Air Transport USM Market Analysis

Air Transport USM Market Analysis

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Based on provider, the market is divided into OEM and aftermarket. In 2023, the OEM segment accounted for a market share of over 60%. OEMs have developed reputations for quality, dependability, and safety in the aviation business. Airlines frequently rely on them for used components, given their skill in constructing and servicing certain aircraft models. OEMs leverage their strong brand reputation and credibility to offer USM parts with the assurance of quality and reliability. Customers are often more inclined to purchase USM parts from OEMs due to their established track record in aircraft manufacturing and support. Furthermore, OEMs ensure that their parts meet the same rigorous standards as new parts, including regulatory compliance and airworthiness requirements. This commitment to quality and safety enhances the trust and confidence of airlines and regulatory authorities in OEM-provided USM.
 

Based on product, the market is categorized into engine, component, airframe, and others. The engine segment currently holds a high market share of around 44% in the market. Airplane engines are the most expensive and complicated components of an airplane, making them ideal for cost-effective replacements using USM solutions. Replacing them with new ones can be prohibitively expensive, resulting in airlines opting for Used, Serviceable Engines (USEs). Engine-related USM suppliers offer quick turnaround times for engine parts, minimizing aircraft downtime and maximizing operational efficiency for airlines. These suppliers invest in engine acquisition strategies to build a substantial inventory portfolio for regional and narrowbody platforms. For instance, in July 2023, AerFin, an aircraft and engine aftermarket solutions provider took delivery of 11 CFM56 and nine V2500 engines. The company's portfolio covers the CFM56-5B/5C/7B, CF34-8, CF6, RB211 and V2500 platforms. This shows the company's commitment to support its growing global customer base with premium used-serviceable material (USM).
 

North America led the global air transport USM market with a major share of over 38% in 2023. North America has a large and aging fleet of airplanes, creating a significant demand for cost-effective maintenance and repair solutions. For instance, in May 2021, the U.S. Air Force announced to retire 201 aircraft in 2022, to reinvest savings from not operating and maintaining those aircraft into research and development. Along with this, airlines in North America compete aggressively seek cost-efficiency. USM solutions offer considerable cost savings over new components, making them very appealing. Also, North America is home to major aircraft manufacturers including Boeing, Airbus Americas, Bombardier Aerospace and USM suppliers including GA Telesis, AerSale, HEICO Corporation contribute considerably to market development and innovation.