PUBLISHER: Orion Market Research | PRODUCT CODE: 1778449
PUBLISHER: Orion Market Research | PRODUCT CODE: 1778449
Digital Shipyard Market Size, Share & Trends Analysis Report by Shipyard Type (Commercial, and Military), by Technology (AR/VR, Digital Twin & Simulation, Addictive Manufacturing, Artificial Intelligence & Big Data Analytics, Robotic Process Automation, Industrial Internet of Things (IIoT), Cybersecurity, Blockchain, and Cloud & Master Data Management), by Capacity (Large Shipyard, Medium Shipyard, and Small Shipyard), by End Use (Implementation, and Upgrades & Services) and by Process (Research & Development, Design & Engineering, Manufacturing & Planning, Maintenance & Support, Training & Simulation) Forecast Period (2025-2035)
Industry Overview
Digital shipyard market size will reach $12.3 billion in 2035 from $1.7 billion in 2024 and is projected to grow at a CAGR of 19.7% during the forecast period (2025-2035). Digital solutions are revolutionizing shipbuilding, naval modernization, international maritime trade, Industry 4.0, sustainability, and logistics. Digital twins and PLM software simplify design, minimize production defects, and speed up timelines. Nations such as the US, China, India, and the UK are investing in smart naval shipyards. Industry 4.0 technologies such as AI, IoT, robotics, and AR enhance productivity and quality control. Digital solutions assist in monitoring emissions and optimizing fuel efficiency.
Market Dynamics
Increased Maritime Trade
The increase in international maritime trade requires shipyards to expand and modernize through digitalization that reduces costs, simplifies construction, and improves operational availability. According to the United Nations Conference on Trade and Development (UNCTAD), the maritime trade volume is anticipated to grow at a yearly rate of 2% in 2024, with containerized trade expected to increase by 3.5%. From 2025 to 2029, total seaborne trade is projected to rise at an annual average rate of 2.4%, while containerized trade is predicted to grow by 2.7%. These projections are based on a forecasted GDP growth of 2.7% and merchandise trade growth of 3%.
Additionally, according to the United Nations Conference on Trade and Development (UNCTAD), the table highlights a uniform trend of expansion in world maritime trade, with seaborne trade overall to increase at an average annual rate of 2.4% during 2025-2029. Containerized commerce will expand at the rate of 2.7%, showing ongoing supply chain improvements. The most rapid growth is to take place in 2024, with containerized commerce expanding by 3.5%.
Integration of Advanced Technologies
The implementation of new technologies such as AI, IIoT, and 5G improves the gathering of real-time data, decision-making, and overall efficiency of operations, leading to market growth. For instance, in September 2024, ST Engineering launched an AI-driven smart Shipyard with the adoption of 5G facilities. The increased Tuas Yard in Singapore is expected to fulfill Navy requirements. The site facilitates investigation into new markets, including offshore renewables, and provides end-to-end services to domestic and foreign customers. In addition, the Gul Yard incorporates 5G-capable digital infrastructure based on domestically developed AI technology to enhance productivity in operations and conform to global efforts to suppress carbon emissions through the use of electric-powered automated guided vehicles, recycling systems, and renewable fuels such as ammonia, biofuel, hydrogen, and solar energy to minimize emissions by 2034.
Market Segmentation
Artificial Intelligence (AI) & Big Data Analytics Segment to Lead the Market with the Largest Share
The digital shipyard sector uses AI and Big Data Analytics to revolutionize shipbuilding, maintenance, and operation. Its key functions include predictive maintenance, supply chain optimization, autonomous operations, digital twin technology, cybersecurity, workforce efficiency, and sustainability. AI-based systems additionally aid in fuel optimization and environmental compliance. The growth is being fueled by the adoption of digital shipyards with the introduction of AI-driven technologies that raise predictive powers and automate operations to fuel market development. For instance, in April 2024, HD Hyundai Group integrated AI technology into shipbuilding to accelerate digital transformation and secure original technologies for future ships and construction machinery. The company has consolidated its AI divisions into an AI center under the KSOE Future Technology Research Institute. The group aims to complete its Future of Shipyard project by 2030 includes the visible shipyard and connected and predictive optimized shipyard phases. The data platform enables AI to learn from shipbuilding data and make decisions on process management, aiming for a 30% productivity increase, 30% lead time improvement, and zero resource waste.
Commercial: A Key Segment in Market Growth
A commercial shipyard is an establishment that designs, constructs, maintains, repairs, and retrofits commercial ships, handling various types of container ships, tankers, bulk carriers, and passenger ships. Commercial shipyards play a critical role in shipbuilding, repair, maintenance, refurbishment, conversion projects, and decommissioning and recycling. It constructs new vessels, ensures compliance with regulations, enhances fuel consumption, retrofits existing vessels to new purposes, and scrums vessels in environmentally friendly ways upon reaching the end of their lives. It consolidates Industry 4.0 technologies such as IoT, AI, and digital twin, in ship building and maintenance towards greater efficiency, predictive maintenance, sustainability, and safety in rugged environments with digital models that may be utilized for simulation and defect identification in the design.
The global digital shipyard market is further divided by geography, including North America (the US and Canada), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America).
Government Investments & Modernization in Asia-Pacific
India's maritime fund is designed to push market growth by speeding up digital transformation in shipyards with smart infrastructure, predictive maintenance, and real-time monitoring systems. For instance, in February 2025, India introduced a $2.9 billion maritime development fund to support its ship repair and building industry. The government provided 49% of the funds, while the balance came from ports and the private sector. The program looks forward to leveraging private investment, fueling modernization, and pioneering green technology for increasing global competitiveness and cementing India's leadership as a shipping hub.
North America Region Dominates the Market with Major Share
North America holds a significant share owing to the Digital shipyards are integrating unmanned maritime technologies, focusing on designing, testing, and deploying autonomous naval systems, driving market growth. For instance, in June 2024, Hanwha Systems and Hanwha Ocean bought Philly Shipyard, an American shipbuilder that has produced half of the US Jones Act commercial ships since 2000. The deal is worth $100 million, seeking to increase Hanwha's global defense and shipbuilding businesses. The firm develops technologies for unmanned maritime systems and naval radars. It additionally manufactures low-carbon, high-tech ships.
The major companies operating in the global digital shipyard market include Accenture, BAE Systems plc, Dassault Systemes S.E., SAP SE, Siemens AG, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments