Report

Global aircraft recycling market is projected to witness a CAGR of 7.98% during the forecast period 2025-2032, growing from USD 4.84 billion in 2024 to USD 8.95 billion in 2032. The global aircraft recycling market is expanding owing to a rise in airlines retiring older fleets and prioritizing sustainable disposal practices. Recycling aircraft components reduces waste, lowers environmental impact, and supports cost-effective material reuse. Innovations in automated dismantling, material recovery, and circular economic strategies are driving industry growth.
Regulatory frameworks encourage compliance with eco-friendly disposal methods, ensuring efficient resource utilization, driving the global aircraft recycling market demand. As aviation sustainability gains momentum, manufacturers and recyclers collaborate to enhance recycling efficiency and component repurposing. The market continues to evolve, integrating advanced technologies to optimize aircraft end-of-life processes. Furthermore, companies in the market are announcing partnerships and adopting other market growth strategies to repurpose and reuse the majority components of the aircraft.
For instance, in April 2025, eCube Solutions Ltd set a new benchmark for end-of-life aircraft recycling and focused on reusing, repurposing and recycling 83% of a British Airways (BA) Airbus A320 through a repeatable and industrialized process.
Government Regulations and Awareness Concerning Sustainability Drive Market Demand
The aircraft recycling market is on the rise due to regulatory pressure and airline commitments to managing their fleets more sustainably, and by reducing their recovery of airframes into valuable resources. The increasing number of aircraft entering retirement necessitates the development of efficient dismantling processes and more environmentally sustainable disposal methods by airlines. Increasingly automated recycling processes and AI-driven material sorting improve efficiency in recycling, driving less waste and enabling the maximization of component reuse. As the culture of aviation sustainability develops within the aviation community, aircraft recycling will be crucial to reducing operational costs and environmental impact, as well as facilitating the circular economy.
For instance, in August 2024, the Airbus Lifecycle Services Centre (ALSC) received its first aircraft for dismantling and recycling. The A330-200 aircraft, owned by Hengqin Winglet Aircraft Technology Company Ltd., was disassembled through a collaboration between ALSC, Airbus China R&D and Innovation Centre (ACRI), and Hengri Corporation (HRC).
Collaborations Between Players Introducing New Opportunities in the Market
Strategic collaborations between players in the market are creating new market opportunities by pooling expertise, resources, and innovation. Collaborations allow companies to expand market reach, accelerate technological advances, and increase operational connections. Businesses can build competitive advantages through joint ventures, co-development projects, and cross-industry alliances. Collaborations are also compelling organizations to adopt environmentally responsible practices, comply with regulations, and implement customer-centric strategies to shape the future of the aircraft industry.
For instance, in March 2024, Saudi Arabian Oil Co. (Aramco), TotalEnergies Company and Saudi Investment Recycling Company (SIRC) assessed the development of a sustainable aviation fuels unit. The major player, SIRC collects and valorizes organic materials into sustainable products in Saudi Arabia, announced the signing of a Joint Development and Cost Sharing Agreement (JDCSA) to assess the development of a sustainable aviation fuel (SAF) production unit in the Kingdom of Saudi Arabia.
Passenger Aircraft Recycling Drives Market Expansion
The market for recycling passenger aircraft is on the rise. Airlines retire older aircraft and increasingly seek sustainable practices to dispose of their fleet. Recycling aircraft parts diverts waste from landfills, mitigates environmental impact, and allows for more affordability in material reuse. The industry is growing rapidly in part because of advances in and use of automated dismantling of aircraft, as well as advancements in material recovery efforts and the circular economy. Regulatory frameworks for airlines to utilize sustainable disposal methods are encouraging the industry, pushing the passenger aircraft recycling market growth. Regulatory structures also work with airline footprints, conducting materials efficiency assessments to use materials more efficiently and promote sustainability for future disposal and end-of-life.
For instance, in April 2025, Acro Aircraft Seating and the Aircraft Interior Recycling Association (AIRA) collaborated and proved that the concept that economy class seats can be recycled and form part of a true circular economy. Working in collaboration, Acro and AIRA have devised and created a Component Recycling Manual (CRM) which combines the part numbers with their unique AIRA recycling code. This enables easier identification and separation of the parts into specific material groups.
North America Dominates the Aircraft Recycling Market Size
North America is ahead in the aircraft recycling market due to strong aviation infrastructure, growing focus on sustainability, and increasing airframe retirements. The sector has adopted advanced dismantling technologies, material recovery and disposal practices, and sustainable disposal practices to help satisfy regulatory authorities. Partnerships between original equipment manufacturers (OEMs), recyclers and technology companies are driving innovations in the sector, which are enhancing and optimizing manufacturers' ability to reuse parts, components and materials, and reduce waste. As airlines focus on affordable recycling solutions, North America continues to shape the future of aircraft end-of-life management.
For instance, in January 2022, Airbus SE, a leading company in North America signed a Memorandum of Understanding (MOU) with the city of Chengdu and Tarmac Aerosave for the development of the first sustainable aircraft "life cycle" service center in China. This agreement will cover a range of activities from aircraft parking and storage to maintenance, upgrades, conversions, dismantling, and recycling services for various aircraft types.
Impact of U.S. Tariffs on Global Aircraft Recycling Market
- Increased Material Costs: Tariffs on steel, aluminum and aerospace components have increased recycling costs.
- Logistical Challenges: The trade barriers also add costs and time to recycling companies.
- Investment Uncertainty: Due to constantly changing trade policies, companies are not committing to long-term strategies.
- Market Competitiveness: U.S. companies struggle to find ways to offer competitive recycling options.
Key Players Landscape and Outlook
The market for aircraft recycling is moving forward with advances in sustainable dismantling, recovery, and disposal of materials. Participants in the field are developing more efficient recycling processes to maximize resource recovery and comply with environmental guidelines. Mechanisms such as artificial intelligence sorting, automated dismantling and repurposing lightweight materials are changing the way aircraft recycling will and is conducted to increase efficiency and decrease waste. The market is optimistic, as the demand for next-generation recycling processes will help the user to be efficient while achieving the changing sustainability goals associated with aviation. As air travel increases, there is continued commitment from stakeholders in the industry to invest in progressive recycling technology to meet the environmental and economic goals associated with this activity.
For instance, in March 2024, Avions de Transport Regional (ATR) and Tarmac Aerosave announced that they will partner for the dismantling and recycling of aircraft at the end of their service life. This agreement foresees the ongoing recycling of up to 12 ATR aircraft.