Market Overview:
The shipbuilding market involves the construction of ships and floating vessels. Ships are an important mode of transportation for raw materials as well as finished goods across borders through seas and oceans. Increased trade volumes between countries have boosted the demand for cargo vessels and container ships for transportation purposes over the years.
Market key trends:
One of the key trends driving growth in the shipbuilding market is the significant rise in maritime trade volumes globally. According to UNCTAD statistics, the total volume of seaborne trade increased from around 10 billion tons in 2010 to over 11 billion tons in 2020. This rise in trade has been boosted by growing globalization and demand for consumer and industrial goods across countries. The increased trade has fueled the demand for cargo vessels like bulk carriers as well as container ships for transportation of goods via sea routes. Growing maritime trade is expected to augment the requirement for new ship constructions as well as existing fleet replacement over the forecast period, thus propelling the shipbuilding market growth.
Market data:
Porter’s Analysis
Threat of new entrants: The shipbuilding industry requires high capital investments and established supply chains, posing moderate threat of new entrants.
Bargaining power of buyers: Large shipping companies have significant bargaining power over shipbuilders due to their high volumes and ability to switch between suppliers.
Bargaining power of suppliers: Shipbuilders have consolidated suppliers for materials and components, exercising moderate bargaining power over suppliers.
Threat of new substitutes: No substitutes exist for water transportation needs, reducing threat from new substitutes.
Competitive rivalry: Intense competition exists among major global shipbuilders to gain market share through quality, innovative products and economies of scale.
SWOT Analysis
Strengths: Established infrastructure and expertise in complex ship design and manufacturing. Dominant positions of top players in global markets.
Weaknesses: High capital intensity and vulnerability to economic cycles affecting shipping demand. Regulatory compliance risks.
Opportunities: Growth in offshore energy, defense and specialist ship segments. Developing economies boosting international seaborne trade.
Threats: Trade protectionism hindering global alliances. Environmental compliance costs and transition to green fuels.
Key Takeaways
The global Shipbuilding Market Share is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period, due to increasing international seaborne trade volumes. Asia Pacific dominates the shipbuilding market with over 80% share due to presence of major shipyards in China, South Korea and Japan catering to growing regional and global demand.
Regional analysis: Asia Pacific leads the shipbuilding market with China, South Korea and Japan accounting for over 80% of global shipyard capacities. China has emerged as the leading shipbuilder globally driven by its massive scale and highly affordable price points. South Korea and Japan also maintain strong positions in high-value segments such specialized ship types and offshore units.
Key players: Key players operating in the shipbuilding market are Hyundai Heavy Industries (South Korea), Daewoo Shipbuilding & Marine Engineering (South Korea), China State Shipbuilding Corporation (China), Mitsubishi Heavy Industries (Japan), Samsung Heavy Industries (South Korea), Imabari Shipbuilding Co., Ltd. (Japan), Tsuneishi Group (Japan), China Shipbuilding Industry Corporation (China), General Dynamics Corporation (United States), Fincantieri S.p.A. (Italy), Meyer Werft GmbH & Co. KG (Germany), Navantia (Spain), Damen Shipyards Group (Netherlands), STX Offshore & Shipbuilding Co., Ltd. (South Korea), Kawasaki Heavy Industries (Japan).
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
