Ground Power Unit Market

Market Overview

The global ground power unit market size was valued at USD 577.43 million in 2023. It is estimated to reach USD 1,275.55 million by 2032, growing at a CAGR of 9.11% during the forecast period (2024–2032). The increasing demand for air travel, driven by globalization and economic development, is a significant driver for the GPU market. As more airports are built or expanded, there is a corresponding need for ground support equipment, including GPUs. Moreover, the growth in e-commerce and global trade has led to a surge in air freight transportation. This trend contributes to higher demand for GPUs, as cargo aircraft require ground power support for operations and maintenance.

A Ground Power Unit (GPU) is a device made to supply electrical power to aircraft while they are on the ground, providing an alternative source of energy when the aircraft's auxiliary power unit (APU) or engines are not in use. GPUs support a range of ground operations, including running the aircraft's lighting, avionics, air conditioning, and other essential systems. This equipment is crucial in reducing airport noise and emissions by allowing airlines to power down their APUs, thus saving fuel and reducing wear and tear on the APU.

Ground power units are versatile, with mobile and stationary configurations, and typically supply 115-volt alternating current (AC) at 400 Hz or 28-volt direct current (DC). These devices connect to the aircraft via a cable and are designed to support activities such as aircraft mobility, cargo/passenger loading operations, and maintenance. Although GPUs are not used for engine starts, they are indispensable for aircraft turnaround processes, providing consistent power for onboard systems and enhancing operational efficiency.

Highlights

• Mobile dominates the type segment
• Civil Airport dominates the application segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Ground Power Unit Market Drivers:

Expanding Demand for Electric Ground Support Equipment (EGSE)

Efficiency and sustainability are increasingly vital concerns for airports and airlines, driving a growing demand for electric Ground Power Units (GPUs) and other ground support equipment (GSE). Electric GSE offers numerous advantages over conventional diesel-powered units, including cleaner air at airports and surrounding communities due to zero emissions during operation. Moreover, electric GPUs typically have lower long-term operating costs since they require less maintenance and use less fuel, contributing to both economic and environmental sustainability.

One notable benefit of electric GPUs is their significant reduction in noise compared to diesel-powered units. This not only enhances noise pollution control around airports but also improves the working environment for ground crews. This quieter operation can lead to increased productivity and employee satisfaction. For example, a recent article in Air Transport World highlights a major airline's ambitious fleet electrification goals, which include the adoption of electric GPUs in their ground operations. This demonstrates a significant shift towards sustainable practices within the aviation industry, driven by both environmental concerns and the economic benefits of electric GSE.

Global Ground Power Unit Market Restraint:

High Initial Investment

Electric GPUs are usually more expensive to buy initially than diesel-powered counterparts. This can be a major obstacle for airports and airlines, particularly those with tight budgets. In general, the initial cost of electric GPUs is higher than that of diesel GPUs. Depending on the particular model and its capabilities, this price difference can be significant, ranging from tens of thousands to hundreds of thousands of dollars per unit. Budgets are often tight for airports and airlines, especially for smaller ones or those emerging from recessions.

An important barrier to entry for electric GPUs can be their higher initial cost, particularly in light of the diesel units' ostensibly lower initial cost. The higher initial cost of electric GPUs significantly hampers wider ground power unit market adoption. However, the aviation sector can advance toward a more sustainable future driven by electric ground support equipment by concentrating on long-term cost savings, utilizing government incentives, and developing innovative financing solutions.

Global Ground Power Unit Market Opportunities:

Integration of Advanced Technologies

Incorporating cutting-edge technologies such as remote monitoring, cloud-based data management, and the Internet of Things (IoT) can enhance the efficiency and functionality of Ground Power Units (GPUs). Developing smart GPUs with these capabilities creates new market opportunities and sets offerings apart in the competitive landscape. By leveraging remote monitoring and IoT, vital information about GPU performance, fuel levels (for diesel units), and battery health (for electric units) can be obtained in real-time, along with early detection of potential issues. This allows for the identification and resolution of problems before they escalate, thereby reducing maintenance expenses and minimizing downtime. Moreover, remote diagnostics facilitate quicker issue resolution, reducing aircraft turnaround times.

Cloud-based data management enabled authorized personnel to access GPU data in real-time from any location, facilitating performance optimization and informed decision-making. Moreover, monitoring environmental conditions such as humidity and temperature ensures optimal GPU performance and timely maintenance interventions. The incorporation of these advanced technologies represents a revolution rather than a passing trend. GPU manufacturers can spearhead the development of a new generation of intelligent devices that enhance operational efficiency, support data-driven decision-making, and contribute to a more eco-friendly aviation sector.

For example, the Federal Aviation Administration (FAA) recognizes the transformative potential of advanced technologies in ground power operations. By fostering innovation and supporting the development and implementation of smart GPUs equipped with these features, the FAA is driving progress toward a more intelligent and networked future for ground power operations. Smart GPU utilization is anticipated to increase as these technologies develop and become more accessible, supporting the industry's efficiency and sustainability objectives.

Regional Analysis

North America  Dominates the Global Market

Based on region, the global ground power unit market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America is the most significant global ground power unit market shareholder and is expected to expand substantially during the forecast period. North America is still the market leader for ground power units because of the large number of general and commercial aviation aircraft that are located there. With more than 40% of the worldwide GPU market, North America is anticipated to continue to lead the field throughout the forecast period. A recent announcement detailed in "Aviation Today: Major North American Airport Announces Upgrade to Electric Ground Power Equipment (March 2024)" highlights the region's growing commitment to sustainable ground operations, with major airports investing in electric GPUs. The United States, with its multitude of airports, plays a pivotal role in this market. The market's expansion is propelled by the region's high air traffic, driven by increasing demand for both domestic and international air travel. Moreover, numerous public-private partnerships and government investments are anticipated to support companies lacking sufficient ground support equipment in managing their aircraft fleets.

In Europe, the aircraft ground handling systems market is expected to experience the fastest growth rate during the projection period. Instances such as "Air Cargo News: Major European Airport Announces Investment in Automated Cargo Handling System (April 2024)" underscore the region's focus on modernizing ground handling operations, particularly in cargo handling, through automation. The rise in passenger and cargo flight operations drives the increasing demand for cutting-edge aircraft ground support and power systems. European airline operators are increasingly adopting low-emission ground support equipment, reflecting the region's commitment to sustainability.

Moreover, significant investments are being made in building environmentally friendly airports, which is expected to enhance overall airport operations. The regional market's growth is further supported by government and private operator investments in airport infrastructure development to accommodate the growing tourism industry. Renovation projects at historic airports and the integration of advanced technologies such as electric GPUs and aircraft tugs contribute to the expansion of the market and improved operational efficiency across European airports.

Segmental Analysis

The global ground power unit market is bifurcated into type, application, and power source.

Based on type, the global ground power unit market is segmented into fixed and mobile.

The mobile or portable aircraft ground power unit dominates the segment. These units are in high demand due to their ability to withstand the challenging conditions present in airport environments while providing optimal power output at lower operating and maintenance costs. Airline companies prefer portable ground power units because of their robust design, affordability, and the presence of high-discharge batteries. These features ensure reliable performance and flexibility in various operational scenarios.

Certain high-power mobile GPUs boast impressive specifications, such as a charging time of up to 38 minutes and an output of 40 amps continuously with a peak starting amps of 1560. These capabilities make them suitable for efficiently powering aircraft systems during ground operations. Overall, the mobile-type segment holds the largest share of the market, reflecting the widespread recognition of the benefits offered by portable ground power units in meeting the demanding requirements of modern aviation operations.

Based on application, the global ground power unit market is segmented into civil airports, military airports, and business airports.

The civil airport segment is expected to experience significant growth. In civil airports, ground power units utilize high-frequency insulated-gate bipolar transistor (IGBT) technology to generate a sine wave input and maintain unit power factor. This technological advancement is key to meeting the increasing demand for AC/DC power or combo units and Auxiliary Power Units (APUs) in civil aircraft for onboard supply and engine starting.

Manufacturers in the civil aviation market are focusing on developing top-notch solid-state, mobile, and stationary GPUs. These units are designed to ensure a reliable, safe, and high-quality power supply for every aircraft undergoing hangar or ramp maintenance. The emphasis on reliability and safety underscores the critical role that ground power units play in supporting efficient operations at civil airports worldwide.

Based on the power source, the global ground power unit market is bifurcated into diesel and electric.

The diesel technology utilized in Ground Power Units (GPUs) is well-established, widely recognized, and renowned for its dependability. For many airports and airlines, diesel GPUs represent a safe choice due to their familiarity and the well-established infrastructure supporting them. Moreover, diesel GPUs are typically more affordable to acquire initially compared to their electric counterparts, which is a crucial factor for organizations operating within tight budget constraints, especially during periods of financial constraint.

One of the key advantages of diesel GPUs is their consistent power supply, facilitated by the widespread availability of diesel fuel at airports worldwide. This accessibility alleviates concerns about range limitations commonly associated with electric GPUs, particularly for larger aircraft. However, as concerns regarding greenhouse gas emissions and air pollution escalate, cleaning technologies are gaining popularity.

Impact of covid-19

The Ground Power Unit market around the world had been undergoing a downfall due to the global air travel’s first fall in more than a decade due to the limitations on domestic and international travel.As governments all around the world are slowly lifting the lockdowns, customers have started returning to work. The future of air travel is vague, as many people are scared to travel because of hygiene concerns and quarantine rules. However as the Aircraft ground support equipment has become one of the most desired equipment at airports in recent years, it is likely to gain traction post-pandemic.

Recent Developments

• February 2024- Fraport, the airport operator, commenced an overhaul of its diesel ground power supply units at Frankfurt Airport (FRA) in Germany using a €215,000 (USD 231,000) grant from the German Ministry of Digital and Transport's ground power directive funding program. The funds will be used to equip a building position in Terminal C. Due to the structural conditions at this aircraft position, Fraport will buy a battery-powered e-GPU with charging infrastructure.
• March 2024- The Air Force Research Laboratory collaborated with the Air Force Life Cycle Management Center, Air Force Materiel Command headquarters, and General Motors Defense to successfully power a KC-135 tanker aircraft at Edwards Air Force Base using GM Defense's Electric Ground Power Unit. The system uses GM's commercial battery electric technology and an electric drive system. The Electric Ground Power Unit and cart support both military and commercial aircraft.