Aerospace Industry Today
Commercial Aircraft Disassembly Market to Reach USD 8.5 Billion by 2035 at 3.77% CAGR – Key Drivers: Fleet Retirements & Spare-Parts Demand
Market Overview
The global Commercial Aircraft Disassembly Market is gaining increasing attention as the aviation industry navigates fleet renewal, environmental regulations and growing demand for used serviceable material (USM). According to one forecast, the market stood at approximately USD 5.66 billion in 2024 and is projected to grow to around USD 8.50 billion by 2035, driven by a compound annual growth rate (CAGR) of 3.77% between 2025 and 2035.
Growth Factors
Several inter-linked factors are driving growth in this market. A primary contributor is the increasing number of commercial aircraft reaching retirement age—especially narrow-body and wide-body fleets—as airlines modernize to newer, more efficient models.
Another catalyst is the elevated demand for used spare parts and reclaimed components. Disassembled aircraft offer a viable source of cost-effective, certified used parts, enabling operators to reduce maintenance expenditures while maintaining safety standards.
In addition, mounting regulatory pressure and sustainability mandates are compelling airlines and OEMs to adopt more circular approaches. Recycling, material recovery and responsible disposal of retired aircraft are increasingly becoming business-critical imperatives.
Technological advances in disassembly—such as automated or hybrid systems, improved material recycling techniques, and digital inventory/traceability tools—are also contributing to enhanced operational efficiency and value extraction.
Together, these factors create an environment where disassembly is not merely a disposal activity but a source of economic value and strategic asset management.
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Major Players: Aviation Partners, Girling Aerotech, AeroParts, AeroCentury, CAVU Aerospace, AerSale, Clyde Aviation, XTI Aircraft Company, Air Salvage International, AeroIncome, STS Aviation Group, Aircraft Demolition
Market Trends
Several key trends are shaping the commercial aircraft disassembly landscape.
One such trend is the rise of the circular economy in aviation: dismantlers and airlines are paying greater attention to recovering high-value materials (aluminum, titanium, composites, steel) and repurposing components rather than simply scrapping.
Segment-wise, the narrow-body aircraft type leads the pack: for instance, MRFR estimates that the narrow-body segment was valued at USD 2.25 billion in 2024 and is projected to grow to around USD 3.25 billion by 2035.
On the process front, while manual disassembly remains dominant due to its adaptability and labor input, automated and hybrid disassembly techniques are gaining ground—offering improved throughput, safety and yield.
Regional trends also matter: North America remains the largest regional market (about USD 2.30 billion in 2024, with growth to ~USD 3.4 billion by 2035), followed by Europe and Asia Pacific.
A final noticeable trend is the strengthening aftermarket for decommissioned aircraft parts: as raw-material costs rise and supply chains tighten, operators are increasingly turning to salvage, refurbishment and reuse—helping bolster disassembly economics.
Opportunities
The disassembly market presents a range of opportunities for industry participants and strategic investors. Advanced recycling and material-recovery technologies offer higher yields and potentially higher margins. The digitalisation of disassembly workflows—via traceable part-chains, asset-tracking, predictive maintenance data—creates new value propositions.
Companies that form long-term partnerships or service contracts with airlines for their end-of-life fleet management are well-positioned to create recurring revenue streams. Likewise, expanding capabilities to cater to diverse aircraft types (regional jets, freighters, etc.) offers market expansion potential.
Emerging markets—particularly in Asia Pacific, Middle East & Africa—represent growth arenas, given the rising air-travel demand and future fleet retirements in these regions. For example, APAC was valued at about USD 1.2 billion in 2024 and is projected to reach approximately USD 1.7 billion by 2035.
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Future Outlook
Looking ahead, the commercial aircraft disassembly market appears set for measured, sustainable growth. With a projected CAGR of 3.77% and the size expected to reach USD 8.5 billion by 2035,. As airlines continue to modernise fleets and regulations tighten around end-of-life aircraft handling, disassembly services will become increasingly central to aviation asset-management strategies. Advancements in automation, material science and digital platforms will further enhance the efficiency, safety and profitability of disassembly operations.
For service providers, OEMs, aerospace recyclers and financial investors, the message is clear: aligning with sustainability goals, investing in advanced capabilities and integrating digitally-enabled workflows will be key to capturing upside. The emphasis on circularity, parts reuse and environmental compliance ensures that disassembly is not a fringe activity—it is a core component of the future aviation value chain.
Table of Contents
Executive Summary
Market Introduction
Market Dynamics
Market Segmentation
Regional Analysis
Competitive Landscape
Future Outlook
Conclusion
Appendix
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