Market Overview

The Air-independent Propulsion (AIP) System market is predicted to develop at a compound annual growth rate (CAGR) of 5.1% from 2024 to 2034, when it is projected to reach USD 184,976.43 Million in 2034, based on an average growth pattern. The market is estimated to reach a value of USD 144,524.27 Million in 2024.

SOURCE: We Market Research

The Global Air-independent Propulsion (AIP) System Market refers to the market for a specific type of submarine propulsion technology that allows non-nuclear submarines to operate without the need to surface frequently for oxygen. Air-independent propulsion (AIP) systems enhance the stealth, endurance, and operational capabilities of conventional (diesel-electric) submarines by allowing them to stay submerged for longer periods, thereby reducing the risk of detection.

The Global Air-Independent Propulsion (AIP) System Market is a growing segment within the defense and maritime industries, driven by the increasing demand for advanced submarine capabilities. AIP systems allow conventional (non-nuclear) submarines to remain submerged longer without surfacing for air, enhancing stealth and operational range.

The market is expected to see steady growth over the next decade due to ongoing modernization initiatives, technological advancements, and the need for more efficient, stealthy, and long-endurance submarines. By 2034, AIP systems may become standard on most non-nuclear submarines.

Market Scope

Air-independent Propulsion (AIP) System Industry: Dynamics & Restrains

Market opportunity:

 

We Market Research: Air-independent Propulsion (AIP) System Dashboard

Our marketing platform offers a comprehensive dashboard that provides clients with valuable insights into market trends over the years. Included below is a sample image of our dashboard, and specific PDF logins will be furnished to grant access to this insightful tool.

Air-independent Propulsion (AIP) System Segmentation

Market- By Propulsion Technology Analysis

By Propulsion Technology, the Air-independent Propulsion (AIP) System market is categories into Closed Cycle Steam Turbines (CCST), Stirling Engines, Fuel Cells, Liquid Oxygen (LOX) Systems and Others. Fuel Cells segments dominate the market with the largest share, accounting for over 40% of the market in 2023. Fuel cell-based AIP systems are one of the most advanced and widely used technologies in modern submarines, particularly in European and Asian navies. They use chemical energy from hydrogen and oxygen to generate electricity, allowing submarines to stay submerged for extended periods while maintaining stealth.

The following segments are part of an in-depth analysis of the global Air-independent Propulsion (AIP) System market:

Air-independent Propulsion (AIP) System Industry: Regional Analysis

Europe Market Forecast

Europe dominates the global Air-independent Propulsion (AIP) System market, accounting for around 38% of the market share in 2023. Europe is a leading region in the AIP system market, driven by advanced naval technologies, significant defense budgets, and a strong focus on submarine capabilities. European countries are prominent users of AIP technology, with several nations investing in or already deploying AIP-equipped submarines. Countries like Germany, France, Sweden, and the United Kingdom are key players, with Germany leading in fuel-cell-based AIP systems and Sweden utilizing Stirling engine technology.

North America Market Statistics

North America, particularly the United States, is involved in AIP technology development but has a relatively smaller market share compared to Europe and Asia Pacific. The U.S. Navy primarily focuses on nuclear-powered submarines, but there is interest in AIP systems for specific applications and partnerships. The U.S. has been exploring AIP technology in collaboration with allies and through defense partnerships, although its own fleet remains predominantly nuclear-powered. The U.S. Navy’s collaboration with allied nations for AIP technology development and integration reflects the strategic interest but limited direct market impact within North America.

Asia Pacific Market Forecasts

The Asia Pacific region is also a major player in the AIP system market, driven by the rapid expansion of naval capabilities, regional security concerns, and significant investments in modernizing submarine fleets. Japan, South Korea, and China are leading this segment, with Japan and South Korea investing in advanced lithium-ion battery-based and Stirling engine AIP systems. Japan’s Soryu-class submarines and South Korea’s Chang Bogo-class submarines are equipped with advanced AIP systems, reflecting the region’s commitment to enhancing its underwater capabilities.

Middle East & Africa Market Statistics

The Middle East and Africa region is emerging as a growing market for AIP systems, driven by increasing defense investments and a focus on enhancing naval capabilities in strategic areas. Countries like Saudi Arabia and Egypt are investing in advanced naval technologies, including AIP systems, as part of their broader defense modernization efforts. Egypt’s Type 209 submarines, equipped with AIP systems, highlight the growing interest in advanced submarine technologies in the MEA region.

Key Market Players 

The Air-independent Propulsion (AIP) System Market is dominated by a few large companies, such as

·         Thyssenkrupp Marine Systems (TKMS)

·         Naval Group

·         Saab AB

·         Mitsubishi Heavy Industries

·         Kongsberg Gruppen

·         Daewoo Shipbuilding & Marine Engineering (DSME)

·         Siemens AG

·         Rolls-Royce plc

·         L3 Technologies

·         General Dynamics Electric Boat

·         Northrop Grumman Corporation

·         Toshiba Corporation

·         BAE Systems

·         Howaldtswerke-Deutsche Werft (HDW)

·         SMC Corporation

·         Other                                                                                               

1.      Global Air-independent Propulsion (AIP) System Market Introduction and Market Overview

1.1.    Objectives of the Study

1.2.    Global Air-independent Propulsion (AIP) System Market Scope and Market Estimation

1.2.1. Global Air-independent Propulsion (AIP) System Overall Market Size (US$ Bn), Market CAGR (%), Market forecast (2024 - 2034)

1.2.2. Global Air-independent Propulsion (AIP) System Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2019 - 2034

1.3.    Market Segmentation

1.3.1. Propulsion Technology of Global Air-independent Propulsion (AIP) System Market

1.3.2. Submarine Type of Global Air-independent Propulsion (AIP) System Market

1.3.3. Application of Global Air-independent Propulsion (AIP) System Market

1.3.4. Fit of Global Air-independent Propulsion (AIP) System Market

1.3.5. Region of Global Air-independent Propulsion (AIP) System Market

2.      Executive Summary

2.1.    Demand Side Trends

2.2.    Key Market Trends

2.3.    Market Demand (US$ Bn) Analysis 2019 – 2023 and Forecast, 2024 – 2034

2.4.    Demand and Opportunity Assessment

2.5.    Demand Supply Scenario

2.6.    Market Dynamics

2.6.1. Drivers

2.6.2. Limitations

2.6.3. Opportunities

2.6.4. Impact Analysis of Drivers and Restraints

2.7.    Pricing Trends Analysis

2.8.    Overview of Technology Developments

2.9.    Porter’s Five Forces Analysis

2.9.1. Bargaining Power of Suppliers

2.9.2. Bargaining Power of Buyers

2.9.3. Threat of Substitutes

2.9.4. Threat of New Entrants

2.9.5. Competitive Rivalry

2.10.  PEST Analysis

2.10.1.   Political Factors

2.10.2.   Economic Factors

2.10.3.   Social Factors

2.10.4.   Technology Factors

2.11.  Value Chain / Ecosystem Analysis

2.12.  Key Regulation

3.      Global Air-independent Propulsion (AIP) System Market Estimates & Historical Trend Analysis (2019 - 2023)

4.      Global Air-independent Propulsion (AIP) System Market Estimates & Forecast Trend Analysis, by Submarine Type

4.1.    Global Air-independent Propulsion (AIP) System Market Revenue (US$ Bn) Estimates and Forecasts, by Submarine Type, 2019 - 2034

4.1.1. Stirling

4.1.2. MESMA

4.1.3. Fuel Cells

4.1.4. Others

5.      Global Air-independent Propulsion (AIP) System Market Estimates & Forecast Trend Analysis, by Propulsion Technology

5.1.    Global Air-independent Propulsion (AIP) System Market Revenue (US$ Bn) Estimates and Forecasts, by Propulsion Technology, 2019 - 2034

5.1.1. Closed Cycle Steam Turbines (CCST)

5.1.2. Stirling Engines

5.1.3. Fuel Cells

5.1.4. Liquid Oxygen (LOX) Systems

5.1.5. Others

6.      Global Air-independent Propulsion (AIP) System Market Estimates & Forecast Trend Analysis, by Application

6.1.    Global Air-independent Propulsion (AIP) System Market Revenue (US$ Bn) Estimates and Forecasts, by Application, 2019 - 2034

6.1.1. Naval defense

6.1.2. Surveillance

6.1.3. Others

7.      Global Air-independent Propulsion (AIP) System Market Estimates & Forecast Trend Analysis, by Fit

7.1.    Global Air-independent Propulsion (AIP) System Market Revenue (US$ Bn) Estimates and Forecasts, by Fit, 2019 - 2034

7.1.1.Line Fit

7.1.2. Retro Fit

8.      Global Air-independent Propulsion (AIP) System Market Estimates & Forecast Trend Analysis, by Region

8.1.    Global Air-independent Propulsion (AIP) System Market Revenue (US$ Bn) Estimates and Forecasts, by Region, 2019 - 2034

8.1.1. North America

8.1.2. Eastern Europe

8.1.3. Western Europe

8.1.4. Asia Pacific

8.1.5. Middle East & Africa

8.1.6. Latin America

9.      North America Air-independent Propulsion (AIP) System Market: Estimates & Forecast Trend Analysis

9.1.    North America Air-independent Propulsion (AIP) System Market Assessments & Key Findings

9.1.1. North America Air-independent Propulsion (AIP) System Market Introduction

9.1.2. North America Air-independent Propulsion (AIP) System Market Size Estimates and Forecast (US$ Billion) (2019 - 2034)

9.1.2.1.   By Propulsion Technology

9.1.2.2.   By Submarine Type

9.1.2.3.   By Fit

9.1.2.4.   By Application

9.1.2.5.   By Country

9.1.2.5.1.     The U.S.

9.1.2.5.2.     Canada

9.1.2.5.3.     Mexico

10.  Western Europe Air-independent Propulsion (AIP) System Market: Estimates & Forecast Trend Analysis

10.1.  Western Europe Air-independent Propulsion (AIP) System Market Assessments & Key Findings

10.1.1.   Western Europe Air-independent Propulsion (AIP) System Market Introduction

10.1.2.   Western Europe Air-independent Propulsion (AIP) System Market Size Estimates and Forecast (US$ Billion) (2019 - 2034)

10.1.2.1.    By Propulsion Technology

10.1.2.2.    By Submarine Type

10.1.2.3.    By Fit

10.1.2.4.    By Application

10.1.2.5.    By Country

10.1.2.5.1.  Germany

10.1.2.5.2.  Italy

10.1.2.5.3.  U.K.

10.1.2.5.4.  France

10.1.2.5.5.  Spain

10.1.2.5.6.  Benelux

10.1.2.5.7.  Nordics

10.1.2.5.8. Rest of W. Europe

11.  Eastern Europe Air-independent Propulsion (AIP) System Market: Estimates & Forecast Trend Analysis

11.1.  Eastern Europe Air-independent Propulsion (AIP) System Market Assessments & Key Findings

11.1.1.   Eastern Europe Air-independent Propulsion (AIP) System Market Introduction

11.1.2.   Eastern Europe Air-independent Propulsion (AIP) System Market Size Estimates and Forecast (US$ Billion) (2019 - 2034)

11.1.2.1.    By Propulsion Technology

11.1.2.2.    By Submarine Type

11.1.2.3.    By Fit

11.1.2.4.    By Application

11.1.2.5.    By Country

11.1.2.5.1.  Russia

11.1.2.5.2.  Hungary

11.1.2.5.3.  Poland

11.1.2.5.4.  Balkan & Baltics

11.1.2.5.5. Rest of E. Europe

12.  Asia Pacific Air-independent Propulsion (AIP) System Market: Estimates & Forecast Trend Analysis

12.1.  Asia Pacific Market Assessments & Key Findings

12.1.1.   Asia Pacific Air-independent Propulsion (AIP) System Market Introduction

12.1.2.   Asia Pacific Air-independent Propulsion (AIP) System Market Size Estimates and Forecast (US$ Billion) (2019 - 2034)

12.1.2.1.    By Propulsion Technology

12.1.2.2.    By Submarine Type

12.1.2.3.    By Fit

12.1.2.4.    By Application

12.1.2.5.    By Country

12.1.2.5.1. China

12.1.2.5.2. Japan

12.1.2.5.3. India

12.1.2.5.4. Australia & New Zealand

12.1.2.5.5. South Korea

12.1.2.5.6. ASEAN

12.1.2.5.7. Rest of Asia Pacific

13.  Middle East & Africa Air-independent Propulsion (AIP) System Market: Estimates & Forecast Trend Analysis

13.1.  Middle East & Africa Market Assessments & Key Findings

13.1.1.   Middle East & Africa Air-independent Propulsion (AIP) System Market Introduction

13.1.2.   Middle East & Africa Air-independent Propulsion (AIP) System Market Size Estimates and Forecast (US$ Billion) (2019 - 2034)

13.1.2.1.    By Propulsion Technology

13.1.2.2.    By Submarine Type

13.1.2.3.    By Fit

13.1.2.4.    By Application

13.1.2.5.    By Country

13.1.2.5.1. UAE

13.1.2.5.2. Saudi Arabia

13.1.2.5.3. Turkey

13.1.2.5.4. South Africa

13.1.2.5.5. Rest of MEA

14.  Latin America Air-independent Propulsion (AIP) System Market: Estimates & Forecast Trend Analysis

14.1.  Latin America Market Assessments & Key Findings

14.1.1.   Latin America Air-independent Propulsion (AIP) System Market Introduction

14.1.2.   Latin America Air-independent Propulsion (AIP) System Market Size Estimates and Forecast (US$ Billion) (2019 - 2034)

14.1.2.1.    By Propulsion Technology

14.1.2.2.    By Submarine Type

14.1.2.3.    By Fit

14.1.2.4.    By Application

14.1.2.5.    By Country

14.1.2.5.1. Brazil

14.1.2.5.2. Argentina

14.1.2.5.3. Colombia

14.1.2.5.4. Rest of LATAM

15.  Country Wise Market: Introduction

16.  Competition Landscape

16.1.  Global Air-independent Propulsion (AIP) System Market Product Mapping

16.2.  Global Air-independent Propulsion (AIP) System Market Concentration Analysis, by Leading Players / Innovators / Emerging Players / New Entrants

16.3.  Global Air-independent Propulsion (AIP) System Market Tier Structure Analysis

16.4.  Global Air-independent Propulsion (AIP) System Market Concentration & Company Market Shares (%) Analysis, 2023

17.  Company Profiles

17.1.                     Thyssenkrupp Marine Systems (TKMS)

17.1.1.   Company Overview & Key Stats

17.1.2.   Financial Performance & KPIs

17.1.3.   Product Portfolio

17.1.4.   SWOT Analysis

17.1.5.   Business Strategy & Recent Developments

* Similar details would be provided for all the players mentioned below 

17.2.      Naval Group

17.3.      Saab AB

17.4.      Mitsubishi Heavy Industries

17.5.      Kongsberg Gruppen

17.6.      Daewoo Shipbuilding & Marine Engineering (DSME)

17.7.      Siemens AG

17.8.      Rolls-Royce plc

17.9.      L3 Technologies

17.10.  General Dynamics Electric Boat

17.11.  Northrop Grumman Corporation

17.12.  Toshiba Corporation

17.13.  BAE Systems

17.14.  Howaldtswerke-Deutsche Werft (HDW)

17.15.  SMC Corporation

17.16.  Others

18.  Research Methodology

18.1.  External Transportations / Databases

18.2.  Internal Proprietary Database

18.3.  Primary Research

18.4.  Secondary Research

18.5.  Assumptions

18.6.  Limitations

18.7.  Report FAQs

19.  Research Findings & Conclusion