From http://docs.oracle.com/middleware/1212/core/MAVEN/maven_version.htm#MAVEN401.
SNAPSHOT version references enable Maven to fetch the most recently deployed instance of the SNAPSHOT dependency at a dependent project build time. Note that the SNAPSHOT changes constantly. Whenever an agent deploys the artifact, it is updated in the shared repository. The SNAPSHOT dependency is refetched, on a developer's machine or it is updated in every build. This ensures that dependencies are updated and integrated with the latest changes without the need for changes to the project dependency reference configuration.
For Continuous Integration
Continuous build servers that include the ability to define and execute a job based on a Maven project, such as Hudson, can be configured to recognize when a SNAPSHOT artifact is updated and then rebuild projects that have a dependency on the updated artifact.
For OSGI installer, it will only install new version. But for packages with snapshot qualifier, it will install anyway.
Source: sling.apache.org/documentation/bundles/osgi-installer.html#versions-and-snapshots