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The Shipbuilding Market size is estimated to grow by USD 24.52 billion between 2022 and 2027 accelerating at a CAGR of 4.5%. The main factors propelling the market growth include increasing seaborne trading, rising energy consumption, and growth of the shipping industry.
This report extensively covers market segmentation by Application (commercial and defense), Type (oil tankers, bulk carriers, cargo ships, and others), and Geography (APAC, Europe, South America, North America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Shipbuilding Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Increasing seaborne trading is a prime factor driving the shipbuilding market growth. During the last couple of decades, the shipping industry has recorded an increase in the total trade volume. The prominent factors propelling trade volumes include rapid industrialization and the liberalization of economies that are increasing the trade volume between the two countries. Moreover, technological advances have also contributed to seaborne trading. The improved fuel efficiency and multi-fuel engine have made shipping an efficient method of transportation. Therefore, shipping is one of the fuel-efficient and carbon-friendly forms of commercial transport.
The demand for goods and raw materials is increasing in emerging economies owing to the increasing population of these countries. This is further bolstering the rising seaborne trading. This would increase the need to build cargo ships or containers or bulkers. The below graph illustrates the year-over-year increase in the volume of goods loaded at world ports. It includes crude oil loaded, petroleum products and gas loaded, and dry cargo loaded at world ports.
An increase in demand for eco-friendly ships is a major trend in the shipbuilding market. The environmental impact of shipping includes greenhouse gas emissions as well as oil pollution. Therefore, governments and international organizations are introducing many regulations related to reduce the negative effects of ships and vessels on the environment. BWTC aims to prevent the spread of harmful aquatic organisms from one region to another. The spread is usually caused by a ship's discharge of ballast water and sediments. The vessels operated beyond domestic waters are required to have the Ballast Water Management System installed by 8 September 2024.
Likewise, during the 72nd session on 13 April 2018, the Marine Environment Protection Committee adopted the initial International Maritime Organization strategy to reduce greenhouse gas emissions from ships. The strategy was adopted with the aim of achieving a 40% reduction in the global average of CO2 emissions from shipping operations by 2030. The rising environmental regulations should increase the demand for eco-friendly ships that adhere to the latest emission norms. The trend is expected to continue during the forecast period.
Fluctuations in raw material prices is a challenging factor hindering the market growth. Raw materials are an integral part of ship manufacturing. Any fluctuations in their costs and availability can hinder the growth of the global shipbuilding market. The prices of raw materials such as iron, steel, and plastics have shown significant fluctuations during since past couple of years. Steel and iron are commonly used materials in the manufacturing of ship parts and components. There was a constant fluctuation in the price of steel since 2016, and the price is expected to fluctuate during the forecast period. This can hinder the growth of the market in focus during the forecast period.
Vendors 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.
Fincantieri Spa- The company offers shipbuilding services such as mighty military vessels.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
Based on application, the commercial segment holds the largest market share. The commercial segment shows a gradual increase in the market share of USD 57.45 billion in 2017 and continue to grow by 2021. The increase in international trade through maritime logistics is driving the growth of the commercial shipbuilding segment. In addition, the emergence of new seaports in emerging economies in APAC is also driving the demand for new container vessels, thereby contributing to the growth of the segment under focus. Commercial ships primarily include containerships, bulkers, tankers, cruise ships, and ferries. Containerships are cargo ships that carry all their loads in truck-sized intermodal containers. Containerships have played a pivotal role in the development of global trade. This is because the cost of conveying goods through these containers is less and the speed of transportation is high. Thus, the aforementioned factors are driving the commercial segment.
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Oil tankers are ships used to transport liquids by sea from one place to another. Transported liquids include oil, chemicals, liquefied petroleum gas (LPG), and compressed natural gas(CNG). Advances in technology, modification of oil tankers, and globalization are the main factors driving the global shipbuilding market, which, in turn, increases the demand for oil tankers. The global shipbuilding market will witness significant growth during the forecast period due to increasing demand for liquids, such as chemicals, gases, and oil, across the globe. The growth of the global oil and gas logistics market will significantly accelerate the demand for the oil tanker, which, in turn, will boost the growth of the global shipbuilding market during the forecast period.
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APAC is estimated to contribute 73% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
Increasing developments in the regional maritime transportation sector are acting as the major driving force for the regional shipbuilding market. China, Japan, South Korea, Singapore, Hong Kong, Thailand, and Malaysia are the leading countries in terms of seaport transportation of goods and, therefore, drive the growth of the shipbuilding market in the region. There are several seaport hubs in these regions, which observe high traffic at seaports by large commercial containers and vessels. Additionally, the increasing number of developments in the regional naval shipbuilding sector is acting as a major market driver for the shipbuilding market in APAC. Furthermore, the rising population in APAC countries is forcing governments to supply power for both domestic and industrial use. Therefore, an increase in trading activities in the region is estimated to accelerate the growth of the industry, which will positively impact the market in the region during the forecast period.
This shipbuilding market share report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for APAC. However, in 2021, the COVID vaccine was introduced and restrictions were lifted and the vendors were able to resume daily operations. The operations started adhering to the COVID-19 guidelines. Therefore, with the shipping industry returning to normalcy, the regional shipbuilding market is expected to grow during the forecast period.
The shipbuilding market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Shipbuilding Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
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Market growth 2023-2027 |
USD 24.52 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.65 |
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Regional analysis |
APAC, Europe, South America, North America, and Middle East and Africa |
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Performing market contribution |
APAC at 73% |
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Key countries |
China, South Korea, Japan, The Philippines, and Poland |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BAE Systems Plc, 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 Corp., IMABARI SHIPBUILDING CO. LTD., International Maritime Industries, Oshima Shipbuilding Co. Ltd., Paramount Maritime Holdings, Samsung Heavy Industries Co. Ltd., Ulstein Group ASA, Uzmar Shipbuilding and Trade Inc., Cheoy Lee Shipyards Ltd., Mitsubishi Heavy Industries Ltd., and Sumitomo Heavy Industries, Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our 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. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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