July 25, 2024
Ict

Shipbuilding Market Is Estimated To Witness High Growth Owing To Growing Maritime Trade and Increasing Demand for Technologically Advanced Vessels

The Shipbuilding Market is estimated to be valued at US$ 209.07 billion in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Shipbuilding involves the construction of ships and other floating vessels. It includes activities such as designing, building, and repairing ships. The shipbuilding industry plays a crucial role in the global economy, as ships are the primary mode of transport for goods across international borders. Ships are used for various purposes, ranging from cargo transportation to cruise tourism. The market offers a wide range of products, including container ships, bulk carriers, tankers, and offshore support vessels, among others.

Market Dynamics:

The shipbuilding market is driven by various factors. One of the key drivers is the growing maritime trade worldwide. The demand for goods transportation through the sea has been increasing, leading to a surge in the demand for new vessels. Additionally, the rising demand for technologically advanced ships with enhanced safety features and fuel efficiency is fueling market growth. The adoption of innovative technologies, such as automation and digitalization, is further driving the market. These advancements help in improving shipbuilding processes and reducing operational costs for shipbuilders. Overall, the shipbuilding market is expected to witness significant growth in the coming years due to the drivers mentioned above.

Segment Analysis:

The shipbuilding market can be segmented based on the type of vessel, including commercial, naval, and leisure vessels. Among these segments, the commercial vessel segment dominates the market. This is due to the increasing demand for cargo transportation across the globe. Commercial vessels are used for transporting various types of cargo, such as oil, gas, and containers. The growth of international trade and the expansion of the logistics sector have contributed to the dominance of the commercial vessel segment in the shipbuilding market. Additionally, the need for larger and more efficient vessels to accommodate the growing demand for cargo transportation has further boosted the market for commercial vessels.

PEST Analysis:

  • Political: The shipbuilding market is highly influenced by government policies and regulations, as it involves the construction of vessels that may have military or strategic importance. Government support, subsidies, and regulations related to environmental sustainability impact the market.
  • Economic: Economic factors such as GDP growth, trade activities, and investment in infrastructure play a crucial role in the shipbuilding market. Economic downturns and fluctuations in the global economy can affect the demand for new vessels.
  • Social: Changing consumer preferences for leisure activities and tourism contribute to the demand for cruise ships and leisure vessels. The increasing disposable income of individuals in emerging economies is also driving the demand for leisure vessels.
  • Technological: Advancements in shipbuilding technologies, such as the use of automation, digitalization, and eco-friendly propulsion systems, are shaping the shipbuilding industry. Technological innovations enable shipbuilders to enhance vessel performance, reduce fuel consumption, and comply with environmental regulations.

Key Takeaways:

The Global Shipbuilding Market Growth is expected to witness high, exhibiting a CAGR of 3.9% over the forecast period (2023-2030). This growth can be attributed to several factors, including the increasing demand for cargo transportation, growth in international trade, and the expansion of the logistics sector.

In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the shipbuilding market. This region is witnessing significant growth due to the presence of major shipbuilders like South Korea, China, and Japan. These countries have a strong manufacturing base and technological capabilities, which give them a competitive edge in the market.

Key players operating in the shipbuilding market include Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, China State Shipbuilding Corporation, Mitsubishi Heavy Industries, Samsung Heavy Industries, and more. These key players have a strong presence and contribute to the market’s growth through technological advancements, innovative vessel designs, and strategic collaborations.

Overall, the shipbuilding market is driven by factors such as increasing trade activities, the need for larger and more efficient vessels, and technological advancements. The dominance of the commercial vessel segment and the growth potential in the Asia Pacific region present lucrative opportunities for key players in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it