Global shipbuilding market expected to top $176 billion by 2027, with General Dynamics Corporation dominating revenue – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Global Shipbuilding Market by Type, By End-Use, By Regional Outlook, Industry Analysis Report and Forecast, 2021-2027” report has been added to from ResearchAndMarkets.com offer.
The global shipbuilding market is expected to reach $176.1 billion by 2027, growing at a market growth rate of 3.4% CAGR during the forecast period.
The major factors responsible for the growth of the shipbuilding market are maritime trade, increasing demand for cargo transportation, increase in trade-related agreements, advanced technologies adopted in ship engines and installation of ship automation.
COVID-19 Impact Analysis
The widespread COVID-19 pandemic has caused the economies of various countries to plummet. Strict import and export regulations and the imposition of lockdowns to limit the effects of COVID-19 have hampered supply chains in most sectors. The shipbuilding market has also suffered huge losses due to this pandemic.
Moreover, the pandemic has also had a negative impact on the creation of new shipyards, conversion and repair projects. This pandemic has also forced many companies in this sector to stop their activities due to the drop in demand in the market. For example, due to this pandemic, Irving Shipbuilding issued an advisory that resulted in the closure of the Halifax shipyard for a few weeks.
Market Growth Factors
The increasing development of latest technologies in the shipbuilding sector is expected to drive the growth of the shipbuilding market. The major problem of the shipping industry is the lack of communication. The role of shipyards is to improve the efficiency of the transport sector by reducing the time required to transport goods by sea. But they face many problems due to different time zones and lack of control over necessary information due to lack of proper communication facilities.
Increase investments in naval defense
The safety and security of the country is the main concern of the ruling government of all countries due to which the government prefers to invest more in the defense sector in terms of money and manpower. Moreover, the coastal regions are the most sensitive areas of any country as it is difficult to judge the unexpected movement in the water and thus have more chances of attacks from the enemies and therefore it is necessary to have appropriate defense installations in the coastal regions. .
Marketing Limiting Factor
Harmful to the environment
Governments, as well as the public, are concerned about the continuing environmental changes taking place around the world. The main contributors to these increasing climate changes and global warming are the various activities carried out by the industrial sector. The shipbuilding industry is one of the polluting industries. Like all other modes of transport, ships also release carbon dioxide due to the use of fossil fuels.
On the basis of type, the shipbuilding market is segmented into tankers, bulk carriers, general cargo ships, container ships and passenger ships. In 2020, the bulk carrier segment dominated the shipbuilding market with the largest market share. Bulk carriers are the merchant ships mainly developed to transport bulk quantities of unpackaged goods, like coal, ore, cement, steel coils, grain. These vessels can be both abrasive and dense. These types of vessels are designed to increase capacity, durability and efficiency.
Outlook end use
Based on end use, the shipbuilding market is classified into transportation and military. In 2020, the transportation segment dominated the shipbuilding market by acquiring the maximum revenue share. Ships are widely used for the transport of various goods, from large machinery to oil and passengers. This mode of transport has been widely used for the past two years. Water transport is cheaper than air transport, exempting changing exchange rates and currency adjustment factor, i.e. charges imposed on transport companies.
Regionally, the shipbuilding market is analyzed in North America, Europe, Asia-Pacific, LAMEA. In 2020, Asia-Pacific dominated the shipbuilding market by generating maximum revenue. The growing development of the regional shipping and shipbuilding sector in the region is expected to support the shipbuilding industry. Countries like China, Japan, and Korea are major contributors to the shipbuilding market in the region.
Cardinal Matrix – Shipbuilding Market Competitive Analysis
The major strategies followed by market players are partnerships. Based on the analysis presented in the cardinal matrix; General Dynamics Corporation is the leading forerunner in the shipbuilding market. Companies such as Huntington Ingalls Industries, Inc., Samsung Heavy Industries Co., Ltd., Damen Shipyards Group are some of the leading innovators in the market.
The market research report covers the analysis of major market players. Key companies profiled in the report include:
Huntington Ingalls Industries, Inc.
Samsung Heavy Industries Co., Ltd. (Samsung Group)
Sumitomo Heavy Industries, Ltd.
BAE Systems API
Damen Shipyards Group
State Shipbuilding Corporation of China
Fincantieri SpA (CDP Industria SpA)
Korea Shipbuilding & Offshore Engineering Co. Ltd.
General Dynamics Society
Mitsubishi Heavy Industries Ltd.
Recent Strategies Deployed
Partnerships, Collaborations and Agreements
Nov-2021: Samsung Heavy Industries has collaborated with Microsoft Korea, a company providing software, consumer electronics, personal computers and related services. As part of the collaboration, Microsoft is expected to provide Samsung with Azure cloud computing service, artificial intelligence, Teams group chat software and metaverse technologies. The company aimed to establish a system of collaboration between all shipbuilding sectors of its shipyard.
August 2021: China State Shipbuilding Corporation (CSSC) reached an agreement with the Shanghai municipal government. The agreement aimed to strengthen the development of high-end industries and advanced resources in Shanghai and strengthen the development of the marine equipment industry as well as the improvement of the industrial chain and the supply chain.
July 2021: Samsung Heavy Industries entered into a partnership with Dae Sun, a fellow mid-size shipbuilder. As part of the partnership, Samsung Heavy is expected to share SVESSEL, an intelligent ship system, with Dae Sun. Through this partnership, the companies aimed to stimulate technology exchange in smart and environmentally friendly ships and help shipbuilders gain a competitive edge in the mid-size shipbuilding market.
June 2021: Samsung Heavy Industries has partnered with the Korea Atomic Energy Research Institute (KAERI), a national nuclear research institute in the Republic of Korea. Through this partnership, the entities aimed to design molten salt reactors to propel ships and commercialize offshore power plants, and planned to build nuclear-powered merchant ships.
March 2021: Korea Shipbuilding & Offshore Engineering (KSOE) has entered into a partnership with Korean Register (KR), a non-profit classification society providing verification and certification services for ships and marine structures. Under the partnership, the companies aimed to design the world’s first hydrogen vessel standard. In addition, the companies have signed a memorandum of understanding on establishing safety design rules with hydrogen vessels, Business Korea reported.
Product launches and product extensions
May-2021: Damen introduced its new product, Crane Barge 7532. With this launch, the yard is expected to complete preparations for its upcoming trip to China’s Huisman yard in Fujian Province. The company was slow to learn the exact depth of water needed to perform the barge’s triumphant launch.
May-2021: Damen Yichang shipyard unveiled the RoPax 6716 in the water. The Port Authority of Timor-Leste (APORTIL) is expected to operate the vessel between the capital of Timor-Leste, Dili, the enclave of Oecusse and the island of Atauro, carrying up to 308 passengers, vehicles and goods. In addition, this ferry should improve access to trade, employment and education.
For more information on this report, visit https://www.researchandmarkets.com/r/vtmfwy