Shipbuilding Market size is set to grow by USD 22.1 billion from 2024-2028, Increasing seaborne trading boost the market, Technavio

NEW YORK, June 11, 2024 /PRNewswire/ -- The global shipbuilding market size is estimated to grow by USD 22.1 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  3.95%  during the forecast period. Increasing seaborne trading is driving market growth, with a trend towards increase in demand for eco-friendly ship. However, fluctuations in raw material prices poses a challenge. Key market players include 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..

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Market Driver

The shipping industry faces increasing environmental regulations due to concerns over greenhouse gas emissions and oil pollution. Governments and international organizations are implementing measures to mitigate these issues. For instance, the Ballast Water Management System (BWMS) is mandatory for vessels operating beyond domestic waters by September 2024, to prevent the spread of harmful aquatic organisms. Additionally, the International Maritime Organization aims to reduce CO2 emissions from shipping by 40% by 2030. These regulations are driving demand for eco-friendly ships that comply with the latest emission norms, a trend expected to continue. 

The shipping market is currently experiencing significant growth, with many countries investing in new shipbuilding projects. Three major printing companies, Designing, Manufacturing, and Procurement Services, are leading this trend. They are constructing ships in various sectors such as tankers, cargo, and passenger vessels. The use of advanced technologies like Carbon Fiber and 3D Printing is revolutionizing the industry. These companies are also focusing on sustainability, with some using Industrialization and Liquefied Natural Gas as fuel sources.

The market is expected to continue growing, with experts predicting an increase in demand for ships in the coming years. The procurement process is crucial in this industry, with companies like Big and Cargo seeking to streamline it through the use of modern technologies. Overall, the shipping market is an exciting space to watch, with numerous innovations and advancements shaping its future. 

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Market Challenges

• Shipbuilding markets face challenges due to the volatile prices and availability of essential raw materials like iron and steel. These materials, which are fundamental to manufacturing ship parts and components, have experienced price fluctuations since 2016. The continuous price instability in steel is predicted to persist during the forecast period, potentially hindering market growth.
• The shipping market faces several challenges in the current technological landscape. Three-dimensional printing is transforming the industry, with companies implementing this technology for producing ship components. However, the high cost of technology and the need for standardization pose significant challenges. Additionally, the integration of new technologies like autonomous vessels and the use of big data analytics require substantial investment and training.
• Carbon fiber and other advanced materials are gaining popularity for their lightweight properties, but their high cost and limited availability are obstacles. Lastly, the need for sustainable shipping practices and stringent regulations add to the complexity of the market. Despite these challenges, the shipping industry continues to innovate and adapt to meet the evolving needs of the global economy.

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Segment Overview 

1. Application 
• 1.1 Commercial
• 1.2 Defense
2. Type 
• 2.1 Oil tankers
• 2.2 Bulk carriers
• 2.3 Cargo ships
• 2.4 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 South America
• 3.4 North America
• 3.5 Middle East and Africa

1.1 Commercial-  The commercial shipbuilding market is experiencing growth due to increased international trade through maritime logistics. Containerships, a key segment, are in high demand due to the rise in container handling operations at marine ports and the standardization of containers. Seaborne trade growth and larger containerships are further driving market expansion. Bulk carriers face a slow growth rate due to oversupply, but tankers and cruises/ferries are expected to see demand increase from oil consumption and global tourism growth, respectively.

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Research Analysis

The shipbuilding market, integral to international trade and industrialization, is advancing with continuous technical upgrades to meet competitive demands. This sector sees significant activity in imports and exports of ships and components, driven by the rising need for fuel-efficient vessels, including multi-fuel engine ships. Diverse fleets, encompassing container ships, LNG carriers, submarines, and amphibious landing craft, are deployed to meet commodity trade requirements. Aging oil tankers are being replaced due to overcapacity and stringent environmental regulations.

Market Research Overview

The Shipbuilding Market, encompassing the design, construction, and repair of merchant ships, naval vessels, submarines, and amphibious landing craft, is driven by global trade, military modernization, and offshore resource exploration. Advanced technologies like CAD, CAM, and AGVs are pivotal in shipbuilding processes. Segmented by ship type—bulk carriers, container ships, tankers, passenger ships—and regions—North America, Europe, Asia-Pacific, Middle East—the industry faces challenges such as rising raw material costs and stringent regulations. However, growing demand for efficient, eco-friendly vessels propels market growth.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Commercial
• Defense
• Type
• Oil Tankers
• Bulk Carriers
• Cargo Ships
• Others
• Geography
• APAC
• Europe
• South America
• North America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio