Air-independent Propulsion (AIP) System Market Size – By Propulsion Technology (Closed Cycle Steam Turbines (CCST), Stirling Engines, Fuel Cells, Liquid Oxygen (LOX) Systems and Others), By Submarine Type (Stirling, MESMA, and Others), By Application (Naval defense, Surveillance and Others), By Fit (Line Fit and Retro Fit) & Region – Global Forecasts 2024 - 2034
- PUBLISHED ON
- 2024-09-09
- NO OF PAGES
- 270
- CATEGORY
- Aerospace & Defense
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
|
Report Attributes |
Description |
|
Market Size in 2024 |
USD 144,524.27 Million |
|
Market
Forecast in 2034 |
USD 184,976.43
Million |
|
CAGR % 2024-2034 |
5.1% |
|
Base
Year |
2023 |
|
Historic Data |
2016-2022 |
|
Forecast
Period |
2024-2034 |
|
Report USP
|
Production,
Consumption, company share, company heatmap, company production capacity,
growth factors and more |
|
Segments
Covered |
By Propulsion
Technology, By Submarine Type, By Application, By Fit and By Region |
|
Regional Scope |
North America,
Europe, APAC, South America and Middle East and Africa |
|
Country
Scope |
U.S.; Canada;
U.K.; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia;
China; India; Japan; South Korea; Australia; Indonesia; Thailand; Mexico;
Brazil; Argentina; Saudi Arabia; UAE; Egypt; South Africa; Nigeria |
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:
|
Market Segments |
|
|
By Propulsion
Technology |
·
Closed Cycle Steam Turbines (CCST) ·
Stirling Engines ·
Fuel Cells ·
Liquid Oxygen (LOX) Systems ·
Others |
|
By
Submarine Type |
·
Stirling ·
MESMA ·
Fuel Cells ·
Others |
|
By Application |
·
Naval defense ·
Surveillance ·
Others |
|
By Distribution
Channel |
·
Line Fit ·
Retro Fit |
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
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Frequently Asked Questions
What is the market size of Air-independent Propulsion (AIP) System Market in 2024?
Air-independent Propulsion (AIP) System Market was valued at USD 144,524.27 Million in 2024.
What is the growth rate for the Air-independent Propulsion (AIP) System Market?
Air-independent Propulsion (AIP) System Market size will increase at approximate CAGR of 5.1% during the forecasted period.
Which are the top companies operating within the market?
Major companies operating within the market are 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 and others.
Which region dominates the Air-independent Propulsion (AIP) System Market?
Europe dominates the market with an active share of 38%.
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