Shipbuilding Market size is set to grow by USD 26.1 billion from 2025-2029, increasing seaborne trading boost the market- Technavio

NEW YORK, Jan. 28, 2025 /PRNewswire/ -- 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 innovation and growth, driven by advancements in manufacturing processes and designing technologies. Floating vessels for trading activities and maintenance purposes are in high demand, with a focus on technical improvement and upgradation. Import-export activities continue to fuel the industry's growth, with international seaborne trade and industrialization driving demand for fuel-efficient ships and multi-fuel engines. Shipping companies seek advanced vessel designs and production planning, from cutting and processing to assembling and launching, outfitting, and cruises. The industry outlook is positive, with trends like 3D printing, drones, autonomous ships, and big data shaping the future. Cargo vessels, including container, tanker, multipurpose ships, and specialized carriers, are in high demand for transportation of goods. Economic cycles and geopolitical tensions influence fleet deployment, while aging oil tankers and commodity ship types undergo upgrades to meet modern standards. Trade-related agreements and waterway transportation continue to shape the industry landscape. 

The shipping industry faces increasing regulations due to its environmental impact, particularly in relation to greenhouse gas emissions and oil pollution. Governments and international organizations are implementing measures to mitigate these effects. For instance, the Ballast Water Management System (BWMS) is necessary for vessels operating beyond domestic waters to prevent the spread of harmful aquatic organisms. This system must be installed by September 2024. Additionally, the International Maritime Organization (IMO) adopted a strategy during their 72nd session in April 2018 to reduce greenhouse gas emissions from ships. 

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Market Challenges

• The shipbuilding market faces challenges in various aspects of manufacturing and designing floating vessels for trading activities and maintenance purposes. Technical improvement and upgradation are essential for fuel efficiency and compliance with design standards. Importing and exporting ships play a significant role in the growth of the shipbuilding industry, linked to international seaborne trade and industrialization. Fuel efficiency is a key concern, with the adoption of multi-fuel engines and focus on cargo vessel types like container, tanker, and multipurpose ships. Production planning, from cutting and processing to assembling and launching, outfitting, and cruises, requires efficient organization. New technologies like 3D printing, big data, drones, and autonomous ships are transforming the industry. The outlook is positive, with growth in the maritime tourism industry and transportation of goods via waterways. Economic cycles and geopolitical tensions impact fleet deployment, while overcapacity and aging oil tankers necessitate specialized carriers and trade-related agreements. Cargo vessel manufacturers must adapt to changing market conditions and vessel types, such as LNG trade and Liquefied Natural Gas carriers.
• 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. Steel and iron, key components in ship manufacturing, have experienced significant price volatility since 2016. This price instability is projected to continue during the forecast period, potentially hindering 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. This growth is driven by the increasing demand for container handling operations at marine ports, leading to the construction of new container vessels. Containerships, a key segment of commercial ships, have revolutionized global trade with their cost-effective and efficient cargo transportation. Seaborne trade is on the rise, further increasing the demand for containerships and driving the growth of the global shipbuilding market. Bulk carriers, which transport homogeneous cargoes in bulk, have seen slow growth due to an oversupply in the market. However, the growing need for oil transportation due to increasing oil consumption will drive the demand for tankers, despite the current oversupply issue. The global tourism industry's growth is also expected to boost the demand for cruises and ferries, particularly large cruise ships, contributing to the market's expansion.

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Research Analysis

The Shipbuilding market encompasses the manufacturing process of designing, constructing, and repairing floating vessels for various trading activities, including transportation of goods and maintenance purposes. The industry undergoes continuous technical improvement and upgradation to meet evolving market demands. Important factors driving the Shipbuilding market growth include the expansion of international seaborne trade, industrialization, and fuel efficiency. Multi-fuel engines and specialized carriers are gaining popularity in the market, with LNG trade and Liquefied Natural Gas vessels being a significant segment. However, aging oil tankers and overcapacity pose challenges. Vessel types include container ships, commodity ship types, and trading-related agreements play a crucial role in shaping the market dynamics. The designing and manufacturing process of ships involve intricate engineering and construction techniques, ensuring the highest safety and efficiency standards. Exports and imports significantly impact the market, with major trading hubs contributing to its growth. Overall, the Shipbuilding market continues to evolve, adapting to changing market conditions and technological advancements.

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 efficiency and technical improvement. Multi-fuel engines and the adoption of 3D printing technology are key trends in the shipbuilding industry outlook. The market is influenced by the production planning, cutting and processing, assembling and launching, outfitting, and testing of cargo vessels, such as container ships, tankers, multipurpose ships, and specialized carriers. The cruise industry and transportation of goods, including LNG trade, also contribute significantly to the market. Economic cycles, geopolitical tensions, global trade routes, fleet deployment, and overcapacity are factors that impact the shipbuilding industry. Design standards, big data, drones, autonomous ships, and augmented reality are also shaping the future of the industry. Cargo vessel manufacturers focus on container carriers, free trade agreements, and the latest vessel types to meet the evolving needs of the maritime industry.

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