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The Used Aircraft Market size is forecast to increase by USD 1.81 billion and is estimated to grow at a CAGR of 8.09% between 2023 and 2028. The market is experiencing significant growth, driven by various factors. The expansion of low-cost carriers is a primary catalyst, as they continue to increase in number and demand for cost-effective flying solutions. Additionally, the defense sector's growing requirement for used aircraft is another crucial factor. Furthermore, the substantial capital investment in new aircraft production creates a steady supply of pre-owned aircraft entering the market. This trend is expected to persist, as the market continues to play a vital role in the aviation industry's economic landscape.
Market Forecast 2024-2028
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The 0-15 years segment is estimated to witness significant growth during the forecast period. One of the main factors that is fuelling the demand for this segment is the growth in the GDP of developing countries such as India and China due to industrialization. Additionally, the increasing demand for private jets and small passenger aircraft from developing economies will contribute significantly to this segment.
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The 0-15 years segment was the largest segment and was valued at USD 1.39 billion in 2018. One of the most readily available used aircraft in this segment is the aircraft which are between the ages of six and ten years. Most of the time customers are not ready to sell their aircraft during the early years due to minimal maintenance expenditures. However, after five years of use, these buyers are willing to lease their flights to prevent additional maintenance costs. But, as these flights require minimum maintenance and are in excellent condition, they are very expensive and might not be affordable by some buyers. However, the increasing demand for such used aircraft is expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Based on application, the segment is classified into civil aviation, military aviation, and others. Used aircraft is a vital part of the civil aviation industry due to its several economic advantages as well as it fulfills different operational needs. There is an increasing demand for used aircraft among airlines and charter companies in order to expand their fleets or replace older aircraft. The main advantage of used aircraft is their cost effectiveness and thereby reducing high initial upfront costs for the buyer. Hence, such benefits are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
North America is estimated to contribute 45% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the main factors which is significantly contributing to the growth of the market in North America is due to the presence of several prominent aircraft manufacturers such as Bombardier and Boeing, as well as the robust aviation base in countries such as the US. The aircraft market in this region is mature as most of the carriers in this region have sufficient flights. But some of these flights of these prominent companies, such as Boeing are nearing retirement.
Hence, these low-aged aircraft that need low maintenance are sold at relatively low prices. These used flights are bought by low-cost carriers in order to expand their fleet. Additionally, several countries, such as the US and Canada, are selling their flights after utilizing them for five or ten years. Hence, these flights are bought by several developing economies such as India and China in order to avoid the high upfront costs of new flights and due to the increase in cross-country air travel in these regions. Hence, such factors are expected to drive market growth in the region during the forecast period.
The market is a significant segment of the commercial aviation industry, catering to various stakeholders including aircraft brokers, leasing organizations, individual buyers, sellers, private citizens, commercial and miltary aircraftoperators, airlines, and more. This market encompasses a wide range of aircraft types, from regional jets and commercial airlines to cargo aircraft and freighters. Fuel efficiency and passenger traffic are key drivers in the market, with e-commerce and tourism also playing significant roles. The market is influenced by economic conditions, fuel prices, and aircraft deliveries from OEMs. Airline cash flows and aircraft orders are also crucial factors. Aircraft leasing organizations and individual buyers often turn to the market for cost-effective solutions. Private citizens and commercial operators may also seek used aircraft for their specific needs, such as cargo transportation or regional connectivity. Engine technology and system integrators play essential roles in the market, ensuring the aircraft remain efficient and safe for flight activity. Commercial aviation, air passenger traffic, and flight activity all contribute to the demand for used aircraft, making it an ever-evolving and dynamic market.
There has been an increase in the manufacturing cost of aircraft due to increased technological advances and the demand for luxury. The high capital investments associated with the purchasing of new flight has hindered the aircraft market. As a result, there is an increase in demand for used fights, as buyers can purchase low-priced used aircraft of various types and age groups as per their requirements.
Moreover, there has been an increasing manufacturing backlog faced by some prominent aircraft manufacturing companies such as Airbus and Boeing which has increased the price of brand-new aircraft. As a result, it has significantly fuelled the demand for used aircraft. Hence, such factors are expected to positively impact the market which in turn will drive the market growth during the forecast period.
As many airlines are not able to afford to buy new aircraft due to financial difficulties, several aircraft are being purchased in developing economies such as India. Additionally, globalization has fuelled the demand for cross-country travel for different business purposes which in turn is fuelling the market for used aircraft globally.
Furthermore, several developing economies such as India and China are experiencing significant growth in different businesses. For example, the number of high-net-worth individuals (HNWIs) in China has grown by ninefold over the last decade. Hence, this rise in the number of HNWIs is expected to fuel the growth of businesses globally which in turn will fuel the demand for used aircraft for the convenience of travelling as well as cost advantage. Hence, such factors are expected to drive market growth during the forecast period.
As most of the used aircraft are sold in their worst conditions, the consumers have to heavily invest in maintenance by replacing the parts and meeting safety standards. Additionally, these used aircraft should be subjected to several tests before getting clearance, which may also negatively impact the market growth. There is an increasing preference for low-aged, good-quality flights among consumers as they incur minimal maintenance costs.
However, there is a shortage of such flights as the original owner sells them after their prolonged use for several years. There is an increasing demand for used defense aircraft in developing economies, especially for training and surveillance activities. But as most countries are not ready to sell their defense aircraft, there is a shortage in the availability of good-quality used aircraft. Hence, such factors are expected to hinder market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airbus SE: The company offers used aircraft such as A318, A319, and A380.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market companies, including:
Airbus SE, BN Group Ltd., Bombardier Inc., Breezer Aircraft GmbH and Co. KG, Cirrus Design Corp., Dassault Aviation SA, Deutsche Aircraft GmbH, Diamond Aircraft Industries GmbH, Embraer SA, General Dynamics Corp., Lancair International LLC, Piper Deutschland AG, and Textron Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market is a dynamic and intricate sector of the commercial aviation airframe industry. It caters to various stakeholders, including aircraft brokers, leasing organizations, individual buyers, sellers, private citizens, commercial operators, airlines, and more. This market is driven by several factors, including aircraft fuel efficiency, passenger traffic, and economic conditions. Aircraft brokers and leasing organizations play a crucial role in facilitating the sale and lease of used aircraft. They connect sellers with potential buyers, ensuring a seamless transaction. Individual buyers and private citizens often purchase used aircraft for personal use, while commercial operators and airlines look for used regional jets fuel, cargo aircraft, and freighters to expand their fleets. Fuel efficiency is a significant consideration in the market.
The market is evolving with increasing demand for fuel efficient options amidst a competitive and fragmented commercial aircraft sector. E-commerce and cross-border travelers drive demand in both the business and leisure sectors, influencing passenger load factors. Airline companies leverage data analytics for informed decisions, utilizing advanced display and engine control devices, flight management systems, and power distribution technologies. The market landscape depends on the Passenger load factor, Business sector, Leisure sector, Air transport industry. In-flight entertainment systems cater to global air traffic while adhering to stringent safety and environmental regulations. Security threats prompt defense strategies and cybersecurity measures, incorporating blockchain technologies and encryption algorithms. The market also sees advancements in unmanned aerial vehicles (UAVs), shaping the future of aviation industry operations and regulations.
Moreover, with increasing fuel prices and the need to reduce carbon emissions, fuel-efficient options are in high demand. Engine technology and aircraft maintenance are also essential factors, with system integrators and MRO in North Americatechnicians playing a vital role in ensuring the optimal performance of used aircraft. The market is influenced by various sectors, including commercial aviation, tourism, and cross-border travelers. Airline cash flows, aircraft orders, and fuel efficiency are key drivers for the market. Range, OEMs, deliveries, and economic conditions also impact the market significantly. The aviation industry and aviation regulations also play a crucial role in shaping the market. As the industry evolves, with advancements in technology and changing market dynamics, the market continues to adapt and innovate. AI and automation are increasingly being adopted to optimize aircraft maintenance and improve operational efficiency. In summary, the market is a complex and diverse sector of the commercial aviation industry, driven by various factors, including fuel efficiency, passenger traffic, economic conditions, and technological advancements. It caters to various stakeholders and continues to evolve with the changing dynamics of the aviation industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 1.81 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
7.32 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 45% |
Key countries |
US, Germany, China, UK, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, BN Group Ltd., Bombardier Inc., Breezer Aircraft GmbH and Co. KG, Cirrus Design Corp., Dassault Aviation SA, Deutsche Aircraft GmbH, Diamond Aircraft Industries GmbH, Embraer SA, General Dynamics Corp., Lancair International LLC, Piper Deutschland AG, and Textron Inc. |
Market dynamics |
Parent market analysis, market report, market growth analysis, market research and growth, Market forecasting , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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