Despite the absence of 23-time TT winner John McGuinness, Kneen believes more than 10 riders are capable of victory in the solo classes.
"There are some really fast lads and it's going to be very tough but I will have to bring my A game to the races," the 29-year-old said.
The opening race of this year's festival will take place on Sunday.
Earlier this year, Kneen achieved his first Enkalon Trophy success on his BMW Superstock machine in the Irish Championship short circuit meeting at Bishopscourt.
And despite limited practice this week he leads the Superstock timesheets and has posted the fourth quickest lap on his Superbike.
Rico Penzkofer, ex-racer and Penz13.com BMW Motorrad Racing team principal said: "He is a proper Manxman and will be prepared for the fortnight in the best possible way - he literally lives the track."
Since his TT debut in 2009, Kneen has been a regular top-10 finisher with a best of fifth in the 2010 Supersport Race.
The 29-year-old made his Mountain Course debut in 2008 when he became the first rider in history to record three race wins in a week at the Manx Grand Prix.
He said: "This week the weather hasn't played ball, but I feel good. We are working hard to get all the bikes set up right and comfortable. I just need more laps now but we're all in the same boat.
"I looking forward to all the races but especially the big bikes. I'm much more confident on them now and much more experienced."
The Braddan man will also ride for the Jackson Racing Honda team with Josh Brookes in the TT's two Supersport races.
The strength in depth is as high as ever at this year's Isle of Man TT, according to local racer Dan Kneen.