Shipbuilding Market Analysis APAC, Europe, South America, North America, Middle East and Africa - China, South Korea, Japan, The Philippines, Poland - Size and Forecast 2024-2028

Shipbuilding Market Size 2024-2028

The shipbuilding market size is forecast to increase by USD 22.1 billion, at a CAGR of 3.95% between 2024 and 2028. The market growth analysis experiences growth driven by increasing seaborne trading and rising energy consumption, propelled by the growth of the shipping industry. However, fluctuations in raw material prices and uncertainties associated with crude oil prices pose challenges, alongside the oversupply of ships. The market experiences a substantial drive from the growing seaborne trading, which mirrors a notable increase in total trade volume within the shipping industry in recent years. Factors like swift industrialization and economic liberalization fuel heightened trade levels among nations. Technological strides, such as enhanced fuel efficiency and the emergence of multi-fuel engines, bolster maritime transportation efficiency, positioning shipping as an eco-friendly and fuel-efficient choice. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Dynamic

The market is buoyed by a bulk amount of goods transportation, manufacturing vessels tailored for trading activities, and maintenance purposes. The process involves designing and constructing floating vessels to meet the demands of maritime transport, both for imports and exports. With the surge in international seaborne trade, the market witnesses growth driven by industrialization and the demand for specialized carriers like LNG trade vessels. To address fuel efficiency concerns, technical improvements include multi-fuel engine integration and vessel upgradation. However, challenges such as overcapacity, particularly with aging oil tankers, persist. The market dynamics are influenced by fleet deployment strategies, trade-related agreements, and the varying needs of developed and developing countries in terms of vessel types and capacities. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver- Increasing seaborne trading

Factors such as rapid industrialization and the liberalization of economies contribute to heightened trade volumes between nations. Technological advancements, including improved fuel efficiency and the development of multi-fuel engines, enhance the efficiency of maritime transportation, positioning shipping as a fuel-efficient and environmentally friendly option.

Further, with the growing demand for goods and raw materials in emerging economies due to population expansion, seaborne trading escalates, necessitating the construction of various vessel types such as cargo ships, containers, and bulkers. The demand for maritime transport is further bolstered by trade-related agreements and the increasing need for specialized carriers, particularly in LNG trade.

Significant Market Trends- Increase in demand for eco-friendly ships

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 reducing 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.

Major Market Challenge- Fluctuations in raw material prices

Raw materials are an integral part of ship manufacturing. Any fluctuations in their costs and availability can hinder the growth of the global market. The prices of raw materials such as iron, steel, and plastics have shown significant fluctuations during since past couple of years.

Moreover, steel and iron are commonly used materials in the manufacturing of ship parts and components. There has been 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.

Market Segmentation

Application Analysis

Based on application, the commercial segment holds the largest market share. The increase in international trade through maritime logistics is driving the growth of the commercial 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.

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The commercial segment showed a gradual increase in the market share of USD 58.20 billion in 2018. 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.

Type Analysis

Based on type, oil tankers hold the largest market share. 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 market, which, in turn, increases the demand for oil tankers. The global 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 market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 74% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Increasing developments in the regional maritime transportation sector are acting as the major driving force for the regional 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 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 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.

Key Companies & Market Insights

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.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

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. 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook
  • Commercial
  • Defense
• Type Outlook 
  • Oil tankers
  • Bulk carriers
  • Cargo ships
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Chile
    • Argentina

You may also interested in below market reports:

• Naval Vessels Market: Naval Vessels Market by Type, Application, and Geography - Forecast and Analysis 
• Marine Coatings Market: Marine Coatings Market by Application, Type, and Geography
• Tugboats Market:  Tugboats Market by Type and Geography - Forecast and Analysis

Market Analyst Overview

The market witnesses dynamic growth fueled by a myriad of factors. From the bulk movement of goods to the intricate manufacturing processes involving designing, floating vessels, and maintenance, each aspect contributes to its vibrancy. Technical advancements and the integration of 3D printing technology revolutionize production planning, cutting, processing, and outfitting. Amidst the demand surge for maritime transport, shipping companies navigate the complexities of international seaborne trade, buoyed by innovations like drones and autonomous ships. However, challenges persist, such as the cyclical nature of orders, overcapacity, and geopolitical tensions affecting global trade routes. Yet, the market remains resilient, adapting to the evolving landscape of economic cycles and trade-related agreements between developed and developing countries, ensuring the vitality of waterway transportation and cargo vessel manufacturing. 

Further, technical advancements propel the growth of the shipbuilding market, influencing design standards and construction methods for multipurpose ships like car and passenger ferries. Efficient cutting, processing, assembling, and launching techniques streamline production. These vessels cater to diverse transportation needs, including goods trade and the burgeoning liquefied natural gas sector, reflecting a dynamic and evolving maritime industry. Also, the technical improvement in multi-fuel engine technology is driving the shipbuilding market growth, particularly in response to the need for replacing aging oil tankers with more efficient and versatile commodity ship types.

Moreover, the market is driven by the bulk amount of goods, manufacturing process, and maintenance purposes, as well as the demand for maritime transport and the growth of international seaborne trading activities. Imports and exports further bolster this sector, alongside the growth of the maritime tourism industry. Technological advancement, including big data and IoT, fuels technical improvements and upgradation. However, restraints such as fluctuations in raw material prices and oversupply challenges persist. The market encompasses various vessel types, from container ships to specialized carriers, catering to diverse transportation needs. Augmented reality is shaping the shipbuilding industry outlook, alongside developments in the LNG trade and the cruise industry, driving innovation and fleet deployment in this dynamic sector.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, Europe, South America, North America, and Middle East and Africa
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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