Multi-million growth for global aircraft recycling

The worldwide aircraft dismantling industry is currently worth US$ 97 million (EUR 85 million). It is expected to grow by 7% per annum to reach a value of around US$ 180 million by 2027.

The market for salvaged components was valued at US$ 1.30 billion in 2018 and is expected to surpass US$ 3 billion by 2027, report analysts at Research&Markets. There are roughly 23 600 aircraft currently in service, with another 2 500 in storage.

Analysts state that the key challenge in this market is valuation of an aircraft, which is ‘more of an estimation than a formula’. The report points out that parts from two similar aircraft manufactured in the same year could fetch different prices if one of the aircraft has been scrapped due to an accident.

Another factor is the market demand for aircraft; if there are a sufficient number of aircraft of a specific model being stored, demand is naturally lower. At the same time, increasing passenger numbers -especially in North America and Europe- combined with the call for more fuel efficient, dense and reliable aircraft have resulted in the fastest growth rate in aircraft production.

The report provides two years’ historical data as well as the forecast until 2027. Leading companies such as Rolls Royce, Boeing, Airbus, General Electric, and Bombardier are included in the analysis.