Air Transport USM Market REPORT OVERVIEW
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global Air Transport USM market size was USD 5306.8 million in 2023 and market is projected to touch 7747.11 Million By 2032, exhibiting a CAGR of 4.3% during the forecast period.
The COVID-19 pandemic has been unprecedented and staggering, with air transport USDexperiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.
In the context of aviation, "USM" commonly stands for "Used Serviceable Material." Used Serviceable Material refers to aircraft parts and components that have been previously utilized but have been inspected, repaired (if necessary), and approved for further use in an aircraft. These parts are considered airworthy and meet the required safety standards set by aviation authorities.
Used Serviceable Material is an essential aspect of the aviation industry as it allows operators and maintenance organizations to reduce costs by using pre-owned parts that are still in good condition instead of purchasing brand-new components. However, it is crucial that all used parts undergo rigorous testing, inspection, and certification before they are installed on an aircraft to ensure they meet the necessary safety requirements.
COVID-19 IMPACT: Reduced Aircraft Utilization Hampered Demand Significantly
COVID-19 had a life changing impact globally. The air transport USM market was significantly affected. The virus had various impacts on different markets. Lockdowns were imposed in several nations. This erratic pandemic caused disruptions on all sorts of businesses. Restrictions tightened during the pandemic due to increasing number of cases. Numerous Industries were affected. However, the market for air transport USM experienced a reduced demand.
With airlines operating fewer flights and grounding a significant portion of their fleets, the wear and tear on aircraft components decreased. As a result, there was a reduced demand for USM during the peak of the pandemic since there were fewer maintenance and replacement requirements. The decrease in demand for USM components led to a decline in sales for companies specializing in the sale and distribution of used aircraft parts. This, in turn, affected the revenues and profitability of businesses in the USM market.
Some airlines, facing financial difficulties during the pandemic, decided to retire older aircraft from their fleets permanently. This meant that fewer USM parts were needed for those retired aircraft, further impacting the demand for used components. The pandemic caused disruptions in supply chains worldwide, affecting the sourcing and availability of USM components. Restrictions on international travel and shipping also led to delays in the delivery of parts, which could impact aircraft maintenance schedules. The market is anticipated to boost the air transport USM market share following the pandemic.
LATEST TRENDS
"Digitalization and Technology Integration to Broaden Market Growth"
The aviation industry was gradually recovering from the impact of the COVID-19 pandemic. As air travel demand increased, there was likely a corresponding increase in the demand for USM components to support maintenance and repair needs. Like many other industries, the aviation sector was embracing digitalization and new technologies. This could have implications for the USM market, as advanced data analytics and predictive maintenance technologies can help optimize the use of used components.
Airlines regularly reassess their fleets, retiring older aircraft and acquiring new ones. These fleet changes can create opportunities and challenges for the USM market as the demand for specific parts evolves. The aviation industry has been increasingly focused on sustainability and reducing its environmental impact. This could lead to greater interest in the use of USM, as it can be a eco-friendlier option compared to manufacturing entirely new parts. These latest developments are anticipated to boost the air transport USM market share.
Air Transport USM Market SEGMENTATION
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- By Type
Based on type, the market is divided into engine, components, airframe, and other.
Engine holds a major share of the global market.
- By Application
Based on application, the market is bifurcated into OEM and aftermarket.
OEM as application holds a major share of the global market.
DRIVING FACTORS
"Aircraft Fleet Size and Age to Boost Market Share"
The size and age of the global aircraft fleet play a significant role in the demand for USM. As the aviation industry grows and the fleet expands, there is a higher requirement for replacement parts. Older aircraft, which may have a greater need for component replacements, can also contribute to the demand for USM. The decision by airlines to retire older aircraft from their fleets can boost the USM market. When an aircraft is retired, its parts become available for use in other aircraft, extending their operational life.
"Cost Savings to Boost Market Size"
One of the primary driving factors for the USM market is cost savings. USM components are generally more affordable than new OEM (Original Equipment Manufacturer) parts. Airlines and maintenance organizations often opt for USM to reduce maintenance costs and keep operating expenses in check. Technological advancements in aircraft and maintenance practices can also influence the USM market. As aircraft designs evolve, the demand for newer USM components may increase, while older parts may become less sought after. These factors are anticipated to drive the air transport USM market share.
RESTRAINING FACTORS
"Quality and Reliability Concerns to Hamper Market Share"
Ensuring the quality and reliability of USM components is crucial in the aviation industry. There may be concerns about the condition and performance of used parts, especially if they have undergone multiple repairs or come from sources with unknown maintenance practices. The perception of lower reliability compared to new OEM parts can restrain the broader adoption of USM. Original Equipment Manufacturers (OEMs) of aircraft and components have a strong influence on the market. OEMs may provide incentives for airlines to use new parts rather than USM to maintain warranties or support their aftermarket sales. This can create barriers for USM providers in the competitive aviation industry. The factors are anticipated to hinder the growth of the air transport USM market share.
Air Transport USM Market REGIONAL INSIGHTS
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"North America Dominates the Air Transport USM Market "
North America is the major shareholder for the air transport USM market share. North America has one of the largest and most mature aviation industries in the world, with numerous airlines and a substantial fleet of aircraft. This extensive aviation activity creates a strong demand for USM components to support maintenance and operational needs. The region is home to several well-established USM suppliers with a long history of providing reliable used aircraft parts. These companies have built strong relationships with airlines and maintenance organizations, contributing to their market dominance. Europe is the second major shareholder for the air transport USM market share.
KEY INDUSTRY PLAYERS
"Key Players Focus on Partnerships to Gain a Competitive Advantage "
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.
List of Market Players Profiled
- Pratt & Whitney [U.S.]
- TES Aviation Group [U.K.]
- General Electric (GE) [U.S.]
- AAR Corp [U.S.]
- Lufthansa Technik (LHT) [Germany]
- MTU Aero Engines [Germany]
- AJW Group (A J Walter Aviation) [U.K.]
- AFI KLM E&M [Netherlands]
- GA Telesis [U.S.]
- AirLiance Materials [U.S.]
REPORT COVERAGE
This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.
REPORT COVERAGE | DETAILS |
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Market Size Value In |
US$ 5306.8 Million in 2023 |
Market Size Value By |
US$ 7747.11 Million by 2032 |
Growth Rate |
CAGR of 4.3% from 2023 to 2032 |
Forecast Period |
2024-2032 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the Air Transport USM market expected to touch by 2032?
The global air transport USM market is expected to reach USD 7747.11 Million By 2032.
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What CAGR is the Air Transport USM market expected to exhibit by 2032?
The Air Transport USM market is expected to exhibit a CAGR of 4.3% by 2032.
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Which are the driving factors of the Air Transport USM market?
Aircraft Fleet Size and Age and Cost Savings are the driving factors of the Air Transport USM market.
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Which are the top companies operating in the Air Transport USM market?
Pratt & Whitney, TES Aviation Group, General Electric (GE), AAR Corp, Lufthansa Technik (LHT), MTU Aero Engines, AJW Group (A J Walter Aviation), AFI KLM E&M, GA Telesis, and AirLiance Materials are key companies operating in the Air Transport USM market.