Ship Building and Repairing Market Definition
The ship building and repairing market consists of sales of ships and ship building and repairing services by entities (organizations, sole traders and partnerships) that are engaged in operating shipyards. Shipyards are fixed facilities with dry-docks and fabrication equipment capable of building a ship, defined as watercraft not typically suitable or intended for personal or recreational use. Ship building, which is also referred to as ship construction, includes the construction of ships, their repair, conversion and alteration, the production of prefabricated ship and barge sections, and specialized services, such as ship scaling.
Ship Building and Repairing Market Size
The global ship building and repairing market reached a value of nearly $191,913.3 million in 2019, having increased at a compound annual growth rate (CAGR) of 0.9% since 2015. The market is expected to decrease from $191,913.3 million in 2019 to $177,809.0 million in 2020 at a rate of -0.01%. The decline is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 3.06% from 2021 and reach $191,891.1 million in 2023.
Growth in the historic period resulted from rising population, increasing demand for cruise ships, and economic growth in emerging markets. Factors that negatively affected growth in the historic period were cheaper air cargo services, long turnaround time, volatile raw material prices, and geopolitical tensions.
Going forward, growing demand for e-commerce, and technological advances will drive the market for ship building and repairing. Factors that could hinder the growth of the ship building and repairing market in the future include government regulations, reductions in free trade, global recession, and covid-19 outbreak.
Ship Building and Repairing Market Drivers
The key drivers on the ship building and repairing market include:
Growing Demand For E-Commerce
The ship building and repairing market is expected to be driven in the forecast period by the growing demand for e-commerce. Several factors such as urbanization, increased mobile and internet penetration, availability of a wide range of products online, and a rise in online marketing increased the market for e-commerce, thus driving the market for ship building and repairing. According to a 2018 survey by Walker Sands, around 41% of US consumers receive 1-2 packages from Amazon per week, which drives the demand for shipping, including maritime shipping. Global e-commerce giants such as Alibaba and Amazon are increasingly investing in the maritime shipping business, thus driving the ship building and repair business.
Ship Building and Repairing Market Restraints
The key restraints on the ship building and repairing market include:
Reductions In Free Trade
The ship building and repairing market is expected to be impacted by global trade restrictions in the forecast period. Many developed and developing economies are considering imposing restrictions on free trade to boost their local economies. BREXIT is likely to lead to more trade restrictions between the UK and other countries in Europe. The US government has adopted a more protectionist stance, and renegotiated many trade agreements, including the NAFTA (North America Free Trade Agreement). These changes could set off a wider trade war reversing the recent trend towards greater global free trade. For example, from mid-October 2018 to mid-May 2019, G-20 nations issued 20 new trade restrictive measures, including higher tariffs, import bans and new customs procedures for exports, which is expected to affect $335.9 billion worth of goods. Reductions in free trade will negatively affect the growth of the ship building and repairing market, which relies on the movement of goods.
Ship Building and Repairing Market Trends
Major trends influencing the ship building and repairing market include:
Environmentally Friendly Ship Repairing Technologies
To reduce environmental threats, key players in the industry are providing environmentally friendly ship repair and maintenance services. One of the emerging trends is the replacement of the traditional approach of shot blasting machines used to strengthen, clean, or polish any metal surface or metal, by ultra-high-pressure water blasting systems. Shot blasting uses abrasive materials to clean the surface of the ships which are hazardous to environment, whereas water blasting doesn’t use any kind of abrasive material, it just uses a stream of water with high pressure to clean the internal and external parts of the ship. Water blasting has many environmental benefits, it has the ability to recapture the water and reuse it thus reducing waste. For instance, Watex Corporating, water jet cleaning technology, has developed water blasting techniques for cleaning ships.
Green Shipbuilding Technologies
Shipbuilding companies around the world are increasingly using green shipbuilding technologies to comply with environmental rules and regulations. Technologies being used for shipbuilding include ships with no ballast systems that block organisms entering the ship and eliminate the need for sterilization equipment, sulphur scrubber systems, waste heat recovery systems, speed nozzles, exhaust gas recirculation systems, advanced rudder and propeller systems, fuel and solar cell propulsion systems and use of LNG fuels for propulsion and auxiliary engines. Ships built using these technologies have significant energy savings and low carbon emissions. For instance, Peace Boat, a Japanese non-profit NGO has entered into an agreement with Finnish shipbuilding company Arctech Helsinki Shipyard for the construction of Ecoship, the world’s greenest cruise vessel. Dean Shipyards Group is also coordinating a green LeanShips project aimed at creating less polluting vessels. NYK has announced ECO SHOPIS 2030 which will have 69% less CO2 emissions. It is expected to run on fuel cell technology including solar cell and wind sails.
Opportunities And Recommendations In The Ship Building and Repairing Market
Opportunities – The top opportunities in the ship building and repairing market segmented by service will arise in the ship repairing market segment, which will gain $202.0 million of global annual sales by 2023. The top opportunities in the ship building and repairing market segmented by vessel will arise in the tankers segment, which will gain $1,295.4 million of global annual sales by 2023. The top opportunities in the ship building and repairing market segmented by end-use will arise in the goods transportation segment, which will gain $748.1 million of global annual sales by 2023.The ship building and repairing market size will gain the most in the China at $2,621.78 million.
Market-trend based strategies for ship building and repairing market include investing on AI based operating systems to increase efficiency and reduce errors and wastage, investing in environmentally friendly ship repairing technologies for repairing and maintaining ships to curb the release of unnecessary hazardous material in the environment, focusing on green shipbuilding technologies to manufacture ships that conform to new carbon emission norms, manufacturing ships with LNG-fueled engines to minimize carbon emissions and enable ship building and transportation companies to meet global emission norms and investing in robotics to increase efficiency and reduce the dependency on human laborers.
Recommendations – To take advantage of the opportunities, the business research company recommends the ship building and repairing companies to focus on the investing in eco-friendly ship repairing technologies, invest in manufacturing ships with LNG-fueled engines, focus on investing in robotics in production processes, offer competitive pricing and expanding in emerging markets.
Ship Building and Repairing Market Segmentation
The ship building and repairing market is segmented by type of service, by type of vessel, by end-user and by geography.
By Type Of Service -
The ship building and repairing market can be segmented by type of service into
The ship building market was the largest segment of the ship building and repairing market segmented by service, accounting for 83.1% of the total in 2019. Going forward ship repairing segment is expected to be the fastest growing segment in the ship building and repairing market, at a CAGR of 0.2% during 2019-2023.
- a. Ship Building
- b. Ship Repairing
By Type Of Vessel -
The ship building and repairing market can be segmented by type of vessel into
The bulkers segment was the largest segment of the ship building and repairing market segmented by vessels, accounting for 25.7% of the total in 2019. Going forward, refrigerated vessels segment is expected to be the fastest growing segment in the ship building and repairing market, at a CAGR of 2.9% during 2019-2023.
- a. Passenger
- b. Offshore
- c. Containerships
- d. Tankers
- e. Refrigerated Vessels
- f. Bulkers
- g. Others
By End-Use -
The ship building and repairing market can be segmented by end-user into
The goods transportation segment was the largest segment of the ship building and repairing market segmented by end-use, accounting for 87.2% of the total in 2019. Going forward, goods transportation segment is expected to be the fastest growing segment in the ship building and repairing market, at a CAGR of 0.1% during 2019-2023.
- a. Goods Transportation
- b. Passenger Transportation
The ship building and repairing market is segmented into
Asia Pacific was the largest region in the global ship building and repairing market, accounting for 50.9% of the total in 2019. It was followed by Western Europe, North America, and then the other regions. Going forward, the fastest-growing regions in the ship building and repairing market will be South America, and Asia Pacific where growth will be at CAGRs of 5.8% and 4.2% respectively. These will be followed by Middle East, and Western Europe, where the markets are expected to grow at CAGRs of 2.8% and 2.2% respectively.
- o North America
- o Western Europe
- o Asia Pacific
- Hong Kong
- New Zealand
- South Korea
- o Eastern Europe
- Czech Republic
- o South America
- o Middle East
- Saudi Arabia
- o Africa
- South Africa
Ship Building and Repairing Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Hyundai Heavy Industries
- • Samsung Heavy Industries Co., Ltd.
- • Daewoo Shipbuilding & Marine Engineering Co Ltd.
- • Fincantieri S.p.A.
- • General Dynamics Corporation
- • Imabari Shipbuilding Co., Ltd.
- • CSCC Offshore & Marine Engineering (Group) Company Ltd
- • MITSUBISHI HEAVY INDUSTRIES, LTD.
- • Sumitomo Heavy Industries, Ltd
- • China State Shipbuilding Corporation
- • China Shipbuilding Industry Corporation
- • Yangzijiang Shipbuilding (Holdings) Ltd.
- • New Times Shipbuilding Co. Ltd.
- • Hudong- Zhonghua Shipbuilding
- • Tsuneishi Holdings
- • Oshima Shipbuilding Company
- • Cochin Shipyard Limited
- • Hindustan Shipyard Limited
- • Garden Reach Shipbuilders and Engineers
- • Naval Yards Kiel GmbH
- • Lloyd Werft Bremerhaven
- • Neptune Werft GmbH
- • Schiffswerft Hermann Barthel GmbH
- • Meyer Werft
- • STX
- • PIRIOU
- • SOCARENAM
- • Chantiers naval de Normandie
- • A&P Group Tyne Shipyard
- • Cammell Laird
- • Parkol Marine Engineering
- • Yarrow Shipbuilders
- • NAUTA
- • Remontowa
- • Seatech Engineering
- • CRIST S A
- • Marine Projects Ltd SP
- • OSK
- • Admiralteiskie Verfi
- • Vard Tulcea
- • Santierul Naval Damen Galati
- • Genneral Shipyard ATG Giurgiu
- • Huntington Ingalls Industries Inc.
- • BAE Systems
- • Astillero Nacional
- • Servicios Industriales De La Marine S.A.
- • Vard Niteroi SA Shipyards
- • Caribbean Drydock Company
- • Damex Shipbuilding & Engineering
- • ShipTech
- • Dammam Shipyard
- • Zamil Offshore
- • Damen Shipyards Group
- • Israel Shipyards Ltd
- • Gemak Group of Companies
- • Sefine Shipyard
- • Kuzey Star Shipyard
- • Desan Shipyard
- • Southern African Shipyards
- • Dormac Marine & Engineering
- • DCD Enerji Çevre ve Teknoloji A.S
- • Southern Engineering Co. Ltd
- • West Atlantic Shipyard
- • Nigerdock FZE