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Global Shipbuilding Industry

The global shipbuilding market is expected to expand at almost 23% yearly through 2013, according to Koncept Analytics. The industry is involved in the construction of ships and floating vessels including tankers and bulk carriers. Drivers of growth in this market include rising demand for oil and an increasingly favorable economic climate. Though the market was hit by a fall off in demand in 2008 and 2009, the industry has been recovering since 2010, with a market rise in new orders. The global shipbuilding market is aggressive, with the competitive edge won by companies showing the highest degree of technical developments, productivity and skilled workforce.

Regional Leadership

China is the world leader in the global shipbuilding industry in terms of market share. Demand for raw materials is spurring growth on the Chinese bulk carrier shipping market, with rising demand for oil forecast to fuel the tanker shipping market. China is expected to come in line with most major shipbuilding countries. Other countries on the rise include India, Brazil, Vietnam and the Philippines. Germany has been hit by the economic downturn, which has left the country’s shipbuilding industry struggling with falling demand in the shipbuilding industry.

Key Market Segments

The world warships and naval vessels market is expected to exceed $75 billion in 2011, according to research from Visiongain. Global demand is being fuelled by economic growth in countries including India and China, where governments are eager to up their military standing in tandem with increasing economic power. Market sub segments include submarines, combatant vessels and non-combatant vessels. Demand for combatant vessels is on the rise in Western and developing nations.

Meanwhile, the US navy is awaiting a fleet of nuclear-powered aircraft carriers. The UK is in the process of procuring Type 45 destroyers and two aircraft carriers while France’s navy is awaiting delivery of amphibious warfare ships. India and China are in the process of growing their surface fleet. Developing countries, including Indonesia and Brazil, aim to expand their navies, while South Korea and Japan are both following China’s cue to replenish their naval capacity.

The world submarine market is forecast to grow at over 1% yearly from under $16.5 billion to over $18 billion within the next decade, according to ICD Research. Over 40 countries operate 450 submarines altogether, with many looking to modernize their fleet or boost current capability.

Over the next ten years almost 155 submarines will be furnished at a cost of over $186 billion. About half of the expected market growth will come from North America, representing over $87 billion. The EU is forecast to spend over $46 billion by 2021, accounting for a quarter of the global submarine market, followed by Asia, which has a forecast wroth of almost $45 billion, or nearly a quarter of the overall market. Argentina and Brazil hold just under 5% of the global submarine market, worth over $8.5 billion.

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Global Shipbuilding Industry

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Parent industry: Manufacturing
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