Aircraft Recycling Market Analysis

Aircraft Recycling Market Analysis

Narrow-body segment dominated more than 60% of the market share in 2020. Narrow-body aircraft are widely used by various airlines as they carry more passengers in a cost-effective nature. Additionally, a large number of narrow-body aircraft fleets retire every year, creating opportunities for aircraft recyclers to harvest aircraft parts. Airlines are increasingly adopting recycled aircraft parts due to their low cost.

Engines segment in the aircraft recycling market is projected to witness an 8% growth rate through 2027 led by growing fleet expansion plans of various airliners and aircraft operators mainly in the emerging economies. The use of second-hand aircraft is growing, especially in low-income countries, on account of low cost and easy availability. With few modifications, the aircraft can easily be operated before its disposal. Increasing air travel around the world is further impelling airlines to maintain a healthy fleet size, thereby driving the demand for recycled engines in the industry.

The North America aircraft recycling market captured 50% of revenue share in 2020 driven by the presence of various major players in the region and the rising demand for MRO for civilian aircraft in the U.S. For instance, in April 2020, Aircraft Solutions USA announced that it will be investing USD 100 million to create a new aircraft recycling center. The growing demand for recycled aircraft parts from various airliners and aircraft operators around the world is further enhancing the market value. Increasing number of ageing aircraft in the region will augment the aircraft recycling activities in the region. In addition, favorable government policies toward aircraft recycling and already established infrastructures that carry the dismantling & recycling of aircraft will influence the market revenue during the forecast period.