Aircraft Recycling Market

According to Stratistics MRC, the Global Aircraft Recycling Market is accounted for $5.3 billion in 2025 and is expected to reach $9.9 billion by 2032 growing at a CAGR of 9.3% during the forecast period. Aircraft recycling involves dismantling and reprocessing retired aircraft to recover valuable materials such as aluminum, titanium, composites, and parts for reuse. It supports sustainability by reducing waste, conserving resources, and cutting carbon footprints in the aviation industry. Market growth is driven by the increasing retirement of older fleets, regulatory focus on circular economy practices, and rising demand for cost-effective spare parts. Advanced recycling technologies and global partnerships are improving efficiency, making aircraft recycling a vital component of aviation’s environmental and economic sustainability efforts.

Market Dynamics:

Driver: 

Growing retirement of aging fleets

The accelerated retirement of aging aircraft fleets is a significant driver for the aircraft recycling market. As airlines aim to reduce operational costs and meet stringent environmental regulations, they are increasingly replacing older aircraft with more fuel-efficient models. This trend leads to a higher volume of retired aircraft, creating a steady supply of materials for recycling. Consequently, the demand for dismantling and recycling services has surged, contributing to market growth. Additionally, the recovery of valuable components such as engines and avionics further enhances the economic viability of aircraft recycling.

Restraint:

Limited skilled recycling infrastructure

A significant restraint in the aircraft recycling market is the limited availability of skilled recycling infrastructure. The complex nature of aircraft dismantling requires specialized knowledge and equipment to handle hazardous materials and recover valuable components safely. Many regions lack the necessary facilities and trained personnel, leading to inefficiencies and increased costs. Moreover, the absence of standardized practices across the industry hampers the scalability of recycling operations, limiting the market's potential.

Opportunity:

Expanding secondary parts market

The expanding secondary parts market presents a significant opportunity for the aircraft recycling industry. As airlines seek cost-effective solutions, the demand for used serviceable materials (USMs) has increased. Recycled components such as engines, landing gear, and avionics can be refurbished and resold, offering substantial savings compared to new parts. This trend not only supports the economic viability of aircraft recycling but also promotes sustainability by reducing the need for new manufacturing. Furthermore, the growing acceptance of USMs among airlines and maintenance providers enhances market prospects.

Threat:

Legal complexities in cross-border recycling 

Legal complexities in cross-border aircraft recycling pose a significant threat to the market. Different countries have varying regulations concerning the disposal and recycling of aircraft, leading to challenges in compliance and potential legal disputes. These inconsistencies can result in delays, increased costs, and the diversion of aircraft to regions with less stringent regulations, undermining environmental objectives. Harmonizing international standards and establishing clear guidelines are essential to mitigate these risks and promote responsible recycling practices globally.

Covid-19 Impact: 

The COVID-19 pandemic has had a profound impact on the aircraft recycling market. With a significant reduction in air travel, airlines grounded a substantial portion of their fleets, leading to an increase in aircraft retirements. However, the pandemic also disrupted supply chains and delayed recycling operations due to lockdowns and health protocols. These challenges resulted in a temporary slowdown in recycling activities. Despite these setbacks, the long-term outlook remains positive as the industry adapts to new operational realities.

The narrow-body aircraft segment is expected to be the largest during the forecast period

The narrow-body aircraft segment is expected to account for the largest market share during the forecast period. These aircraft are prevalent in short- and medium-haul flights, leading to a higher rate of retirements. Their simpler design and smaller parts make them more suitable for efficient recycling processes. Additionally, the high volume of narrow-body aircraft in operation ensures a steady supply of materials for recycling, supporting the growth of this market segment. This trend underscores the importance of focusing on narrow-body aircraft in recycling.

The interior components segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the interior components segment is predicted to witness the highest growth rate, driven by the increasing demand for refurbished cabin interiors, including seats, galleys, and overhead bins. Airlines are focusing on cost-effective solutions for cabin upgrades, leading to a rise in the refurbishment and resale of these components. Moreover, the emphasis on sustainability encourages the reuse of interior parts, aligning with environmental goals. This trend highlights the expanding role of interior components in the recycling value chain.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share. The region benefits from a well-established infrastructure for aircraft dismantling and recycling, supported by advanced technologies and skilled labor. Additionally, North America has a high volume of aircraft retirements, providing a steady supply of materials for recycling. Government policies favoring sustainability and environmental stewardship further bolster the market in this region. These factors collectively position North America as a leader in the aircraft recycling market.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. Rapid industrialization and increasing air travel in countries like China and India contribute to a growing fleet size and subsequent retirements. The region is investing in developing recycling infrastructure and adopting sustainable practices to manage the influx of retired aircraft. These developments are expected to drive the growth of the aircraft recycling market in Asia Pacific, making it the fastest-growing region globally.

Key players in the market

Some of the key players in Aircraft Recycling Market include Aircraft End-of-Life Solutions (AELS), Aerocycle, Air Salvage International (ASI), TARMAC Aerosave, Vallair, Jet Aircraft Services (JAS), CAVU Aerospace, EirTrade Aviation, Aircraft Recycling International (ARI), ComAv, AerSale, AAR CORP., Ascent Aviation Services, FL Technics, Sims Lifecycle Services, HVF West LLC, Universal Recycling Technologies (URT), and Gibbs.

Key Developments:

In June 2025, TARMAC Aerosave launched ""TARMAC Legacy,"" a new consumer brand of upcycled aircraft parts at the 2025 Paris Air Show. The initiative transforms non-airworthy aircraft components into furniture and art pieces, with landing gear hatches becoming wine racks and connecting rods converted into lamps. The official online store launched in July 2025 via tarmaclegacy.com.

In June 2025, In partnership with Constellium, TARMAC Aerosave successfully recycled and remelted aluminum from end-of-life aircraft into new, high-performance aerospace-grade material. The companies plan to scale this process for industrial application and extend it to any aluminum alloy used in metallic aircraft.

In February 2025, AELS secured significant funding from Innovatiefonds Overijssel and Aalberts Investments, enabling the company to dismantle more and higher-quality aircraft at Twente Airport. The company has successfully recycled more than 50 aircraft in its eleven-year history, ranging from small aircraft like Fokker 50s to Boeing 747s.

Aircraft Types Covered:
• Narrow-body Aircraft
• Wide-body Aircraft
• Regional Jets
• Military Aircraft
• Business Jets

Components: 
• Engines
• Landing Gear
• Avionics
• Airframes and Structural Components
• Interior Components

Material Types Covered:
• Metals
• Composites
• Plastics and Polymers

Applications Covered:
• Disassembly & Dismantling
• Part-out & Salvage
• Material Recycling & Shredding
• Asset Management

End Users Covered:
• Independent Recyclers
• Maintenance, Repair, and Overhaul (MRO) Providers
• Original Equipment Manufacturers (OEMs)
• Aircraft Leasing Companies

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances