Shipbuilding Market Is Estimated To Witness High Growth Owing To Rising Maritime Trade & Need for Modern Shipping Fleet

Shipbuilding Market Is Estimated To Witness High Growth Owing To Rising Maritime Trade & Need for Modern Shipping Fleet

Market Overview:
Shipbuilding refers to the construction of ships and floating vessels. It involves designing, building, repairing and converting ships. Major ship types include cargo ships, tankers, bulk carriers, passenger ships and other specialized vessels. Shipbuilding forms an important part of the logistics and transportation industry as ships are vital for global trade and transport of goods.

Market Dynamics:
Growing international maritime trade activities are expected to drive the growth of the shipbuilding market over the forecast period. According to the United Nations Conference on Trade and Development (UNCTAD), the total volume of international seaborne trade increased from 10.7 billion tons in 2012 to 11.0 billion tons in 2020. This rising maritime trade raises the demand for new cargo and tanker ships to transport goods across borders. Furthermore, the age of the existing global shipping fleet is rising with average ship life reaching over 25 years. This necessitates new ship orders and modernization of the current fleet, thereby benefitting shipbuilding activities globally. However, fluctuations in raw material prices, supply chain disruptions during the COVID-19 pandemic and changes in trade policies pose challenges to the market.

Segment Analysis
The Shipbuilding Market Share is primarily segmented into commercial, defense and other applications. The commercial segment currently dominates the market owing to rising international seaborne trade activities as well as growth in new technology ships. container ships, tankers, bulk carriers and gas carriers sub-segments within commercial segment are witnessing high demand.

PEST Analysis
Political: Governments across regions are supporting growth of domestic shipbuilding industry through favorable policies and incentives to boost ship manufacturing capabilities.
Economic: Rising global GDP and trade volumes are fueling demand for seaborne trade and shipping fleets which is positively impacting the market.
Social: Increasing living standards and economic growth in emerging economies are driving demand for consumer goods and energy, boosting commercial ship requirements.
Technological: Advanced ships incorporating renewable energy technologies, electric propulsion and automation are gaining traction which is supporting market growth.

Key Takeaways
The global shipbuilding market is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period, due to increasing international seaborne trade volumes. The Asia Pacific region currently dominates the market backed by large production capacities in China, South Korea and Japan. Container ships, tankers and bulk carriers segments are projected to remain the key revenue generators with growing adoption of advanced energy efficient vessels.

Regional analysis
The Asia Pacific region is projected to maintain its lead in the global shipbuilding market during the forecast period. Countries such as China, South Korea and Japan have emerged as hubs for shipbuilding with presence of large shipyards and OEMs. China alone accounted for nearly 50% of global order books in 2022.

Key players analysis
Key players operating in the shipbuilding market are Hyundai Heavy Industries (South Korea), Daewoo Shipbuilding & Marine Engineering (South Korea), China State Shipbuilding Corporation (China), Mitsubishi Heavy Industries (Japan), Samsung Heavy Industries (South Korea), Imabari Shipbuilding Co., Ltd. (Japan), Tsuneishi Group (Japan), China Shipbuilding Industry Corporation (China), General Dynamics Corporation (United States), Fincantieri S.p.A. (Italy), Meyer Werft GmbH & Co. KG (Germany), Navantia (Spain), Damen Shipyards Group (Netherlands), STX Offshore & Shipbuilding Co., Ltd. (South Korea), Kawasaki Heavy Industries (Japan).

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