Shipbuilding Market to grow by USD 26.1 Billion from 2025-2029, driven by rising seaborne trade, AI driving market transformation - Technavio

NEW YORK, Jan. 30, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global shipbuilding market size is estimated to grow by USD 26.1 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  4.4%  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 Group, IHI Corp., 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 shipbuilding market is thriving with trends in manufacturing processes and designing of floating vessels for various trading activities. Technical improvement and upgradation are key focuses, with an emphasis on fuel efficiency and multi-fuel engines. Shipping companies seek advanced transportation methods, including 3D printing technology, to remain competitive. The industry outlook is positive, driven by international seaborne trade and industrialization. Design standards are evolving with the use of big data, drones, and autonomous ships. Cargo vessels, including container, tanker, multipurpose, and specialized carriers, are in high demand. Production planning involves cutting and processing, assembling and launching, outfitting, and cruising industry growth. Economic cycles, geopolitical tensions, and global trade routes impact fleet deployment and vessel types. Container ships, LNG trade, and aging oil tankers are commodity ship types undergoing upgrades. Trade-related agreements facilitate transportation of goods via waterway transportation. Cargo vessel manufacturers and container carriers continue to innovate with free trade agreements and augmented reality. 

The shipping industry faces increasing regulatory pressure to minimize its environmental impact. Two primary concerns are greenhouse gas emissions and oil pollution from ships. In response, governments and international organizations are implementing regulations. For instance, the Ballast Water Management System is required for vessels operating beyond domestic waters by September 2024, to prevent the spread of harmful aquatic organisms. Additionally, the International Maritime Organization adopted an initial strategy during their 72nd session on April 13, 2018, to reduce greenhouse gas emissions from ships. These measures demonstrate the industry's commitment to sustainable practices. 

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Market Challenges

• The shipbuilding market faces several challenges in the manufacturing process of floating vessels. Designing and upgrading ships for trading activities and maintenance purposes require continuous technical improvement and upgradation. Importing and exporting ships for international seaborne trade and industrialization call for fuel efficiency and the adoption of multi-fuel engines. Shipping companies seek to optimize their transportation method through 3D printing technology and design standards. The shipbuilding industry outlook includes addressing the needs of the maritime tourism industry and cargo vessel manufacturers. Big data, drones, and autonomous ships are transforming production planning and vessel types like container ships, LNG carriers, and specialized carriers. Economic cycles, geopolitical tensions, and global trade routes impact fleet deployment and vessel types. Overcapacity and aging oil tankers necessitate trade-related agreements and transportation of goods via waterway transportation. Cargo vessel manufacturers focus on container carriers, free trade agreements, and augmented reality to meet market demands.
• The global shipbuilding market relies heavily on the availability and cost of raw materials, particularly iron, steel, and plastics. Fluctuations in these materials' prices can negatively impact market growth. Since 2016, steel and iron prices have seen significant volatility, with the price of steel expected to continue fluctuating during the forecast period. This price instability may hinder the expansion of the shipbuilding industry.

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Segment Overview 

This shipbuilding market report extensively covers market segmentation by  

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 the expansion of international trade through maritime logistics. Containerships, a key segment within commercial shipping, are driving this growth, as the increase in container handling operations at marine ports fuels demand for new vessels. Containerships, which transport goods in standardized intermodal containers, have revolutionized global trade with their cost-effective and efficient transportation capabilities. Seaborne trade continues to grow, further boosting the demand for containerships and leading to the construction of larger vessels. Bulk carriers, which transport homogeneous cargoes in bulk, have seen slower growth due to an oversupply in the market. However, the need for tankers is increasing due to rising oil consumption and stricter emission norms, leading to an increase in scrapping activity. Lastly, the growing global tourism industry is driving demand for cruises and ferries, particularly large cruise ships, which should contribute to the growth of the global shipbuilding market during the forecast period.

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Research Analysis

The Shipbuilding market encompasses the manufacturing process of designing, constructing, and repairing floating vessels for various trading activities and maintenance purposes. The industry is witnessing significant technical improvement and upgradation with a focus on fuel efficiency and the adoption of multi-fuel engines. Industrialization and international seaborne trade are driving the growth of the market. Vessel types include container ships, LNG carriers, specialized carriers, and commodity ship types. The aging oil tanker fleet is undergoing upgrades to meet modern standards. The shipping industry is deploying new fleets to meet increasing demand, but overcapacity remains a challenge. Trade-related agreements and international regulations are shaping the market. LNG trade is a growing segment due to the shift towards cleaner fuels. The market is also witnessing the adoption of advanced technologies for design and construction processes. Imports and exports play a crucial role in the market dynamics, with key regions including Asia, Europe, and North America.

Market Research Overview

The shipbuilding market encompasses the manufacturing process of designing, building, and repairing floating vessels for various trading activities and maintenance purposes. This industry is driven by the growth of international seaborne trade, industrialization, and the need for fuel-efficient vessels. Multi-fuel engines, 3D printing technology, and autonomous ships are some of the technical improvements and upgradations in the shipbuilding industry. Trading activities, such as imports and exports, also impact the market's growth. The shipbuilding industry outlook is positive, with the maritime tourism industry and cargo transportation in high demand. Design standards, big data, drones, and augmented reality are revolutionizing the designing and production planning stages. Vessel types include container ships, tankers, multipurpose ships, LNG carriers, and specialized carriers. Economic cycles, geopolitical tensions, and global trade routes influence fleet deployment and production planning. Cutting and processing, assembling and launching, outfitting, and cargo vessel manufacturers are essential players in the industry. Overcapacity and aging oil tankers are challenges that the market faces.

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