Shipbuilding Market: Current Analysis and Forecast (2022-2030)

Shipbuilding involves the building of massive sea-going vessels, commonly of metallic, even though different materials also can be used inclusive of aluminum, wood, and composites. Shipbuilding offers huge ships to serve both service providers and military maritime needs. This consists of building numerous types of ships together with shipment ships, passenger ships, and naval vessels.

The shipbuilding market is expected to grow steadily at a rate of around 3.0% due to the increasing inter-country trade. With rapid globalization and inter-country trade growth, the demand for shipping and transportation has also increased significantly in recent years, leading to a surge in the shipbuilding industry. The main drivers of market growth are the growing GDP of multiple economies, rapidly increasing population, and rising disposable income. As people have more cash in their hands, they are looking for better alternatives, which is also fueled by globalization. As globalization continues to grow, the quantity of products requiring transportation is also increasing; hence, there is a higher demand for ships and other marine transportation vehicles. For instance, the World Trade Organization reported in its 2022 World Trade Statistical Review that trade in goods increased by 27% year-on-year in 2021 and by 17% compared to 2019. Moreover, goods are made in one country, assembled in another, and then shipped to a third location for distribution. This has led to a substantial increase in the number of ships needed to transport items between countries. For example, the same report found that manufactured goods represented 68% of world merchandise exports in 2021, with a value of USD 14.8 trillion. World trade in goods and services amounted to USD 27.3 trillion in 2021, a 24% increase compared to 2020. Therefore, the growth of inter-country trade has led to significant growth in the shipbuilding market, with higher demand for new, larger, specialized, and safer ships leading to the expansion of the shipbuilding industry.

Based on type, the market is divided into container Ships, bulk carriers, oil tankers, passenger ships, and others (Naval ships, Tugboats, etc.). The container ships category has held the largest market share in the historic year and is expected to see the same trend in the forecast period. container ships are designed to transport huge quantities of goods in standardized containers. those vessels offer numerous benefits over different modes of transportation, along with trucks, trains, and planes, in terms of speed, cost, and efficiency. For example, an ordinary field ship can carry up to 20,000 containers, which is equal to about 200,000 tons of shipment. Such large capacity allows shipping businesses to gain economies of scale, reduce transportation costs, and perform more efficiently. The container shipping industry has also benefited from globalization, which has led to an increase in international trade. Moreover, another factor that has contributed to the growth of container shipping is the development of specialized ports and container terminals. These centers are designed to address huge volumes of packing containers efficiently, reducing turnaround times and increasing productivity. For instance, the Port of Shanghai in China is the world's busiest container port, handling over forty million TEUs (twenty-foot equal devices) every year. In addition, the Port of Rotterdam in the Netherlands is Europe's largest container port, managing over 14 million TEUs yearly.

Based on end-user, the market is bifurcated into transport, and military. The transport segment has dominated the market and is expected to dominate in the forecast period. In recent years, there has been a significant increase in demand for transport ships due to globalization and the growth of international trade. Shipping plays a significant role in the economies of many countries, facilitating the movement of goods and commodities across oceans and waterways. Furthermore, technological advancements play a great role in determining the dominance of the transport and military segments within the shipbuilding market. The development of advanced shipbuilding technology has enabled shipbuilders to assemble ships that can be faster, extra efficient, and more environmentally friendly. These technological advancements have enabled the transport segment to increase its performance and decrease its environmental impact.

For a better understanding of the market adoption of the shipbuilding industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Mexico, Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. The Asia Pacific is projected to be the fastest-growing region in the forecast period due to rapid industrialization, increasing population, and low labor costs. one of the crucial reasons why the Asia-Pacific region is dominating the shipbuilding market is the low labor costs and the presence of skilled employees. Countries in Asia-Pacific have lower labor fees than different areas, which ends up in lower overall manufacturing costs. This has given these countries a competitive edge that permits them to offer shipbuilding services at a lower cost than their competitors. The Asia-Pacific region is home to ample reserves of steel, aluminum, and other raw substances used within the shipbuilding industry. South Korea is a prime example of an Asia-Pacific country that has built strong recognition in the worldwide shipbuilding industry. South Korean shipbuilders, along with Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding and Marine Engineering, are among the most respected in the industry.

Some of the major players operating in the market include: Hyundai Heavy Industries; Daewoo Shipbuilding & Marine Engineering; Samsung Heavy Industries; China State Shipbuilding Corporation; Mitsubishi Heavy Industries; Sumitomo Heavy Industries; Fincantieri S.p.A.; Japan Marine United Corporation; General Dynamics NASSCO; STX Group.