Shipbuilding Market By Ship Type (Bunkers, Cruise, Commercial Vessels, Military Vessels, and Tugs, and Small Cargo Carriers), End-User (Logistics & Transport, and Military), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032

Market Perspective

Shipbuilding Market size was worth around USD 140.72 billion in 2022 and is predicted to grow around USD 193.19 billion by 2032 with a compound annual growth rate of roughly 3.2% between 2023 and 2032.

The shipbuilding market comprises manufacturers and other service providers attributing to the construction of ships, and related technology. Majorly pre-fabricated structures of ships are transported to shipyards for finishing of the complete ship. In recent years, Asia Pacific, Europe, and North America are among the key regions that are majorly attributing towards revenues and opportunities for market expansion. Construction and assembly of the ship require high capital investments and thus are accelerating at a steady pace in developed regions. China, Germany, South Korea, France, Italy, and the U.S. are observed to be prominent countries.

Ships are used for numerous purposes such as commercial trade, bunkers or vessels for commodity transport, cruises for travel and tourism, and defense purposes as well. Logistics & transport companies and military departments are the majority of consumers in the market. Demand for new ships is on the rise owing to increasing international trade, favorable policies encouraging seaborne activities, and technological development in components and systems utilized in ships.

The rise in maritime activities, adoption of eco-friendly ship technologies, utilization of alternative fuel options, and globalization are observed to be vital factors that are anticipated to accelerate the shipbuilding market growth through the forecast period. However, the slow development of emerging economies and high capital costs associated with the manufacturing and maintenance of ships are possible factors that may challenge growth.

Key Insights

• Based on ship type, the commercial vessels segment held the largest market share in 2022
• Based on end-user, the logistics & transport segment generated the highest revenue in 2022
• based on region, Asia Pacific accounted largest market share in 2022

Adoption of Environment-Friendly Ships to Positively Influence the Growth

The global shipbuilding market and operation of seaborne transports harm the environment due to the emission of carbon into the atmosphere, and oil and other spills into the water. Rising concerns regarding the environment have resulted in stringent policies and programs that aim at reducing the impact in upcoming years. Ships discharge ballast water into the oceans during transits which impacts the ecosystems severely. Implementation of regulations by countries and international organizations has influenced the development of eco-friendly fuels and other components that have minimized the impact on the environment.

For instance, Daewoo shipbuilding company launched a Triple-E vessel ship that has lower carbon emissions by as much as 50%. Developments in cruises are estimated to increase the manufacturing of ships operating on hydrogen fuel cells or other alternative fuels. As reported by CLIA, over 15% of cruises in the upcoming decade will be operating over alternate fuels.

Infrastructural and maintenance factors in developing economies would restrain the market growth

Structural components associated with the development and maintenance of ports, and manufacturing equipment require high-cost bearing. This factor is observed to restrain the entry of new players or investors in developing economies wherein capital expenditure is limited to a certain extent. High transition costs due to a lack of advanced ship technology also add a restraining factor in emerging countries. The imbalance in trade of a developing country is an important factor that may restrain growth at a global level. The imbalance may be due to instability, inadequate infrastructure, and other reasons. These restraints are anticipated to impact the shipbuilding market share throughout the forecast period.

Recent Development

In June 2022 – The France Classification Society’s Approval in Principle (AIP) was acquired by Mitsubishi Shipbuilding. It is a strategic development for Mitsubishi to integrate Spherical Cargo Tank System in providing optimal solutions for marine.

In March 2022 - Bohemia Interactive Simulations (BISim) was acquired by BAE Systems for a valuation of USD 200 million. The two companies have been in strategic collaboration since 2019. BAE Systems aims at expanding its digital services portfolio by integrating BISim military solutions into its manufacturing processes.

Segmentation Analysis

Based on ship type, the market is further categorized into bunkers, cargo ships, cruise, commercial vessels, military vessels, tugs, and small cargo carriers. In 2022, commercial vessels held the largest share in terms of revenues. Commercial vessels are utilized for numerous transportation purposes such as food and agricultural products, machinery and equipment, construction industry goods, automotive components, and general cargo amongst others.

Collaborations and similar strategic partnerships amongst manufacturers, service providers, and other related companies are on the rise owing to increasing trade and demand for products and commodities between countries. Technological advancements in commercial vessels are observed to attribute to the significant contribution. Stringent regulations on carbon emissions and the development of alternative fuels to control the emissions are a few factors that are increasing the efficiency of commercial vessels.

Bunkers are estimated to observe the fastest growth through the forecast period owing to increasing demand and efficiency offered by the sub-segment. As reported by Organization for Economic Cooperation and Development (OECD), in 2022, there was a significant increase in demand for new bunkers. The cruise sub-segment is anticipated to grow at a significant rate owing to increasing national and international tourism.

Based on end-user, the market is further categorized into logistics & transport companies and the military. In 2022, logistics & transport companies exponentially dominated the end-user segment in terms of revenues. The rise in demand for freight and other logistical companies owing to growing trade and globalization is a vital factor. Globalization of developing economies is another key factor that will drive the shipbuilding market share. Demand from the military sub-segment is estimated to grow at a steady pace owing to an increase in geopolitical tensions. However, peace treaties and other international regulatory organizations aim at lowering geopolitical tensions.

Regional Landscape

Asia Pacific holds the largest regional share with the presence of the largest manufacturers

In 2022, Asia Pacific dominated the regional revenues owing to the presence of established prominent manufacturers in China, Japan, and South Korea. These countries are powerhouse manufacturers of ships globally. The presence of established players in the countries attributes to significant revenues. Increasing demand for various ships owing to rising trade between countries is a vital factor accelerating regional market value. Rise in trade activities are observed due to policies encouraging trade between two nations or regions and increasing demand for goods and commodities.

China is a prominent country amongst the leading countries in Asia Pacific. As reported by BIMCO (The Baltic and International Maritime Council), China held over 47% market share in 2022. India has observed significant progress in recent years owing to an increase in volumes exported and imported throughout the country. The rising number of ports and developments in the marine sector are factors that will drive the shipbuilding market revenue for India through the forecast period. Asia Pacific is estimated to observe the fastest growth through the forecast period.

Europe to observe substantial growth owing to developments in shipbuilding infrastructure

In 2022, Europe witnessed significant expansion in the shipbuilding market owing to R&D and other developments in the sector. Europe has over 40 active ports throughout the region that are operational for commercial vessels. In terms of tonnage, the region attributes approximately 6% of the market share and approximately 35% in marine equipment. The shipbuilding industry in Europe is among the strong manufacturers of complex vessels, technologically advanced cruises, and ferries.

Adherence to stringent regulations regarding carbon emissions and the development of alternative fuels and other related factors are anticipated to drive the expansion of the shipbuilding market in the region. Germany, France, Italy, and the Netherlands are the most prominent countries in Europe. Regulation of international trade policies and high competition from Asia Pacific are among a few restraints that may affect market growth in Europe.

Competitive Landscape

• BAE Systems
• Cochin Shipyard Limited
• Damen Shipyards Group
• FINCANTIERI S.p.A.
• HYUNDAI CORPORATION
• MEYER WERFT GmbH & Co. KG
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• NVL B.V. & Co. KG
• Naval Group
• Samsung Heavy Industries

The global Shipbuilding market is segmented as follows:

Ship Type

• Bunkers
• Cruise
• Commercial Vessels
• Military Vessels
• Tugs
• Small Cargo Carriers

By End-User

• Logistics & Transport
• Military

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America