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The aircraft auxiliary power unit market size is forecast to increase by USD 542.3 million and is estimated to grow at a CAGR of 4.5% between 2023 and 2028. The global aerospace industry is experiencing significant growth, driven by several key factors. The military sector is witnessing an increasing demand for advanced aircraft technology, leading to a rise in the production and modernization of military fleets. Simultaneously, the commercial aviation sector is also experiencing a surge in demand, with airlines expanding their fleets to meet growing passenger traffic. Furthermore, existing aircraft are being upgraded to enhance their efficiency and capabilities, creating opportunities for aerospace companies to offer maintenance, repair, and overhaul services. This dynamic industry environment presents both challenges and opportunities for aerospace companies, requiring them to stay innovative and adaptable to meet the evolving needs of their clients.
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The market is driven by the growing demand for commercial aviation and general aviation. APUs serve as essential aircraft systems, providing electrical power and air conditioning to the aircraft during ground operations and in the air when the main engines are not running. The market for APUs is significantly influenced by passenger travel, with increasing aircraft deliveries and passenger traffic driving the demand. Military aircraft deliveries also contribute to the market growth, with APUs used for various applications, including starting engines, providing electrical power, and supplying air conditioning. The market is witnessing a shift towards electric APUs due to their low noise levels and high performance, which is reducing fuel consumption and addressing the issue of noise pollution. APUs are used in various aircraft types, including airplanes and helicopters, and find applications in both commercial and military sectors. The market is expected to grow at a steady pace due to the increasing demand for efficient and reliable power sources for aircraft. The future of the APU market looks promising, with the development of high-performance APUs and the increasing adoption of electric aircraft. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing number of military aircraft is notably driving market growth. The global market for is witnessing significant growth due to the increasing demand for passenger travel in commercial aviation and general aviation. With the surge in passenger traffic and new aircraft orders, aircraft manufacturers are ramping up their production facilities to meet the delivery schedules. For instance, Airbus reported a total of 735 commercial aircraft deliveries in 2023, representing an 11% increase from the previous year.
Moreover, developing countries like India and China are also contributing significantly to aviation fleet modernization, leading to a higher demand for new aircraft and APUs. In military applications, APUs are essential for providing electrical power sources and propulsion for military aircraft, helicopters, UAVs, and other defense expenditures. APU technologies are continually evolving to enhance fuel efficiency, reduce noise pollution, and lower carbon emissions. Electric APUs are gaining popularity due to their emissions reduction capabilities and passenger comfort benefits. Thus, such factors are driving the growth of the market during the forecast period.
Emergence of hydrazine-powered emergency power units is the key trend in the market. An Aircraft Auxiliary Power Unit (APU) is an essential aircraft system that supplies electrical power and air conditioning to commercial and general aviation planes while on the ground. It also provides the necessary air source for pilots to start the main engine. With a focus on cost savings and operational efficiency, aircraft manufacturers are driving the advancement of APUs.
For instance, Honeywell International Inc. is developing a power source for hybrid-electric aircraft, scheduled for demonstration in 2021. This generator will be integrated with Honeywell's HGT1700 auxiliary power unit, forming a turbogenerator, which promises improved fuel efficiency and reduced noise pollution. The increasing passenger traffic and new aircraft orders in commercial aviation, coupled with aviation fleet modernization and military aircraft deliveries, are fueling the demand for advanced APUs. Thus, such trends will shape the growth of the market during the forecast period.
Development of fuel cells for unmanned aerial vehicles (UAVs) is the major challenge that affects the growth of the market. The market caters to the demand for electrical power sources in commercial aviation and general aviation sectors. APUs play a crucial role in providing electrical power for various aircraft systems, including heating, ventilation, air conditioning, and starting the main engines during ground operations.
Moreover, the market is driven by factors such as increasing passenger traffic, new aircraft orders, and aviation fleet modernization. Commercial aviation and military aircraft deliveries form the major segments of the market. APU technologies continue to evolve, focusing on fuel efficiency, noise reduction, and carbon emissions. Electric APUs are gaining popularity due to their emissions reduction capabilities and passenger comfort benefits. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aegis Power Systems Inc. - The company offers aircraft auxiliary power unit that are used in commercial and military systems.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The commercial segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth, particularly in the commercial aviation sector. This segment encompasses aircraft used for passenger travel, cargo transportation, and business purposes. The expansion of this industry can be attributed to the escalating passenger traffic and increasing cargo shipments, driven by the preference for air travel due to its convenience and efficiency.
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The commercial segment was the largest segment and valued at USD 881.90 million in 2018. The rising demand for air travel has led to an increase in new aircraft orders and fleet modernization, fueling the market's growth. In military applications, APUs are essential for providing electrical power and propulsion during ground operations and in-flight emergencies. APUs play a crucial role in reducing fuel consumption, noise pollution, and carbon emissions through advanced technologies such as electric APUs and noise reduction systems. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Aircraft Auxiliary Power Unit (APU) market encompasses the commercial aviation and general aviation sectors, with applications in passenger travel and military aircraft deliveries. The market's growth is driven by the increasing backlog of passenger traffic and aircraft deliveries, necessitating the need for efficient and reliable APUs. Fuel efficiency and noise reduction are key considerations in the aviation industry, leading to the adoption of advanced APU technologies such as electric APUs and emissions reduction systems.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is witnessing significant growth due to the increasing demand for commercial aviation and general aviation. Passenger travel is a major driver for the market as aircraft deliveries continue to rise, driven by a backlog of new aircraft orders and aviation fleet modernization. Fuel efficiency, noise reduction, and carbon emissions are key considerations for both commercial and military aircraft, leading to the adoption of advanced APU technologies such as electric APUs. These technologies offer emissions reduction and passenger comfort benefits, making them increasingly popular. The market landscape depends on the production and delivery schedules, commercial aircraft APU market, Electrical power source, Hybrid electric aircraft, Energy storage systems, Propulsion battery packs, Fuel-efficient auxiliary power unit, Low noise APU, Aircraft type, commercial market, aerospace and military APU, APU applications. Military aircraft deliveries also contribute to the market growth, driven by defense expenditure and the need for high-performance, low noise APUs for military applications. The market caters to various aircraft types, including fixed-wing, rotary-wing, and UAVs. The market is expected to grow significantly in the coming years as the demand for electrical power sources for propulsion, airplane engines, and aircraft systems continues to increase in commercial aviation and military applications. Electric aircraft are also gaining popularity, further expanding the scope of the APU market.
Market Scope |
|
Report Coverage |
Details |
Page number |
137 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2024-2028 |
USD 542.3 million |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
4.23 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Germany, UK, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aegis Power Systems Inc., Aerosila, General Electric Co., Honeywell International Inc., Liebherr International Deutschland GmbH, Northstar Aerospace, PBS Group AS, Pratt and Whitney, RTX Corp., and Safran SA |
Market dynamics |
Parent market analysis, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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