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.
World New Orders, Shipbuilding Statictics, March 2011
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Note 1: Ship Size Coverage : 100 Gross Tonnage and over.
Note 2: Europe total=Former AWES(present CESA) countries. Excludes Poland (member from '95) , Rumania ('00), Croatia('02), Lithuania & Bulgaria('09) for comparisons
Source: IHS (Former Lloyd's Register) "World Shipbuilding Statistics"; The Shipbuilders' Association of Japan
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.
Industry Leaders
Shipbuilders Daewoo Shipping and Marine Engineering, Hyundai Heavy Industries, and Samsun Heavy Industries lead shipbuilding production in Asia.
Daewoo Shipping and Marine Engineering Co manufactures special purpose ships such as liquefied petroleum gas carriers, oil tankers and passenger ferries. The company also makes offshore structures including drilling rigs and fixed platforms. The South Korea-based company employs more than 12,000 people, and has been in operation for almost four decades.
STX Europe is the number one green shipbuilding in the EU, boasting eco friendly vessels with low fuel consumption, excellent sea performance in extreme weather conditions. STX Europe AS operates six shipyards in Norway, France and Finland. The company has around 16,000 employees.
Market Outlook
As with a range of other industries, the global shipbuilding industry is increasingly concerned with limiting environmental harm. Both demand and manufacturing processes are focusing on adhering to environmental regulations such as cutting carbon emissions.
Overall market drivers affecting the shipbuilding industry include seaborne trade, demand for oil and economic climate. Demand is also spurred by increasing financial resources for military vessels such as submarines, aircraft carriers, warfare ships and transport vessels.
One of the main challenges facing the shipbuilding industry remains delays in deliveries. Moving forward, cost effective, environmentally friendly vessels, optimization of shipyard capacity and prompt delivery will be key to market growth.
Leading Industry Associations
- Shipbuilders Council of America www.shipbuilders.org
- American Shipbuilding Association www.americanshipbuilding.com
- Institute of Shipbuilding Technology www.isbt.ac.in
- Community of European Shipyards Associations www.cesa.eu
- Shipbuilders & Shiprepairers Association www.ssa.org.uk
- Shipbuilders Association of Japan www.sajn.or.jp
