Ship conversion involves structural alterations, upgrading and modernization of existing ships to extend their economic life. Converting ships help improve fuel efficiency, enhance cargo carrying capacity and transform purpose of use like cargo to passenger ship.
The global Ship Conversion Market is estimated to be valued at US$ 13.46 Bn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the ship conversion market is the growth in conversion of conventional ships into drone ships. Drone ships use unmanned aerial vehicles (UAVs) or drones to carry out various functions like monitoring cargo, inspecting ship infrastructure and delivering supplies. They help reduce risk to human lives and improve safety. Drone technology enables ships to be remotely operated with automation of onboard processes. This significantly boosts efficiency and fuel savings while catering to higher demand of seaborne trade.
Segment Analysis
The global ship conversion market is segmented by application into passenger cruise ships and merchant vessels. The passenger cruise ships segment dominated the market in 2022, accounting for over 60% share. This is because passenger cruise ships require frequent retrofitting and refurbishment works in order to enhance passenger experience and introduce new amenities. Also, with the growing cruise tourism industry worldwide, there is significant demand for modifying old cruise ships as well as reconfiguring existing ships to increase their passenger capacity.
Key Takeaways
The global ship conversion market is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing maritime trade and seaborne transportation.
Regional analysis – Asia Pacific dominated the global ship conversion market in 2022 and is expected to maintain its lead over the forecast period as well. This is attributed to the presence of a large number of shipyards in China, South Korea, Japan, Singapore and India which are engaged in ship conversion activities.
Key players – Key players operating in the ship conversion market are Sembcorp Marine, Hyundai Heavy Industries, CSSC Chengxi Shipyard, Damen Shipyards Group, Cochin Shipyard, Fincantieri, Orient Shipyard, VARD Group, Wilson Sons, Oman Drydock Company, Bahri Abha Shipyard, Abu Dhabi Ship Building, N-KOM, Keppel Shipyard, Tebma Shipyards, Lamprell, Drydocks World, Dae Sun Shipbuilding, Shunzheng Shipyard, and HHIC-Phil. Among these, Sembcorp Marine, Hyundai Heavy Industries, and CSSC Chengxi Shipyard have significant market shares due to their large conversion capacities and capabilities.
