Aircraft Recycling Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Aircraft Type (Narrow-Body Aircraft, Wide-Body Aircraft, Regional Aircraft), By Product Type (Component, Material), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.06 Billion
CAGR (2026-2031)	7.43%
Fastest Growing Segment	Wide Body Aircraft
Largest Market	Europe
Market Size (2031)	USD 7.78 Billion

Market Overview

The Global Aircraft Recycling Market will grow from USD 5.06 Billion in 2025 to USD 7.78 Billion by 2031 at a 7.43% CAGR. The Global Aircraft Recycling Market encompasses the systematic dismantling and processing of retired airframes and engines to recover high-value materials, such as aluminum, titanium, and avionics, for reintegration into the manufacturing supply chain. The primary drivers supporting this market’s growth include the inevitable retirement cycles of aging commercial fleets and the enforcement of rigorous environmental regulations that mandate sustainable end-of-life disposal methods to minimize landfill waste. These fundamental drivers provide a stable demand for secondary raw materials and certified serviceable parts, distinguishing the sector’s long-term viability from transient industry trends.

However, a significant challenge currently impeding market expansion is the global shortage of new aircraft deliveries, which compels operators to extend the service lives of older vessels and defer their retirement. This supply chain bottleneck effectively restricts the volume of feedstock available for dismantling facilities, thereby slowing market throughput. According to the 'International Air Transport Association', in '2025', the aviation industry faced a cumulative delivery shortfall of approximately 5,284 aircraft, a deficit that has necessitated the prolonged retention of aging fleets and delayed their transition into the recycling ecosystem.

Key Market Drivers

The accelerated retirement of aging commercial aircraft fleets serves as the primary feedstock engine for the global recycling market. As airlines strive to optimize operational efficiency and meet sustainability targets, older, less fuel-efficient vessels are systematically phased out, creating a consistent influx of airframes for dismantling. According to Boeing, July 2024, in the 'Commercial Market Outlook 2024–2043', the aviation industry will require nearly 44,000 new airplanes over the next two decades, with approximately half of these deliveries designated to replace jets that are retiring from service. This steady volume of retired assets ensures a reliable supply of raw materials and reusable components, underpinning the operational stability of recycling facilities worldwide.

Concurrently, the surging demand for Used Serviceable Materials (USM) acts as a critical economic catalyst, incentivizing the meticulous recovery of high-value components. As maintenance, repair, and overhaul (MRO) costs escalate, operators increasingly turn to certified secondary parts to reduce expenses without compromising safety, thereby driving the financial viability of aircraft dismantling. According to AAR Corp, July 2024, in the 'Fiscal Year 2024 Annual Report', consolidated sales to commercial customers increased 23.3% year-over-year, a growth primarily attributed to strong demand and volume expansion in the Parts Supply segment across both new distribution and USM activities. This economic incentive is further reinforced by the growing adoption of circular economy frameworks, evidenced by major infrastructure investments. According to Airbus, in 2024, the company inaugurated its first global lifecycle services center in Chengdu, a facility established with a total investment of approximately 6 billion yuan to manage the entire aircraft dismantling and recycling process.

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Key Market Challenges

The prevailing shortage of new aircraft deliveries constitutes a primary bottleneck impeding the expansion of the aircraft recycling sector. As original equipment manufacturers encounter persistent production delays and supply chain constraints, airline operators are compelled to retain older vessels in service well beyond their scheduled retirement dates to maintain operational capacity. This trend of extending service lives directly restricts the supply of feedstock available to dismantling facilities. Since the recycling market relies heavily on a consistent volume of retired airframes to recover valuable metals and reusable components, this reduction in input material creates a significant slowdown in processing activity and limits revenue generation for recyclers.

The inability to secure adequate feedstock disrupts the supply of certified used parts and secondary raw materials to the wider aviation industry. This stagnation prevents the market from operating at optimal capacity. According to the 'International Air Transport Association', in '2024', the annual retirement rate for commercial aircraft fell to approximately 1.5% of the total global fleet, a figure significantly lower than the historical average required to sustain standard recycling throughput. This deficit in available airframes forces recycling entities to operate with underutilized facilities, thereby stifling the overall financial growth and developmental pace of the market.

Key Market Trends

The strategic integration of maintenance, repair, and overhaul (MRO) services with end-of-life solutions is reshaping the market, as stakeholders seek to secure a consistent supply of high-quality components. By combining dismantling operations with MRO capabilities, companies can directly harvest, certify, and reinstall used serviceable materials (USM) into their active fleets, effectively bypassing third-party brokers and supply chain delays. This vertical integration not only reduces procurement costs but also ensures strict quality control over the recycled feedstock entering the repair cycle. According to Airbus, September 2024, in the 'Global Services Forecast 2024–2043', the aircraft dismantling and recycling market is projected to generate approximately $52 billion in used serviceable material value over the next twenty years, a substantial economic opportunity that is driving service providers to embed teardown activities directly into their aftermarket support portfolios.

Concurrently, the standardization of green teardown processes and best practices is gaining momentum to maximize material recovery rates and ensure compliance with elevating sustainability benchmarks. Industry players are formalizing collaborative frameworks that prioritize the segregation of hazardous fluids and the systematic harvesting of recyclable alloys, moving beyond simple scrapping to advanced reclamation. These partnerships focus on optimizing dismantling techniques to handle complex airframes and extract maximum value from non-metallic components that were previously discarded. According to ATR Aircraft, March 2024, in the 'Aircraft Recycling: ATR & TARMAC Deepen Partnership' press release, the joint initiative between the manufacturer and the recycler successfully achieved a recovery rate of 85.5% for retired regional aircraft, a metric that underscores the efficiency gains realizable through structured, environmentally aligned decommissioning protocols.

Segmental Insights

The Wide Body Aircraft segment represents the fastest-growing category in the Global Aircraft Recycling Market due to the accelerated retirement of older long-haul fleets. Airlines are increasingly replacing these heavier models with more fuel-efficient alternatives to optimize operational costs. This transition has led to a surge in the availability of wide-body airframes for dismantling, which yield significant value through the recovery of extensive materials and reusable components. Furthermore, guidelines from the Aircraft Fleet Recycling Association promote sustainable end-of-life solutions, ensuring that the complex disassembly of these massive aircraft aligns with environmental standards.

Regional Insights

Europe holds the leading position in the Global Aircraft Recycling Market, primarily driven by stringent environmental regulations enforced by the European Union. The region maintains a comprehensive legal framework that mandates the responsible dismantling and disposal of end-of-life aircraft to support circular economy goals. This regulatory pressure compels operators to maximize material recovery and minimize landfill waste. Furthermore, the presence of established recycling infrastructure allows for the efficient processing of retired fleets. This combination of strict compliance standards and operational capacity secures Europe's dominance in the sector.

Recent Developments

• In September 2024, Unical Aviation acquired Ecube Solutions, a UK-based specialist in aircraft end-of-life services, to significantly expand its presence in the global aircraft recycling market. This strategic acquisition allowed the US-based supplier to enhance its service capabilities and footprint across the Europe, Middle East, and Africa regions. By integrating the acquired company's expertise in aircraft disassembly and component reuse, the organization aimed to strengthen its inventory of used serviceable materials. The move underscored the industry's trend towards consolidation and the increasing importance of robust, sustainable supply chains for aftermarket aviation parts.
• In August 2024, Skyservice Business Aviation launched a dedicated aircraft recycling division to provide sustainable end-of-life options for business jet owners. The new division received accreditation from the Aircraft Fleet Recycling Association (AFRA) for adhering to best management practices in disassembly. Based in Toronto, the company introduced a comprehensive strategy prioritizing environmentally conscious teardowns to maximize the yield of recyclable components. This strategic expansion was developed to address supply chain constraints by offering flexible solutions, such as direct purchase or consignment models, ensuring that high-value parts are returned to the aviation market efficiently.
• In March 2024, Tarmac Aerosave and ATR strengthened their existing partnership to enhance the dismantling and recycling of regional aircraft. The companies announced a plan to recycle up to 12 aircraft over the subsequent years, aiming to improve the recovery rate of reusable parts beyond the previous 85% benchmark. This collaboration focused on identifying and implementing advanced recycling processes to maximize the retrieval of airframe components and original equipment manufacturer parts. The initiative was positioned to alleviate global spare parts shortages while reinforcing the environmental credentials of regional aviation through more efficient material recovery and waste reduction strategies.
• In January 2024, Airbus commenced operations at its new Airbus Lifecycle Services Centre (ALSC) in Chengdu, China, marking a significant development in the global aircraft recycling infrastructure. Established through a joint venture with Tarmac Aerosave and the city of Chengdu, this facility became the first "one-stop shop" in the region dedicated to the entire aircraft lifecycle, offering parking, storage, maintenance, dismantling, and recycling services. Spanning 717,000 square metres with a storage capacity for 125 aircraft, the centre was designed to recycle 90% of an aircraft's weight, thereby supporting the circular economy and addressing the growing demand for sustainable end-of-life solutions in Asia.

Key Market Players

• Air Salvage International Ltd
• Aircraft End-of-Life Solutions (AELS) BV
• Aircraft Part-Out Company Europe B.V.
• ARC Technology Solutions
• KLM UK Engineering Limited
• Total Technic Ltd.
• GA Telesis, LLC
• AVITAS, Inc.
• AerSale, Inc.
• Aviation International Recycling S.L.

By Aircraft Type	By Product Type	By Region
Narrow-Body Aircraft Wide-Body Aircraft Regional Aircraft	Component Material	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Aircraft Recycling Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Aircraft Recycling Market, By Aircraft Type:

• Narrow-Body Aircraft
• Wide-Body Aircraft
• Regional Aircraft

• Aircraft Recycling Market, By Product Type:

• Component
• Material

• Aircraft Recycling Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE