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Used Serviceable Material Market

ID: MRFR/AD/6596-HCR
145 Pages
Sejal Akre
October 2025

Used Serviceable Material (USM) Market Size, Share, Industry Trend & Analysis Research Report By Product (Engine, Components, Airframe), By Provider Type (OEM, Non-OEM), By Aircraft Type (Narrow Body, Wide Body, Turboprop) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Used Serviceable Material Market Summary

As per analysis, the US used serviceable material usm market is projected to grow from USD 1.83 Billion in 2024 to USD 2.74 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 3.72% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US used serviceable material market is trending towards sustainability and technological innovation.

  • The aerospace segment remains the largest contributor to the US used serviceable material market, driven by stringent regulations and high-value components.
  • The automotive segment is experiencing rapid growth, fueled by increasing demand for cost-effective and sustainable solutions.
  • Metals dominate the market, while plastics are emerging as the fastest-growing segment due to advancements in recycling technologies.
  • Key market drivers include the rising awareness of circular economy principles and regulatory support for reuse and recycling.

Market Size & Forecast

2024 Market Size 1.83 (USD Billion)
2035 Market Size 2.74 (USD Billion)
CAGR (2025 - 2035) 3.72%

Major Players

Boeing (US), General Dynamics (US), Northrop Grumman (US), Raytheon Technologies (US), Lockheed Martin (US), Hewlett Packard Enterprise (US), L3Harris Technologies (US), Textron (US), Honeywell (US)

Used Serviceable Material Market Trends

The US used serviceable material (USM) market is currently experiencing a notable evolution, driven by various factors that influence its dynamics. The increasing emphasis on sustainability and resource conservation has led to a growing interest in the reuse and recycling of materials. This trend aligns with broader environmental goals, as stakeholders seek to minimize waste and reduce the carbon footprint associated with manufacturing new products. Additionally, regulatory frameworks are becoming more stringent, encouraging businesses to adopt practices that prioritize the use of serviceable materials. As a result, companies are increasingly integrating USM into their supply chains, recognizing the potential for cost savings and enhanced operational efficiency. Moreover, technological advancements are playing a crucial role in shaping the US used serviceable material market. Innovations in sorting and processing technologies are improving the quality and availability of serviceable materials, making them more attractive to manufacturers. This shift not only supports the circular economy but also fosters collaboration among various sectors, including construction, manufacturing, and waste management. The interplay between regulatory pressures, technological progress, and market demand suggests that the US used serviceable material market is poised for continued growth, with opportunities for businesses that adapt to these changing conditions.

Sustainability Initiatives

The US used serviceable material market is increasingly influenced by sustainability initiatives. Companies are prioritizing the reuse of materials to align with environmental goals, which may lead to enhanced brand reputation and customer loyalty. This trend reflects a broader societal shift towards responsible consumption and waste reduction.

Technological Advancements

Innovations in sorting and processing technologies are transforming the US used serviceable material market. Enhanced capabilities in material recovery and quality assurance are making serviceable materials more viable for manufacturers. This evolution supports the circular economy and encourages collaboration across various industries.

Regulatory Developments

Regulatory frameworks are becoming more stringent, impacting the US used serviceable material market. New policies are promoting the adoption of serviceable materials, compelling businesses to rethink their supply chains. This shift may create opportunities for companies that proactively embrace compliance and sustainability.

Used Serviceable Material Market Drivers

Increased Focus on Sustainability

Sustainability has become a central theme in the US used serviceable material USM market. Companies are increasingly recognizing the environmental benefits of utilizing used materials, which can significantly reduce waste and lower carbon footprints. The US government has implemented various initiatives aimed at promoting sustainable practices, including tax incentives for businesses that incorporate recycled materials. This has led to a surge in the adoption of used serviceable materials across multiple industries, including construction and automotive. Recent statistics indicate that the use of recycled materials in construction projects has risen by 20% in the last year, reflecting a growing commitment to sustainability. As environmental concerns continue to shape consumer preferences, the US used serviceable material USM market is poised for further expansion.

Regulatory Support for Reuse and Recycling

The regulatory landscape surrounding the US used serviceable material USM market is evolving to support the reuse and recycling of materials. Federal and state regulations are increasingly encouraging businesses to adopt sustainable practices, including the use of used serviceable materials. For example, the Environmental Protection Agency (EPA) has established guidelines that promote the recycling of industrial materials, which has led to a more favorable environment for the US used serviceable material USM market. Compliance with these regulations not only helps companies avoid penalties but also enhances their reputation among environmentally conscious consumers. As regulatory frameworks continue to evolve, they are likely to provide additional impetus for the growth of the US used serviceable material USM market.

Growing Demand for Cost-Effective Solutions

The US used serviceable material USM market is experiencing a notable increase in demand for cost-effective solutions. Businesses are increasingly seeking to reduce operational costs while maintaining quality. This trend is particularly evident in sectors such as manufacturing and construction, where companies are turning to used serviceable materials to optimize their budgets. According to recent data, the market for used serviceable materials has expanded by approximately 15% over the past year, driven by the need for affordable alternatives. This shift not only helps companies save money but also promotes resource efficiency, aligning with broader economic goals. As organizations continue to prioritize cost management, the US used serviceable material USM market is likely to see sustained growth in the coming years.

Rising Awareness of Circular Economy Principles

The concept of a circular economy is gaining traction within the US used serviceable material USM market. Businesses are increasingly recognizing the importance of minimizing waste and maximizing resource efficiency. This shift towards circular economy principles encourages the reuse of materials, thereby fostering a more sustainable approach to production and consumption. Recent surveys indicate that over 60% of manufacturers are actively seeking to incorporate circular economy practices into their operations. This growing awareness is likely to drive demand for used serviceable materials, as companies strive to reduce their environmental impact. As the circular economy continues to gain momentum, the US used serviceable material USM market is expected to benefit from increased investment and innovation.

Technological Innovations in Material Processing

Technological advancements are playing a crucial role in the evolution of the US used serviceable material USM market. Innovations in material processing and recycling technologies have enhanced the quality and usability of used materials. For instance, advanced sorting and cleaning technologies have improved the efficiency of reclaiming serviceable materials, making them more appealing to manufacturers. The integration of artificial intelligence and machine learning in inventory management is also streamlining operations, allowing businesses to better track and utilize their resources. As these technologies continue to develop, they are likely to drive further growth in the US used serviceable material USM market, enabling companies to maximize the value derived from used materials.

Market Segment Insights

By Application: Aerospace (Largest) vs. Automotive (Fastest-Growing)

The U.S. used serviceable material (USM) market is segmented by application into Aerospace, Automotive, Construction, Marine, and Industrial. Among these, Aerospace holds the largest market share due to its high demand for quality materials and stringent regulations. Aircraft maintenance and repairs significantly boost the consumption of USM in this sector. Meanwhile, the Automotive segment, while currently smaller, is experiencing rapid growth driven by the increasing demand for cost-effective, recycled materials to enhance sustainability in manufacturing processes.

Aerospace: Dominant vs. Automotive: Emerging

Aerospace, as the dominant segment within the USM market, primarily focuses on the reuse of high-quality materials for aircraft parts, ensuring compliance with rigorous safety and quality standards. Its established infrastructure and comprehensive supply chain facilitate seamless acquisition and use of USM. In contrast, Automotive represents an emerging segment, propelled by rising environmental concerns and the need for sustainable practices in vehicle manufacturing. The growing trend of recycling and reusing materials in production processes is fostering innovation, leading to an increasing share of USM in automotive applications as manufacturers strive for efficient resource management.

By Material Type: Metals (Largest) vs. Plastics (Fastest-Growing)

In the US used serviceable material market, Metals hold the largest market share due to their durability and widespread applications across various industries, including construction and manufacturing. Following Metals, Plastics have emerged as a significant player thanks to their versatility and cost-effectiveness, accounting for a substantial portion of the market. Composites, Rubber, and Glass make up the rest of the market, with each segment varying in influence depending on user requirements and technological innovations.

Metals: Dominant vs. Plastics: Emerging

Metals have long been the dominant material in the US used serviceable material market, favored for their strength and longevity, making them ideal for heavy-duty applications. Industries that rely on Metals include automotive and aerospace, where structural integrity is paramount. In contrast, Plastics are rapidly emerging due to their lightweight nature and recyclability, making them appealing for environmentally-conscious consumers. The rising demand for sustainable materials and innovation in recycling technologies positions Plastics as a flexible and attractive alternative, enhancing their growth trajectory in the market.

By Condition: Refurbished (Largest) vs. Reconditioned (Fastest-Growing)

In the US used serviceable material (USM) market, the condition segment is characterized by diversified offerings, chiefly comprising refurbished, reconditioned, used, scrap, and surplus categories. Among these, refurbished materials hold the largest market share, preferred for their reliability and performance standards. In contrast, reconditioned segments are gaining traction, reflecting a growing consumer trust in materials that have undergone rigorous checks and improvements to restore their functionality.

Refurbished (Dominant) vs. Reconditioned (Emerging)

The refurbished segment is a dominant player in the USM market, typically representing the highest quality available to consumers. These materials are restored to a fully functional condition with an emphasis on meeting industry performance standards. On the other hand, reconditioned materials are an emerging category that presents a viable alternative, characterized by cost-effectiveness and environmental sustainability. This segment appeals to budget-conscious consumers, driving market growth as industries increasingly focus on sustainability and eco-friendly practices. Reconditioned products are often viewed as less resource-intensive, attracting a segment of the market that prefers responsible purchasing.

By End Use: Manufacturing (Largest) vs. Repair (Fastest-Growing)

In the US used serviceable material (USM) market, the 'End Use' segment is primarily dominated by the manufacturing sector, which captures a significant share due to its extensive demand for raw materials. Repair follows as a notable share holder, gaining traction as industries increasingly prioritize sustainability and resource maximization, allowing them to utilize previously discarded materials effectively. Recycling, resale, and export also contribute, but to a lesser extent, reflecting a shift in market dynamics favoring manufacturing and repair activities.

Manufacturing: Dominant vs. Repair: Emerging

Manufacturing stands out as the dominant force in the US used serviceable material market, driven by industrial needs for reliability and performance. This end use segment thrives on the continual demand for refurbished materials, ensuring consistency in production processes. In contrast, repair is emerging rapidly as businesses look toward sustainable practices. This shift is propelled by technological advancements and a growing environmental consciousness among consumers. As companies optimize their operations and reduce waste, repair services are gaining ground, aligning with market trends that favor resource efficiency and waste reduction.

By Market Channel: Direct Sales (Largest) vs. Online Sales (Fastest-Growing)

In the US used serviceable material (USM) market, the distribution of market channels reveals that Direct Sales holds a significant share, characterized by established relationships between sellers and buyers. This channel benefits from personalized encounters and direct negotiation, making it the preferred choice for many industrial clients seeking competitive pricing and quality assurance. Meanwhile, Online Sales is quickly emerging, capturing the attention of businesses who value convenience and a broader reach, particularly as the internet becomes increasingly integral to procurement strategies.

Direct Sales: (Dominant) vs. Online Sales (Emerging)

Direct Sales stands out as the dominant channel in the US used serviceable material market, relying on longstanding personal relationships and tailored services that appeal to specific customer needs. This method ensures better engagement and trust, essential for high-value transactions typical in the USM sector. In contrast, Online Sales is rapidly emerging, driven by a tech-savvy market that favors digital interactions and streamlined transactions. The growth of e-commerce and advancements in digital platforms have enabled this channel to flourish, appealing to newcomers looking for quick access to materials and competitive offerings.

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Regional Insights

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Used Serviceable Material Market Regional Image

Key Players and Competitive Insights

The US used serviceable material (USM) market is characterized by a competitive landscape that is increasingly shaped by innovation, strategic partnerships, and a focus on sustainability. Key players such as Boeing (US), Lockheed Martin (US), and Raytheon Technologies (US) are actively engaged in enhancing their operational capabilities through various strategic initiatives. Boeing (US), for instance, emphasizes digital transformation and supply chain optimization, which appears to be a critical focus area for maintaining competitive advantage. Lockheed Martin (US) is also investing heavily in advanced technologies, indicating a trend towards integrating cutting-edge solutions into their operations. Collectively, these strategies suggest a market that is not only competitive but also evolving rapidly in response to technological advancements and changing customer demands.

In terms of business tactics, companies are increasingly localizing manufacturing and optimizing their supply chains to enhance efficiency and reduce costs. The market structure can be described as moderately fragmented, with several key players exerting significant influence. This fragmentation allows for a diverse range of offerings, yet the collective strength of major companies like Northrop Grumman (US) and Honeywell (US) shapes the competitive dynamics, as they leverage their extensive resources and expertise to capture market share.

In December 2025, Northrop Grumman (US) announced a strategic partnership with a leading technology firm to enhance its capabilities in AI-driven analytics for supply chain management. This move is likely to bolster Northrop Grumman's (US) operational efficiency and responsiveness, positioning the company favorably in a market that increasingly values data-driven decision-making. The integration of AI technologies could potentially streamline processes and reduce lead times, thereby enhancing customer satisfaction and loyalty.

In November 2025, Raytheon Technologies (US) unveiled a new initiative aimed at increasing the sustainability of its operations by committing to a 50% reduction in greenhouse gas emissions by 2030. This strategic commitment not only aligns with The us used serviceable material usm market. Such initiatives are likely to resonate with environmentally conscious customers and stakeholders, thereby enhancing the company's brand reputation and market position.

In January 2026, Lockheed Martin (US) launched a new digital platform designed to improve the lifecycle management of used serviceable materials. This platform aims to enhance transparency and traceability in the supply chain, which is increasingly critical in today's market. By leveraging digital tools, Lockheed Martin (US) is likely to improve operational efficiencies and customer engagement, further solidifying its competitive edge.

As of January 2026, the most prominent trends shaping the competitive landscape include digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming increasingly vital, as companies seek to leverage complementary strengths to enhance their market positions. The competitive differentiation is expected to evolve from traditional price-based competition towards a focus on innovation, technological advancement, and supply chain reliability. This shift indicates a market poised for transformation, where the ability to adapt and innovate will be paramount for success.

Key Companies in the Used Serviceable Material Market include

Industry Developments

Recent developments in the  Used Serviceable Material Market (USM) Market have indicated notable growth and transformation amidst evolving consumer demands and sustainability initiatives. In September 2023, significant movements included Bocado's introduction of a new online auction platform aimed at facilitating the sale of surplus serviceable materials, thereby enhancing market accessibility. Petersen Auctions and Julien's Auctions have also reported increased sales in used serviceable materials, driven by a surge in collector interest.

In terms of mergers and acquisitions, Heritage Auctions announced its strategic acquisition of Morris and Whiteside Auctions in August 2023, expanding its footprint in the specialized auctioning of used serviceable materials.

 The valuation of companies in the USM market continues to rise due to heightened awareness surrounding recycling and eco-friendly practices, impacting both pricing and consumer behavior positively. Additionally, in late 2022, Christie’s introduced sustainability-focused auction events, which have become more frequent, aligning with the market's growing emphasis on environmental stewardship. This aligns with  trends favoring sustainable practices across various industries, which is further shaping the dynamics of the USM market.

Future Outlook

Used Serviceable Material Market Future Outlook

The US used serviceable material market is projected to grow at a 3.72% CAGR from 2025 to 2035, driven by sustainability initiatives and increasing demand for cost-effective solutions.

New opportunities lie in:

  • Development of advanced recycling technologies for serviceable materials.
  • Expansion of e-commerce platforms for used serviceable material sales.
  • Partnerships with manufacturers for certified used material supply chains.

By 2035, the market is expected to be robust, driven by innovation and strategic partnerships.

Market Segmentation

Used Serviceable Material Market End Use Outlook

  • Manufacturing
  • Repair
  • Recycling
  • Resale
  • Export

Used Serviceable Material Market Condition Outlook

  • Refurbished
  • Reconditioned
  • Used
  • Scrap
  • Surplus

Used Serviceable Material Market Application Outlook

  • Aerospace
  • Automotive
  • Construction
  • Marine
  • Industrial

Used Serviceable Material Market Material Type Outlook

  • Metals
  • Plastics
  • Composites
  • Rubber
  • Glass

Used Serviceable Material Market Market Channel Outlook

  • Direct Sales
  • Online Sales
  • Wholesale
  • Retail
  • Auctions

Report Scope

MARKET SIZE 20241.83(USD Billion)
MARKET SIZE 20251.91(USD Billion)
MARKET SIZE 20352.74(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)3.72% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledBoeing (US), General Dynamics (US), Northrop Grumman (US), Raytheon Technologies (US), Lockheed Martin (US), Hewlett Packard Enterprise (US), L3Harris Technologies (US), Textron (US), Honeywell (US)
Segments CoveredApplication, Material Type, Condition, End Use, Market Channel
Key Market OpportunitiesGrowing demand for sustainable practices drives innovation in the us used serviceable material usm market.
Key Market DynamicsRegulatory changes and technological advancements drive growth in the US used serviceable material market.
Countries CoveredUS

Market Highlights

Author
Sejal Akre
Senior Research Analyst

She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. Hands on expertise in management consulting, and extensive knowledge in domain including ICT, Automotive & Transportation and Aerospace & Defense. She is skilled in Go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.

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FAQs

What is the current valuation of the US used serviceable material market?

<p>As of 2024, the market valuation was 1.83 USD Billion.</p>

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