Report Overview
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The global shipbuilding and offshore rig fabrication and repair market size was 87.890 billion in 2021. As per our research, the market is expected to reach USD 131.030 billion in 2028, exhibiting a CAGR of 5.8 % during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with shipbuilding and offshore rig fabrication and repair market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market growth and demand returning to pre-pandemic levels once the pandemic is over.
Shipbuilding is the construction of ships and other floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders follow a specialized occupation that traces its roots. An offshore rig is a large structure on or in water with facilities to drill wells to extract and process oil and natural gas, and to provisionally store product until it can be carried to shore for filtering and advertising. Commercial shipbuilding demand is determined by international and domestic trade, the health of the global economy, and rate of aquatic replacement due to age or uselessness. Small companies usually specialize in building and repair of small commercial vessels. Large companies incline to offer a wide range of building and repair services for both commercial and military vessels and enjoy economies of scale in purchasing, design, and manufacturing. The rise in global trade demands the construction of various commercial vessels such as container ships, tankers and bulk carriers. Rig fabrication objective is of offering the market a higher level of excellence in mechanical services to the oil and gas industry. Revenue is generated by designing and constructing new ships including military vessels, ship modification and manufacturing of self-propelled vessels. The scope of growth of the Shipbuilding and Offshore Rig Fabrication and Repair market during the forecast period is identified after analysing different data sources. Technological innovation and advancement will further optimize the performance of the product, enabling it to acquire a wider range of applications. Participants are fixing their efforts on encouraging R&D. Technological development are supporting the regional market growth. Companies coming up with progressive technological solutions for firming their positions.
COVID-19 Impact: Pandemic hampered the market due to unexpected disruption in the sector
Covid 19 pandemic has extremely affected the whole world. It caused many unexpected disruption and affected the industry. Covid 19 had negative impact on the market due to economic slowdown, unpredictability in financial sector and high unstable market. The pandemic resulted in decreased demand due to a disrupted supply chain, drop in sales of products, delivery schedules. Travel bans imposed affected business collaboration and partnership. Demand had recently reduced due to travel bans and lockdown during the COVID-19 pandemic. The continuous loss in the business due to the lockdown measures is projected to directly influence the growth of the investments in the market.
Latest Trends
Use of innovative products to boost the market growth
Technological improvement and development will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the market. Technological advancement will improve performance and propel the market growth. Technological advancement with high demand are increasingly setting a force to increase the productivity. Some players focus on product improvement to meet consumer requirements and likings. Constant innovation in manufacturing of products is anticipated to stimulate product demand.
Segmentation
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- By Type Analysis
According to type, the market can be segmented into tankers, bulkers, containers, cruise and ferry, offshore rig, others.
Tankers capture the maximum market share through forecast period.
- By Application Analysis
According to application, the market can be segmented into fabrication, electronics, packaging optical & glass, others.
Shipbuilding and offshore rig fabrication and repair market players cover segment as fabrication industry will dominate the market share during forecast period.
Driving Factors
"Increase in demand in various activities to boost the market growth"
Digitalization and automation continue to transform the industry of shipbuilding and offshore rig fabrication and repair. Advanced technologies are adopted such as twin modelling, robotics, loT to improve design and maintenance process. It enhances efficiency, reduces cost and enable real time monitoring.
"Demand for eco-friendly solutions to upsurge the market."
Demand for environmental friendly vessels, complaint with strict emission regulations, continues to grow. By offering eco-friendly shipbuilding solution shipbuilders align with sustainable goals and attract environmentally conscious customers. Shipbuilding industry is increasingly focused on eco-friendly and sustainable practices and increased the shipbuilding and offshore rig fabrication and repair market growth.
Restraining Factors
"Financial challenges to hamper the market growth"
High cost is hampering development of shipbuilding and offshore rig fabrication and repair market. Fluctuation in demand and stringent lending requirement can led to challenging to obtain finance. Financial constraint may limit the ability of shipbuilders to pursue new projects or invest in research and development. Technical difficulties will reduce the industry revenue.
Regional Insights
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Asia Pacific to dominate the region due to technological development
Asia Pacific is further expected to witness growth in the shipbuilding and offshore rig fabrication and repair market share. The region is dominating the market due to their technological capability, infrastructure and budget benefits. The rising inhabitants and increasing income levels are also contributing to the development of the market. Upsurge in investments by key market players for the R&D undertakings and enlargement of their production abilities and product portfolios are projected to upsurge the growth. The expansion of regional market is being aided by technological developments.
Key Industry Players
"Key players focus on partnerships to gain competitive advantage."
The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market. The market changes are dynamic such as market expansion, partnership and merger.
List of Market Players Profiled
- Hyundai Heavy Industries (HHI) (South Korea)
- Fincantieri (Italy)
- Samsung (South Korea)
- Sembcorp Marine (Singapore)
- Imabari Shipbuilding (Japan)
Report Coverage
The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas. The report shows to be an operational tool that players can use to gain a competitive superiority over their opponents and ensure lasting achievement in the market.
| REPORT COVERAGE | DETAILS |
|---|---|
Market Size Value In |
US$ 87.89 Billion in 2021 |
Market Size Value By |
US$ 131.03 Billion by 2028 |
Growth Rate |
CAGR of 5.8% from 2021 to 2028 |
Forecast Period |
2021-2028 |
Base Year |
2022 |
Historical Data Available |
Yes |
Segments Covered |
Type & Application |
Regional Scope |
Global |
Frequently Asked Questions
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What value is the shipbuilding and offshore rig fabrication and repair market expected to touch by 2028?
Shipbuilding and offshore rig fabrication and repair market is expected to touch USD 131.030 billion by 2028.
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What CAGR is the shipbuilding and offshore rig fabrication and repair market expected to exhibit during 2022-2029?
Shipbuilding and offshore rig fabrication and repair market is expected to exhibit CAGR of 5.8 % during 2022-2028.
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What are the driving factors of the Market?
Demand for environmental friendly vessels, complaint with strict emission regulations, continues to grow.
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Which are the key players or most dominating companies functioning in the market?
The dominating companies in the market are Hyundai Heavy Industries (HHI), Fincantieri, Samsung, Sembcorp Marine, Japan Marine United, and Imabari Shipbuilding.
