Market Trends of Aircraft Auxiliary Power Unit Industry
The Commercial Aviation Segment Holds the Largest Share of the Market
In recent years, the global commercial aviation sector has experienced a surge in air traffic, driven by factors such as a rise in airport construction projects, an uptick in global tourism, and an increase in disposable incomes. This surge in air passengers has, in turn, spurred the demand for new aircraft, fueling the need for APUs. The International Air Transport Association (IATA) reported a significant uptick in air traffic post-pandemic, with global passenger traffic rebounding to 95.6% of pre-pandemic levels by July 2023. Notably, total passenger traffic saw a 26.2% annual increase in the same month.
As air passenger traffic surged, airlines resumed operations on major routes and introduced new ones. For instance, in March 2024, United Airlines marked its largest transatlantic expansion by launching new routes. Within the aircraft APU market, the commercial segment currently holds the lion's share. This dominance is underpinned by technological strides in APUs, leading to improved fuel efficiency, reduced emissions, and quieter operations. A growing emphasis on passenger comfort and safety further propels APU demand.
Airlines, cognizant of the pivotal role APUs play in enhancing passenger experiences, are significantly increasing their investments. In May 2023, Honeywell secured a deal with Malaysian start-up MYAirline, providing 131-9A APUs for their fleet of 22 Airbus A320s. Similarly, in July 2022, Whitney & Pratt Canada inked an eight-year maintenance and fleet enhancement pact with Turkish Airlines, covering 82 APS3200 APUs on their Airbus A320 fleet. These collaborations underscore the commercial segment's promising growth trajectory over the forecast period.
Asia-Pacific is Expected to Hold the Largest Market Share During the Forecast Period
The surge in passenger traffic, particularly in major Asian countries like China, India, and Japan, is fueling the demand for new aircraft orders among regional airlines. This, in turn, is set to propel the aircraft APU market in the Asia-Pacific region. Notably, Asian nations are channeling significant investments into modernizing their aviation fleets. For instance, in April 2024, China Southern, the country's largest domestic carrier with a robust international presence, announced its purchase of 100 locally manufactured C919 planes.
Underscoring the region's recovery, in July 2022, Airbus inked deals with major Chinese carriers—Air China, China Eastern, China Southern, and Shenzhen Airlines—for a combined order of 292 A320 family aircraft. Such substantial aircraft orders are poised to significantly boost the demand for APUs, translating into a notable growth trajectory for the market.
In military aviation, the uptick in defense spending, particularly for overhauling aging aircraft fleets, is anticipated to drive military aircraft procurement, further amplifying the need for APUs. India is also actively enhancing its military capabilities. These factors are expected to boost the growth of the APU market in the Asia-Pacific region.
