ID: MRFR/A&D/6596-HCR | 145 Pages | Author: Swapnil Palwe | May 2023
Used Serviceable Material (USM) Market Size is expected to reach USD 9.5 Billion by 2030, registering a CAGR of 4.1% during 2020-2030.
Used serviceable material is the equipment that is used from retired aircraft which are fitted in the aircraft which are in service. Used serviceable equipment is that equipment that is replaced in in-service aircraft that lessens the maintenance costs of the aircraft. Maintenance Repair and overhaul providers are using the USM technology to lessen their overall operating costs as well as time. In the next prevailing years, 40% of new aircraft agencies and deliveries are for replacement purposes. The rise in the period of fuel prices encourages the operators to defer the replacement of aircraft without using high expenses.
Covid 19 Analysis of Used Serviceable Material (USM) Market
The outbreak of COVID had a huge impact on the operation of aircraft carriers, airports, and air navigation providers. COVID hindered the growth of the industry and had a huge impact on the industry. It had a huge impact on the count in flights, seats offered to the passengers, and cargo flights split into domestic and international operations. It had an economic impact on the funding capacity of the air carriers, airports, and ANSPs. It affected the level of the country to country flights. It has transformed consumer behavior and also in the airline sector. The long-term effect of COVID, safety standards has become more stringent and profound. COVID increases the crisis levels where the business trips were canceled. It also led to the transition in strategic plans which were put forward by the key players.
The government took all the necessary steps to prevent the spread of COVID. He imposed countrywide lockdown and shutdown for the safety of the country’s people.
Rise in growth of retired aircraft and demand of MRO services are the factors that help in the expansion of the used serviceable material (USM) material. Giving special focus on aircraft modernization programs and giving special emphasis on aviation safety drives up the market. An increase in demand for MRO services expands up the market growth in the coming years.
it highlights the business priorities which assists the companies in the resignation of business strategies. It assists in recommending the progressive industry used serviceable material market trends in the used serviceable material (USM) market thus allowing the market players to adopt effective strategic plans. The Cost-effectiveness of USM’s assures a lucrative opportunity for the used serviceable material market during the assessment period. The USM suppliers supply highly reliable aircraft components which raise opportunities for aircraft manufacturers thus increasing the growth of the market.
Large costs of the components and aviation equipment are the most challenging factor of the industry. The presence of unskilled laborers affects the growth thus becoming the most challenging factor.
investing much more funds in the modernization of aircraft propels up the market growth thus widening the opportunity for adopting the used serviceable components. Globally, the aircraft transport used serviceable market size derives both primary and secondary sources. From primary research, it is observed that both the demand and supply side parties extract the facts during the used serviceable market forecast period where the production is projecting at a growing rate thus contributing to the growth of the industry. From secondary research, it is marked that data collected from various secondary research across the value chain increases the market size significantly.
Demand of aftermath parts increases the growth of aftermath aircraft which thus reduces the used serviceable material market size thus hindering the used serviceable material market growth.
Used serviceable market is categorized based on product type, aircraft type, provider type, and based region. Based on product type, the market is split into engine, components, and airframe. The engine product type is expected to project at a high rate during the used serviceable material forecast period which increases the growing demand for using the engine components and its systems. Based on aircraft type, the used serviceable industry is being divided into narrow body, wide body, regional, and turboprop segments. From all these the narrow segment is expected to register a high growth rate and covers maximum used serviceable material market share thus owing to the increase in the size of the fleet by the air service providers and also rising the preference of airlines. Based on provider type, the used serviceable market is being bifurcated into OEM and Non-OEM. The OEM division is expected to show a high growth rate and is the leading segment in the market thus owing to the adoption of USM’s in the commercial aircraft by OEM’s. Based on region, the market covers a particular share in the regions of North America, Asia-Pacific, Europe, South America, and other regions in some parts of the world.
The rise in the count of old aircraft enhances the use of technologies for making the parts and components innovative and attractive. The huge demand for air travel uses modern technology to leading airlines and defense forces which keeps the fleets ready. With the technology, refurbishment of commercial aircraft takes place. Used serviceable material market trend surges over the region which leads to providing an opportunity for the expansion of the business.
North American region is the largest and the most dominant market covering the largest area of used serviceable material market share and also contributes to the largest revenue contributor. This region owes to the presence of a large number of aircraft manufacturers, component manufacturers, MRO providers, and especially the component supplier. The remanence of the aircraft industry and aircraft manufacturers like Boeing and General Electric in the United States regions helps in boosting up the market growth. The North American region owes to the presence of numerous USM providers. Used serviceable material (USM) market in the Asia Pacific region projects at a high growth during the used serviceable material market forecast period. The rise in the number of commercial aircraft and the increase in the number of aftermath MRO providers for aircraft are the major factors for the expansion of used serviceable material market size in the Asia Pacific region. The countries included in these regions are China, Japan, and India which contribute very much to the growth and size.
The competitors develop and modify the business expansion process by using substantial growth techniques in developing regions of the market. These key players scrutinize in-depth marketing strategies and innovative used serviceable material market trends along with adopting various factors that will help in driving the used serviceable material market growth. They increase their decision-making process by going well through the strategies that help in developing commercial interest concerning product type, aircraft type, and the provider. Some of the major competitors of the used serviceable material market (USM) are Boeing of the United States, Eaton Aerospace of France, Avail of the United States, GA Telesis LLC of the United States, Delta TechOps of United States, Liebherr Aerospace of Germany, AAR. Corp of the United States, Collins Aerospace of the United States, General Electric of the United States, TES Aviation Group of the United Kingdom, and Lufthansa Technik of Germany. They give priority to expansion by merging and building acquisitions, and thus introducing new manufacturing facilities and launching new products. By building partnerships, signing contracts, joint ventures, funding, and inaugurating new places assists the companies in buildings their brand names.
The report highlights the ongoing market trends of the aircraft industry of using many types of equipment from retired aircraft and fitting them in the new innovative ones which helps in gaining popularity. It can be assessed in the assessment period during its latest study thus poisoning in gaining traction in the ongoing years thus favoring the expansion. The report highlights the market size, market growth, and market characteristics of the serviceable industry. The report summarizes the PESTLE used serviceable material market analysis about the industry to study the driving factors and hindering factors of the industry. The report also reveals the competitive environment and the efforts made by the industry for increasing the used serviceable material market value and its production.
Global used serviceable material is estimated to record a CAGR of 4.1% during the forecast period from 2020 to 2030.
Used Serviceable Material (USM) Market Size is expected to reach USD 9.5 Billion by 2030
North America is likely to dominate the global used serviceable material.
The increasing number of retires aircraft and subsequent demand for MRO services is the most significant factor driving the global used serviceable material.
Delta TechOps (US), Collins Aerospace (US), Aviall (US), Delta TechOps (US), are some of the renowned players of the global used serviceable material.
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