INDUSTRY REPORT
Global market trends
“ Rising international seaborne trade due to rapid globalisation and economic growth is one of the primary factors driving market growth. The implementation of various government initiatives to boost maritime trade through the construction of new port facilities and the signing of free trade agreements is another growth-inducing factor. Rapid military modernisation( coupled with increasing defence spending) is facilitating the demand for shipbuilding to construct advanced military vessels( such as aircraft carriers; frigates; destroyers; cruisers; full-service carriers; littoral combat ships; corvettes; fast patrol vessels and amphibious assault ships),” continued analyst, Research and Markets.
“ Additionally, the adoption of a modular construction approach in shipbuilding that allows multiple shipyards to construct major modules of a ship, followed by final integration and testing( which, in turn, saves time, increases quality and reduces costs) is positively influencing market growth. The integration of augmented and virtual reality( AR / VR) technologies in shipbuilding to provide immersive training to employees and allow engineers to place digital information in a visual environment to validate design concepts also favours market growth,” it added.
Other factors including rising import and export activities, increasing demand for eco-friendly ships and the introduction of robotics in shipbuilding are anticipated to drive market growth. Demand for shipbuilding is expected to rise steadily, driven by expansion in global maritime trade, naval modernisation programmes and fleet replacement cycles across commercial and defence sectors.
“ Demand for vessels designed for efficiency, sustainability and operational flexibility is reshaping capital allocation across shipyards. Asia- Pacific continues to dominate the global shipbuilding market share, led by South Korea, China and Japan. Major shipbuilders, including Samsung Heavy Industries and Hyundai Heavy Industries, are strengthening their positions through technological advancements and scale efficiencies. These players focus on high-value segments such as liquefied natural gas carriers, bulk carriers and advanced cargo ship platforms,” said analyst Fortune Business Insights.
“ While global production is distributed, Asia remains a dominant hub for commercial shipbuilding whereas countries like the U. S. maintain strength in defence-oriented shipbuilding, supported by public sector funding,” it continued.
Demand for vessels designed for efficiency, sustainability and operational flexibility is reshaping capital allocation across shipyards
“ Rising demand for commercial shipping capacity is driving newbuild orders, particularly for fuel-efficient and digitally enabled vessels. Environmental considerations are becoming central to industry strategy. Regulations introduced by the International Maritime Organization are
An aerial view of the Swan Defence and Heavy Industries shipyard in Gujarat, India.
Image: Fincantieri. Image: Damen Shipyards.
The Viking Libra, a new cruise ship under construction for Viking, was launched on 19 Marcg 2026 at the Ancona shipyard. It will reportedly be the world’ s first cruise ship powered by hydrogen with a propulsion system based partially on liquefied hydrogen and fuel cells.
On 21 May 2026, Damen Shipyards Group reached an agreement with Alfons Håkans to supply an ASD Tug 3413 ICE.
The latest Island Class ferry for BC Ferries.
compelling shipowners to adopt cleaner propulsion systems and reduce environmental impact. This transition is accelerating investments in alternative fuels, energy-efficient hull designs and emissions control technologies,” it added.
Decarbonisation remains a central trend, it said, with shipbuilders prioritising vessels designed for reduced emissions and compliance with IMO standards. Alternative fuel adoption( including liquefied natural gas; methanol; hydrogen; ammonia, electricity; nuclear and renewables) is reshaping vessel design frameworks. Shipbuilders capable of delivering hydrogen-ready, ammonia-fuelled and hybrid vessels are well positioned to capture emerging market segments.
Supply chain localisation and the demand for smart vessels( equipped with advanced navigation and monitoring systems) are also emerging as key trends. High-endurance autonomous vessel technology for naval operations is a new and developing trend. These unmanned systems are expected to complement traditional crewed ships in the future.
“ Naval procurement programmes are also contributing to demand stability. Governments in the United States and other regions are prioritising fleet modernisation to strengthen maritime security. These long-term contracts provide predictable revenue streams and support capacity utilisation in specialised shipyards. Offshore energy development, particularly in renewable sectors, is creating additional demand for specialised vessels designed for installation and maintenance operations,” highlighted the analyst.
Image: Damen Shipyards.
ISMR June 2026 | ismr. net | 17