Auxiliary Power Unit Market Size, Share, Forecast, & Trends Analysis by Type (Gas Turbine APUs, Diesel APUs, and Battery-Powered APUs), Power Output (< 10 KW, 11-20 KW, >20 KW) Application (Aviation, Marine, and Transportation), and Geography - Global Forecast to 2031

The Auxiliary Power Unit Market was valued at $2.5 billion in 2023. This market is expected to reach $3.8 billion by 2031 from an estimated $2.6 billion in 2024, at a CAGR of 5.7% during the forecast period of 2024-2031.

Auxiliary Power Unit Market Size & Forecast

This market's growth is driven by the increasing shift toward electric and hybrid APU systems, rising demand for energy efficiency, and increased demand for APUs in military vehicles and aircraft. Furthermore, technological advancements in auxiliary power units and the rapid expansion of the aviation sector are expected to generate growth opportunities for stakeholders in this market.

Key Findings in the Auxiliary Power Unit Market

• By Type: In 2024, the Gas Turbine APUs Segment is Expected to Dominate the Auxiliary Power Unit Market
• By Power Output In 2024, the 11-20 KW Segment is Expected to Dominate the Auxiliary Power Unit Market
• By Application In 2024, the Aviation Segment is Expected to Dominate the Auxiliary Power Unit Market
• By Geography: In 2024, Asia-Pacific to Dominate the Auxiliary Power Unit Market

Auxiliary Power Unit Market Drivers

Increased Demand of APUs in Military Vehicles and Aircraft

The increasing adoption of auxiliary power units in military vehicles and aircraft marks a significant improvement in operational efficiency and sustainability for armed forces globally. APUs act as independent power sources, enabling essential systems to operate without relying on the primary engine, which helps conserve fuel and reduce emissions.

Government investments and defense contracts are aimed at enhancing military capabilities. In July 2024, the U.S. Department of Defense awarded contracts to several aerospace companies for new fighter planes and transport aircraft that will be equipped with upgraded APUs. These investments underscore the critical role of APUs in ensuring operational readiness and efficiency for military aircraft, driving demand for these units within the defense sector. Additionally, ongoing modernization efforts among armed forces worldwide are contributing to the expansion of the APU market. Furthermore, the increasing use of unmanned aerial vehicles (UAVs) in military operations is creating new opportunities for APU manufacturers, as these systems often require compact and efficient power units.

Thus, the growing integration of APUs in military vehicles and aircraft enhances operational effectiveness, improves energy efficiency, and promotes greater sustainability. As armed forces continue to evolve, the demand for APUs is expanding, addressing the complex requirements of modern military operations.

Increased Demand for Energy Efficiency

The increasing demand for energy efficiency is significantly driving the auxiliary power unit market across various sectors, particularly in military and commercial aviation, as well as ground vehicles. As global energy consumption rises alongside environmental concerns, stakeholders are increasingly acknowledging the value of APUs in optimizing energy use and reducing operational costs.

Governments and organizations are under increasing pressure to reduce their carbon footprints and comply with stricter environmental regulations. APUs offer a viable solution by allowing systems to operate without requiring the main engines to be running, thereby conserving fuel, and reducing greenhouse gas emissions. This is particularly crucial in military operations, where stealth and efficiency are essential.

In commercial aviation, airlines are increasingly adopting APUs to enhance fuel efficiency and lower operational costs. By utilizing APUs to power auxiliary systems during ground operations—such as air conditioning and avionics—airlines can minimize fuel consumption from the main engines while stationary. This not only results in cost savings but also improves the overall passenger experience through enhanced cabin comfort.

Furthermore, the military sector is witnessing a surge in APU adoption driven by the need for enhanced operational readiness and adaptability. As military engagements become increasingly complex, the ability to maintain power for communications, surveillance, and other critical systems while conserving resources is invaluable. APUs allow forces to operate efficiently in remote locations where fuel supply may be limited, ensuring that essential systems remain functional without relying on the main engines.

Thus, the growing demand for energy efficiency—driven by sustainability goals and operational requirements—is fueling the growth of the APU market.

Auxiliary Power Unit Market Opportunities

Technological Advancement in Auxiliary Power Units

Technological advancements in auxiliary power units are significantly enhancing their efficiency, performance, and applicability across various sectors, particularly in aviation and military vehicles. Modern APUs are increasingly equipped with smart controls that optimize performance based on real-time data, improving energy management, and reducing wear and tear. These intelligent systems can adapt to varying power demands, ensuring efficient energy usage, and extending the lifespan of the unit.

Additionally, the adoption of hybrid and electric technologies is transforming the APU landscape. These alternatives not only offer clean energy solutions but also enhance the overall sustainability of military and commercial operations. Manufacturers are also focusing on modular designs that facilitate easier maintenance and upgrades, making APUs more versatile and adaptable to future requirements. As these technological advancements continue to evolve, they enhance the capabilities and operational efficiency of APUs, solidifying their role in modern military and aerospace applications.

Key Findings: Auxiliary Power Unit Market

The Gas Turbine APUs Segment is Expected to Dominate the Auxiliary Power Unit Market

Based on type, the auxiliary power unit market is segmented into gas turbine APUs, diesel APUs, battery-powered APUs, and other types. In 2024, the gas turbine APUs segment is estimated to account for the largest share of the auxiliary power unit market. The significant share of this segment can be attributed to the increasing demand for gas turbine APUs, which provide high energy efficiency and advanced monitoring systems, and their growing adoption in military aircraft as well as marine applications, including commercial vessels and naval ships. Additionally, market players are forming partnerships to develop advanced offerings, further supporting the growth of this segment. For instance, in November 2023, Pratt & Whitney (U.S.) signed an agreement with Emirates (UAE) to maintain and support the airline's 116 PW980 auxiliary power units (APUs) on its Airbus A380 aircraft. The PW980 APU is a two-shaft gas turbine engine specifically designed for the Airbus A380 wide-body jetliner.

Gas turbine auxiliary power units are compact, turbine-based engines that deliver essential power for various applications, primarily in the aviation, military, and marine sectors. Operating independently of the main engines, these units generate electrical power and pneumatic pressure to support critical systems while the vehicle is on the ground or stationary. Gas turbine APUs are vital components in modern aircraft and various vehicles, providing reliable and efficient power for critical systems during ground operations. Their versatility and efficiency make them integral to enhancing operational effectiveness and sustainability.

Moreover, this segment is slated to register the highest CAGR during the forecast period. Its benefits—including reliability and performance, fuel efficiency and cost savings, compact and lightweight design, advanced technology integration, and environmental advantages—contribute significantly to its growth.

Geographical Analysis

Asia-Pacific Dominates the Auxiliary Power Unit Market in 2024

In 2024, Asia-Pacific is estimated to account for the largest share of the global auxiliary power unit market. The significant share of the Asia-Pacific region in the auxiliary power unit market can be attributed to the presence of leading APU providers, increased demand for aircraft, environmental regulations encouraging the adoption of more efficient and cleaner APU technologies, and the integration of smart technologies and IoT in APUs. Additionally, advancements in APU technology, contributions from various research organizations to R&D, rising demand for APUs in military vehicles and aircraft, and increased investments by key players are further supporting growth in this region. Market players are also focusing on expanding their offerings to bolster this growth. For instance, in February 2024, Pratt & Whitney (U.S.), a global leader in the design, manufacture, and service of aircraft engines and APUs, announced the official opening of a 48,000 square-foot expansion of its Singapore-based engine center, Eagle Services Asia (ESA). Such developments are expected to contribute to the region's growth.

Moreover, Asia-Pacific is slated to register the highest CAGR during the forecast period. The rapid expansion of emerging economies, particularly in China, South Korea, Japan, and India, along with infrastructural development in the APAC region, is driving growth in this market. Additionally, the rising demand for energy efficiency in the aviation industry, the development of electric and hybrid APUs, and government incentives and funding for sustainable aviation initiatives are further accelerating market growth.

Auxiliary Power Unit Market: Key Companies

The report includes a competitive landscape based on an extensive assessment of the key strategic developments that led market participants to adopt over the past three years. The key players profiled in the global auxiliary power unit market report are Honeywell International, Inc. (U.S.), Safran S.A. (France), Pratt & Whitney (U.S.) A subsidiary of RTX Corporation (U.S.), Elbit Systems Ltd. (Israel), Rolls-Royce Holdings plc (U.K.), MTU Aero Engines AG (Germany), The Marvin Group (U.S.), Dewey Electronics Corporation (U.S.), AMETEK Airtechnology Group (U.K.), PBS India Private Limited. (India), Carrier Global Corporation (U.S.), Parker-Hannifin Corporation (U.S.), Thermo King (U.S.), Mak Controls and Systems Pvt Ltd. (India), and Liebherr-International Deutschland GmbH (Germany).

Auxiliary Power Unit Industry Overview: Latest Developments from Key Industry Players

• In July 2024, Honeywell International, Inc. (U.S.) signed an agreement with Air India Limited (India), the country's leading global airline and a Tata Group enterprise, to provide aftermarket support for Auxiliary Power Units (APUs) across both Air India's existing and new fleets. This agreement offers comprehensive maintenance support for Honeywell APUs, ensuring high aircraft dispatch reliability and fleet availability while reducing unplanned maintenance costs for Air India’s fleet.
• In May 2023, Honeywell International, Inc. (U.S.) signed a contract with MYAirline (Malaysia) for auxiliary power unit maintenance for its A320 fleet. Under this contract, MYAirline will receive Honeywell’s excellent APU maintenance services for its 131-9A APUs to support continuous operational uptime, flight safety, and reliability for its fleet of 22 aircraft.
• In April 2023, Thermo King (U.S.), a leader in sustainable transport temperature control solutions, introduced its third-generation diesel TriPac auxiliary power unit (APU). This APU provides added value to customers with ESG targets because it eliminates unnecessary engine idling, which helps lower fuel consumption.
• In January 2023, Lufthansa Technik AG (Germany) entered into an agreement with Air France S.A. (France) to provide technical support for the auxiliary power units (APUs) of the French airline's entire Airbus A350 fleet. Lufthansa Technik will offer comprehensive maintenance, repair, and overhaul (MRO) services for the Honeywell HGT1700 APUs at its Hamburg facility.

Auxiliary Power Unit Market Research Summary

Key questions answered in the auxiliary power unit market report: