Shipbuilding Market Size, Share, Growth, and Industry Analysis, By Type (Bulkers, Tankers, Containers and Other Ships), By Application (Goods Transportation, Passenger Transportation and Others) and Regional Insights and Forecast to 2031

Updated On: 06 May 2024

SHIPBUILDING MARKET REPORT OVERVIEW

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The global shipbuilding market size was USD 34000 million in 2020 and will touch USD 53310 million by 2027, exhibiting a CAGR of 5.5% during the forecast period.

Shipbuilding is the process of building a ship along with other marine vessels in shipyards. The methodical procedure includes high-precision work that aims to satisfy exacting requirements. At this time, materials including wood, steel, and sophisticated materials are used. Shipbuilders, formerly known as shipwrights, have a long tradition and an established tradition of skill that goes back to ancient civilizations, particularly ancient Egypt civilization. Far from mere construction, this sector is also the basis for commerce and transportation. Its role is that of a facilitator of world trade and a mainstay of traditional maritime culture with its long heritage.

The shipbuilding industry has its own cyclical and capital-intensive structure. It is essential as a strategic sector to support and improve the performance of various sectors, including marine engineering, offshore operations, and defense. The significance of shipbuilding also extends not just to the simple vessels that they build but rather to the entire lifecycle management of ships, from the initial production to the final decommissioning. Also, such activities are related to maintenance and conversion, which maintain the operational effectiveness and safety of the vessels during their service period. The marine transportation industry has this multifaceted role beyond providing transport services as it allows trade and economic growth, an important part of the centuries-old maritime traditions.

COVID-19 Impact: Pandemic on the market has negative impacts such as delays, financial difficulties and changed market circumstances

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The production of the shipbuilding industry during the pandemic showed a drastic impact due to a fall in the number of new orders and logistical disruptions across the supply chain. Strict lockdowns and travel restrictions, along with the production and delivery caused a significant delay in projects and posed a particular challenge for the industry. Particularly, the cruising sector was the most affected by the decline in the number of bookings and the diminishing construction volumes for the shipbuilding market, which can be accounted for travel restrictions, concerns about health and consumers’ inability to know how to overcome difficulties. To sum up, the outbreak of the pandemic has taken a toll on the shipbuilding industry, not only putting additional stress on the already existing issues but also restructuring the market trend.

LATEST TRENDS

"Environmentally friendly practices push the market with an emphasis on reducing emissions and adopting sustainable resources"

The shipbuilding sector is undergoing a significant transition towards greener practices by strongly emphasizing environmentally sustainable methods throughout the process. This shift requires concerted cooperation to decrease emissions and embrace eco-friendly materials in ship construction and operation. The shipbuilding sector is actively developing measures to minimize its ecological impact, showing an increasing awareness of the importance of sustainability in shipping operations. This is evident in the industry's emphasis on protecting the environment. Incorporating modern innovations designed for reducing emissions such as cleaner propulsion systems and energy-efficient designs—is one of the most important endeavours. Additionally, there is a notable effort to utilize sustainable materials in shipbuilding aimed at lessening environmental impacts from vessel production through the operation. This changing approach underscores the industry's broader commitment to embracing green principles in alignment with efforts addressing climate change and promoting a more sustainable future for maritime transport.

SHIPBUILDING MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Bulkers, Tankers, Containers and Other Ships.

• Bulkers: Bulker ships are a significant segment of the shipbuilding market, accounting for a substantial portion of the total market share. The main purpose of these boats is to move bulk goods such as ore, coal, and grains. The bulker market is expected to be a significant player in the industry with continued growth.

• Tankers: The transportation of liquid goods such as chemicals and oil depends on tanker ships. To meet the need for energy resources and facilitate trade, this section of the shipbuilding market is crucial. Businesses are working hard to construct cutting-edge tanker tankers.

• Containers: The transportation of goods in standardized containers is dependent on container ships. Since ships have made it easier to transport goods efficiently and financially, these vessels completely transformed trade. The market of shipbuilding comprises the container ship segment, which plays an important part in facilitating trade and supporting various sectors.

• Other Ships: In addition to building bulk carriers, tankers, and containers, the shipbuilding industry also builds ferries, cruise ships, and speciality carriers. These specialized ship types fulfill certain purposes such as military applications, specialized cargo transport, and passenger transit. To address changing needs, the shipbuilding industry is growing and innovating outside of its core areas.

By Application

Based on application the global market can be categorized into Goods Transportation, Passenger Transportation and Others.

• Goods Transportation: The need for a cost-effective and effective means of transporting goods across international oceans drives a sizable portion of the shipbuilding industry. Bulk carriers, container ships, and other particular ships built to transport various kinds of cargo are included in this group of vessels.

• Passenger Transportation: Passenger transportation focuses on building passenger-transporting ships such as ferries and cruise vessels. These vessels have been constructed to provide passengers with pleasant and relaxing travel experiences; they often feature cabins, restaurants, and entertainment areas.

• Others: Ships that do not fall into the bulker, tanker, or container categories belong in the "Others" part of the shipbuilding market. Specialized carriers, military ships, and other unusual ship types that fulfil specific needs are included in this category.

DRIVING FACTORS

"Market is being driven by expanding international trade and the need for efficient cargo transportation"

The demand for improved logistics and the volume of trade is driving expansion in the global shipbuilding market growth. The growing need for reliable and efficient transportation solutions for goods is driven by the expansion of international trade. There is a similar demand for shipping vessels that are capable of carrying a variety of cargo kinds and volumes due to the rise in trade operations across many industries. As a result, more emphasis has been put on ship modernization and expansion to meet the ever-changing demands of the shipping industry. This trend highlights the significance of cargo including shipping containers to the open movement of goods over borders internationally, economic expansion, and enhanced supply chain management. Within a continuously shifting environment, those working in the shipping sector constantly modify their strategies and invest in infrastructure investment to take advantage of the chances that the expanding system of trade offers.

"Investments in the military shipbuilding sector are being driven by government initiatives aimed at enhancing and boosting the market"

The government's attempts to improve naval capabilities and reinforce maritime security encourage investments in the construction of military vessels. These initiatives provide a strategic response to the need to protect marine interests and territorial waters while boosting national security capabilities. The growing awareness of the significance that naval forces have in preventing attacks, safeguarding trade routes, and addressing fresh safety concerns is what is driving the increase in investments. As a result, there's a strong emphasis on growing and upgrading military shipbuilding programs to provide naval forces with cutting-edge ships that can function in a variety of situations and effectively carry out a wide range of operations. The importance of naval power projection in maintaining maritime sovereignty and geopolitical stability is shown by this coordinated endeavour. Governments who place a high priority on maritime safety are expecting ongoing growth in the military shipbuilding industry, which will encourage innovation and advancements in technology to keep up with constantly changing defence needs.

RESTRAINING FACTORS

"Unpredictable prices of raw materials have an impact on shipbuilding costs and present market issues"

Unpredictable prices for raw materials, especially the costs of steel and aluminium, have an important effect on the whole cost of building and pose major challenges for shipbuilders, which the shipbuilding industry has to deal with. Businesses need to cope with the fluctuation of material costs, which are primarily driven by fluctuations in the market which affect building expenses and earnings margins. The procedure of building ships becomes more volatile due to the continually shifting costs of steel and aluminium. It necessitates strict cost control measures as well as rapid responses to shifts in the marketplace. Shipbuilders have to adopt strategies that reduce the negative effects of changes in raw material prices to overcome these challenges. Establishing long-term purchasing agreements, discovering substitute materials, and reducing the production process were just some of these reducing expenses tactics.

SHIPBUILDING MARKET REGIONAL INSIGHTS

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"Asia Pacific market serves as vital for nations' defense forces to expand their economies"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

As an important hub for the global shipbuilding market share, the Asia Pacific area is now established. Furthermore, the shipbuilding industry plays a crucial part in national military plans. This region's shipbuilders serve an essential part in building warships which are designed for dealing with the strategic threats that rivals pose in coastal seas. Compared to commercial ships, these naval vessels are more rapid and advanced in technology, enabling them to effectively protect against possible invasions. Moreover, they have advanced defense systems and weaponry, and have improved their combat capability. By their expertise, shipbuilders play an essential role in improving a nation's naval power and defending its marine interests and territory. The shipbuilding sector's involvement in the production of military ships shows the importance it plays in improving national security in the Asia Pacific region and beyond can be seen by its contribution to the building of military vessels.

KEY INDUSTRY PLAYERS

"Key industry players are funding research and development to enhance the market"

Shipbuilders are allocating funds to research and development initiatives ship designs, engines, and energy-saving techniques. The integration of modern technologies into shipbuilding procedures is the outcome of this integrated effort. Shipbuilders hope to enhance vessel performance, control the consumption of energy, and speed up manufacturing procedures by integrating these advanced techniques into their operations. Adopting cutting-edge technologies additionally helps shipbuilders build ships with more precision, efficacy, and safety. The shipbuilding sector constantly engages in technical breakthroughs stays competitive, adapts to changing market needs, and tackles new difficulties. These initiatives highlight the shipbuilding industry's drive to technology and its critical role in developing the maritime sector.

List of Market Players Profiled

• China Shipbuilding Group Corporation (China)
• COSCO SHIPPING HEAVY INDUSTRY (China)
• Yangzijiang Shipbuilding (China)
• KSOE (Hyundai Heavy Industries) (South Korea)
• Daewoo Shipbuilding (South Korea)
• Samsung Heavy Industries (South Korea)
• Imabari Shipbuilding (Japan)
• Japan Marine United (Japan)
• Oshima Shipbuilding (Japan)
• Fincantieri (Italy)

INDUSTRIAL DEVELOPMENT

February 2024: By 2030, the shipbuilding market, currently expected to be valued $150 billion, is projected to increase to USD 180 billion. Two factors contributing to this rise are the switch from diesel to eco-friendly ships and the growing demand for "Made in India" products. Over the next five years, Indian shipbuilders expect an enormous demand for commercial boats from Europe, France, Greece, and the Middle East.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.