Used Serviceable Material Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for used serviceable material (USM) is expected to grow steadily, with the current value of the market in 2024 projected to be US$7.48 billion, and to rise to US$11.63 billion by 2035. The CAGR from 2025 to 2035 is 4.1%. Used serviceable material is a key product in the circular economy, and the industrial sector is now reducing waste and operating costs by reusing materials. Technology developments such as improved sorting and cleaning processes have also improved the viability of used serviceable material, making it more attractive to manufacturers and suppliers. The major players in the USM market, including Boeing, GE, and Honeywell, are investing in innovation and strategic alliances to strengthen their USM businesses. For example, Boeing has launched a program to reclaim and reuse aircraft components. GE has integrated USM into its supply chain to enhance the sustainability of its operations. These strategic moves not only demonstrate the importance of used serviceable material in the industry, but also the potential for the USM market to grow as companies become more concerned with the environment.

Regional Market Size

Regional Deep Dive

Used Serviceable Material (USM) Market is growing significantly across the globe, driven by the growing demand for sustainable practices and cost-effective solutions in the industries such as aeronautics, automobile, and electronics. The market is mainly driven by the regulatory framework that encourages the use of reclaimed materials and the increasing awareness towards the environment. North America is leading in terms of innovation and regulatory support. Europe is focusing on enhancing the regulatory framework. Asia Pacific is capitalizing on the manufacturing capabilities. The Middle East and Africa are focusing on resource optimization.

Europe

• The European Union's Circular Economy Action Plan is driving initiatives that promote the reuse of materials, including USM, which is expected to significantly increase the market's growth in the region.
• Companies such as Airbus are leading projects focused on the sustainable management of aircraft components, aligning with the EU's environmental goals and enhancing the market for USM.

Asia Pacific

• China's recent policies aimed at reducing waste and promoting recycling have led to increased investments in USM processing facilities, positioning the country as a key player in the market.
• Major corporations like Mitsubishi Heavy Industries are developing innovative solutions for the recovery and reuse of materials, which is expected to enhance the efficiency and appeal of USM in the region.

Latin America

• Brazil's National Solid Waste Policy is encouraging the recycling and reuse of materials, including USM, which is expected to foster market growth as companies adapt to new regulations.
• Organizations like the Brazilian Association of Recycling Companies are promoting awareness and best practices for USM, which is likely to enhance the market's development in the region.

North America

• The Federal Aviation Administration (FAA) has implemented new regulations encouraging the use of USM in aircraft maintenance, which is expected to boost the market as airlines seek to reduce costs and improve sustainability.
• Key players like Boeing and Honeywell are investing in advanced technologies for the refurbishment and resale of USM, enhancing the efficiency of material recovery processes.

Middle East And Africa

• The UAE's Vision 2021 initiative emphasizes sustainability and resource optimization, leading to increased interest in USM as a viable solution for various industries.
• Local companies are beginning to collaborate with international firms to develop USM processing capabilities, which is expected to enhance the market's growth potential in the region.

Did You Know?

“Approximately 70% of aerospace components can be refurbished and reused as USM, significantly reducing waste and resource consumption in the industry.” — International Air Transport Association (IATA)

Segmental Market Size

Used Serviceable Material plays a crucial role in the circular economy, reusing and reprocessing materials from decommissioned equipment. The used serviceable material market is currently growing, driven by the need for greater efficiency and the need for more sustainable practices in all industries, especially the aerospace and defence industries. The demand is also fuelled by the development of new materials and processes that make it easier to recover and reuse materials. Used Serviceable Material is currently in the early implementation phase, with companies like Boeing and Lockheed Martin leading the way in integrating used serviceable material into their supply chains. Used Serviceable Material is used in the repair of aircraft components and the recovery of used equipment. In recent years, companies have increasingly used Used Serviceable Material to achieve their own sustainability goals. The trend towards more sustainable practices, such as the government’s waste reduction policy and increased public awareness of the environment, is also driving the market. Used Serviceable Material is evolving in line with technological developments, such as advanced sorting systems and repair methods. These developments enable more efficient recovery processes and new applications in a range of industries.

Future Outlook

From 2024 to 2035, the Used Serviceable Material (USM) Market is expected to grow at a CAGR of 4.1%. This growth is due to the growing emphasis on the circular economy and the growing focus on the importance of the use of recycled and refurbished materials in the various industries. By 2035, the penetration of USMs in the aerospace, automotive and electronics industries will rise. The penetration rate of USMs in these industries could reach up to 30% of the total consumption of materials. The main technological innovations, especially in the field of material recovery and processing, will increase the efficiency and effectiveness of the use of USMs. These innovations, such as advanced sorting systems and artificial intelligence-based data analysis, will help to increase the recognition and recovery of serviceable materials, thereby increasing the supply of USMs. In addition, the government's support for the circular economy and the reduction of waste will increase the demand for USMs. The emergence of remanufacturing and the increasing adoption of Industry 4.0 will also shape the landscape of USMs and make them an important part of future supply chains.