Several airline business across the globe are shutting down for incurring huge losses pertaining to the surging maintenance, repairs, and operation costs. In order to save costs on MROs, air transport companies are adopting the used serviceable materials (USM) of airliners and reusing them for bringing efficiency in their aircrafts. Over the recent past, the demand for air transport USM has surged owing to their role in enabling airline companies tackle their brimming expenditure on MROs. According to Transparency Market Research, the global air transport USM market will witness a steady growth in the near future as several airliners will focus on incurring substantial savings through the adoption of USMs.
Currently, the global competition landscape for air transport USM remains consolidated with the presence of only a handful of industry leaders. Pratt & Whitney, TES Aviation Group, General Electric, AAR Corp., and Lufthansa Technik (LHT) are leading players in the global market for air transport USM. These companies are expected to work towards developing effective equipment for assembling and dismantling the USMs in order to save operational costs and avoid component damage.
According to the report, the global market for air transport USM will expand at a CAGR of 5.1% during the forecast period, 2017-2026. Transparency Market Research further projects that by the end of 2026, an estimated US$ 7 Bn worth of air transport USMs will be sold in the global aircraft industry.
North America’s Air Transport USM Market
A regional analysis and forecast on the global air transport USM market, provided in the report, reveals that North America will account for more than 30% of global air transport USM sales in 2017 and beyond. Growing use of airlines as a common mode of transport in the US and Canada will drive the demand for air transport USM across North America. By the end of 2026, North America’s air transport USM market is poised to be worth over US$ 2.1 Bn. Europe and the Asia-Pacific excluding Japan (APEJ) region are also pegged to be at the forefront of global air transport USM market expansion through 2026.
Predominant Sales of Used Serviceable Engines to Drive Market Growth
Engines, components and airframes are the key products being sold in the global air transport USM market. The overall demand for engines continues to outpace that of components and airframes as airliners are installing the used serviceable aircraft engines to power new jets and airplanes. By 2026-end, over US$ 4.5 Bn worth of engines are expected to be sold in the global air transport USM market. Sales of components will also witness a steady growth over the forecast period, while airframes are expected to register a moderate CAGR in terms of revenues.
Narrowbody Jets will Register Higher Installation; OEMs to Account for Largest Revenue Share as Providers
The report further reveals that air transport USMs will be widely used in narrowbody jets. In 2017, around half of the revenues procured in the global air transport USM market will be accounted by their installations in narrowbody jets. Widebody jets are also expected to account for considerable revenue share in the global air transport USM market throughout the forecast period. With respect to providers of USMs, the global air transport USM market will be dominated by OEMs. Through 2026, nearly three-fifth share of air transport USMs sold in the global market will be provided by OEMs.