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 supplies power when an aircraft is landed on the ground. A Ground Power Unit can be fixed as well as a 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 supplies power to an aircraft via a 120V ac or 28V dc electric system. Ground Power Units can be diesel-run power generators or can be powered through batteries, including lithium-ion batteries or lead acid batteries. Sometimes Ground Power Units can also source the power from a grid-based power supply. However, the direct grid-based power supply is usually found in large commercially operated airports. Mobile Ground Power Units are flexible and can be taken to the location of aircraft. However, sometimes fixed Ground Power Units can also be found to be installed along jetways to make it easier to supply power to aircraft instead of bringing them to the maintenance area.


The rise in Air Traffic and the Growing Aviation Industry

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

High Cost of Ownership   

The 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, the increasing pressure of constant evolution in technology to replace old equipment forces the end-users to opt for the leasing option instead of owning the one.

COVID-19 Impact on Ground Power Units Industry

The COVID-19 virus outbreak has grounded the aviation industry with a decline in air travel by over 30% worldwide in the year 2020. Most airline companies recorded losses due to serious restrictions imposed on air travel. Air travel was one of the most important factors for the rapid cross-border spread of the virus. With the decline in the number of flights, maintenance activities also come to a standstill, resulting in lesser use and demand for Ground Support Equipment, including Ground Power Units. As a result, the Ground Power Units industry witnessed a sharp decline in revenue generation in 2020. However, therevival of air transportation of passengers as weando is likely to bringgradually the Ground Power Units industry to its pre-COVID-19 stage grad

sing Option to Keep Driving Demand for Mobile Ground Power Unit

Leasing is the option opted for by a large number of airports due to the 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 offersoffers the end-users the opportunity to easily be tuned with any technological advancement with loss of capital. Secondly, it's easy to lease mobile Ground Power Units than a fixed ones. With the 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% of the global market in 2020.

Civil Airports to Offer Steady Growth

The civil aviation industry has grown considerably over the past decade. With increasing government efforts, the number of air travelers and cargo shipments is rising. For instance, the government of India has launched "UDAN," a regional connectivity scheme that offers a significant subsidy to aircraft carriers and travelers to bring remote parts of the country on the air map. This has contributed to an increased number of domestic air travelers and an increase in domestic air cargo. This required extension of existing airports or building of new airports equipped with ground support equipment, including Ground Power Units. Demand from Civil airports for Ground Power Units has generated over USD 250 million in 2020 and is likely to register a 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. Moreover, with an 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 global Ground Power Units players 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, electric motors are considered more efficient and hence possesspossess huge replacement potential over diesel engines in 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 the Asia Pacific

Although the 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 the Asia Pacific. China and India have huge potential and scope for the development of domestic air transport. The U.S. and Europe have reached maturity in the aviation industry. However, Asia Pacific is a highly unexplored market with huge growth potential. Increasing infrastructure activities in the region, including civil airports, is on the rise in a quest to improve domestic air connectivity to build better economic growth prospects. This is expected to fuel the region's demand for Ground Power Units. 

Frequently asked questions :

Outbreak of COVID 19 caused over 20% decline in revenue generated by Ground Power Units industry in 2020 as compared to 2019. Aviation industry received major setback from COVID 19 in order to confine spread of the virus. This in turn severely impacted the revenue generation in Ground Power Unit industry

John Bean Technologies Ltd, TLD GSE, ITW GSE, Textron GSE and Guinault are among top five players operating in Ground Power Units industry and held over 35% share of the total revenue generation

Civil airports are most dominating application of Ground Power Units with over 40% share in the total revenue outcome from this segment

With largest network of airports and highest number of aircrafts, North America dominates the demand for Ground Power Units and likely to be at forefront over the span of analysis period

The global Ground Power Units industry is witnessing a paradigm shift in technology with more and more end-users opting for environment friendly power sources in order to achieve lower carbon footprint. Hybrid and electric Ground Power Units are most likely to dominate the global Ground Power Unit industry toward end of forecast period

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Published Date:  Oct 2021
Category:  Aerospace & defense
Report ID:   59948
Report Format:   PDF
Pages:   120
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