Aircraft Recycling Market By Aircraft Type (Commercial Aircraft, Military Aircraft, Private Aircraft), By Recycling Process (Dismantling, Material Recovery, Parts Resale, Parts Reuse), By End-User (OEMs, MRO Providers, Airlines, Third-Party Recyclers), By Material Recycled (Metals, Composites, Plastics, Electronics), and By Region; Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Aircraft Recycling Market was valued at USD 2.0 Billion in 2024-e and will surpass USD 3.5 Billion by 2030; growing at a CAGR of 9.4% during 2025-2030.

The aircraft recycling market is a rapidly growing sector within the aerospace industry, driven by the increasing need for sustainable practices in aviation. With a rising number of decommissioned aircraft, the industry is focused on reducing waste and recovering valuable materials such as metals, composites, and parts for resale. Recycling end-of-life aircraft is a key strategy to not only reduce the environmental impact of the aviation industry but also recover high-value materials that can be reused or repurposed. The global market for aircraft recycling is projected to grow significantly as airlines and aircraft manufacturers adopt more eco-friendly practices, aligned with stringent regulatory requirements on environmental sustainability.

Commercial Aircraft Segment Is Largest Owing to High Volume of Retirements

The commercial aircraft segment holds the largest share in the aircraft recycling market due to the high volume of decommissioned aircraft in the commercial fleet. Airlines frequently retire older aircraft as newer, more fuel-efficient models are introduced into service. These retired aircraft present valuable opportunities for recycling, including the recovery of precious metals, avionics, and structural components. The commercial aviation sector's rapid growth, particularly in emerging markets, leads to an increased number of retirements as airlines modernize their fleets to comply with environmental standards and improve operational efficiency.

Commercial aircraft recycling processes typically involve the dismantling of large aircraft to recover metals such as aluminum and titanium, as well as reusable parts that can be resold to MRO providers or reused in other aircraft. The large size of these aircraft makes them prime candidates for material recovery, and as air travel continues to grow globally, commercial aircraft recycling will remain the dominant segment in the market.

Dismantling Process Is Fastest Growing Owing to Regulatory Pressures

The dismantling process is the fastest-growing sub-segment within the aircraft recycling market. This process involves the thorough disassembly of decommissioned aircraft to recover usable parts and materials. It is becoming increasingly important due to stringent environmental regulations that require airlines to properly dispose of aircraft at the end of their operational lives. Dismantling ensures that valuable materials, such as metals and composites, are recovered in an environmentally responsible manner, and it helps airlines comply with regulations regarding waste management and recycling.

With the rise in decommissioned aircraft and the emphasis on sustainable aviation, the dismantling process has seen significant growth. It is an essential aspect of aircraft recycling, as it not only facilitates material recovery but also provides a market for high-quality parts that can be resold to other airlines or MRO providers. As more aircraft reach their end of life, the demand for dismantling services will continue to grow, driving this sub-segment's expansion.

OEMs Segment Is Largest Owing to Aircraft Production and Component Recovery

The OEMs (Original Equipment Manufacturers) segment is the largest in the aircraft recycling market, driven by the substantial volume of parts and materials they supply for the manufacturing of new aircraft. OEMs play a critical role in the recycling process by designing aircraft components that are easy to disassemble and recycle. As airlines and aircraft operators retire older models, OEMs are heavily involved in the recovery and resale of reusable parts, which helps to reduce the environmental footprint of aircraft manufacturing.

OEMs are responsible for ensuring that aircraft are built with sustainable practices in mind, and they have the infrastructure and resources to manage the recycling of retired aircraft. By recovering and reusing parts from decommissioned aircraft, OEMs contribute to the circular economy within the aviation industry. With the increasing trend of fleet renewal, the OEM segment continues to lead the market, offering significant opportunities for aircraft recycling companies to recover valuable materials and components.

Metals Segment Is Largest Owing to High Recovery Rates and Market Demand

In the material recycled segment, metals (including aluminum, steel, and titanium) account for the largest share of the market. The high value and recovery rates of metals make them the most sought-after materials during the aircraft recycling process. Aluminum, in particular, is the most commonly recovered metal from decommissioned aircraft due to its lightweight nature and widespread use in aircraft manufacturing. Metals are highly recyclable, and their demand in industries such as automotive, construction, and electronics further boosts the market for recycled aircraft metals.

Recycling metals from aircraft offers several advantages, including reducing the need for mining raw materials and reducing energy consumption compared to producing new metals. The metals segment is expected to continue to dominate the aircraft recycling market, as the demand for recycled metals in various industries remains strong and airlines prioritize recycling initiatives to comply with environmental regulations.

North America Region Is Largest Owing to Established Recycling Infrastructure

The North America region is the largest market for aircraft recycling, driven by the well-established infrastructure for recycling decommissioned aircraft in the United States and Canada. North America is home to several major players in the aviation industry, including large airlines and MRO providers, who are actively engaged in aircraft recycling efforts. The region also benefits from stringent environmental regulations that require proper disposal and recycling of aircraft parts, creating a strong market for recycling services.

North America’s dominance is further supported by the growing number of aircraft retirements, particularly as older fleets are replaced with more modern, fuel-efficient models. The region has an extensive network of recycling facilities and a mature market for recovered materials, including metals and parts. With the ongoing push for sustainability in aviation, North America is expected to remain the largest region in the aircraft recycling market for the foreseeable future.

Leading Companies and Competitive Landscape

The competitive landscape of the aircraft recycling market is characterized by several key players that provide comprehensive solutions for the recycling of decommissioned aircraft. Air France-KLM Engineering & Maintenance, Lufthansa Technik, AeroTurbine, and TARMAC Aerosave are some of the leading companies that dominate this space. These companies specialize in aircraft dismantling, material recovery, and parts resale, contributing to the sustainable lifecycle management of aircraft.

As the demand for sustainable aviation practices increases, the market is becoming more competitive, with companies investing in state-of-the-art technologies to improve the efficiency of the recycling process. Many of these players are expanding their operations globally, particularly in regions like North America and Asia-Pacific, to capitalize on the growing number of aircraft retirements. The ongoing trend towards environmental sustainability in aviation, along with regulatory pressures, is expected to drive innovation and competition within the market. Leading companies are also forming partnerships with airlines and OEMs to streamline the recycling process and ensure the recovery of valuable materials in compliance with international standards.

Recent Developments:

• Air France-KLM Engineering & Maintenance announced the expansion of its aircraft recycling operations in partnership with TARMAC Aerosave, focusing on dismantling over 100 aircraft over the next five years to support sustainable aviation practices.
• Lufthansa Technik AG has invested in a new state-of-the-art aircraft recycling facility in Germany, designed to increase the efficiency of dismantling and recycling processes, aligning with sustainability goals in the aviation industry.
• GA Telesis recently acquired AeroTurbine, boosting its capabilities in aircraft part resale and material recovery to cater to the growing demand for high-quality recycled aircraft components.
• SATAQ Group has received approval from regulatory authorities to expand its aircraft recycling operations, further enhancing its ability to reclaim rare and valuable materials from decommissioned aircraft.
• AAR Corporation launched a new initiative to increase its parts recovery and repurposing services, targeting both airlines and third-party recyclers, in response to rising demand for sustainable aviation solutions.

List of Leading Companies:

• Air France-KLM Engineering & Maintenance
• AeroTurbine (AeroTurbine Inc.)
• Aircraft Recycling International
• Lufthansa Technik AG
• Gogo Inc.
• CAVU Aerospace
• TARMAC Aerosave
• AAR Corporation
• Universal Asset Management
• SATAQ Group
• Air Salvage International
• GA Telesis
• Allied Aviation
• Aviation Technical Services (ATS)
• SITA (Société Internationale de Télécommunications Aéronautiques)

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