Shipbuilding Market

Shipbuilding Market Statistics 2030 -

The global shipbuilding market was valued at $142.52 billion in 2020, and is projected to reach $195.48 billion by 2030, registering a CAGR of 3.2% during the forecast period. Shipbuilding refers to construction of ships and other floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders are also called shipwrights. The shipbuilding industry is accountable for design and construction of oceangoing vessels all around the globe. Presently, the global shipbuilding industry is dominated by Asia-Pacific followed by Europe, North America, and LAMEA. Asia-Pacific is expected to maintain its dominance in the global market particularly in China, South Korea, and Japan due to some discrete advantages; such as relatively cheaper pays, strong government support, and strong forward & backward connection of industries. Shipbuilding is a highly capital-intensive industry, owing to which strong government support and political stability is prerequisite to survive this industry. 

The COVID-19 pandemic outbreak has caused widespread economic downturn as several countries imposed strict lockdowns to contain the infection. This has affected diverse industries; manufacturing is one of the severely impacted sectors. Shipbuilding industry has witnessed decline in the pandemic, owing to disturbances in the supply chain. COVID-19 had a negative impact on the shipbuilding market and has affected the shipbuilding business in several countries. The shipbuilding market is currently hampered due to impact of virus on labour force. This has disrupted production and caused delays in the delivery of ships to buyers which further resulted in extra expenditures for shipbuilders. However, owing to the growing vaccination numbers globally coupled with gradual increase in the seaborne trade, the shipbuilding market is foreseen to augur well in near future.

Key factors driving growth of the global shipbuilding market are GDP growth, improved economic growth, global seaborne trade, increase in demand for cargo transportation through ships, rise in trade-related agreements, technological advancements in marine vessel engines, and trend of automation in marine transportation. However, fluctuations in transportation and inventory costs, coupled with environmental concerns associated with marine vessels are some noteworthy trends that could hamper growth of the market.

The global shipbuilding market is segmented on the basis of type, end-use, and region. By type, the market is categorized into oil tankers, bulk carriers, general cargo ships, container ships, passenger ships, and others. On the basis of end-use, the global shipbuilding market is categorized into transport and military. Region wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA. 

The key players profiled in the global shipbuilding market includes companies such as BAE Systems PLC, Damen Shipyards group, Fincantieri group, General Dynamics corporation, Huntington Ingalls industries, Korea Shipbuilding & Offshore Engineering, Mitsubishi Heavy Industries, Oshima Shipbuilding co. ltd, Samsuung Heavy Industries, and Sumitomo Heavy Industries.

Gradual rise in international seaborne trade

Maritime transport is the backbone of globalization and industrialization, which supports supply chains and enables international trade. Maritime transport has seen a robust growth in the last decade, owing to rise in demand for bulk products such as crude oil, steel, ore, and finished products such as vehicles, mostly from developing countries. Around 80% of the global trade by volume is carried over the sea or other waterways and handled by seaports worldwide. As per the UNCTAD, in 2016, 10,303 million tons of loads were transported through waterways, which increased to 11,055 million tons in 2019 and 10,631 million tons in 2020. Moreover, gradual rise in international seaborne trade or maritime transport is expected to boost demand for tankers, cargo ships, and bulk carriers, which further reinforces the shipbuilding industry outlook.

Rise in trade-related agreements

Numerous trade-related agreements have been carried out between developed and developing nations to transport goods. Thus, suppliers have shifted their preference toward waterways as a better and efficient means of transportation. This increased inclination has led cargo vessel manufacturers to develop better and efficient container carriers of different sizes and capacities, propels growth of the global market. In addition, free trade agreements have enabled a reduction in duties and taxes. Furthermore, increase has been witnessed in trade activities as exporters and importers need not pay taxes to the government. Countries in trade blocs are lifting bans and making trade more flexible. Hence, rise in trade related agreements leads to increase in demand for stronger containers, thereby supplementing growth of the global shipbuilding market. 

Covid-19 Impact Analysis

The COVID-19 pandemic outbreak has caused widespread economic downturn as several countries imposed strict lockdowns to contain the infection. This has affected diverse industries; manufacturing is one of the severely impacted sectors. There has been significant impact on supply chains globally. Shipbuilding companies have faced huge losses during the first & second quarter of 2020, owing to disrupted supply chains and production schedules. Rapid spread of COVID-19 in the U.S., Europe, and Asian economies resulted in nationwide lockdowns and a temporary halt of production facilities to prevent further spread. Moreover, COVID-19 outbreak has resulted in disruptions for shipyards in terms of new building, repair and conversion projects. This outbreak has forced some of the companies to shut down their shipyard operations in several countries. For instance, in 2021, in China, Samsung Heavy industries has decided to shut down their 26-year-old Ningbo shipyard in eastern china. In addition, in 2020, Irving Shipbuilding has issued layoff notices impacting 1100 of 1800 workers & temporarily shut down Halifax shipyard for three weeks.

Key Benefits For Stakeholders

• This study presents analytical depiction of the global Shipbuilding market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall Shipbuilding market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities of the global Shipbuilding market with a detailed impact analysis.
• The current Shipbuilding market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry. 

 Shipbuilding Market Report Highlights