Ship conversion refers to rebuilding or modernizing an existing ship in order to extend its useful life or adapt it for new roles and missions. Shipbuilding designers and engineers retrofit existing vessels with improved propulsion systems, navigation technologies, specialized interiors and integrated modular systems to meet evolving operational requirements. Such customized upgrades enhance payload capacity, automate equipment handling and reduce manpower needs. Ship owners can extend operational life and maximize efficiency through conversion projects. The global Ship Conversion Market is estimated to be valued at US$ 13.2 billion in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Key Trends:
One of the key trends driving growth in the ship conversion market is the increasing demand for specialized ships from the offshore energy and naval sectors. Conversion projects adapt existing hull designs into sophisticated floating production units, drill ships, ice-class vessels and multipurpose support ships through comprehensive refits. This allows operators to efficiently redeploy aging assets and procure specialized tonnage in a time-effective manner compared to newbuilds. Major conversion work entails retrofitting vessels with advanced drilling, production and contingency equipment to extend operational life by 15-20 years. Military forces also undertake extensive service life extension programs and functional upgrades to support vessels through customized refits performed by ship conversion contractors. The growing complexity of offshore energy projects and evolving national security requirements will continue spurring demand for specialized conversions going forward.
Segment Analysis
The global ship conversion market can be segmented by type, conversion, and end use. By type, the market segments into container ships, tankers, cargo ships, and gas carriers. The container ships segment dominates the market and is expected to remain the largest segment during the forecast period. The increasing trade activities and the growing need for shipping containers to transport goods globally is driving the demand for container ship conversions.
Key Takeaways
The global ship conversion market is expected to witness high growth.
Regional analysis: Europe dominates the ship conversion market currently, with Germany, Italy, and the Netherlands being the major markets in the region. The presence of leading shipbuilding and conversion yards in Northern Europe and a strong presence of cargo and container shipping companies driving the European ship conversion market. Asia Pacific is expected to be the fastest growing market during the forecast period due to growing shipbuilding and maritime trade activities in China, South Korea, and Japan.
Key players: Key players operating in the ship conversion market are Damen Shipyards Group, Ocean Shipping and Management Corp (OSM), Damen Shipyards Gorinchem, T. Mariotti S.p.A, Ideal Group, KMTC, Vittorazi, Hanjin Heavy Industries, Huali Group, Swissocean, Greenship Projects. OSM dominates the global ship conversion market currently with a sizeable fleet of converted cargo and gas carriers. Damen Shipyards is another major player with a global network of shipbuilding and conversion yards.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
