The Shipbuilding Market involves the design, construction and repair of ships and offshore structures. Ships are primarily used for transportation of goods and passengers across seas and oceans. Various types of ships include cargo ships, tankers, passenger ships and defense ships which are built according to specifications based on end use.
The growing Shipbuilding Market Demand for seaborne trade coupled with increase in offshore exploration and production activities has fueled the demand for ships which in turn is contributing to the growth of the Shipbuilding Market. Moreover, infrastructure development projects across countries have further augmented the demand.
The Global Shipbuilding Market is estimated to be valued at US$ 149.76 billion in 2023 and is expected to exhibit a CAGR of 3.6% from 2023 to 2030.
Key Takeaways
Key players operating in the Shipbuilding Market include Medtronic, ConvaTec, Inc., Smith Medical (Smith Group Plc.), Boston Scientific Corporation, Hollister Incorporated, and Edwards Lifesciences Corporation, among others. Key players are focusing on strengthening their market presence through collaborations and partnerships with other players. For instance, in 2023 Medtronic partnered with ConvaTec to expand access to advanced medical technologies for patients.
The growing demand for commodities and energy globally has increased seaborne trade activities which is a key factor driving the growth of the Shipbuilding Market. Majority of international trade involves transportation of goods via sea routes. Increasing trade volumes necessitate higher transportation capacity through ships which is favoring market growth.
Many countries are also focusing on port and infrastructure developments to boost trade. Development of new ports enables handling larger vessels thereby augmenting shipbuilding activities. Governments across regions like Asia Pacific, Middle East and Africa are investing heavily in port infrastructure development which is expanding opportunities for shipbuilders globally.
Market Drivers
One of the key drivers for the Shipbuilding Market growth is the rising investments in infrastructure projects globally. Mega infrastructure projects involving construction of new ports, roads and rail networks stimulate the demand for construction equipment and cargo ships. According to United Nations Conference on Trade and Development (UNCTAD), investments in infrastructure across developing nations is estimated to grow significantly in the coming years thereby propelling shipbuilding demand.
Impact of geopolitical situation on Shipbuilding Market growth
The current geopolitical situation has created uncertainty and challenges for the global Shipbuilding Market. The ongoing trade tensions and protectionist policies adopted by major trading economies like the US and China have disrupted global supply chains. This has negatively impacted demand for new commercial shipbuilding from sectors like retail, manufacturing and energy. Meanwhile, conflicts and political instability in different parts of the world like the Russia-Ukraine crisis and tensions in the South China Sea have increased risks for ship operators.
Shipping companies are adopting a cautious approach toward new orders until there is stability. Governments and shipbuilders will need to closely monitor the geopolitical environment and be ready to adjust their long term plans based on how situations unfold in different regions. Providing financial support and incentives during downturns will be crucial to sustain the industry until trade and conflicts see resolution. Entering new emerging markets and diversifying customer base can help offset risks from volatility in certain geographies for shipbuilders.
Europe region in Shipbuilding Market
Europe accounts for a sizable share of the global Shipbuilding Market value, led by countries like Germany, Italy, Norway and Poland. The region is home to leading commercial Shipbuilding Market Companies like Fincantieri, Meyer Werft and Naval Group. European shipyards have strong capabilities across segments like cargo vessels, ferries, cruise ships, offshore structures and naval ships. Countries like Norway and Netherlands additionally benefit from offshore oil and gas projects.
Asia Pacific Fastest Growing Region
The Asia Pacific region has been the fastest growing market for shipbuilding globally in recent years and this trend is expected to continue through 2030. Major shipbuilding nations like China, South Korea and Japan have captured a dominant share of the global orderbook value. China alone accounts for more than one third of the ship construction activity currently worldwide. Factors like availability of low cost skilled labor, government shipbuilding incentives and strategic priorities have propelled growth. Southeast Asian countries like Vietnam and Philippines are also emerging as popular low cost shipbuilding locations. Growing intra-Asian trade, liquefied natural gas exports from Australia and demand for specialized vessels from offshore oil sectors are driving newbuilding requirements. With more advanced ship technologies and experience across vessel segments, Asia Pacific shipyards are well positioned to cater to rising global ship trade over the long term.
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About Author-
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
