Market Overview:

The global Aircraft Auxiliary Power Unit market was valued at USD 2.91 million in 2022 and expected to grow at a CAGR of 4.4% during the forecast period. An Aircraft Auxiliary Power Unit (APU) is a small engine installed on an aircraft that provides electrical power, hydraulic pressure, and air conditioning while the aircraft is on the ground. The APU is typically located in the tail section of the aircraft and can be started independently of the main engines. The APU is used to power the aircraft's systems during ground operations, such as pre-flight checks, boarding, and maintenance, and can also provide emergency power during flight.

The APU is a self-contained unit that consists of a small gas turbine engine, a generator, and various subsystems for fuel supply, electrical and hydraulic systems, and air conditioning. The gas turbine engine is usually fueled by kerosene, which is stored in tanks in the aircraft's wings. The generator produces electrical power that is used to operate the aircraft's systems, and the hydraulic system provides pressure to the aircraft's hydraulic systems, such as the landing gear, brakes, and flaps. The air conditioning system provides temperature and ventilation control to the aircraft's cabin.

The APU is an essential component of modern aircraft and provides several benefits, including:

Improved safety: The APU provides emergency power to the aircraft's systems, which can be critical in the event of an engine failure or other emergency situation.

Increased Efficiency: The APU allows the aircraft to operate its systems on the ground without the need to use the main engines, which can save fuel and reduce engine wear and tear.

Enhanced Passenger Comfort: The APU provides air conditioning and ventilation to the aircraft's cabin, which can improve passenger comfort during ground operations.

Reduced Noise and Emissions: The APU is generally quieter and produces fewer emissions than the main engines, which can help to reduce noise pollution and improve air quality around airports.

Overall, the APU is an important component of modern aircraft, providing critical power and support during ground operations and emergency situations.

Covid-19 Impact:

The COVID-19 pandemic has had a significant impact on the aviation industry, including the market for aircraft auxiliary power units (APUs). Due to the reduction in air travel, many airlines have grounded a significant portion of their fleets, leading to a decreased demand for APUs.

The pandemic has also led to a decrease in aircraft maintenance and repair activities, as many airlines have deferred maintenance to conserve cash. This has further reduced the demand for APUs, as they are typically replaced or overhauled during maintenance activities.

Additionally, the supply chain for APUs has been impacted by the pandemic, as manufacturers and suppliers have faced disruptions due to lockdowns, travel restrictions, and reduced production capacity. This has led to delays in the delivery of APUs and increased costs for some airlines.

Despite these challenges, some segments of the APU market have remained relatively resilient during the pandemic. For example, the market for APUs used in military and cargo aircraft has remained relatively stable, as these segments have experienced less of a decline in demand compared to commercial passenger aircraft.

Overall, the COVID-19 pandemic has had a significant impact on the APU market, but the extent and duration of the impact will depend on the pace of the aviation industry's recovery in the coming years.

Market Dynamics:

Drivers:

Increasing air traffic: The growing demand for air travel and the increasing number of aircraft in service are driving the demand for APUs. As more aircraft are added to the global fleet, the demand for APUs is expected to increase, as these units are essential for powering the aircraft's systems during ground operations.

Adoption of more fuel-efficient APUs: The aviation industry is increasingly focused on improving fuel efficiency and reducing emissions. As a result, there is a growing demand for more fuel-efficient APUs that can reduce fuel consumption and emissions while providing reliable power to the aircraft's systems.

Development of more advanced APUs: Advancements in technology have led to the development of more advanced APUs that offer increased efficiency, reliability, and performance. These advanced APUs are equipped with features such as integrated starter generators, improved fuel systems, and advanced control systems.

Growing demand for regional jets: The demand for regional jets is increasing due to the growth of regional air travel and the need for smaller, more efficient aircraft to serve smaller airports and routes. APUs are an essential component of regional jets, providing power for ground operations and backup power in the event of an emergency.

Increasing demand for military aircraft: The global military aircraft market is expected to grow in the coming years due to increasing defense spending and geopolitical tensions. APUs are essential components of military aircraft, providing backup power and support for critical systems during ground operations and in-flight emergencies.

Overall, the demand for APUs is expected to increase in the coming years due to these driving factors, as well as the ongoing modernization and replacement of aging aircraft fleets.

Restraints:

Increasing adoption of electric and hybrid-electric propulsion: The aviation industry is exploring alternative propulsion technologies, such as electric and hybrid-electric propulsion, which could potentially reduce the demand for APUs in the long term. While these technologies are not yet commercially viable for larger commercial aircraft, they may be adopted for smaller aircraft and urban air mobility applications.

High initial cost: APUs can be expensive to purchase and install, which can be a barrier to adoption for some airlines, particularly smaller regional airlines. The high initial cost of APUs may also make it more cost-effective for some airlines to rely on ground power units (GPUs) or air start units (ASUs) for ground operations.

Maintenance and repair costs: APUs require regular maintenance and repair, which can be costly for airlines. The cost of maintenance and repair may be higher for more advanced APUs, which may require specialized technicians and equipment.

Increasing environmental regulations: The aviation industry is facing increasing pressure to reduce emissions and noise pollution. APUs can contribute to emissions and noise pollution during ground operations, which may lead to increasing regulatory requirements and higher costs for airlines.

Uncertainty due to COVID-19 pandemic: The ongoing COVID-19 pandemic has created uncertainty in the aviation industry, with many airlines facing reduced demand and financial challenges. This uncertainty may lead to delays or cancellations in APU orders and investments in new technology.

Overall, these restraining factors may impact the growth of the APU market in the coming years. However, the extent of their impact will depend on the pace of technology development, regulatory requirements, and the aviation industry's recovery from the pandemic.

Segment Analysis:

The global aircraft auxiliary power unit (APU) market can be segmented by aircraft type into fixed-wing, rotary-wing, and unmanned aerial vehicles (UAVs).

Fixed-Wing: The fixed-wing segment is expected to hold the largest share of the APU market during the forecast period, primarily due to the high adoption of APUs in commercial and military fixed-wing aircraft. APUs are used to provide electrical power and air conditioning while the main engines are shut down, enabling aircraft to operate independently of ground-based equipment.

Rotary-Wing: The rotary-wing segment includes helicopters and other rotary-wing aircraft. APUs are used in rotary-wing aircraft to provide electrical power and to start the main engines. The increasing demand for military helicopters and the growing use of helicopters for emergency medical services and other commercial applications are driving the demand for APUs in this segment.

UAVs: The UAV segment is expected to witness significant growth in the APU market during the forecast period, driven by the increasing adoption of UAVs for military and commercial applications. APUs are used in UAVs to provide electrical power for on-board systems and to start the engines. The growing use of UAVs for surveillance, reconnaissance, and other applications is expected to drive the demand for APUs in this segment.

Overall, the fixed-wing segment is expected to dominate the APU market due to the high adoption of APUs in commercial and military fixed-wing aircraft. However, the rotary-wing and UAV segments are expected to witness significant growth during the forecast period, driven by the increasing demand for military and commercial helicopters and the growing use of UAVs for various applications.

Regional Analysis:

North America is expected to hold the largest share of the global APU market during the forecast period. This is primarily due to the presence of major APU manufacturers such as Honeywell International Inc., United Technologies Corporation, and Pratt & Whitney Canada Corp. in the region. The growing demand for air travel and the replacement of aging aircraft fleets in the region is also driving the demand for APUs.

Europe is another major market for APUs, driven by the presence of major aircraft manufacturers such as Airbus and Boeing, which are based in the region. The increasing demand for more fuel-efficient and advanced APUs is also driving the growth of the market in Europe.

The Asia Pacific region is expected to witness the highest growth rate in the APU market during the forecast period, primarily due to the increasing demand for air travel in the region. The growing economies of countries such as China and India, along with the increasing demand for regional jets, are driving the demand for APUs in the region.

Latin America and the Middle East and Africa are also expected to witness significant growth in the APU market during the forecast period. The increasing demand for air travel in these regions, coupled with the growing focus on improving fuel efficiency and reducing emissions, is driving the demand for APUs.

Overall, the global APU market is expected to witness significant growth in the coming years, driven by the increasing demand for air travel, the adoption of more fuel-efficient and advanced APUs, and the ongoing modernization of the global aircraft fleet.

Competitive Landscape:

The global Aircraft Auxiliary Power Unit market is highly competitive and fragmented with the presence of several players. These companies are constantly focusing on new product development, partnerships, collaborations, and mergers and acquisitions to maintain their market position and expand their geographical presence. Some of the key players operating in the market are:

·         Honeywell International Inc.

·         Aerosila

·         Pratt & Whitney

·         Safran SA

·         Technodinamika (Rostec)

·         PBS Group AS

·         Motor Sich JSC

·         Others

Segments

By Aircraft Type

·         Fixed-Wing

·         Rotary-Wing

·         UAVs

By Propulsion

·         Battery Power

·         Electric Ground Power

By Platform

·         Commercial

·         Military

By Geography

·         North America

o   U.S.

o   Canada

o   Mexico

·         Europe

o   U.K.

o   Germany

o   France

o   Italy

o   Spain

o   Russia

·         Asia-Pacific

o   Japan

o   China

o   India

o   Australia

o   South Korea

o   ASEAN

o   Rest of APAC

·         South America

o   Brazil

o   Argentina

o   Colombia

o   Rest of South America

·         MEA

o   South Africa

o   Saudi Arabia

o   UAE

o   Egypt

o   Rest of MEA