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Defense Sector is pegged to have significant Impact on growth of the Submarine AIP system market, Projects Fact.MR
Submarine AIP System Market
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Sales of submarine AIP systems across the globe are estimated to exceed USD 229 Mn in revenues by 2027-end.
Air independent propulsion (AIP) systems are marine propulsion technologies that are commonly integrated to non-nuclear submarines for operation of naval vessels, without having access to oxygen from the atmosphere.
AIP systems are increasingly being used either as a complementary or replacement system for submarines that conventionally use diesel electric propulsion systems.
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Submarine AIP systems are essential for the recharging batteries, without having to run the engines.
It is essential for naval submarines to sail underwater without getting detected easily, by also reducing noise signatures.
On the other hand, the much superior performance of nuclear submarines has restricted the use of AIP systems on the whole.
Europe and Asia Pacific Nations Dominate Demand for AIP Systems
On a global scale, countries in Europe and the Asia Pacific account for up to 80 per cent of the market share of the submarine AIP market.
The submarine AIP system market for the Asia Pacific is expected to rise at around 2.5 per cent, which can primarily be attributed to rising amounts of investments in the regional defense sector, which are resulting in substantial opportunities for the adoption of AIP equipped submarines.
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These factors are also common for the rise of AIP submarine systems in European naval forces. On the other hand the adoption of AIP submarines for other regions such as the Americas, and Middle East and Africa is lagging behind at 12 and 8 per cent respectively.
Adoption of Second Gen AIP Systems Booming
The global submarine production industry is going through a transition, of increased use of second gen submarine AIP systems.
While the original AIP systems have given superlative underwater operations abilities, the 2nd gen systems are expected to raise the performance bars to a greater level.
In addition, submarines using 1st gen AIP systems, are at greater risk of being attacked while surfacing or snorkeling.
However, the induction of the newer variants are expected to increase versatility in applications, and opening up new opportunities for developments in the submarine industry.
Submarine AIP System Market: Competitive Landscape
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The report by Fact.MR has studied a number of key participants in the submarine AIP system market including large scale manufacturers such as Saab AB, Kongsberg Gruppen ASA, Wilhemsen, and Rolls Royce among others.
The strategy being employed by most players in the industry include increasing investments in research and development activities for the development of new capabilities and solutions for navies around the world.
The presence of major organized players working at the same production quality and costs has resulted in a number of opportunities for new entrants, with substantial business as governments around the world continue to display high levels of concern over naval borders.
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