Used Serviceable Material Market Report Scope and Overview:

The Used Serviceable Material Market was valued at USD 7.80 Billion in 2025 and is projected to reach USD 12.11 Billion by 2035, registering a CAGR of 4.5% from 2026 to 2035.

Used Serviceable Material market involves recertified and airworthy parts that are acquired from decommissioned or dismantled aircraft and then resold by MRO providers, airlines, and specialized distributors. Parts covered include engines, airframes, and line replaceable units which are cleared to airworthiness standards similar to those of new OEM parts but sold much more cheaply. The demand for such materials arises not out of preferences of buyers for cheaper parts, but rather from specific limitations in supplies which create need for the use of used serviceable material which airlines prefer now compared to new OEM parts due to considerable savings in money, especially in case of such expensive components as engines and avionics. Using used serviceable material instead of new OEM parts helps airlines reduce the costs for maintenance, repairs and overhauls by 30-40%, and increasing number of commercial and regional aircraft being produced as well as increasing rate of aircraft decommissioning contribute to the rising supply of such certified components.

In May 2024, Next Level Aviation established consignment agreement for used serviceable material in the form of CFM56 family engine accessories with Aeras Aviation.

Market Size and Forecast

• Market Size in 2026E: USD 8.15 Billion
• Market Size by 2035: USD 12.11 Billion
• CAGR: 4.5% from 2026 to 2035
• Fastest Growing Region: Asia Pacific
• Largest Region: North America (35% share in 2025)

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Used Serviceable Material Market Trends

• The market continues experiencing a robust shift toward sustainability and technological innovation, with companies increasingly emphasizing recycled and refurbished aircraft components.
• Technological advancements continue enhancing the efficiency of material recovery processes, particularly across North American teardown and part-out operations.
• Companies are increasingly leveraging data analytics to optimize inventory management and pricing strategies for used serviceable material.
• Vertical integration, from acquiring end-of-life aircraft through recertification to sale, continues giving certain providers greater margin control and more predictable inventory supply.
• Improved inspection and testing technologies continue enhancing the reliability and lifespan validation of recovered aircraft components.

The US Used Serviceable Material Market Outlook

The US Used Serviceable Material Market was valued at approximately USD 2.32 Billion in 2025 and is projected to reach approximately USD 3.57 Billion by 2035, registering a CAGR of approximately 4.4% from 2026 to 2035.

The demand in the US was influenced by the presence of commercial airlines, robust maintenance, repair, and overhaul infrastructure, as well as the well-developed aviation industry with extensive opportunities for aircraft disassembly and parting out activities. The technology innovations facilitated the improvement of the materials' recovery process and contributed to the growing preference of used serviceable material over the newly manufactured components due to cost savings in the purchase of such high-priced items as engines and avionics. The regulatory support encouraged a favorable business environment for further market development.

Throughout 2025, AerSale continued developing vertically integrated used serviceable material business, purchasing end-of-life aircrafts for their dismantling and recertification, thus having better margin control and inventory availability compared to other distributors operating in the US commercial aviation aftermarket.

Used Serviceable Material Market Segmentation Analysis

• By Product, Engine led the market with the largest share in 2025, while Avionics was the fastest-growing product category, tracking increasing aircraft systems complexity requirements.
• By Aircraft Type, Narrow-Body led the market with the largest share in 2025, while Wide-Body was the fastest-growing aircraft type, tracking rising demand across expanding long-haul route networks.
• By Distribution Channel, Aftermarket led the market with the largest share in 2025, while OEM was the fastest-growing distribution channel, tracking rising collaboration between manufacturers and used serviceable material providers.

By Product, Engine led the market, Avionics grew fastest

The Engine segment commands a substantial portion of the used serviceable material market due to the higher value and complexity of engine components relative to other aircraft parts. Engines are critical, high-value components, and airlines increasingly rely on used serviceable engines to reduce operational costs while ensuring reliability, keeping this product category the market's largest single revenue source by a considerable margin given how expensive engine replacement and overhaul procurement can be through new OEM channels alone.

Avionics is recording the fastest growth among product categories during the forecast period. Increasing aircraft systems requirements continue driving this growth, as avionics technology has become significantly more advanced, with aircraft companies utilizing increasingly complex communication, navigation, and flight control systems that create genuine demand for reliable, affordable used serviceable avionics components capable of meeting these rising technical requirements.

By Aircraft Type, Narrow-Body led the market, Wide-Body grew fastest

Narrow-Body aircraft accounted for the largest share of aircraft-type revenue in 2025, reflecting the sheer global scale of narrow-body commercial fleets operating short and medium-haul routes worldwide. That massive installed base of narrow-body aircraft requiring ongoing maintenance and part replacement kept this aircraft-type category the market's largest by a considerable margin.

Wide-Body aircraft are recording accelerated growth among aircraft types. The used serviceable material market for wide-body aircraft is notably concentrated due to the larger number of components and higher value compared to narrow-body aircraft, and burgeoning demand for wide-body aircraft, particularly within the rapidly expanding Asia-Pacific region's long-haul route networks, continues driving this segment's growth rate ahead of the broader, still-dominant narrow-body category.

By Distribution Channel, Aftermarket led the market, OEM grew fastest

The Aftermarket distribution channel held the larger share of channel-level revenue in 2025, as independent distributors and specialist used serviceable material providers continued serving as the primary conduit through which recertified components reached airlines and MRO providers. That established distribution infrastructure kept the aftermarket channel the dominant pathway for used serviceable material transactions.

The OEM distribution channel is expected to grow at the fastest CAGR during the forecast period. Original equipment manufacturers are expanding their service offerings to include certified used components, ensuring compliance and reliability, as airlines and MROs increasingly prefer OEM-certified materials to ensure compatibility and safety. Rising collaborations between OEMs and used serviceable material providers continue enhancing the availability of high-quality refurbished parts, reflecting growing trust in OEM-backed solutions for critical aircraft maintenance needs.

Regional Analysis

North America Used Serviceable Material Market Insights

North America accounted for the largest share of global revenue, at approximately 35%, due to the existence of major commercial airlines, large maintenance, repair, and overhaul infrastructure, and a well-established aviation ecosystem. Technological advancements continued enhancing the efficiency of material recovery processes across the region's extensive teardown and part-out operations.

The United States accounted for roughly 84.90% of regional revenue, anchored by extensive commercial airline fleets and deep MRO infrastructure supporting both domestic and export-oriented used serviceable material distribution. Canada added further regional demand through its own growing aviation maintenance sector, and that combined strength kept the continent the largest addressable market for used serviceable material vendors through the forecast period.

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Europe Used Serviceable Material Market Insights

Europe held a meaningful share of global revenue, supported by a well-established aviation ecosystem and a genuinely deep concentration of MRO providers and aircraft leasing companies headquartered across the continent. Regulatory support continued fostering a favorable environment for market growth across European aviation maintenance operations.

France led demand at roughly 24.75% of European revenue, supported by its substantial aerospace and aviation maintenance industry presence. Germany and the UK contributed substantial additional demand, and continued European aviation fleet expansion should keep regional demand for used serviceable material climbing through the forecast period.

Asia Pacific Used Serviceable Material Market Insights

Asia Pacific is advancing at the fastest pace among all regions tracked in this report, driven by rapid fleet expansion, rising demand for air travel, and the emergence of low-cost airlines across the region's largest economies. That combination of rapidly growing commercial aviation activity and expanding fleet size kept the region's growth trajectory well ahead of every other region tracked in this report.

China led the pack, supported by its rapidly expanding domestic commercial aviation fleet and growing MRO infrastructure investment. India and Southeast Asian economies contributed meaningful additional demand, with the region's burgeoning demand for narrow-body and wide-body aircraft continuing to reinforce Asia Pacific's position as the fastest-growing market tracked in this report.

MEA and Latin America Used Serviceable Material Market Insights

The Middle East and Africa and Latin America both showed steady growth, driven by expanding regional airline fleets, growing MRO infrastructure investment, and rising government focus on aviation sector development across both areas. As these markets continued building out modern aviation maintenance infrastructure, used serviceable material adoption grew correspondingly from a considerably smaller base than in more mature aviation markets.

The UAE led Middle East and Africa demand, supported by the country's position as a major regional aviation hub with substantial fleet and MRO infrastructure investment. Saudi Arabia contributed further demand through its own aviation sector development programs. In Latin America, Brazil accounted for the largest share of regional revenue, with growing regional airline fleet expansion continuing to anchor regional demand for used serviceable material.

Growth Drivers: Cost-Effective MRO Solutions and Aircraft Fleet Expansion

Market growth is still being fueled by the growing need for more affordable options when it comes to maintenance, repair and overhaul services in the aviation industry. Aircraft operators tend to opt for second-hand parts rather than new original equipment manufacturing because of the financial gains they derive from the former option, especially when it comes to expensive parts such as engines and avionics, where airlines can save 30 to 40% of their MRO costs.

The continuous expansion of global commercial and regional aircraft fleets, coupled with high rates of aircraft retirement, continues boosting the availability and adoption of used serviceable material, enabling operators to maintain older aircraft efficiently and sustainably. That combination of genuine cost savings and structural supply availability from retiring aircraft fleets is exactly what keeps demand climbing at such a sustained pace across the global commercial aviation industry.

Restraints: Certification Complexity and Supply Availability Constraints

The certification and traceability requirements governing used serviceable material continue posing genuine operational complexity for both providers and end customers, as ensuring rigorous safety standards while sourcing components from retired or part-out aircraft requires meaningful documentation and quality control infrastructure. That compliance burden keeps smaller, less-established providers at a genuine competitive disadvantage relative to well-resourced, vertically integrated market participants.

Supply availability constraints continue posing a further restraint, as the pace of aircraft retirement doesn't always align smoothly with downstream demand for specific component types, creating periodic shortages for certain high-demand parts even as overall market supply continues expanding. That timing mismatch between fleet retirement cycles and component demand keeps inventory planning genuinely challenging for used serviceable material providers.

Opportunities: Avionics Component Growth and OEM Partnership Expansion

Increasing aircraft systems requirements represent a genuinely significant opportunity, as avionics technology becomes significantly more advanced and the avionics product category's fastest-growing status among all segments tracked in this market reflects genuine demand for reliable, affordable communication, navigation, and flight control components. Vendors offering genuinely certified, high-quality avionics used serviceable material stand to capture meaningful share of this rapidly expanding, technically demanding product category.

Rising collaborations between OEMs and used serviceable material providers offer a second substantial opportunity, as original equipment manufacturers increasingly expand their service offerings to include certified used components. Vendors positioned to partner effectively with OEMs stand to capture meaningful share as airlines and MROs increasingly prefer OEM-backed solutions, reflecting a genuine industry shift toward blending new and certified used component sourcing strategies.

Recent Developments:

• 2025: AAR Corp continued expanding its teardown and part-out operations, targeting increased engine and airframe component recovery capacity to meet growing airline demand for certified used serviceable material.
• 2025: GA Telesis continued advancing its inventory management and component traceability platform, aimed at improving supply chain visibility for airlines and MRO providers sourcing used serviceable material.
• 2024: AJW Group continued expanding its component pooling and exchange program, targeting airlines and MRO providers seeking flexible access to certified used serviceable material without full ownership commitment.

Used Serviceable Material Market key players are:

• AAR Corp.
• GA Telesis, LLC
• AJW Group
• Liebherr-Aerospace
• Delta TechOps
• AerSale, Inc.
• AFI KLM E&M
• STS Aviation Group
• Next Level Aviation
• Aeras Aviation
• VAS Aero Services
• Chromalloy (Sequa Corporation)
• Wencor Group
• Precision Aircraft Solutions
• First Aviation Services Inc.
• Jet Parts Engineering
• Willis Lease Finance Corporation
• Unical Aviation Inc.
• Boeing Distribution Services Inc.
• Avmax Group Inc.

Used Serviceable Material Market Report Scope: