Increasing usage of diesel-electric submarines due to feathers such as low noise and activity performance at the littoral surfaces coupled with the replacement of nuclear submarines with the diesel-electric submarines is creating the demand for air-independent propulsion (AIP) systems for getting fresh oxygen from the environment. In order to recharge the batteries of diesel engines, there is a need for fresh oxygen due to which the market size of the AIP system is emerging However, the manufacturing of submarines across the globe went on halt due to COVID-19 Pandemic due to which the market growth of the AIP systems witnessed a slight decline.
Furthermore, increasing underwater activities for various purposes such as anti-submarine welfare, remain undetected from energy, etc. are resulting in the demand for diesel-electric submarines, therefore the market size of AIP systems is also on the rise.
According to MarkNtel Advisors’ research report “Global Air-Independent Propulsion (AIP) System Market Analysis, 2020”, the market size of the AIP system across the globe is forecast to grow at a significant CAGR during 2020-25. The market size is surging on account of the increasing number of submarines for various purposes across the globe. For instance, India launched the 4th “Kaveri-Class” attack diesel-electric submarine in 2019. Also, Turkey launched the “Indigenous submarine” program in 2019 that aims to build in-house submarines.
Moreover, the government’s strategic alliances with shipbuilders for marine manufacturing is one of the key factor contributing to the market size growth of the AIP system globally. For instance. The Indonesian Ministry of Defense announced its partnership with South Korea based shipbuilder “Daewoo Shipbuilding and Marine Engineering (DSME)” for building three diesel-electric submarines in 2020.
North America Hold the Lion’s Share
In 2019, North America grabbed the major market share in the Global AIP system market. The market size of North America is increasing on account of the increased spending on naval capabilities by the U.S and Canada. In 2019, it was announced that the annual marine corps budged in the U.S would increase by 6% and reached to around USD 45.9 Bn in 2020. Also, the U.S Navy announced in 2019 that the country has planned to increase submarine spending to USD 5 billion by 2024.
However, APAC is expected to grow at a significant pace during the forecast period of 2020-25 owing to the increasing defense budget in countries such as India, China, Japan, etc. Moreover, demand for AIP equipped submarines in the developing countries would further augment the market growth of the AIP systems.
Stirling Cycle Engine, the Market Dominator
In 2019, the Stirling cycle engine grabbed the major market share and the same trend is expected in the forecast period too. The key factors for the growing market share other Stirling cycle engines are its high efficiency.
Also, the benefits of these engines such as low noise, less power consumption in comparison to normal or conventional diesel generators in the submarines are augmenting the market share growth in the global AIP system market.
Furthermore, the line fit dominated and captured the major market share in 2019. The market share of line fit is growing on account of the need for technological up-gradation in the marines, as revealed by MarkNtel Advisors’ research report “Global Air-Independent Propulsion (AIP) System Market Analysis, 2020” .
According to MarkNtel Advisors’, the market of the AIP System across the globe is capital intensive, government-regulated and highly consolidated due to the presence of a handful number of players operating in the market. The key players with a considerable market share in the industry are General Dynamics, SAAB, Lockheed Martin Corporation, Kongsberg Gruppen, UTC, United Shipbuilding Corporation, DCNS, Siemens, China Shipbuilding Industry Corporation, Navantia, etc. The companies are coming up with new strategies and solutions to gain a competitive market share in the industry.
“Global Air-Independent Propulsion (AIP) System Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the industry potential, key factors impacting sales and purchase decisions, hotspots, and opportunities available for the AIP System providers across the Globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the formulation of Go to Market Strategies and identifying the blue ocean for its offerings.
1. By System Type (Closed Cycle Steam Turbines, Fuel Cell, Stirling Cycle Engine)
2. By Fit Type (Line Fit, Retro Fit)
3. By Region (North America, Europe, Asia-Pacific, Middle East, and Africa, South America)
4. By Countries (U.S, Canada, Mexico, Brazil, Argentina, UK, France, Germany, Spain, Italy, UAE, Saudi Arabia, South Africa, China, Japan, India, Australia, South Korea, Others)
5. By Company (General Dynamics, SAAB, Lockheed Martin Corporation, Kongsberg Gruppen, UTC, United Shipbuilding Corporation, DCNS, Siemens, China Shipbuilding Industry Corporation, Navantia, Others)
Key questions answered in the study:
1. What are the current and future market trends of the Global AIP System industry?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. How the competition has been shaping across the region followed by their comparative factorial indexing?
4. What are the key growth drivers and challenges for the Global AIP System industry?
5. What are the customer orientation, purchase behavior, and expectations from the Global AIP System firms across various regions?