Commercial Aircraft Disassembly, Dismantling, and Recycling Market Size, Share & COVID-19 Impact Analysis, By Type (Recycling, Component Management, Disassembly, and Dismantling Aircraft, Storage Engine, and Teardown), By Application (Narrow Body Aircraft, Wide Body Aircraft, and Regional Aircraft), and Regional Forecast, 2020-2027

The global commercial aircraft disassembly, dismantling, and recycling market size was USD 4.57 billion in 2019 and is projected to reach USD 5.40 billion by 2027, exhibiting a CAGR of 7.36% during the forecast period (2020-2027).

Aircraft decommissioning is a multidisciplinary process that involves different aspects such as environmental, safety, legal, operational, and economic aspects of the aircraft. The decommissioning process is carried out post the aircraft's retirement from its service life. It comprises the process of aircraft disassembling, dismantling engines, teardown components, and recycling valuable parts and components.

According to the Aircraft Fleet Recycling Association (AFRA), in the next 20 years, around 12,000 commercial aircraft will be retired and will be decommissioned. Hence, the rising number of retired aircraft will propel the growth of the market during the forecast period.

COVID-19 Pandemic: Declining Demand for Spare Parts will Affect Growth

The COVID-19 pandemic is set to change the dynamics of the commercial aircraft disassembly, dismantling, and recycling market in the forthcoming years. To overcome this pandemic, several commercial companies are focusing on the following factors:

• It is expected that during the post-impact period of the COVID-19 pandemic, there will be drastic aviation budget cuts from the airlines and aircraft owners in major countries such as the U.S., the U.K., France, Germany, Russia, China, and Australia. According to our analysis, many airlines and maintenance, repair, and overhaul (MRO) facility providers will shrink their aircraft fleet size and inventory, respectively.


• This will increase the number of retired aircraft, but the demand for spare parts will decrease from 2020 to 2021. Thus, there will be a negative impact in the year 2020.

LATEST TRENDS

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Technological Advancements in Carbon Fiber Recycling Process is a Prominent Trend

The recycling process helps to generate the residual value from aircraft recycled materials such as carbon fibers. Technological advancements in the automotive industry have facilitated the use of carbon fiber for automotive components. The carbon composites obtained from recycled plastic and waste materials are used in the automotive domain for the manufacturing of diesel-based engine components. This will have a positive impact on the commercial aircraft disassembly, dismantling, and recycling market growth.

The recycled material is available at a lower cost. Thus, automotive companies are focusing on using recycled materials for various components and systems. Moreover, stringent government norms related to environmental safety are facilitating the use of recycled aircraft material in the automotive domain.

DRIVING FACTORS

Rising Demand for Used Serviceable Materials (USMs) to Propel Growth

Used serviceable materials (USMs) are the aircraft components used from retired aircraft and are fitted in active commercial aircraft. USMs are directly replaced in active aircraft. Therefore, they help to reduce the maintenance cost of the aircraft.

Maintenance, repair, and overhaul (MRO) providers are adopting USMs to reduce the overall operational cost of commercial aircraft. The increasing number of retired aircraft due to COVID-19 and the high demand for MRO services are the major factors that would drive the market growth. Furthermore, a focus on aircraft disassembly, dismantling engine teardown, and recycling programs of the aircraft are boosting the commercial aircraft disassembly, dismantling, and recycling industry growth.

North America is the highest revenue contributor in the USM. The growth in the region is attributed to the presence of commercial aircraft manufacturers in the U.S., the presence of MRO service providers in Canada, and aircraft engine manufacturers in Mexico.

Import Restrictions on Ageing Aircraft will Boost Growth

The aging of aircraft consists of three main aspects, namely, fatigue, maintenance, and safety of the aircraft. However, the rate at which an individual aircraft ages is dependent on several factors such as the replacement of the aircraft fleet and components that further denote the life-cycle of an aircraft.

According to the MIT International Center for Air Transportation (ICAT) 2018 report, modern commercial aircraft are substantial economic assets. For the last two decades, the average life cycle of the commercial aircraft fleet has been between 20 to 25 years.

In February 2016, the Indonesian Ministry of Transportation (MOT) banned the import of commercial passenger aircraft that are more than ten years old. Similarly, In June 2016, the Directorate General of Civil Aviation (DGCA) India took an initiative to ban the import of commercial passenger aircraft more than 18 years old. The import restrictions implemented by several aviation authorities across the globe are anticipated to boost the market, as more conventional aircraft are being used for the recycling process.

RESTRAINING FACTORS

Concerns Related to Material Traceability and Sorting will Restrain Growth                                                             

Material traceability and sorting is a sustainable process to sort out the aircraft component and materials post aircraft disassembly. This process is used to optimize the recycling rates of the facility and diminish waste. Material traceability and sorting area time-consuming procedure and a skilled workforce are required to sort out the useful aircraft components. Inconveniency often occurs when recycling companies have to record every step of the supply chain in addition to obtaining and gathering data. This problem may result in the improper management of the supply chain of aircraft components & parts.

SEGMENTATION

By Type Analysis

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Narrow Body Aircraft Segment to Grow at Faster Pace Owing to Rising Air Traffic

Based on type, the narrow-body aircraft segment is expected to grow at the fastest rate and is also estimated to be the largest segment in 2019 due to the rising air traffic. It is subsequently leading to the retirement of a large number of aircraft in North America. Moreover, aircraft operators prefer narrow-body aircraft in their regional airline fleets due to their high passenger carrying capacity and ability to provide cost-effective operations.

By Application Analysis

Component Management Segment Dominated in 2019 Stoked by High Demand from MRO & Aftermarket Industry

Based on application, the market for commercial aircraft disassembly, dismantling, and recycling is segmented into recycling, component management, aircraft storage, disassembly and dismantling, and engine teardown. The component management segment accounted for the largest market share in 2019 due to the high demand from the maintenance, repair, and overhaul (MRO) and aftermarket industry. The teardown component management segment is gaining popularity due to a reduction in capital investment by aircraft operators around the world. The aircraft recycling segment is anticipated to showcase a significant CAGR during the forecast period owing to the increasing number of investments by the aviation industry in the dismantling and recycling process of aircraft.

REGIONAL INSIGHTS

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The market size in North America stood at USD 1.97 billion in 2019. The dominance of this region is attributable to the presence of major players in the market and the rising demand from MRO for commercial aircraft in the U.S. This, along with the presence of favorable government policies and required infrastructure facilities in the U.S. and Canada, is responsible for the dominance of North America in the market.

The market in Europe is expected to grow at a significant CAGR owing to the rising awareness regarding the advanced technology-based private recycling services and leasing facilities. The market in the Asia Pacific is expected to exhibit healthy growth owing to the increasing development of smart cities and investment in infrastructure by countries such as China, India, and Australia. In the Asia Pacific, the china commercial aircraft disassembly, dismantling, and recycling market is set to exhibit a significant growth than any other country. The Middle East and Africa accounted for a larger share due to the presence of a large number of aircraft disassembly facilities and high demand for aircraft spare parts.

KEY INDUSTRY PLAYERS

Key Players Focus on Developing Cost-effective Processes to Intensify Competition

Key players are involved in designing and developing advanced and cost-effective disassembly, dismantling, and recycling processes with the incorporation of innovative technological systems. Original equipment manufacturers (OEMs) are looking forward to developing technologically advanced software and hardware systems to simplify this process. Moreover, the companies are looking forward to establishing a strong partnership with those located in developed and emerging countries.

LIST OF KEY COMPANIES PROFILED:

• Aircraft End-of-Life Solutions (AELS)


• GA Telesis LLC (Florida, the U.S.)


• AerSale Inc (Florida, the U.S.)


• Tarmac Aerosave (Tarbes, France)


• Bombardier Inc. (Montreal, Canada)


• AJW Group (Horsham, the U.K.)


• The Carlyle Group (Washington D.C., the U.S.)


• China Aircraft Leasing Group Holdings Limited (Hong Kong, China)


• AAR (Illinois, the U.S.)


• Magellan Aircraft Services Corp. (Charlotte, NC, the U.S.)


• Ascent Aviation Services (Arizona, the U.S.)


• Air Salvage International Ltd (Cirencester, the U.K)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• August 2020 – The Boeing Company received the 2020 Sustainability Leadership Award from the National Association of Manufacturers. This award indicates the company has put innovative efforts into recycling aircraft carbon fiber and developing waste management systems.


• March 2020 – AJW Group purchased a CFM56-5B4 engine for teardown to support the expansion of the engine management programs. This contract will strengthen its engine teardown segment in the upcoming years. The company is a key player in the field of aircraft disassembly and recycling process.


• June 2019 -AerSale acquired Qwest Air Parts Inc. to expand the company’s segment of used serviceable material (USM). Qwest Air Parts Inc.’s Q2 Aviation LLC certified repair station enhanced the AerSale MRO facility.

REPORT COVERAGE

An Infographic Representation of Commercial Aircraft Disassembly Dismantling and Recycling Market

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The global commercial aircraft disassembly, dismantling, and recycling market research report provides a detailed analysis of the market and focuses on key aspects such as analysis of the leading companies, types, and prominent applications of the market. Besides this, the report offers insights into the market trends and highlights the key industry developments. Moreover, it encompasses various key factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation