The Ship Building market?is anticipated to register a CAGR of about 5%, during the forecast period (2020 – 2025).
- The global shipbuilding market is expected to grow in future due to increasing seaborne trade and economic growth, rising energy consumption, demand of eco-friendly ships and shipping services, and the advent of robotics in shipbuilding.
- Orders are declining, many shipyards have stopped production and went bankrupt. However, such changes have also led to a small increase in the price of the order. The world is continuing to change at a rapid pace.
- South Korea, China and Japan are the three major ship-building countries within the ship-building industry. The global market share of the Korean shipbuilding industry has crossed more than 40%. The global market share of China’s shipbuilding industry is around 25%; the global market share of the Japanese shipbuilding industry grew to more than 15%.
- In Korea, the government is taking various initiatives to support the shipbuilding industry, as the country’s companies have the largest share of new orders. The global share of China’s shipbuilding is growing steadily. In Japan, several reforms have taken place.
Key Market Trends
Increasing Trade Activities Between Countries is a Growth Driver
Marine transport is the backbone of globalized trade and the manufacturing supply chain, as more than four?fifths of the world merchandise trade by volume is carried out through marine route. The trade volume has increased with a growth rate of almost 10% during the last decade. The relatively larger increase in the volumes of imports can be explained by the increase in consumer demand in developing countries.
However, the world saw some downturns during the 2018-19 period owing to the trade tensions between the two major economies of the world, US and China. The economic outlook by UNCTAD, shows that annual growth rate for next five years is expected to be 3.4%. This growth will require more ships and cargos fleet which will drive the demand of Shipbuilding Market.
Asia pacific is Expected to Dominate the Market
Asia pacific region accounts for around 65% of the world traffic of the maritime trade transport. And it is further expected to continue as the same due to major import and export activities happening in the developing nations economies and these activities are expected to grow further during the forecast period. But during the end of 2019, these tensions were relaxed because of some trade agreements between the two nations and more agreements are expected soon to bring trade to growth levels again.
The Ship Building market is highly fragmented, with several players accounting for significant amounts of shares in the market. Some of the prominent companies in the Ship Building market are Mitsubishi Heavy Industries, Hyundai Heavy Industries, China State Ship Building Corporation, DSME and others. Companies are investing heavily in research and development for the innovation of new and advanced products. In March 2020, Chinese conglomerate Yangzijiang Shipbuilding has secured a US $1.15 billion order for up to ten dual-fuel containerships with a capacity of 14,000 TEU each.?Titan Acquisition Holdings has agreed to acquire Huntington Ingalls’ San Diego Shipyard.
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