The India Used Serviceable Material (USM) Market Size was estimated at 287.32 (USD Million) in 2023.The India Used Serviceable Material (USM) Market is expected to grow from 299.1(USD Million) in 2024 to 464.67 (USD Million) by 2035. The India Used Serviceable Material (USM) Market CAGR (growth rate) is expected to be around 4.086% during the forecast period (2025 - 2035).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
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Key India Used Serviceable Material (USM) Market Trends Highlighted
The growing focus on sustainability and resource conservation is driving significant trends in the India-used Serviceable Material (USM) market. The circular economy, which promotes the reuse and recycling of resources, including functional things from many industries, is being actively promoted by the Indian government.
This change is mostly the result of Indian consumers' and enterprises' growing awareness of environmental sustainability. Instead of throwing out materials, businesses are now concentrating on renovating and reusing them, which is in line with government programs to cut waste and encourage environmentally beneficial behavior.
Because the automotive and electronics industries produce large quantities of used, useable materials, there are also a lot of opportunities to investigate in these fields. Because remanufactured parts are more affordable and environmentally friendly, demand for them is rising, especially in the automotive sector.
Companies who can access the supply chain for used serviceable materials will profit from the expanding demand for reconditioned parts in a variety of industries.
Additionally, as consumer behavior shifts toward more environmentally friendly solutions, there has been an increase in startups and companies that specialize in the gathering and processing of used usable materials in recent years.
In addition, more money is being spent on technology that improves product quality and expedites refurbishing procedures. As the advantages of USM become more widely known, companies are increasingly working together to create networks that improve material recovery and reuse, ultimately assisting India in achieving its aspirational sustainability objectives.
Increasing Focus on Sustainable Practices
The growing emphasis on sustainability has become a significant driver for the India-used Serviceable Material (USM) Market. Government initiatives aimed at promoting recycling and reducing waste are encouraging companies in India to utilize reclaimed materials.
For instance, the Indian Ministry of Environment, Forest, and Climate Change has introduced various policies to mitigate waste and promote recycling in line with their Swachh Bharat Mission.
These initiatives are driving organizations to look for cost-effective options, thus fueling demand for used serviceable materials. As recycling processes improve, it is projected that by 2030, approximately 75% of all materials could be reused or recycled, highlighting a proactive shift toward sustainability in India.
Technological Advancements in Recycling Processes
Advancements in technology are paving the way for enhanced recycling processes within the India-used Serviceable Material (USM) Market. The introduction of sophisticated sorting technologies and AI-based processing systems is improving the efficiency of recovering usable materials from waste.
According to the Council on Energy, Environment, and Water (CEEW), the implementation of modern recycling technologies could potentially increase the recycling rate in India by approximately 50% by 2025. This not only increases the availability of serviceable materials but also provides companies with competitive pricing, thus fostering growth in the sector.
Growing Manufacturing Sector Demand
The rapid growth of the manufacturing sector in India is significantly bolstering the India Used Serviceable Material (USM) Market. As per the Department for Promotion of Industry and Internal Trade, the manufacturing sector is projected to grow to USD 1 trillion by 2025, which in turn will increase the demand for raw materials including used serviceable materials for various manufacturing processes.
This surge is leading manufacturers to seek sustainable and cost-effective materials, propelling the USM market forward. By providing an alternative to virgin materials, USM helps manufacturers meet their production goals sustainably.
Used Serviceable Material (USM) Market Product Type Insights
The India Used Serviceable Material (USM) Market is experiencing a dynamic evolution driven by various product types, primarily encompassing Engines, Components, and Airframes. This market segment is critical as it focuses on reclaiming and refurbishing components that can significantly reduce operational costs for airlines and manufacturers.
The Engine segment is particularly vital, as it represents a core part of aircraft functionality and safety, necessitating stringent regulatory compliance. Many operators in India are increasingly leveraging used engines to extend the lifecycle of aircraft while adhering to safety standards.
In addition, the Components segment plays a crucial role in maintaining aircraft efficiency, encompassing parts such as landing gear, avionics, and control systems, which are essential for flight operations. The availability of serviceable components allows airlines to optimize their expenditure and minimize downtime, making it a dominant aspect of the market.
Furthermore, the Airframe segment is essential to the structural integrity and overall performance of the aircraft, tapping into a significant volume of materials that can be refurbished and repurposed. A growing number of aircraft operators in India are recognizing the benefits of utilizing used serviceable materials, thereby spurring market growth.
Trends indicate a shift towards sustainability and cost efficiency within the aviation sector, enhancing the appeal of used serviceable material and opening up various opportunities for innovation. The focus on lowering operational costs, coupled with the rising demand for cost-effective solutions, positions the India Used Serviceable Material (USM) Market as a key player in the broader aviation industry landscape.
With Indian airlines expanding their fleets and striving for economical maintenance practices, the segmentation of Product Type within the USM market not only contributes to the industry’s growth but also reinforces the importance of recycling and reusing materials.
As this market continues to evolve, it is set to become an indispensable reflection of India’s commitment to sustainable aviation solutions and capital efficiency.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Used Serviceable Material (USM) Market exhibits a diverse Provider Type segment, consisting of crucial categories such as OEM and Non-OEM providers. The OEM segment generally refers to manufacturers who produce parts for the original production applications, ensuring quality and compatibility, which are essential in industries like automotive and electronics.
This segment is important as it holds a majority share in the market due to its established reputation and reliability, attracting a more quality-conscious customer base. Conversely, the non-OEM segment caters to cost-sensitive consumers looking for alternative solutions, often providing competitive pricing and a wider variety of offerings.
This diversity allows greater market accessibility and enhances customer choice. To align with India's increasing emphasis on sustainable practices and resource conservation, both segments are adapting; OEMs are leaning towards refurbishing existing parts to extend their lifecycle, while non-OEM providers contribute to affordability and accessibility.
Together, these segments shape the landscape of India's Used Serviceable Material (USM) Market, catering to varying customer needs and preferences, ultimately influencing market growth dynamics and consumer behavior.
Used Serviceable Material (USM) Market Aircraft Type Insights
The Aircraft Type segment within the India Used Serviceable Material (USM) Market encompasses key aircraft configurations including Narrow Body, Wide Body, and Turboprop aircraft. Currently, the Narrow Body category is significant due to its extensive application in domestic and regional flights, correlating with India's growing air travel demand, fostering a competitive environment among airlines.
The Wide Body segment, conversely, plays a crucial role in international operations, as it supports long-haul flights, thereby catering to the increasing globalization of trade and tourism in the Indian market. Meanwhile, Turboprop aircraft serve as a valuable asset for regional connectivity, bolstered by government initiatives focused on enhancing rural and underserved air travel routes.
As the aviation industry in India continues its robust expansion, characterized by a rising number of carriers and passengers, the demand for Used Serviceable Material in these aircraft types is expected to experience notable growth, driven by factors such as cost-efficiency, sustainability considerations, and an increasing emphasis on retrofitting and maintaining fleets.
The market's resilience is also underlined by continuous technological advancements, ensuring a steady supply chain for USM, which will be pivotal in addressing operational challenges faced by operators throughout the sector.
The India Used Serviceable Material (USM) Market presents a dynamic landscape where various players compete to capitalize on the growing demand for refurbished and recycled materials across different sectors. With increasing environmental awareness and the quest for sustainable practices, the market has seen a surge in interest from companies looking to optimize the lifecycle of materials.
The competitive insights reveal a blend of traditional and emerging companies striving to enhance their offerings through innovative techniques and cost-effective solutions. As organizations transition to more sustainable operations, the Used Serviceable Material Market is likely to witness further evolution with heightened competition and new entrants aiming to secure their market share.
Mahindra Group maintains a formidable presence in the India-used Serviceable Material (USM) Market, benefitting from its strong brand reputation and extensive distribution network. The company leverages its diversified operations in various sectors, such as automotive, agricultural equipment, and aerospace, to create a synergy that enhances its market offering in used serviceable materials.
Mahindra Group's strengths lie in its robust supply chain and the ability to provide high-quality refurbished products that meet customer demands. Their investments in technology and commitment to sustainability further augment their positioning in the market, allowing them to capture the interest of consumers focused on eco-friendly solutions.
With a focus on innovation backed by experience, Mahindra Group is well-prepared to navigate the competitive landscape of the USM market. Hindalco Industries represents another key player in the India-used Serviceable Material (USM) Market, particularly known for its contributions to metals and related trades.
The company's product portfolio includes aluminum and copper products that facilitate recycling and the reuse of serviceable materials. Hindalco Industries benefits from its strong industry experience, advanced technology, and comprehensive recycling facilities positioned across India. The company has developed partnerships and strategic alliances that enhance its reach and capabilities within the market.
A noteworthy aspect of their operations includes a commitment to sustainable practices, which resonates well with environmentally conscious consumers.
Through ongoing investments in innovation and efficiency, Hindalco Industries aims to strengthen its competitive edge, maintaining a vital role in the USM market while exploring opportunities for future mergers and acquisitions that could further consolidate its market position.
India Used Serviceable Material (USM) Market Developments
India Used Serviceable Material (USM) Market has seen significant activities recently, with companies like Mahindra Group and Hindalco Industries working to enhance sustainability through innovative recycling processes.
In September 2023, Hindalco completed the integration of Green Earth Recycling into its operations to strengthen its resource recovery capabilities. Concurrently, Tata Steel has been investing in advanced technology to improve the efficiency and effectiveness of recycling initiatives.
Investing in technological advancements has also been a priority for organizations like Jindal Steel and Power, which reported substantial growth in market valuation due to enhanced processing techniques.
In August 2023, the Ministry of Steel emphasized the importance of USM in its policy frameworks, citing collaboration with the Recycling Corporation of India as pivotal for waste management solutions. Furthermore, there have been notable movements among companies such as EcoWise and Veda Recycling, aiming to forge partnerships that focus on eco-friendly material management strategies.
The constantly evolving regulatory landscape is pushing firms to innovate, which is reflected in the aggressive approaches being taken by stakeholders in the India USM space over the past few years.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 287.32(USD Million) |
| MARKET SIZE 2024 | 299.1(USD Million) |
| MARKET SIZE 2035 | 464.67(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.086% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Mahindra Group, Hindalco Industries, JBM Group, Green Earth Recycling, Steel Authority of India, EcoWise, Sustainable Solutions, Tata Consultancy Services, Jindal Steel and Power, Hindustan Aeronautics Limited, Tata Steel, Veda Recycling, Recycling Corporation of India, ShreeNath Group |
| SEGMENTS COVERED | Product Type, Provider Type, Aircraft Type |
| KEY MARKET OPPORTUNITIES | Growing defense sector demand, Rising aerospace component recycling, Increasing environmentally sustainable practices, Expanding e-commerce platforms, Government initiatives for defense offset |
| KEY MARKET DYNAMICS | Growing demand for cost savings, Increasing sustainability awareness, Government regulations promoting reuse, Rising industrialization and infrastructure growth, Enhanced supply chain efficiencies |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Used Serviceable Material (USM) Market is expected to be valued at 299.1 million USD in 2024.
By 2035, the market is projected to reach a valuation of 464.67 million USD.
The expected CAGR for the India Used Serviceable Material (USM) Market from 2025 to 2035 is 4.086%.
In 2024, the Components segment is valued at 129.0 million USD, making it the largest share in the market.
The Engine segment of the market is expected to reach a valuation of 137.47 million USD by 2035.
Major players include Mahindra Group, Hindalco Industries, JBM Group, and Tata Steel among others.
The Airframe segment is projected to be valued at 126.7 million USD by 2035.
Key growth drivers include increasing demand for recyclable materials and advancing sustainability practices.
Challenges include regulatory hurdles and ensuring consistent quality in available materials.
The market is influenced by global conflicts and economic conditions affecting material availability and pricing.
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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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