Global Used Aircraft Market Size Likely to Grow at a CAGR of 7.2% By 2033

As per the current market research conducted by the CMI Market Research Team, the global Used Aircraft Market size is expected to record a CAGR of 7.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 2,313.6 Million. By 2033, the valuation is anticipated to reach USD 4,325.5 Million.

Used Aircraft Market: Growth Factors and Dynamics

• Cost-Effectiveness: Consumers in the aviation industry, both airlines and private companies are mainly concerned with costs and therefore opt for second hand aircraft because of their cheaper purchase price compared to new aircraft. This makes the aircraft affordable, and therefore, their operation expenses are easily manageable by the operators, while the quality of the aircraft is not compromised due to the pedigree of the models; this makes it preferable to middle and small airline operators as well as private owners who need to balance their costs in their operations.

• Rapid Fleet Expansion: The Asian-Pacific, Latin America together with the Middle East markets continue to post impressive growth of air travel demands. Next, used aircraft have been identified as a relatively faster and cheaper way through which airlines can grow their fleet of planes. This will help them to manage the growing passenger traffic and continue their competitive operations putting them in a good position to survive high startup costs associated with acquiring new airplanes that takes time to be delivered because of manufacturing backlog.

• Shorter Lead Times: Whereas new aircraft take years for production, used aircraft are ready for purchase and hence can be used immediately. This enables, for instance, an aeroplane main business, the airlines and operators to quickly incorporate more capacities into their fleets, in the process, being in a position to respond to market stimulus or operational requirements much faster. The lead time is also shorter and this helps to cut on contact time disruptions hence making it easier to adapt to the changing demands.

• Technological Advancements: Upgrading the aircraft with modern avionics, refurbished interiors, and better models of engines along with retrofitting current models serves as a great addition to selling the models. Such changes may help to increase the effective service lifespan of used planes and offer them as comparably suitable as new ones.

• Environmental Regulations: High environmental standards especially in European and North American countries have placed pressure on companies to phase out old aircrafts with low fuel efficiency. Still, these aircraft can continue to sell the aircraft in regions where environmental standards are not as strict as those of the EU. The continuous and global trend towards environmental conservation has seen a constant change in aircraft turnover, especially with operators in less-controlled regions enjoying the benefits accruing from the acquisition of these relatively modern but fairly cheaper used aircraft.

• Economic Uncertainty: During moments of economic instability or when the economic situation is not very favourable for the development of air communication, for example, during crises, airlines and other private buyers tend to purchase planes that have already been used, because it is less risky to invest in this kind of planes.

Used Aircraft Market: Partnership and Acquisitions

• In 2024, AerCap signed a component agreement with OEMServices, providing a significant inventory of Airbus A220 parts to support their airline customers. This agreement highlights AerCap Materials’ role in offering inventory financing solutions for various aircraft platforms, including Airbus A320 and A380.

• In 2024, Airbus has teamed up with Tata Group to establish India’s first private-sector helicopter Final Assembly Line. This initiative, part of the ‘Make in India’ campaign, will assemble Airbus H125 helicopters for domestic use and export to neighbouring countries.

Report Scope

Used Aircraft Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Used Aircraft Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Demand Decline: The COVID-19 pandemic led to a sharp decline in global air travel, causing airlines to reduce fleet sizes and defer new aircraft purchases. This resulted in an oversupply of used aircraft in the market, driving down prices and reducing demand as airlines focused on survival rather than expansion.

• Increased Retirements: Financial pressures forced many airlines to accelerate the retirement of older aircraft. These retirements flooded the used aircraft market with additional supply, creating a surplus that further depressed market values and made it challenging for sellers to find buyers.

• Resumption of Air Travel: As global travel restrictions eased, the demand for air travel gradually recovered. This resurgence led airlines to re-evaluate their fleet requirements, increasing interest in used aircraft as a cost-effective way to meet the returning demand without committing to the high costs and long lead times associated with new aircraft.

• Increased Cargo Demand: The surge in e-commerce and global shipping during the pandemic boosted demand for freighter aircraft. Many older passenger aircraft were converted into cargo planes, revitalizing the used aircraft market by creating new opportunities for repurposing and extending the operational life of these aircraft.

• Cost-Driven Fleet Expansions: Airlines, especially low-cost carriers and regional operators, sought to rebuild their fleets economically. The availability of affordable used aircraft allowed these carriers to expand their operations quickly and efficiently, catering to the growing number of passengers as air travel rebounded.

• Leasing Market Recovery: The aircraft leasing market, which took a hit during the pandemic, started to recover as airlines sought flexible solutions to rebuild capacity without making large capital expenditures. Leasing used aircraft became an attractive option, driving demand in the used aircraft market as leasing companies expanded their portfolios.

• Modernization and Retrofits: Airlines and operators took advantage of the downtime during the pandemic to modernize and retrofit older aircraft. This included upgrading avionics, improving fuel efficiency, and enhancing passenger comfort. These improvements made used aircraft more attractive to buyers post-pandemic, as they offered modern features at a fraction of the cost of new aircraft.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Used Aircraft Market, with some challenges and opportunities arising from the pandemic in the market.

List of the prominent players in the Used Aircraft Market:

• AerCap Holdings N.V.
• Aviation Capital Group LLC
• Boeing Capital Corporation
• General Electric Capital Aviation Services (GECAS)
• Aircastle Limited
• AVITAS Inc.
• Bombardier Inc.
• International AirFinance Corporation
• Textron Aviation Inc.
• Embraer S.A.
• Jetcraft Corporation
• Airbus S.A.S.
• Falcon Aviation Services
• Willis Lease Finance Corporation
• Avolon Aerospace Leasing Limited
• Others

The Used Aircraft Market is segmented as follows:

By Aircraft Type

• Commercial Aircraft
• Business Aircraft
• Military Aircraft
• General Aviation

By Age of Aircraft

• 0-10 Years
• 11-20 Years
• 21+ Years

By End-User

• Airlines
• Charter Services
• Private Owners
• Government & Military
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America