Ground Power Unit (GPU) Market By Type (Fixed, Mobile), By Application (Civil Airports, Military Airports, Business Airports, Others) - Growth, Future Prospects, And Competitive Landscape, 2015-2027

A grounded source that supply power when an aircraft is landed on ground. A Ground Power Unit can be fixed as well as mobile. Ground Power Unit offers a clean or ripple free voltage that is very crucial in carrying out all maintenance related activities of an aircraft including engine start and stop. Ground Power Unit supply power to an aircraft via 120V ac or 28V dc electric system. Ground Power Unit can be a diesel run power generators or can be powered through batteries including lithium-ion battery or lead acid battery. Sometime Ground Power Unit can also source the power from grid-based power supply. However, direct grid-based power supply usually found in large commercially operated airports. Mobile Ground Power Units are flexible and can be taken to the location of aircraft. However, sometime fixed Ground Power Unit can also be found to be installed along jetway to make it easier to supply power to aircrafts instead of bring them to maintenance area.

Rise in Air Traffic and Growing Aviation Industry

Ever increasing aviation industry is poised to play important role in future growth of Ground Power Units market. Market size of aviation industry touched its peak in 2019 with transportation of almost 4 billion passengers within span of one year around the world. While, on cargo front, it dispatched over 55,000 kilo tons of freight through 37 million commercial flights. By the end of 2019, the number of air travelers reached to over 10 million every day and air cargo transported goods worth 10 billion each day. To carry our such a massive activity there is need for huge fleet of well-maintained aircrafts. To keep aircraft performing in sky, it takes a good maintenance on ground. For that, ground staff must be equipped with all necessary equipment’s and tools. Ground Power Unit is one of the important equipment required for the maintenance of aircrafts as its main power source for aircraft when it is grounded. With increasing air traffic, the demand for aircrafts and airports in increasing which in turn fueling the growth of Ground Power Unit industry.

High Cost of Ownership    

High cost of ownership is one of the significant concerns for the industry participants. Ground Power Units are quite expensive and maintenance cost is also high. A Ground Power Unit can cost several thousand dollars. Moreover, increasing pressure of constant evolution in technology to replace old equipment forcing the end-users to opt for leasing option instead owning the one.

COVID 19 Impact on Ground Power Units Industry

COVID 19 virus outbreak has literally grounded the aviation industry with decline in air travel by over 30% around the world in the year 2020. Most of the airline companies recorded losses due to serious restrictions imposed on air travel, reason being air travelling was one of the most important factors for the rapid cross border spread of the virus. With decline in number of flights the maintenance activities also come to stand still resulting into lesser use and demand for Ground Support Equipment including Ground Power Units. As a result, Ground Power Units industry has witnessed a sharp decline in the revenue generation in 2020. However, with revival of air transportation of passengers as well as cargo is likely to bring the Ground Power Units industry to its pre-COVID 19 stage gradually.

Leasing Option to Keep Driving Demand for Mobile Ground Power Unit

Leasing is the option opted by large number of airports due to higher ownership and maintenance cost of Ground Power Units. Small and medium airports with limited or occasional air traffic can not afford to invest in ownership of Ground Power Units. However, leasing is an attractive option available to them. Leasing is not only economic but also offer the end-users with opportunity to easily be tuned with any advancement in technology with loss of capital. Secondly, its easy to lease mobile Ground Power Units than fixed one. With rising trend of leasing, the demand for mobile Ground Power Units is also expected to grow at a rapid pace. Mobile Ground Power Units held over 60% share of the global market in 2020.

Civil Airports to Offer Steady Growth

Civil aviation industry has grown considerably over the past decade. With increasing government efforts the number of air travelers and air cargo shipment is on the rise. For instance, government of India has launched “UDAN”, a regional connectivity scheme that offers significant subsidy to aircraft carriers as well as travelers in order to bring remote parts of the country on air map. This has contributed towards increased number of domestic air travelers and increase in domestic air cargo. This required extension of existing airports or building new airports equipped with ground support equipment including Ground Power Units. Demand from Civil airports for Ground Power Units has generated revenue of over USD 250 million in 2020 and likely register CAGR of slightly over 9% over the forecast period. However, defense/military and business airports are also expected to grow at a rapid pace over the years to come. With increasing number of millionaires around the world the demand for private or business airports is rising. This in turn has triggered the demand for Ground Power Units.  

Key Companies are Focused on Innovation

Major players operating the global Ground Power Units include John Bean Technologies Ltd, TLD GSE, ITW GSE, Textron GSE and Guinault. These five players collectively held over 35% share in 2020. With rising demand for non-polluting Ground Power Units the companies are focused on developing electric or hybrid Ground Power Units. As against diesel engines, the electric motors are considered to be more efficient and hence posses huge replacement potential over diesel engines during the near future. Battery operated Ground Power Units are likely to become predominant and hence development of it is sought after by all leading players.

Future Growth Will Stem from Asia Pacific

Although growth of the Ground Power Units industry is driven by robust demand from U.S. and Europe, the future will be shaped by the end-users in Asia Pacific. China and India has huge potential and scope for the development of domestic air transport. U.S. and Europe has reached to their state of maturity in aviation industry. However, Asia Pacific is highly unexplored market with huge growth potential. Increasing infrastructure activities in the region including civil airports in the region is one the rise as a quest to improve domestic air connectivity to build better growth prospects of economy. This is expected to fuel the demand for Ground Power Units in the region.  

Frequently asked questions about global Ground Power Unit industry