Enjoy complimentary customisation on priority with our Enterprise License!
The shipbuilding market size is forecast to increase by USD 22.1 billion, at a CAGR of 3.95% between 2023 and 2028. The market is experiencing significant economic cycles influenced by geopolitical tensions and shifting global trade routes. Fleet deployment continues to be a key driver, with an increasing focus on eco-friendly ships to reduce carbon emissions. Overcapacity remains a challenge, particularly in vessel types such as container ships, due to the ongoing expansion of global container capacity. Additionally, the growth of liquefied natural gas (LNG) trade is shaping the market, with a rise in demand for LNG carriers to transport this cleaner fuel. Fluctuations in raw material prices, particularly steel and oil, also impact the market dynamics. Overall, these trends and challenges create a complex and evolving landscape for the shipbuilding industry.
The market is a significant sector in the international maritime industry, focusing on the manufacturing process of floating vessels for trading activities and maintenance purposes. The market experiences continuous growth due to the increasing demand for efficient and advanced shipping solutions in the context of expanding international seaborne trade and industrialization. Technical improvement and upgradation are crucial aspects of the market, with a focus on fuel efficiency and the adoption of multi-fuel engines. Shipping companies are prioritizing fleet deployment, leading to the construction of various vessel types, including container ships, LNG carriers, and specialized carriers. The aging oil tanker fleet necessitates the need for new builds to maintain the overall health of the market.
Commodity ship types, such as bulk carriers and tankers, remain the primary focus of the market. Overcapacity and trade-related agreements, however, can impact the growth of the market. The manufacturing process of designing and constructing ships involves intricate engineering and technological advancements to meet the evolving needs of the maritime industry. Imports and exports play a significant role in the market, with countries like China, South Korea, and Japan being major exporters. The market's future looks promising, with a focus on innovation and sustainability to cater to the growing demands of the global maritime industry.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The commercial segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing volume of international seaborne trade. The transportation method is increasingly preferred by shipping companies for moving goods across long distances, leading to a rise in demand for new commercial ships and vessels. Industrialization in emerging economies, particularly in Asia Pacific, is driving the need for more efficient and larger container vessels, bulkers, tankers, cruise ships, and ferries. Fuel efficiency is a major consideration in the design of these ships, with multi-fuel engines and advanced technologies such as 3D printing being adopted to reduce fuel consumption and improve overall efficiency.
The expansion of seaports and the emergence of new ones in developing countries are further fueling the demand for new ships, contributing to the growth of the market. Commercial ships, including containerships, are a vital component of global trade, enabling the seamless movement of goods across the world.
Get a glance at the market share of various segments Request Free Sample
The commercial segment was valued at USD 58.20 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 74% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
The market in the Asia-Pacific (APAC) region is experiencing significant growth due to the increasing importance of international seaborne trade in the area. Countries such as China, Japan, South Korea, Singapore, Hong Kong, Thailand, and Malaysia are at the forefront of this trend, with seaport infrastructure that facilitates the transportation of large commercial containers and vessels. The expanding industrialization in these nations is driving the demand for advanced and fuel-efficient ships, leading shipping companies to invest in new builds featuring multi-fuel engines. Furthermore, the naval shipbuilding sector is also experiencing growth, contributing to the overall expansion of the market in APAC.
Additionally, the increasing population in the region is putting pressure on governments to ensure a reliable supply of power for both domestic and industrial use, creating opportunities for the shipbuilding industry to provide solutions through innovative technologies such as 3D printing.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing seaborne trading is the key driver of the market. The market has experienced significant growth over the past few decades due to the increasing volume of trading activities. This expansion can be attributed to the global economic growth, which has led to an increase in industrialization and the liberalization of economies. As a result, there is a heightened demand for consumer products and raw materials, particularly from emerging economies with growing populations. Advancements in the manufacturing process, including designing and technical improvement, have made floating vessels more efficient and cost-effective. The use of multi-fuel engines and improved fuel efficiency has made shipping a more carbon-friendly and fuel-efficient mode of transportation.
Further, maintenance purposes are also a crucial factor driving the market. Regular maintenance and upgradation are necessary to ensure the longevity and efficiency of vessels. Imports and exports of goods and raw materials continue to be a significant contributor to the shipping industry's growth.
An increase in demand for eco-friendly ships is the upcoming trend in the market. The market encompasses the manufacturing process of constructing floating vessels for trading activities and maintenance purposes. With a focus on technical improvement and upgradation, the industry is subject to various regulations aimed at minimizing the environmental impact. One such regulation is the Ballast Water Management System (BWMS), which prevents the spread of harmful aquatic organisms from one region to another. This system is mandatory for vessels operating beyond domestic waters and must be installed by September 2024. Moreover, the International Maritime Organization (IMO) has adopted the initial strategy to reduce greenhouse gas emissions from ships. The Marine Environment Protection Committee, a part of the IMO, is at the forefront of implementing these regulations.
The environmental concerns surrounding shipping include greenhouse gas emissions and oil pollution. As such, it is crucial for the market to adapt to these regulations and incorporate sustainable manufacturing processes to ensure the industry's long-term growth.
Fluctuations in raw material prices are a key challenge affecting the market growth. The market encompasses the designing, manufacturing, and trading activities related to the construction of floating vessels for various purposes, including transportation, defense, and maintenance. The manufacturing process involves the use of raw materials such as iron and steel, which have experienced significant price fluctuations in recent years. These materials are essential for producing ship parts and components. For instance, the price of steel has been volatile since 2016, and this trend is projected to continue during the forecast period. Such price instability can negatively impact the growth of the market, as it can increase production costs and reduce profitability. Moreover, technical improvement and upgradation of existing vessels also require continuous investment in raw materials, further emphasizing their importance in the industry.
Imports of ships and shipbuilding equipment from foreign markets can also impact the domestic market, as they may affect the demand for locally produced vessels and components.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Fr. Fassmer GmbH and Co. KG- The company offers shipbuilding services for cruise ships, mega yachts, and ferries.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market encompasses the manufacturing process of designing, building, and repairing floating vessels for various trading activities and maintenance purposes. The market is driven by the growth in international seaborne trade, industrialization, and the need for fuel efficiency in shipping companies. Technical improvement and upgradation are key focus areas, with the adoption of multi-fuel engines and the integration of 3D printing technology in the shipbuilding industry. The outlook for the market is positive, with the cruising industry and goods trade being significant contributors. Production planning involves cutting and processing, assembling and launching, outfitting, and testing. Design standards are continually evolving, with the integration of big data, drones, and autonomous ships.
Further, vessel types include cargo vessels such as container, tanker, and multipurpose ships. Economic cycles, geopolitical tensions, and global trade routes influence fleet deployment and production. Overcapacity in the market, particularly in vessel types like aging oil tankers, is a challenge. Specialized carriers and trade-related agreements facilitate the transportation of goods via waterway transportation. Cargo vessel manufacturers focus on container carriers and free trade agreements to expand their market reach. The integration of augmented reality in the design and production process further enhances efficiency and productivity.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.95% |
Market Growth 2024-2028 |
USD 22.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.78 |
Regional analysis |
APAC, Europe, South America, North America, and Middle East and Africa |
Performing market contribution |
APAC at 74% |
Key countries |
China, South Korea, Japan, The Philippines, and Poland |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BAE Systems Plc, Cheoy Lee Shipyards Ltd., Conrad Industries Inc., Damen Shipyards Group, Derecktor Shipyards, Fincantieri Spa, Fr. Fassmer GmbH and Co. KG, General Dynamics Corp., Huntington Ingalls Industries Inc., Hyundai Heavy Industries Co. Ltd., IHI Aerospace Co. Ltd., IMABARI SHIPBUILDING CO. LTD., International Maritime Industries, Mitsubishi Heavy Industries Ltd., Oshima Shipbuilding Co. Ltd., Paramount Maritime Holdings, Samsung Heavy Industries Co. Ltd., Sumitomo Heavy Industries Ltd., Ulstein Group ASA, and Uzmar Shipbuilding and Trade Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.