenue Estimation, Forecast, 2024–2030

Introduction and Strategic Context

Air Transport USM Market will witness a robust cagr of 6.8%, valued at $6.2 billion in 2024, expected to reach $9.3 billion by 2030, confirms Strategic Market Research.

The Air Transport Used Serviceable Material (USM) Market refers to the ecosystem involving the resale, refurbishment, and redeployment of certified aircraft parts that have been removed from retired or disassembled aircraft. These components—such as engines, avionics, landing gear, and flight control systems—must meet stringent airworthiness standards to be reused across commercial, cargo, and military aircraft fleets.

 

In 2024, the global market for air transport USM stands at an estimated $6.2 billion, with a projected increase to $9.3 billion by 2030, growing at an inferred CAGR of 6.8%. This trajectory reflects a convergence of macro forces such as accelerated fleet retirement cycles, OEM part scarcity, growing interest in sustainable aviation practices, and the cost-saving imperatives of airlines navigating inflationary pressures.

 

One of the key catalysts shaping the USM market is the intensifying pressure on airlines to reduce maintenance, repair, and overhaul (MRO) costs. As supply chain bottlenecks and long lead times affect the availability of new OEM parts, USM offers a dependable, faster, and more economical alternative. Moreover, the surge in aircraft leasing and increasing reliance on on-condition and predictive maintenance strategies have further increased the appetite for reliable USM components.

 

Strategic stakeholders in the USM ecosystem include:

• Aircraft OEMs (e.g., Boeing, Airbus) that indirectly influence the supply of parts through production volumes and aircraft retirements

• MRO service providers who play a key role in certifying and installing USM parts

• Leasing companies who optimize lifecycle asset value through part-out strategies

• Regulatory authorities such as the FAA and EASA who define compliance protocols for USM certification

• USM suppliers and distributors, often specialized, who manage global part inventories and logistics

• Airlines and cargo operators, the end beneficiaries that deploy USM for fleet maintenance

• Investors and asset managers increasingly interested in part-out business models and component leasing portfolios

The market's strategic relevance is growing as airlines increasingly pursue circular economy strategies and low-cost maintenance solutions amid volatile fuel prices and geopolitical instability. With over 12,000 aircraft expected to be retired by 2040, the resulting surge in parts harvesting could redefine the economic models of aviation sustainability.

 

Market Segmentation And Forecast Scope

The air transport USM market is segmented based on several critical dimensions that reflect operational workflows, aircraft types, service offerings, and regional infrastructure. These segments allow stakeholders to identify high-opportunity verticals and optimize inventory and sourcing strategies.

 

By Component Type

• Engines

• Avionics

• Airframes

• Landing Gear

• Interiors

• Others (e.g., auxiliary power units, electronics)

Among these, engines dominated the market in 2024 , accounting for over 35% of total revenue , due to their high unit value and maintenance frequency. Aircraft engine parts are often harvested and recertified given their modular structure and long-term serviceability.

Engine USM has gained prominence as airlines shift toward on-condition and predictive engine monitoring, creating a consistent demand for inspected and certified engine parts.

 

By Aircraft Type

• Narrow-Body Aircraft

• Wide-Body Aircraft

• Regional Jets

• Cargo Aircraft

Narrow-body aircraft lead the demand for USM due to their higher global fleet count and more frequent part replacement cycles. However, cargo aircraft represent a rapidly growing segment, driven by the global e-commerce boom and post-COVID logistics restructuring.

 

By Provider Type

• OEM-affiliated USM Providers

• Independent USM Distributors

• MRO Facilities with USM Capabilities

• Leasing Companies (engaged in part-outs)

The competitive edge lies with independent USM distributors , who accounted for nearly 42% of the market in 2024. These players offer flexible sourcing, faster turnaround times, and robust digital inventory platforms compared to OEMs who often prioritize new part sales.

 

By End User

• Commercial Airlines

• Cargo Operators

• Military and Defense Agencies

• Leasing Firms

Commercial airlines remain the largest end users, primarily due to aggressive cost-reduction mandates in maintenance operations. Meanwhile, leasing firms are leveraging part-out strategies to recover asset value from aging or repossessed aircraft, making them an emerging force in demand creation and supply generation.

 

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

Each regional market has distinct dynamics in terms of fleet maturity, regulatory environment, and MRO ecosystem. North America holds the largest market share, thanks to its aging fleet profile and extensive MRO infrastructure. However, Asia Pacific is expected to be the fastest-growing region , supported by rapid fleet expansion and a shift toward regional MRO independence.

The forecast scope from 2024 to 2030 anticipates accelerating USM adoption across all aircraft types, with a compounded push from sustainability regulations, aging global fleets, and rising cost pressures on airline operations.

 

Market Trends And Innovation Landscape

The air transport USM market is undergoing a transformative phase, marked by digitalization, sustainability mandates, and aftermarket supply chain disruptions. These macro and micro trends are driving both demand innovation and process efficiency across the USM value chain.

 

1. Digital Transformation of USM Inventory Management

The integration of AI-based inventory mapping , blockchain certification tracking , and predictive analytics is reshaping how USM components are sourced, tracked, and utilized. Modern USM suppliers and MRO partners now deploy cloud-based inventory networks that allow real-time matching of part needs with available certified stock across global hubs.

“Digital twins of aircraft and engines are helping operators forecast parts replacement windows, thereby increasing USM compatibility and reducing grounded aircraft time,” explains an aftermarket technology lead at a major MRO facility.

Blockchain , in particular, is being explored to improve the traceability of USM parts, ensuring that lifecycle data—including maintenance logs and certification trails—are tamper-proof and audit-ready. This addresses one of the historical barriers to USM adoption: trust and traceability.

 

2. Sustainability and Circular Aviation

Environmental, social, and governance (ESG) considerations are pushing airlines toward circular economy models , where retired aircraft are increasingly seen as parts inventory rather than scrap metal. Initiatives across Europe and North America encourage “green decommissioning” programs that support ethical aircraft part-outs and USM harvesting.

The reduction in carbon emissions from reusing serviceable parts rather than manufacturing new ones aligns directly with the International Air Transport Association (IATA)’s net-zero targets for 2050.

Some MRO firms and leasing companies have started incorporating lifecycle carbon calculations into their asset management systems, using USM strategies as a way to extend asset sustainability scores.

 

3. OEM–Aftermarket Collaboration Models

In a notable shift from earlier resistance, some OEMs are now partnering with independent USM players or launching their own refurbished parts divisions. These programs allow OEMs to maintain market share in the aftermarket while tapping into the growing appetite for cost-effective and sustainable maintenance options.

Examples include joint ventures between aircraft manufacturers and MRO giants to create OEM-certified refurbished parts programs, thereby reducing dependence on unapproved or grey-market components.

 

4. Aircraft Retirement Surge Post-COVID

The post-pandemic era has catalyzed early retirements of older aircraft , especially wide-bodies, as operators optimize fleet economics. This has led to a significant influx of USM inventory, particularly in engine and avionics segments. The part-out rate, previously constrained by high fuel prices and extended fleet life, is now rebounding, unlocking a flood of supply into the secondary market.

 

5. E-Commerce and Marketplace Platforms

Digital USM marketplaces are emerging as central nodes for global trade. Platforms like parts procurement portals, auction-based B2B hubs , and API-integrated sourcing engines have made the USM process faster and more accessible for mid-tier airlines and smaller MROs.

“We’re seeing a democratization of the USM economy, where even regional carriers in Africa or Southeast Asia can source FAA-certified parts with guaranteed delivery windows,” comments a VP at a digital parts marketplace.

These platforms often integrate financing, insurance, and quality assurance features—creating a plug-and-play aftermarket ecosystem.

 

Competitive Intelligence And Benchmarking

The air transport USM market features a dynamic mix of players that span independent distributors, MRO organizations, OEM-backed ventures, and asset management firms. As USM adoption gains global traction, competition is shifting from simple part availability to logistics responsiveness, digital transparency, and lifecycle support services .

Below is a benchmarking overview of 6 leading players shaping the global USM landscape:

 

AAR Corp.

AAR Corp. is one of the most established independent MRO and USM providers globally. With extensive teardown operations and warehouses in North America, it offers a vertically integrated model combining inventory pooling, component repair, and logistics.

• Strategy: Focus on strategic partnerships with OEMs while maintaining independence from OEM exclusivity.

• Global Reach: Strong presence across the U.S., Europe, and the Middle East.

• Differentiator: Highly digitized USM platforms and advanced analytics for inventory forecasting.

 

GA Telesis

GA Telesis specializes in aviation asset management, teardown services, and component repair. It is notable for its Agile MRO™ division and robust consignment models that provide part monetization for airlines and leasing companies.

• Strategy: Heavy investment in part-out logistics and aircraft lifecycle extension.

• Global Reach: Presence in North America, Europe, and expanding across Asia-Pacific.

• Differentiator: Hybrid model blending MRO, inventory finance, and digital trading.

 

AFI KLM E&M

AFI KLM Engineering & Maintenance , a division of Air France-KLM, blends airline operational experience with third-party MRO and USM delivery. It leverages its airline knowledge to identify high-rotation components and maintain stocked readiness.

• Strategy: OEM collaboration and airline-backed reliability data for USM forecasting.

• Global Reach: Headquarters in Europe with global MRO footprint.

• Differentiator: Deep integration of operational feedback into USM stock planning.

 

AJW Group

AJW Group is a UK-based USM provider offering inventory leasing, repairs, and power-by-the-hour (PBH) models. It has grown rapidly due to its agility in sourcing and stocking a wide range of Airbus and Boeing components.

• Strategy: Emphasis on flexible financial models and rapid part deployment.

• Global Reach: Global logistics hubs in Dubai, Singapore, and Montreal.

• Differentiator: Strong aftermarket relationships and cost-efficient logistics.

 

MTU Maintenance

MTU Maintenance , known primarily for engine MRO, has expanded into engine USM by leveraging its teardown, inspection, and repair capabilities. It works closely with airlines to provide refurbished engine components within broader service packages.

• Strategy: Engine-focused USM integrated into Total Engine Care solutions.

• Global Reach: Engine shops in Germany, Canada, and China.

• Differentiator: Strong engine OEM interface and long-term service agreements.

 

TES Aviation Group (A Kellstrom Aerospace Company)

TES Aviation Group , now under Kellstrom Aerospace , focuses on aircraft engine USM and asset management. It specializes in end-of-life aircraft valuation, engine teardowns, and residual value optimization.

• Strategy: Data-driven teardown planning and custom USM provisioning.

• Global Reach: Asia-centric strategy with Western backing via Kellstrom .

• Differentiator: Proprietary engine life modeling tools and teardown ROI analytics.

Across the board, players are competing on speed-to-market, real-time part visibility, and integration with MRO cycles. Larger firms are investing in digital platforms and aircraft lifecycle analytics, while smaller players emphasize flexibility and niche sourcing capability.

 

Regional Landscape And Adoption Outlook

The global footprint of the air transport USM market is shaped by regional disparities in aircraft fleet age, MRO infrastructure, retirement rates, regulatory oversight, and OEM penetration. While North America continues to lead in both demand and supply, Asia Pacific and Latin America are emerging as high-opportunity zones due to rapid fleet expansion and rising cost-consciousness among carriers.

 

North America: Mature and Dominant USM Ecosystem

North America, particularly the United States , accounts for the largest share of the global USM market in 2024. The region benefits from:

• A high number of aircraft teardowns and part-out activities

• A deeply integrated network of independent USM suppliers and MROs

• Strong regulatory clarity from the FAA around airworthiness of reused parts

The U.S. is also home to several of the world’s largest leasing firms and cargo operators, who are active in part harvesting and component recycling strategies. Additionally, engine USM is particularly robust due to the prevalence of narrow-body aircraft such as the Boeing 737 NG and A320ceo families.

North America’s mature aftermarket ecosystem and digital part traceability systems set the global benchmark for reliability and transaction velocity.

Europe: Regulatory Maturity Meets Sustainability Focus

Europe, led by Germany, the UK, and France , has a well-developed USM market with rising emphasis on sustainability and circular aviation. EU regulations are encouraging airlines to reduce emissions through component reuse and green decommissioning .

MRO hubs across the Netherlands and Eastern Europe are increasingly offering hybrid models that combine part-out services with refurbishing capabilities. However, regulatory variations across EU member states occasionally complicate cross-border part certifications.

The region’s emphasis on environmental compliance is spurring investment in certified refurbishment facilities and traceable teardown protocols.

Asia Pacific: Rapid Growth Fueled by Fleet Expansion

Asia Pacific is the fastest-growing regional market , driven by rapid fleet induction in countries such as China, India, Indonesia, and Vietnam . While USM penetration is lower than in Western markets due to relatively younger fleets, the demand is climbing sharply as aircraft age and airlines seek cost-effective maintenance.

Historically dependent on OEM-supplied parts, Asia Pacific operators are now:

• Building regional MRO alliances

• Investing in teardown and refurbishing capabilities

• Leveraging digital platforms for USM procurement

China’s civil aviation authority is gradually liberalizing standards around used components, which is expected to unlock a new wave of USM approvals.

 

Latin America: Untapped Potential

Latin American carriers are increasingly embracing USM due to chronic financial constraints and supply chain limitations for new parts. Brazil and Mexico are emerging as hubs for component reuse due to strong domestic aviation sectors and partnerships with U.S.-based MRO providers.

However, inconsistent regulatory enforcement and limited teardown infrastructure have slowed broader market development.

As leasing companies repossess and part out aircraft in this region, USM supply chains are beginning to mature—offering new value for both local carriers and global distributors.

 

Middle East & Africa: Early-Stage Growth with Strategic Importance

The Middle East, especially UAE and Saudi Arabia , is actively investing in MRO infrastructure to support its expanding airline fleets. While preference has historically leaned toward new OEM parts, rising interest in hybrid maintenance models is opening the door to USM integration.

In Africa, adoption remains nascent, constrained by:

• Weak regulatory harmonization

• Limited certified MRO centers

• Low part availability

Yet, emerging digital platforms and partnerships with global distributors are beginning to bridge these gaps.

Strategically located near key global air corridors, the region holds long-term potential as a logistics and distribution hub for refurbished components.

 

End-User Dynamics And Use Case

The adoption of USM solutions varies significantly across different types of aviation stakeholders, shaped by factors such as fleet age, operational cost structure, compliance tolerance, and in-house vs outsourced maintenance models. Understanding these end-user dynamics is critical to positioning USM offerings effectively within the aftermarket ecosystem.

1. Commercial Airlines

Commercial airlines represent the largest consumer base for USM components. With narrow operating margins and volatile fuel costs, airlines increasingly turn to used serviceable parts to reduce maintenance, repair, and overhaul (MRO) costs without compromising safety.

• Legacy carriers utilize USM for fleet types that are no longer in OEM production.

• Low-cost carriers (LCCs) are especially aggressive adopters, prioritizing component cost over brand-new sourcing.

• Airline technical divisions often maintain internal approval frameworks to pre-qualify USM vendors and manage part traceability.

For many operators, the key value proposition lies in balancing operational uptime with cost containment through just-in-time USM sourcing.

 

2. Cargo Operators

Cargo carriers , such as those operating converted freighters, have increasingly embraced USM as part of their lean operations strategy. These fleets tend to be older and maintained with a focus on functional reliability rather than cabin aesthetics or newer-gen technology.

• Aircraft like the 767F or 737-800BCF rely heavily on the USM market for sustainable part access.

• Global logistics firms prioritize availability and turnaround speed, favoring USM over long OEM lead times.

The e-commerce boom has intensified this demand, especially in regions like Southeast Asia and Latin America, where fleet expansion is outpacing OEM support capacity.

 

3. Military and Defense Aviation

Military and government aviation segments adopt USM more conservatively due to stringent procurement standards and security protocols. However, non-combat fleets, such as transport aircraft or training units, do benefit from component reuse strategies.

• Partnerships with certified civilian MRO providers help military end users access high-quality USM under regulated conditions.

• Retired commercial aircraft occasionally serve as donor platforms for non-critical military use cases.

 

4. Leasing Companies

Aircraft lessors are emerging as both suppliers and consumers of USM. As aircraft reach mid-life or off-lease status, leasing firms initiate part-out programs to recover asset value through component resale.

• Some firms have launched in-house teardown units or formed joint ventures with MRO partners.

• USM helps leasing companies preserve asset residual value while enabling more flexible lease return conditions.

With over 50% of global commercial fleets now leased, this group’s influence on USM flows is increasing rapidly.

 

Representative Use Case: Commercial Airline in Asia-Pacific

A regional airline based in Southeast Asia operating a fleet of aging Airbus A320ceo aircraft faced significant turnaround delays due to sourcing new avionics modules from OEMs with lead times exceeding 90 days. By partnering with a global USM distributor through a digital marketplace, the airline was able to procure FAA-certified components within 12 days. This move cut grounded aircraft downtime by 70% and lowered avionics maintenance costs by 35% over a six-month cycle.

The success of the operation prompted the airline to establish a long-term USM procurement policy and expand the strategy to include engine accessories and interior fittings.

 

Recent Developments (Last 2 Years)

The air transport USM market has witnessed a series of strategic moves in the last two years, reflecting a maturing industry that is fast aligning with digital trends, sustainability goals, and real-time supply chain imperatives.

1. Lufthansa Technik and Air France Industries Joint USM Initiative (2023)

Two major European MROs announced a cooperative program to standardize part traceability and refurbish USM components under harmonized standards, targeting increased cross-border usability and regulatory compliance.

 

2. GA Telesis Launches Inventory Leasing Platform (2024)

GA Telesis unveiled a new leasing solution for high-demand USM components, allowing airlines to access critical parts on a pay-per-use basis. This model reduces upfront procurement burdens and aligns with lean operational strategies.

 

3. Kellstrom Aerospace Expands in Southeast Asia (2023)

TES Aviation, a Kellstrom company, opened a new teardown and engine USM center in Malaysia to serve the rapidly growing APAC market. This move enhances local supply chains and supports lower-cost part harvesting in the region.

 

4. Rise of Blockchain -Based Part Certification (2024)

Several independent USM distributors introduced blockchain -backed certification records to improve traceability. This technology is being tested in partnership with global lessors and aviation insurers.

 

5. EASA’s USM Integration Guidelines Update (2023)

The European Union Aviation Safety Agency released updated guidelines for integrating USM parts into Part-145 and CAMO-approved facilities, promoting broader adoption across the European airline base.

 

Opportunities

1. Circular Economy and Green Aviation Mandates

As airlines commit to environmental targets, USM is being repositioned as a green maintenance practice. The ability to reduce lifecycle emissions by reusing certified parts presents a long-term opportunity for airlines and governments alike.

 

2. Emergence of Digital USM Marketplaces

The proliferation of API-integrated, cloud-based parts platforms is creating a democratized supply chain where even small regional carriers can tap into global inventories in real-time.

 

3. Growth in Mid-Life and Retired Fleet Base

A projected rise in aircraft retirements—especially narrow-body models—between 2024 and 2030 will lead to greater part-out activity and component harvesting. This expanding supply will drive new business models centered on predictive disassembly and component resale.

 

Restraints

1. Regulatory Complexity and Certification Barriers

Differences in certification norms between FAA, EASA, and CAAC can make it difficult to use USM parts across borders. Inconsistencies in part tracking and documentation continue to slow market expansion, particularly in emerging economies.

 

2. Perception and Trust Issues Among Operators

Despite technological advances, some airline procurement departments remain hesitant to adopt USM due to perceived quality risks, lack of visibility into part history, or poor prior experience with unverified suppliers.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 6.2 Billion
Revenue Forecast in 2030	USD 9.3 Billion
Overall Growth Rate	CAGR of 6.8% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (%)
Segmentation	By Component Type, By Aircraft Type, By Provider Type, By Region
By Component Type	Engines, Avionics, Airframes, Landing Gear, Interiors, Others
By Aircraft Type	Narrow-Body, Wide-Body, Regional, Cargo
By Provider Type	OEM-Affiliated, Independent Distributors, MROs, Leasing Companies
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, etc.
Market Drivers	- Aging global fleet and part-out trends - Rising maintenance costs pushing demand for used parts - Expansion of digital part marketplaces
Customization Option	Available upon request