INDUSTRY REPORT
In this article, we analyse trends, growth patterns and drivers in global shipbuilding markets for manufacturers.
Global shipbuilding markets
The global market for shipbuilding was valued at US $ 115.2 billion in 2024 in a recent report by analyst Research and Markets. It is projected to reach US $ 140.3 billion by 2030( growing at a CAGR of 3.3 % from 2024 to 2030).
“ The shipbuilding industry generates significant employment opportunities and stimulates economic development in shipbuilding [ regions ] such as South Korea, China, Japan and Europe. These countries are home to advanced shipyards and skilled workforces, supporting local economies through jobs, investments and export revenue. The industry’ s impact extends to various sectors, including steel manufacturing, electronics and marine engineering, creating a complex ecosystem that drives innovation and technological advancement,” said the analyst.
“ Growth in the shipbuilding market is driven by several key factors including the expansion of global trade, rising demand for energy-efficient and eco-friendly vessels and advancements in defence modernisation. The expansion of global trade is a primary driver, as international shipping remains the most costeffective mode of transporting goods across continents. The need for new and larger cargo vessels has surged. As a result, shipbuilders are constructing advanced container ships, bulkcarriers and tankers that can handle high cargo volumes efficiently,” it added.
Rising demand for energy-efficient and eco-friendly vessels is also a major growth driver in the shipbuilding market, driven by both regulatory pressure and industry initiatives to reduce carbon emissions. Shipbuilders are increasingly focusing on LNG-powered ships, hybrid engines, hydrogen fuel cells and other green technologies to create eco-friendly vessels that comply with these regulations. This shift towards sustainability is expected to drive demand for ships with advanced fuel-efficient designs, supporting both the commercial shipping and passenger transport sectors as companies and consumers seek greener transportation options.
“ Advancements in defence modernisation are further propelling growth in the shipbuilding market, as countries prioritize the renewal
HMS Albion.
Aberdeen harbour.
Image: Shutterstock. com. and expansion of their naval fleets to address security needs and geopolitical challenges. The rise of maritime security threats( such as piracy, illegal fishing and territorial disputes) has led to increased government spending on navy modernisation, particularly in regions such as Asia Pacific and the Middle East. Shipbuilders specialising in defence are benefiting from this demand,” continued Research and Markets.
The global shipbuilding market size is estimated to grow by US $ 26.1 billion from 2025-2029, according to analyst Technavio. It estimates the market to grow at a CAGR of 4.4 % during the forecast period.
“ The global shipbuilding market relies heavily on the availability and cost of raw materials, particularly iron, steel and plastics. Fluctuations in these materials’ prices can negatively impact market growth,” it explained.
Meeting new challenges
“ The shipbuilding industry is an essential contributor to the global maritime transport and trade that underpin our economies. However, shipbuilding faces many challenges including market volatility, excess capacity, the imperative of greening and decarbonising as well as geopolitical disruptions such as Russia’ s war of aggression against Ukraine and security concerns in the Red Sea,” commented the OECD.
“ Demand for alternative fuel-capable vessels has more than doubled in the past decade, now accounting for 50 % of the global order book. Fuel flexibility has likewise expanded, and shipbuilders are increasingly constructing vessels designed for liquefied natural gas( LNG), liquefied petroleum gas( LPG), methanol and hybrid propulsion systems,” it continued.
“ Despite this uptake, the shift to zero-emission shipping continues to face many uncertainties, including over long-term fuel solutions, onboard technology developments, manpower and safety concerns and fuel supply at ports— all of which pose challenges to achieving the International Maritime Organisation’ s 2023 Strategy for net-zero GHG emissions from ships by 2050,” it added.
The OECD pointed out that rising demand for alternative fuels and increasing shipbuilding costs are driving up ship prices. Alongside economic recovery, the rising costs of shipbuilding inputs such as steel and marine equipment are also contributing to the surge in ship prices.
Image: Shutterstock. com.
ISMR June 2025 | ismr. net | 27