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The Used Aircraft Market size is estimated to grow at a CAGR of 7.35% between 2022 and 2027. The market size is forecast to increase by USD 1,518.44 million. The growth of the market depends on several factors, such as growth in the number of low-cost carriers, the increasing demand from the defense sector, and the high capital investment in new aircraft.
This report extensively covers market segmentation by product (0-15 years, 16-30 years, and more than 30 years), application (civil aviation, military aviation, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Used Aircraft Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
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.
The 0-15 years segment is estimated to witness significant growth during the forecast period. One of the main factors which 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 1,320.41 million in 2017. 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.
Application Segment Analysis:
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.
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North America is estimated to contribute 43% to the growth by 2027. 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 used aircraft 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 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.
In 2020, during the COVID-19 pandemic, the growth of the global used aircraft market witnessed a significant slowdown due to severe bans on air travel and the temporary closure of the manufacturing units of aircraft spare parts, resulting in a decline in demand for used air crafts. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in the aircraft industry with the resumption of air travel. Such factors are expected to drive the market 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 used aircraft market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Used Aircraft Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.35% |
Market growth 2023-2027 |
USD 1,518.44 million |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
6.82 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 43% |
Key countries |
US, Canada, China, Germany, and UK |
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 growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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