Shipbuilding Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The shipbuilding Market is segmented by type (vessel, container, passenger, and other types), end user (transport companies, military, and other end users), and geography(North America, Europe, Asia-Pacific, and the rest of the world). The market size and forecasts are provided in terms of value (USD) for all the above segments.

Shipbuilding Market Size

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Ship Building Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 4.84 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration Low

Major Players

Shipbuilding Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Shipbuilding Market Analysis

The Shipbuilding Market size is estimated at USD 145.67 billion in the current year. It is expected to reach USD 184.50 billion over five years, registering a CAGR of 4.84% during the forecast period.

Over the long term, the shipbuilding market is expected to grow over the forecast period due to increasing seaborne trade and economic growth, rising energy consumption, the demand for eco-friendly ships and shipping services, and the advent of robotics in shipbuilding.

Though the shipbuilding market is facing a tough time, the major markets are still working and trying to turn the market toward a growth direction. In Korea, the government is taking various initiatives to support the shipbuilding industry, as the companies in the nation receive a greater number of orders.

In recent years, the shipbuilding industry saw a significant trend toward the adoption of 3D printing technologies. Every industry related to manufacturing and engineering, including shipbuilding, is embracing 3D printing, also known as additive manufacturing. Companies in the shipbuilding industry are working together with other market participants to embrace cutting-edge manufacturing technologies, such as 3D printing, to improve their manufacturing capacities.

Further, the East Asian region dominates shipbuilding, with China, Japan, and South Korea ranking first and second, respectively. In 2022, China received more than half of all shipbuilding orders, establishing it as a global shipbuilding powerhouse. Southeast Asia is similarly concentrated in ship destruction, with Bangladesh, India, and Pakistan accounting for nearly 90% of global ship scrapping activities.

Shipbuilding Market Trends

Increasing Trade and Naval Activities Between Countries to Drive the Market

Trade growth is one of the hallmarks of the global economy in recent decades, and maritime transport is the backbone of global trade. Maritime trades primarily influence the shipbuilding market. With the extended supply chains and opened new markets, maritime transport is a catalyst for the economic development of nations worldwide. Almost 90% of global freight is seaborne. As a result, countries heavily rely on ships, which further accelerates the shipbuilding market.

China, Japan, and South Korea represented approximately 85% of the shipbuilding activity. China, the Republic of Korea, and Japan continue to dominate maritime ship supply, accounting for 94% of the market in 2022. Shipbuilding increased by 15.5% in China and 8.3% in the Republic of Korea over the past year but declined by 16.4% in Japan. In June 2022, the Republic of Korea ordered 70% of the alternative fuel-capable ships, China ordered 26%, Europe ordered 58%, and Japan ordered 17%. South Korea accounted for 64% of gas carriers and 42% of oil tankers, and Japan accounted for 45% of chemical tankers. Cargos are the most preferred marine vessels used for trading activities.

There is an increase in demand for maritime transport over the years, which caused a subsequent rise in the number of imports and exports across the world. With globalization taking root in the heart of many economies, there are growing possibilities of internationally trading goods, providing a superior range of available products at different price points.

The top three ship-owning countries in terms of both dead-weight tonnage and commercial value as of 1 January 2022 included two Asian countries, namely China and Japan. China had the second-highest increase in tonnage (13%) among the top 25 ship-owning countries in the 12 months to 1 January 2022.

The Canadian government is introducing contracts for ships for the navy, which may generate the demand for defense ships in the country. To support the government's plans to build a large vessel fleet, the government signed a long-term strategic agreement with two Canadian shipyards, namely, Irving Shipbuilding Inc. (Halifax) and Seaspan's Vancouver Shipyards Co. Ltd (Vancouver), for the construction of combat and non-combat naval vessels for the Royal Canadian Navy and non-combat vessels for the Canadian Coast Guard.

In this regard, in January 2023, Irving Shipbuilding and the federal government agreed to a USD 1.6 billion contract to build two additional Arctic and offshore patrol ships for the Canadian Coast Guard.

Such instances are aiding the growth of the shipbuilding industry.

Shipbuilding Market : Capacity of Container Ships in Seaborne Trade from 2016 to 2022 (in million dwt)

Asia-Pacific is Expected to Dominate the Market

The shipbuilding sector is one of the major contributors to the GDP of the countries in the manufacturing sector. India currently includes 28 shipyards, six of which are run by the Central Public Sector, two by state governments, and 20 by private companies. The Federation of Indian Export Organizations (FIEO) is also advocating for shipbuilding industry reforms.

China, Japan, and South Korea represented approximately 85% of the shipbuilding activity. China, the Republic of Korea, and Japan continue to dominate maritime ship supply, accounting for 94% of the market in 2022. In June 2022, the Republic of Korea ordered 70% of the alternative fuel-capable ships, China ordered 26%, Europe ordered 58%, and Japan ordered 17%. South Korea accounted for 64% of gas carriers and 42% of oil tankers, and Japan accounted for 45% of chemical tankers. Cargos are the most preferred marine vessels used for trading activities.

The shipbuilding industry in India holds the potential to strengthen the mission of an Atmanirbhar Bharat. It is due to its extensive direct and indirect links with most other leading industries such as steel, aluminum, electrical machinery and equipment, and so on, as well as its reliance on infrastructure and services sectors of the economy. The total traffic handled at JNPA in India during August 2023 is 7.34 million tonnes, which is 14.75% higher than 6.39 million tonnes in August 2022. August's traffic includes 6.64 million tonnes of container traffic and 0.69 million tonnes of bulk cargo as against 5.81 million tonnes of container traffic and 0.59 million tonnes of bulk traffic in the corresponding month of 2022.

In terms of commercial value, the ranking of fleet ownership and registration is more volatile than in terms of tonnage. China increased its share the most by 1.1% points, followed by Switzerland, Hong Kong, China, and the Republic of Korea, all of which contain a higher proportion of container ships in their fleets.

The Ministry of Industry and Trade in Vietnam proposed several measures aimed at easing supply chain issues along intra-Asian routes and reducing the burden on traders. These included tax breaks to encourage foreign investment in new ships and private-sector investment in critical infrastructure upgrades, as well as fleet renewal and the development of a coastal fleet management program.

Further, there are various developments in the country concerning the development of warships in the country. For instance,

  • In May 2023, Mitsubishi Shipbuilding, a part of Mitsubishi Heavy Industries (MHI) Group and Nihon Shipyard Co., Ltd., a Tokyo-based joint venture for ship design and sales between Imabari Shipbuilding Co., Ltd., and Japan Marine United Corporation, started joint study for the development of an ocean-going liquified CO2 (LCO2) carrier. Nihon Shipyard is pursuing this project to complete the construction of the vessel from 2027 onwards.

Thus, the factors above are responsible for the growth of the Shipbuilding market in the region.

Shipbuilding Market : Ship Building Market - Growth Rate by Region, 2023-2028

Shipbuilding Industry Overview

The shipbuilding market is fragmented, with several players accounting for significant amounts of shares in the market. Some of the prominent companies in the market are Mitsubishi Heavy Industries, Hyundai Heavy Industries, China State Ship Building Corporation, DSME, and others. Companies are investing heavily in research and development for the innovation of new and advanced products. For instance:

  • In January 2023, A start-up, TvastaManufacturing Solutions, built Kolkota's first 3D printed structure for Garden Reach Shipbuilders and Engineers at the Kolkata shipyard. Tvasta Manufacturing Solutions, which specializes in 3D printing construction, built the structure as a technology demonstrator for GRSE.

Such developments over the five years are expected to drive the market.

Shipbuilding Market Leaders

  1. China State Shipbuilding Corporation

  2. Mitsubishi Heavy Industries Ltd.

  3. Samsung Heavy Industries

  4. Daewoo Shipbuilding & Marine Engineering Co., Ltd

  5. Hyundai Heavy Industries Co. Ltd.

*Disclaimer: Major Players sorted in no particular order

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Shipbuilding Market News

  • August 2023: The Canadian government announced that it would invest CAD 463 million (USD 345 million) in shipbuilding infrastructure to move forward with the Surface Combatant (CSC) program. It calls for the construction of 15 new warships that will be a key component of the future Royal Canadian Navy. The funds will be used to prepare the Irving Shipyard and adjacent facilities in Nova Scotia for construction, which is now slated to begin next year for the program.
  • May 2023: Vard Marine Inc., in collaboration with Team Vigilance partner firms Heddle Shipyards, Thales Canada, SH Defence, and Fincantieri, unveiled the Vigilance Offshore Patrol Vessel at CANSEC 2023. Team Vigilance partner firms collectively bring extensive and significant capabilities and expertise to bear in naval ship design, Canadian and worldwide construction, combat and offboard system integration, modular payload systems, and life-cycle solutions.
  • May 2023: Garden Reach Shipbuilders and Engineers Ltd established the GRSE Accelerated Innovation Nurturing Scheme to find and stimulate the creation of new solutions as part of the shipyard's technological development activities. GAINS intends to address current and emerging ship design and construction issues while simultaneously accomplishing the goals of Atmanirbhar Bharat.
  • March 2023: The Ministry of Ports, Shipping, and Waterways (MoPSW) in India launched the 'Green Tug Transition Programme' (GTTP) to make India a global hub for building green ships. The GTTP will convert all tugboats operating in the country into 'Green Hybrid Tugs' that run on non-fossil fuels such as Methanol, Ammonia, and Hydrogen.

Shipbuilding Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Increasing Trade Activities Between Countries to Drive the Market

    2. 4.2 Market Restraints

      1. 4.2.1 Fluctuation in Transportation and Inventory Cost May Hamper the Growth of the Market

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in USD)

    1. 5.1 Type

      1. 5.1.1 Vessel

      2. 5.1.2 Container

      3. 5.1.3 Passenger

      4. 5.1.4 Other Types

    2. 5.2 End User

      1. 5.2.1 Transport Companies

      2. 5.2.2 Military

      3. 5.2.3 Other End Users

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Japan

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Mexico

        3. 5.3.4.3 United Arab Emirates

        4. 5.3.4.4 Other Countries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 China State Shipbuilding Corporation

      2. 6.2.2 Mitsubishi Heavy Industries Ltd

      3. 6.2.3 Samsung Heavy Industries

      4. 6.2.4 Daewoo Shipbuilding Marine Engineering Co. Ltd

      5. 6.2.5 Hyundai Heavy Industries Co. Ltd

      6. 6.2.6 Sumitomo Heavy Industries

      7. 6.2.7 Hanjin Heavy Industries and Construction Co.

      8. 6.2.8 Yangzijiang Shipbuilding Ltd

      9. 6.2.9 United Shipbuilding Corporation

      10. 6.2.10 STX Group

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Shipbuilding Industry Segmentation

Shipbuilding is the construction of large seagoing vessels, primarily of steel, but other materials, such as wood and composites, can also be employed.

The shipbuilding market is segmented by type, by end-user, and by geography. By type, the market is segmented into vessel, container, passenger, and other types. By end user, the market is segmented into transport companies, military, and other end users. By geography, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the World.

The report offers the market sizes and forecast in value in (USD ) for all the above segments.

Type
Vessel
Container
Passenger
Other Types
End User
Transport Companies
Military
Other End Users
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
Brazil
Mexico
United Arab Emirates
Other Countries
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Shipbuilding Market Research FAQs

The Shipbuilding Market is projected to register a CAGR of 4.84% during the forecast period (2024-2029)

China State Shipbuilding Corporation, Mitsubishi Heavy Industries Ltd., Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co., Ltd and Hyundai Heavy Industries Co. Ltd. are the major companies operating in the Shipbuilding Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Shipbuilding Market.

The report covers the Shipbuilding Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Shipbuilding Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Shipbuilding Industry Report

Statistics for the 2024 Shipbuilding market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Shipbuilding analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Shipbuilding Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)