Shipbuilding Market Trends

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

The market is even going through technical improvement and upgradation for better trading and transport purpose. Ships are built for multipurpose usage for various purposes. The increase in demand for maritime transport has increased imports and exports, which subsequently increased the Shipbuilding Market Growth.The increase of international seaborne trade globally is enhancing the market, and the rise of rapid industrialization is one of the prominent factors propelling the trade volumes among different countries. Other major factors such as advancement in fuel efficiency and multi-fuel engine in the shipping companies have made the transportation method more efficient, fueling up the Shipbuilding Industry Outlook. The use of 3D printing technology sets trends for the Shipbuilding Market Trends at the global level. These major growth factors boost the market amid the challenging and restraining factors. 

The Shipbuilding Market mainly deals with the production of larger seagoing vessels for transport and trading activities. Hence, the market's growth to stay consistent in the upcoming years. The Market Forecast to reach a healthy CAGR percent with good USD value during the forecast period.

COVID-19 Analysis

The COVID-19 pandemic has badly affected various industrial sectors; the different market has faced huge revenue loss during this period. The Shipbuilding Market was even a prey of this ongoing pandemic; due to the strict lockdown rules, the transportation was stopped. When the transportation activity was restricted, the trading activity even stopped, hugging the Market Outlook.

Due to the spread of the infectious virus, there was a hold in trading goods between the countries, the export and import services were badly affected. Therefore, the Shipbuilding Industry Forecast has noticed a financial loss during this period. But the government's rise of support for the continuation of trading has accelerated back the market's growth rate. The Shipbuilding market will reach a strong CAGR during the evaluation period in the upcoming years. 

Chief Factors Existing In The Shipbuilding Market

Key Market Drivers

The chief drivers of the Shipbuilding Market are responsible for driving the market's growth rate worldwide. The increase in international seaborne trading activities is one of the major factors boosting the market, while the growth of the maritime tourism industry is acting as a driving factor of the Market Growth. The players' adoption of 3D printing in shipbuilding to improve the design standards boosts the market. 

Market Challenges

The Shipbuilding Market faces challenging factors such as lack of required resources and lack of efficient resource management, challenging the market in the growth period. But the key players are focusing on these challenges to lift the market’s growth.

Shipbuilding Market Opportunities

The Shipbuilding Market Analysis is receiving worldwide opportunities from various world regions. The rise of military missions and operations is setting huge opportunities for the market. The technological advancement in shipbuilding, such as the maintenance of big data and drones and the development of autonomous ships, promotes the Shipbuilding Industry.

Restraints

Many restraining factors are hampering the growth of the Shipbuilding Market, such as the issues related to regular maintenance, high cost of materials and operation process, and the rules related to environment control is affecting the market’s growth.

Cumulative Evaluation Of The Market

The evaluation of the Shipbuilding Market Value shows that the significant growth of the market to continue in the upcoming period. The key drivers of the market are driving the market with the key growth factors to compete globally. The market was noticed facing some challenging and restraining issues during the growth period, but due to the help of major key players, these factors are declining. Market Share will show significant growth in the future because of its huge opportunities from the trading sectors.

Market Segmentation

The Shipbuilding market is segmented based on ship type, process, and end-user segment.

By Ship Type

In the ship type segment, the Shipbuilding Market Size is categorized into various segments such as cargo, vessel, container, tanker, multipurpose ship, car and passenger ferry, and others. Among these sub-categories, the cargo segment is projected to notice the highest CAGR during the evaluation period due to increased international seaborne trade worldwide. The investment in the defence field is promoting the vessel segment.

The increase in operating efficiency and cargo carrying capacity boosts the container segment of the ship type. The tanker segment is estimated to observe a steady growth of a good CAGR percent during the assessment period due to the rise in demand for military and cargo ships across the globe. The transportation of worldwide cargos such as iron, steel, wood, and other bulk cargos is driving the multipurpose ship segment. The increase of marine tourism in the world is boosting the growth of the car and passenger ferry segment. Tugs, cruise ships, small passenger ships, and general cargo carriers are included in the other segment.

By Process

The Shipbuilding market is categorized into various processes in the process segment: designing, production planning, cutting and processing, assembling and launching, and outfitting.

By End-User

The Shipbuilding Market Size is divided into commercial and military segments based on the end-users. The commercial segment has been dominating the market in recent years and is expected to reach a higher CAGR in the forecast period. The rapid growth of the growing maritime tourism industry and the rise of trading activities are boosting the segment. The military segment is projected to show healthy CAGR due to the increase of global conflicts, terrorist attacks, and displacement of population, which boosts the expansion of naval developments and drives the market.

Regional Analysis

According to the geographical states, the Shipbuilding Market Trends is distributed into various regions such as North America, Europe, Asia Pacific, and the Rest of the World. Due to chief companies such as Raytheon Technologies and Huntington Ingalls Industries, Inc, North America is noticing dominating growth in recent years.

The European market is projected to show significant growth due to increased marine tourism and electric ships. The Asia Pacific region is expected to register the highest CAGR due to the high demand for marine vessels in China, Japan, India, and South Korea. The increase of seaborne international trade activities in other regions of the world such as UAE, South Africa, Brazil, and Gulf countries is expected to boost the market in these regions.

Competitive Intensity In The Shipbuilding Industry

There are chief players of the Shipbuilding Market who are investing in levelling up the market at the global level. Various market strategies implanted by them boost up the market growth. The below listed are the prominent players of the Market.

• Raytheon Technologies Corporation (US)


• Huntington Ingalls Industries, Inc. (US)


• General Dynamics Corporation (US)


• Damen Shipyards Group (Netherlands)


• BAE Systems (UK)


• STX Offshore & Shipbuilding Co., Ltd. (South Korea)


• Sumitomo Heavy Industries, Ltd. (Japan)


• FINCANTIERI S.p.A. (Italy)


• China State Shipbuilding Corporation Limited (China)


• DSME Co., Ltd. (South Korea)


• China Shipbuilding Industry Corporation (China)


• United Shipbuilding Corporation (Russia)


• LARSEN & TOUBRO LIMITED (India)


• Northstar Shipbuilding Pvt. Ltd. (India)


• TSUNEISHI SHIPBUILDING Co., Ltd. (Japan)

Recent Market Development

According to the recent updates, the global Shipbuilding Market Value is estimated to register a value worth USD 13.24 Billion during the assessment period.

EU targets to complete the review of the Korean shipbuilding merger by January 2024.

The OECD Council Working Party on Shipbuilding offers an international platform for exchanging information and elaborating economic policies on several shipbuilding sectors.

August 2023

Six Arleigh Burke-class (DDG 51) destroyers will be built for the U.S. Navy under a fixed-price incentive, the multi-year procurement contract that has been given to HII's Ingalls Shipbuilding subsidiary. Options for additional DDG 51 ships as well as engineering, design, & post-delivery work are included in the contract. The total monetary amount of multi-year contract rather will not be released at this time due to anticipated competition for the option ships. According to Kari Wilkinson, president of Ingalls Shipbuilding, it is a privilege for their shipbuilders for building these ships in services of their Navy. They anticipate the years of stability this award will bring them as well as the chance to keep working with the industry partners on this significant class of ships.

July 2023

The UK government announced the beginning of the new SCGS (Shipbuilding Credit Guarantee Scheme). The program's goal is to give customers access to financing so they may modify their current ships or acquire boats that were constructed in the UK, with the government attempting to serve as a guarantee for lenders. According to the UK's Department for Business & Trade, the program would support the creation of hundreds of jobs in the country and bring in several million pounds to the economy due to the need for commercial shipbuilding. The program also fits within the government's £4 billion ambition to assist UK shipbuilding under National Shipbuilding Strategy Refresh announced in 2024.

July 2023

A 2000-year-old shipbuilding method is being revived and preserved by the Indian Navy and the Ministry of Culture. Stitched shipbuilding method is the name of the approach, according to the ministry. It is essential to revive and revitalize this dying art to ensure the cultural heritage is preserved for future generations. The entire project will be implemented and carried out under the direction of the Indian Navy. The Indian Navy's cooperation guarantees seamless project management & adherence to highest standards of safety and precision as custodians of marine security and specialists in the sector.

Report Analysis

The overall report overview shows that the Shipbuilding Market Analysis has shown quite good growth in recent years. The key players and government’s investments in trading activities are boosting the market's growth. The segments of the Market to reach expected CAGR in the upcoming years. The different geographical reasons of the market to accelerate the Shipbuilding Market Share in the global level. When the growth factors and opportunities are determined, the market will reach a healthy CAGR in the evaluation period.

Key Industrial Segments

By Ship Type

• Cargo


• Vessel


• Container


• Tanker


• Multi-Purpose Ship


• Car and Passenger Ferry


• Others

By Process 

• Designing


• Production Planning


• Cutting and Processing


• Assembling and Launching 


• Outfitting

By End-User

• Commercial


• Military