Global Aircraft Fuel Cell APUS Market - 2023-2030

Overview

Global Aircraft Fuel Cell APUs Market reached US$ 1.8 billion in 2022 and is expected to reach US$ 5.7 billion by 2030, growing with a CAGR of 10.8% during the forecast period 2023-2030.

The global aviation industry is undergoing a rapid shift, with growing emphasis on decarbonization. Although fully electric aircraft are still decades away, aircraft manufacturers are gradually trialing fuel cell APUs. Such extensive trials are likely to result in a fully workable APU system being integrated into the next generation of civilian aircraft.

The ongoing developments in civilian aerospace sector are also likely to spillover into the military domain, benefiting a wide range of applications such as fighter jets, military transport aircraft, UAVs, cruise missiles and loitering munitions. The adoption of fuel cell APUs for military applications will significantly boost the growth prospects of the global market.

Dynamics

Advancements in Drone Warfare

Modern unmanned aircraft have changed the face of warfare, as is evidenced by the ongoing Russia-Ukraine war. Both the sides are extensively using loitering munitions, FPV and multi rotor drones to target each other's infantry and military installations. It has placed renewed emphasis on the role of combat drones in ground operations. Hence, both Ukraine and Russia are developing new types of drones based on the experience gained on the battlefield.

Manufacturers are developing new drones with hardened bodies to withstand small arms fire and are also hardening them against electronic countermeasures. Armies are also looking at deploying autonomous drone swarms to overwhelm enemy air defences. Many drones are likely to utilize compact APUs for long range propulsion.

Ongoing Development of New Cruise Missiles

The modern doctrine of warfare places a major emphasis on precision air strikes to destroy enemy infrastructure through land, air or sea-launched cruise missiles. While global powers such as U.S., France, UK, Russia and China have had precision strike capabilities for a long time, their adoption by emerging military powers has become more pronounced over the past decade.

In December 2023, Iran inducted the Talaeiyeh cruise missile, with an effective range of 1000 kms. Furthermore, India is testing different variations and configuration of its indigenously developed Nirbhay cruise missiles. In August 2023, Turkey announced that 11 of its warships will be equipped with the indigenous Atmaca cruise missile. Furthermore, the Russia-Ukraine war has adequately demonstrated the devastating impact of long-range precision strikes by cruise missiles.

APUs are used in cruise missiles for missile propulsion after initial launch, during which rocket boosters get it upto flying speed. The ongoing development of a new generation of cruise missile will undoubtedly spur new research into fuel cell-powered APUs suitable for cruise missile propulsion applications.

High Technological Complexity

Fuel cell auxiliary power units are still an emerging technology and have not yet led to mainstream adoption. One factor is the sheer number of technological complexities that need to be overcome in order to ensure its full functioning. One of the key challenges is the storage and handling of hydrogen fuel used in the fuel cells.

Hydrogen must be liquified and stored under pressure to ensure safe transportation. Furthermore, the storage system must be lightweight and have small form factor so as not to impede the overall functioning of the aircraft. The fuel cell system also requires a compact and efficient cooling to dissipate the heat generated during the operation. As long as these issues remained unsolved, the global market is unlikely to experience major growth.

Segment Analysis

The global aircraft fuel cell APUs market is segmented based on fuel, application, power output, end-user and region.

0-100 kW segment is expected to garner the highest market share during the forecast period

The 0-100 kW power output segment will garner a large market share due to its compatibility with the ongoing trends in the aerospace industry. APUs in the 0-100 kW power range are largely used for medium altitude long endurance (MALE) UAVs, loitering munitions and long range precision cruise missiles.

The increasing usage of drones in applications such as surveying and entertainment will also be conducive to the growth of this segment. Furthermore, the development of small-scale zero emission aircraft are also likely to create sizeable demand for auxiliary power units in the 0-100 kW power output segment.

Geographical Penetration

New Innovations to Propel Market Growth in North America

North America is expected to have the highest share within the global market principally due to the advanced R&D ecosystem of U.S. Supported by high-quality academia and a plethora of research institutions, U.S. has been at the forefront of leading research in emerging aerospace technologies. U.S. has a major head start over other European and Asian countries in patenting and commercializing fuel cell APU technology.

The entire innovation ecosystem is backed by generous funding from U.S. governmental agencies. For instance, in November 2023, the AFWERX, the innovation branch of U.S. Air Force, awarded a US$ 37 million grant to Piasecki Aircraft to develop new clean hydrogen fuel cell technologies for next-generation vertical takeoff and landing (VTOL) aircraft.

COVID-19 Impact Analysis:

The COVID-19 pandemic represented a challenging time for the global aerospace industry. Many ongoing R&D projects were disrupted due to lockdowns and other workplace restrictions. Large aircraft manufacturers, such as Boeing and Airbus struggled to quickly adapt to changing market conditions, as fleeting grounding and a virtual halt to international air travel led to drying up of new aircraft orders. Business continuity focused on fulfilling existing aircraft orders.

The military aerospace industry was relatively less affected, as government grants and funding continued uninterrupted for researching and developing nascent emerging technologies. Large conglomerates with well-defined product pipelines did not face major challenges but many small startups went bankrupt over the course of the pandemic, as venture capital funding dried up. Large conglomerates were able to purchase IP rights for the technologies developed by these defunct startups. The post-pandemic period witnessed a surge in military spending, primarily due to Russia's invasion of Ukraine. The global fuel cell APU market will thus witness new growth opportunities.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war will have a major influence on the future development of the global aircraft fuel cell APUs market. Although fuel cell APUs is still a nascent technology, the increasingly frequent usage of reconnaissance drones and long range cruise missiles will lead to changes in modern warfare doctrines of all global military powers. It will give a new impetus to the development of fuel cell APUs.

Russia has switched its economy to a war-footing and has increased the production of critical military equipment. However, the harsh economic sanctions imposed on Russia for the invasion of Ukraine has hobbled the military industry's long term potential to develop and deploy fuel cell APUs for military applications.

By Fuel

• Hydrogen
• Others

By Application

• Fixed Wing Aircraft
• Rotary Aircraft
• UAVs
• Air-to-Air Missiles (AAMs)

By Power Output

• 0-100 kW
• 100 kW - 1 MW
• Above 1 MW

By End-User

• OEMs
• MRO

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In June 2023, the European aircraft manufacturer Airbus, trialed a hydrogen fuel cell powered APU on a modified A330 aircraft as part of its UpNext program. The trial demonstrated the successful in-flight operation of fuel cell APUs.
• In August 2023, R&D dynamics, a U.S.-based aerospace components manufacturer, won a contract from Airbus to supply fuel cell compressors for the Airbus UpNext fuel cell APU program.
• In December 2022, Blue World Technologies, a Danish fuel cell manufacturer, launched a methanol fuel cell powered APU to replace conventional diesel generators onboard marine vessels.

Competitive Landscape

The major global players in the market include: Honeywell International Inc., Zeroavia Inc., Airbus, Embraer, Boeing, The Marvin Group, The Dewey Electronics Corporation, Powercell Sweden AB, Doosan Mobility Innovation and H3 Dynamics.

Why Purchase the Report?

• To visualize the global aircraft fuel cell APUs market segmentation based on fuel, application, power output, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of pouch tapes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global aircraft fuel cell APUs market report would provide approximately 61 tables, 57 figures and 195 Pages.

Target Audience 2023

• Aircraft Manufacturers
• Aircraft Maintenance Companies
• Industry Investors/Investment Bankers
• Research Professionals