Submarine Air-Independent Propulsion Market Size, Share, and the Russia-Ukraine War Impact Analysis, By Type (Open-Cycle Systems, Closed-Cycle Diesel Engines, Closed-Cycle Steam Turbines, Stirling Cycle Engines, and Fuel Cells), By Fit Type (Retrofit and Line Fit), By End User (Military and Commercial), and Regional Forecast, 2024-2032

The submarine air-independent propulsion market is witnessing considerable expansion globally, with a significant CAGR anticipated throughout the forecast period extending to 2032. Submarine air-independent propulsion, or AIP, is a propulsion system used in submarines that allows them to operate for extended periods without having to surface or use a snorkel to access air. Unlike traditional propulsion methods involving diesel engines and electric batteries that require oxygen, air-independent propulsion systems use alternative means for generating power that does not require oxygen. The air-independent propulsion provides longer submerged endurance, greater stealth, and reduced detection vulnerability.

The market for submarine air-independent propulsion systems is expected to grow in the research period due to the growing demand for naval warfare due to rising tensions near maritime boundaries. Such situations require more silent and stealth naval warfare solutions. Furthermore, the ever-increasing need for technological developments and military infrastructure modernization will likely generate submarine air-independent propulsion industry growth.

The defense budget for FY 2024 has increased by USD 26 billion compared to FY 2023. The increasing defense expenditure for submarine modernization, fleet increment, and research and development in defense space is also predicted to drive submarine air-independent propulsion market growth.

The high cost of production makes submarine air-independent propulsion systems unaffordable for many countries. The high cost of maintenance and lack of a skilled workforce to maintain these systems are some factors that can restrain market growth.

Impact of the Russia-Ukraine War on the Market

Economies globally are widely affected due to the impact of the Russia-Ukraine war. Global manufacturing of submarines and associated equipment has been affected dramatically due to raw materials and fuel unavailability. The Western sanctions cut off the supply of components from Russia that are used to manufacture submarine propulsion systems. RTX-Collins involved in fabricating defense equipment have suspended all sales, distribution, and service activities in Russia. Due to sanctions, the supply of significant metals, titanium, and nickel, used in defense equipment manufacturing had been discontinued by Russia, the third largest producer of these metals.

The submarine air-independent propulsion market is segmented by type, open-cycle systems, closed-cycle diesel engines, closed-cycle steam turbines, stirling cycle engines, and fuel cells. By fit type, retrofit, and line fit. By the end user, military and commercial. The market can be segmented by geography into North America, Europe, Asia Pacific, and the Rest of the World.

Key Insights

The report will include the following key insights:

• The report analyzes a detailed industry overview, including qualitative and quantitative information.


• The report analyzes an overview and forecast of the submarine air-independent propulsion market based on various segments.


• The report also analyzes comprehensive PEST analysis for all five regions, i.e., North America, Europe, Asia Pacific, Rest of the World, after evaluating economic, social, political, and technological factors affecting the impact of the submarine air-independent propulsion industry in these regions.

Regional Analysis

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North America is expected to lead the submarine air-independent propulsion market during the forecast period. The market dominance is due to growing innovation and crucial companies' presence in submarine air-independent propulsion.

Europe is expected to have a significant market share, followed by Asia Pacific, which is predicted to have a moderate market share.

The Asia Pacific might experience substantial growth in the study period owing to increased spending on developing in-house capabilities to produce naval infrastructure like submarines. South Asian economies such as India and China are the key economies responsible for the submarine air-independent propulsion market growth.

Key Players Covered

• Rolls-Royce


• thyssenkrupp AG


• Naval Group


• Siemens


• General Dynamics Corporation


• SAAB


• China Shipbuilding Trading Co. Ltd


• Collins Aerospace


• Kongsberg


• Lockheed Martin Corporation


• Avolon


• United Shipbuilding Corporation


• Others

Submarine Air-Independent Propulsion Market Segmentation

Key Industry Developments

• In December 2022, the Turkish Navy started initial trials of its first Reis-Class Air-Independent Propulsion capable submarine. As a part of the project, the Turkish Navy plans to commission 6 Reis-Class submarines by 2027.


• In January 2023, DRDO, India, and France-based Naval Group agreed to upgrade Indian Navy's Scorpene-type submarines INS Kalvari. DRDO aims to integrate indigenous fuel cell air-independent propulsion systems into the submarines.


• In February 2023, to explore alternatives to Russian military hardware, Indian Navy is procuring P-75l submarines. In the USD 5.2 billion contract, the company will also transfer technology for air-independent propulsion systems.