The global aircraft recycling market is estimated to garner notable revenue by growing at a CAGR of ~8% over the forecast period, i.e., 2022 – 2031. The growth of the market can be attributed to factors, such as, heavy utilization of costly materials and components, the rising manufacturing of commercial aircraft, tenable recycling of aircraft, growing awareness of green aviation also demonstrated as green practice bolster, and others. Additionally, a report published by International Air Transportation Association (IATA) demonstrated that the delivery of 12,000 new aircraft for scrapping was due in 2020, while Aircraft Fleet Recycling Association (AFRA) stated that these new aircraft can be scrapped in the forthcoming 20 years. The report further showed that the manufacturers are constantly working to launch 100% recyclable aircraft. Aircraft recycling is a procedure of harvesting reusable parts from obsolete aircraft such as, windshields, landing gears, seats, and other parts made of glass, steel, and aluminum. The aircraft recycling process is very organized that includes multiple stages that are dismantling, narrowing down all the components by their materials, and cleaning all parts to prevent rust and damage. Furthermore, the manufacturing of commercial aircraft is noticed to be increasing in recent decades. For instance, in 2020, global commercial aircraft manufacturing amounted to approximately USD 165 billion.
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The market is segmented by product into component and material, out of which, the material segment is anticipated to hold the notable share in the global aircraft recycling market on account of the significant utilization of aluminum in aircraft manufacturing. Aluminum has lightweight properties and modern aircraft are becoming lighter and lighter compared to old models. Hence, all these factors are estimated to boost the growth of the material segment over the forecast period.
In 2019, the world’s total energy supply was 606EJ, wherein the highest share in terms of the source was captured by oil, accounting for 30.9%, followed by coal (26.8%), natural gas (23.2%), biofuels and waste (9.4%), nuclear (5.0%), hydro (2.5%), and other (2.2%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to a decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 1% due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by the shutdown of numerous business operations impacting their growth. This also resulted in the decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas, and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environmental degradation and awareness related to climate change are motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
Regionally, the global aircraft recycling market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region. The market in North America region is estimated to witness noteworthy growth over the forecast period on the back of growing requirements for MRO of aircraft and the presence of major manufacturers of aircraft and their components in the region. For instance, in 2018, the aircraft manufacturing industry in the USA was valued at about USD 150 billion. Furthermore, Americans still struggle to understand the recycling system thoroughly, therefore a rising awareness about recycling can be observed in the region. Further, the demand for recycled aircraft parts is growing exponentially owing to increasing aircraft manufacturing in the region. For instance, in 2020, the US aircraft manufacturing industry was valued at about USD 135 billion. Other factors such as, escalating demand for more aircraft on account of the presence of a higher passenger pool and higher number of airports are also anticipated to propel the growth of the market during the forecast period in the region. In 2019, the number of airports in the United States was estimated to be more than 20,000.
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The global aircraft recycling market is further classified on the basis of region as follows:
North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Market Players Analysis & Opportunity Outlook
Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook
Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of the Middle East and Africa) Market size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook
Our in-depth analysis of the global aircraft recycling market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Growing utilization of expensive materials and components, and increasing manufacturing of commercial aircraft are the major factors driving the growth of the aerospace forging market.
The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2022 - 2031.
The major players in the market are AerSale Inc., CAVU Aerospace Inc., BAE Systems plc, Lockheed Martin Corporation, Air Salvage International Limited, HVF West LLC., Adherent Technologies, Inc., and Airbus S.A.S.
The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity as well as the new products being launched into the market by the company.
The market is segmented by aircraft, product, and by region.
The material segment is anticipated to hold the largest market size in value over the forecast period and display significant growth opportunities.
Lack of required technology and knowledge, and the need for high initial investment are estimated to hamper the market growth.
North America region will provide more business opportunities for growth of the aircraft recycling market in the future on the back of growing requirements for MRO of aircraft and the presence of major manufacturers of aircraft.
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