Global Used Aircraft Market 2024–2033

Reports Description

The CMI Market Research Team’s recent market research predicts that from 2024 to 2033, the global used aircraft market will grow at a CAGR of 7.2%. 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.

Jobs Through Aviation Industry

Source: According to ATAG Org

The Used Aircraft Market involves the buying, selling, and leasing of pre-owned aircraft across commercial, business, and general aviation sectors. This market serves airlines, private owners, and charter services seeking cost-effective alternatives to new aircraft. Key factors driving the market include economic considerations, fleet expansion needs, and the availability of retired aircraft.

The market also includes aircraft that have been modernized or converted for different uses, such as cargo transport. Trends like technological advancements, environmental regulations, and the varying demand for air travel, particularly in emerging and recovering economies, have an impact on the market.

The Used Aircraft Market: Key Growth Factors

The Used Aircraft Market presents significant growth opportunities due to several factors:

• Cost Efficiency: The purchasing of used aircraft is considerably cheaper than the new ones, this makes it easy for airline operators to achieve fleet growth or diversification without having to pay a lot of money, particularly in areas that value the cost of aircraft very much.

• Growing Cargo Demand: Increased use of freighters in the e-commerce and logistics industries has led to the cycling or conversion of used passenger aircraft into cargo aircraft thereby enhancing the used aircraft market.

• Fleet Modernization: Older aircraft with less efficient avionics and engines hold attraction to airlines that need to retrofit their fleets with modern systems and more fuel-efficient motors, thus, increasing the operational life of the vehicle is cost-effective.

• Emerging Markets: In growth areas such as Asia-Pacific and Africa, a rapid increase in the adoption of air transport opens up new opportunities to increase sales of used aircraft to such regions as they look for cheaper ways to expand fleets.

• Sustainability Initiatives: The call for environmentally friendly flight results in the addition of new technologies in the aircraft, which are retrofitted with new used aircraft thus making used aircraft popular among environmentally conscious operators.

Used Aircraft Market: Key Developments

The Used Aircraft Market has seen several key developments in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of key developments in the Used Aircraft Market include:

• In 2024, AerCap Holdings N.V. announced an offering of senior notes through its subsidiaries, AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust. This includes $1.3 billion in 4.625% Senior Notes due 2029 and $1.1 billion in 4.950% Senior Notes due 2034, guaranteed on a senior unsecured basis by AerCap and certain subsidiaries.

• In 2024, Airbus and TotalEnergies have formed a strategic partnership to advance sustainable aviation fuels (SAF), aiming for net carbon neutrality in aviation by 2050. SAF can reduce CO2 emissions by up to 90% compared to fossil fuels.

These key developments helped companies expand their offerings, improve their market presence, and capitalize on growth opportunities in the Used Aircraft Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Used Aircraft Market – Significant Threats

The Used Aircraft Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Technological Obsolescence: Rapid advancements in aviation technology may render older aircraft less competitive, reducing their value and demand in the used aircraft market as buyers prefer newer, more efficient models.

• Stricter Environmental Regulations: Increasingly stringent environmental laws, particularly regarding emissions and noise, could lead to the early retirement of older aircraft, limiting their marketability and potentially stranding assets.

• Economic Volatility: Economic downturns or global financial instability can reduce demand for air travel, leading airlines to cut back on fleet expansions or acquisitions, and negatively impacting the used aircraft market.

• High Maintenance Costs: Older aircraft typically require more frequent and costly maintenance, which can deter buyers concerned about long-term operating expenses, especially in a competitive market.

• Market Saturation: A surplus of used aircraft due to airline bankruptcies or mass fleet retirements can lead to market saturation, driving down prices and making it difficult for sellers to achieve profitable sales.

Category-Wise Insights:

By Aircraft Type

• Commercial aircraft: Pre-owned commercial aircraft include regional and commercial passenger aircraft. The demand for such aircraft is mainly related to cost and the necessity of fleet growth, as well as conversion of old passenger aircraft for cargo, and updating avionics. Demand is on the rise along with the revival of international travel, along with increased interest in cost-efficient strategies mainly in developing countries.

• Business Aircraft: Used business aircraft include light, mid-size and large aircraft utilized for business and personal airplane trip. There is increasing demand for used business jets as companies seek cost-effective, versatile travel options. Some recent developments are the upgrade of cabin and avionics, while customers mainly focus on operational versatility and refining travel experience in an environment of economic recovery.

• Military Aircraft: The used military aircraft comprises fighter jets, transport planes and helicopters that were earlier in the possession of defence forces. The market identified interests from private entities and government military aircraft mainly for training or to conduct specific operations. Some of them include retrofitting for civilian applications as well as growing demand for cost effective and used defence technologies due to growing conflicts on the international level.

• General Aviation: Used general aviation aircraft include piston planes, turboprops, and helicopters used for recreational, private, or light commercial purposes. Cost effectiveness and rising recreational flying are what drive the market. Trends feature increased interest in personal aircraft due to travel flexibility and upgrades to enhance performance and safety, with strong recovery as leisure travel picks up.

By Age of Aircraft

• 0-10 Years: Aircraft aged 0-10 years are relatively new, often featuring modern technology and higher fuel efficiency. These aircrafts are in high demand as they can be maintained for a relatively cheaper price and have a higher remaining utilization rate as compared to other commercial aircraft. They draw customers that seek nearly new performance and improved features. There exists great competition in the market for these types of planes and the prices are generally high since most of them are newly manufactured and made with modern technology.

• 11-20 Years: Aircraft in this age group which are 11 to 20 years are categorized as mid-life age aircraft as they contain a mixture of technology and age and expense. Such aircrafts are sometimes modified to increase their use span and to conform to current requirements. It is for this reason that buyers find them cheaper than the new models while still being endowed with fairly modern features. The market trend also consists of the rising number of customers desiring to retrofit and refurbish these planes for competitiveness and appeal.

• 21+ Years: Aircraft aged 21 years and older are considered older assets, typically with higher maintenance needs and outdated technology. This segment faces challenges due to rising maintenance costs and stricter regulations. However, opportunities exist for cargo conversions and retrofitting with modern technology. Buyers often seek these aircraft for lower purchase costs, but they must be prepared for higher operational expenses and potential refurbishment requirements.

By End Users

• Airlines: Airlines purchase used aircraft to expand or modernize fleets cost-effectively. Trends include increased demand for fuel efficient models and aircraft that have been converted from passenger carrying to cargo. Used aircraft are popular among airlines since it helps to control capital expenses in such conditions as fluctuations in the airline market or economic crises.

• Charter Services: Charter services purchase second-hand planes that give clients a broad and affordable mode of transport. Some of the trends are improvement of interiors and avionics to improve passenger comfort and satisfaction and meet diverse client needs while managing operating costs.

• Private Owners: Individuals and businessman purchase second-hand aircraft for their own use or for business, they are not much concern with new models in the market. Trends include a trend for installations and modernization of interiors which remains a luxury and comfort and with lower price range.

• Government & Military: Governments and military departments get involved in the purchase of second-hand aircraft include training and transportation. Some trends are to adapt the aircraft that are no longer used for their original purpose, or for retrofitting to improve its operation according to the new standards or economic efficiency.

• Others: This category includes leasing companies and aviation training institutes that acquire used aircraft for lease or educational purposes. Trends involve focusing on aircraft with flexible configurations and modernization potential to appeal to diverse market segments.

Report Scope

Used Aircraft Market: Regional Analysis

The Used Aircraft Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: The Used aircraft market in North America is mainly fostered by the concerns of fleet renewal and technology upgrading. Issues are regulations that demand the development of fuel-efficient green aircraft, as well as competition within the industry as a factor increasing the demand for new and advanced technology. It also registers high levels of leasing companies’ activity and a saturated aftermarket of commercial and business aircraft.

• Europe: In Europe specifically, the market of used aircraft is thus characterized by a high emphasis on environmental standards. Some of the trends include a growing number of orders for aircraft that are designed to meet the new emission requirements as well as adjustment of the production of the older models to the requirements of the current legislation. Also, there is an increasing demand for passenger to freighter conversion as logistics requirements in the continent are concerned.

• Asia-Pacific: The Asia-Pacific region is experiencing rapid growth in air travel, which drives demand for used aircraft as airlines expand their fleets. Trends include high demand for cost-effective solutions and a preference for newer aircraft with advanced technology to meet competitive market needs. The region also sees increased activity from emerging economies looking to quickly scale their aviation infrastructure.

• LAMEA (Latin America, Middle East, and Africa): In LAMEA, used aircraft market trends are more or less linked to the affordability and growth of their fleets. Some include the sustained demand for older and slightly used aircraft due to cheap prices and changes in usage of aircraft through conversions for different services like cargo and special ops. There is also an increasing number of private owners and charter services that look for cheap solutions in this region.

Competitive Landscape: Used Aircraft Market

The Used Aircraft Market is highly competitive, with a large number of key players globally. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as innovation, mergers and acquisitions, and partnerships.

New players entering the used aircraft market, such as Airbus Corporate Jets and AvBuyer, are adopting innovations like advanced digital platforms for transactions and enhanced aircraft customization services to attract buyers. They focus on streamlining the purchasing process and offering tailored solutions.

Dominant key players include AerCap Holdings N.V., Aviation Capital Group LLC, and GECAS, who lead through extensive fleets, global reach, and strong financial backing. Their dominance stems from large-scale operations, significant inventory, and robust leasing and financing options, making them key influencers in the market.

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