Submarine AIP System Market
Submarine AIP System Market Analysis Report By Product (Closed Cycle Steam Turbines, Stirling Cycle Engines, Fuel Cellsa), By Fit (Line, Retroa), By Region (Americas, Europe, APAC, MEA) - Global Market Insights 2019 to 2027
Growing Focus on Investments in Defense Sector to Boost the Adoption of Submarine AIP System
Among all the research and development activities relevant to submarines, the search for satisfactory and effective forms of underwater propulsion has been continuously carried out without any reduction in intensity.
The earliest submarines were man-powered with hand-cranked propellers, which remained highly susceptible to dangerous and fatal accidents. Such instances laid the foundational pillars for submarine AIP (air-independent propulsion) systems and drove their adoption at a significant rate across the globe.
With time, submarine AIP systems gained the status of being a core element behind the flexibility of submarines.
Against a backdrop of the ever-evolving security demands, the submarine AIP market will spectate bespoke innovations aimed at different features such as maximizing strategic values, improving the performance, and enhancing operational efficiency.
Fact.MR published a report on the submarine AIP system market for the forecast period of 2019 to 2027. The primary objective of this report is to offer insights on demand generators, technological advancement, and global market scenario in submarine AIP system.
Also, the study on the submarine AIP system market provides key dynamics that are anticipated to diversify sales and future prominence of submarine AIP system during the forecast period. The demand for submarine AIP system has increased significantly in the past few years, and is likely to maintain same over the forecast period.
With AIP system becoming an important part of new-age submarine designs, end users are on the lookout for AIP-equipped submarines, and are willing to invest in same.
AIP equipped submarines are always silent, with the only noise generated by propeller, shaft bearings, and the hull, which gives them a differential advantage over other conventional propulsion technologies.
Across the globe during the forecast period, growing demand for high submerged periods and cost-efficiency are driving the adoption of AIP-equipped submarines, marking new opportunities for the operating market players in submarine AIP system.
On other hand, the increased funding in defense sector by governments across the globe is expected to play an important role in growth of the submarine AIP system market.
Majority of countries in the defense and submarine industry are automating a variety of processes, which will positively impact the growth of the submarine AIP system market, during the forecast period.
The defense revenue is anticipated to show continuous growth during the forecast period owing to the tension between different countries such as India and Pakistan, China and Iran, and improved but continuing tense relationship with North Korea.
In addition, the high cost of nuclear submarines as compared to AIP equipped submarines may increase the traction of the purchase of submarine AIP system for strengthening their naval capability and thus, indirectly driving the submarine AIP system market.
The rising need to provide naval forces with increased capabilities related to maritime security is expected to increase the demand for submarine AIP system. Furthermore, the modernization and up gradation of naval fleets across the globe is also expected to drive the submarine AIP system market during the forecast period.
On the other hand, the submarine AIP system market growth has a threat associated with the switch towards nuclear power submarines, due to their long battery life and this threat is expected to increase during the forecast period.
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Focus on Second-Generation AIP Systems a Booming Trend
Among all the key trends influencing the growth of the submarine AIP system market, increasing focus on second generation submarine AIP systems remains a prominent one.
With AIP systems promising the best of underwater endurance for submarines, the second-generation AIP systems are further likely to take endurance levels a notch higher, adding to the overall efficiency and functionality of the submarines.
All the diesel-electric submarines have faced the brunt of unexpected attacks as they come to the surface or snorkel to recharge batteries.
However, the debut of second-generation AIP systems is likely to rewrite the rules of submarines’ versatility underwater, further lighting the way for new developments to make their way in the submarine AIP system landscape.
An Adaptive Approach to Modern-day Research Needs
Investment in Research and Development Activities Key Strategy of Market Players
Globally, the market players operating in the submarine AIP system market have high focus on research and development activities to develop new solutions and obtain competitive advantages. Players focus on development of high tech solutions for addressing challenges faced by navies and improving their operational capacities.
The operating players’ innovation is mainly focused on providing submarines with technologies that increases their operating performance. For example, in the year 2019, one of the key players operating in submarine AIP system market, Saab AB announced that it will open a new innovation Centre in the UK to conduct research and development projects.
In addition, to strengthen the company’s position in the market the operating players are applying different strategies such as signing the contracts/agreements, collaborations, acquisitions, mergers, etc.
For example, in 2018, Kongsberg Gruppen ASA and Wilhelmsen signed a contract for autonomous shipping. Furthermore, in 2019, Kongsberg Gruppen ASA, acquired Rolls-Royce’s commercial marine business.
On other hand, the presence of key organized players operating at the same level of product quality and same price range have created ample opportunities for new entrants in the submarine AIP system market.
Owing to increased opportunities, the number of new entrants in the submarine AIP system market is expected to increase during the forecast period as many countries are currently concerned about the safety of their naval borders.
Asia Pacific and Europe Dominating the Submarine AIP System Market
Fact.MR forecasts the global submarine AIP system market to grow from ~ US$ 195 Mn in 2019 to ~ US$ 229 Mn in 2027. This represents a compound annual growth rate (CAGR) of around 2% from 2019 to 2027.
Among all regions, Asia Pacific and Europe together hold around 75 to 80% of total submarine AIP system market share across the globe. Asia Pacific is the key region for the submarine AIP system market and is expected to dominate the global submarine AIP system market during the forecast period.
The market for Asia Pacific submarine AIP system is estimated to grow at a significant CAGR of around 2.5% and will represent a total incremental opportunity of ~ US$ 19.3 Mn in terms of value during the forecast period. Increasing investments in the defense sector is one of the key factors for the growth of the submarine AIP system market.
Huge investments in the regional defense space are creating new grounds for adoption of AIP equipped submarines, thereby creating new revenue opportunities for players operating in the submarine AIP system market.
Followed by the Asia Pacific region, Europe holds around 30% of total submarine AIP system market share across the globe with value CAGR of around 2% and will represent total incremental opportunity of around US$ 10 Mn in terms of value during the forecast period.
There are number of factors behind the adoption of submarine AIP system in European countries’ naval forces.
Few of the major factors include, high defense expenditure and growing end user focus on purchasing AIP equipped submarines.
On other hand, regions such as Americas and Middle East and Africa are expected to have around 12% and 8% of total submarine AIP system market share across the globe respectively during the forecast period.
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Key Segments of the Submarine AIP System Market
Fact. MR’s study on the submarine AIP system market offers information divided into three important segments—product, fit, and region. This report offers different data and information about the important growth parameters and market dynamics related to these categories.
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