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 ResearchAndMarkets.com's offering.
The Global Shipbuilding Market is expected to reach $176.1 billion by 2027, rising at a market growth of 3.4% CAGR during the forecast period.
Major factors responsible for the growth of the shipbuilding market are seaborne trade, rising demand for cargo transportation, increasing agreements related to trade, advanced technologies adopted by the marine vessel engines, and automation facilities in marine vessels.
COVID-19 Impact Analysis
The widespread COVID-19 pandemic resulted in the downfall of the economies of various countries. Strict regulations over import and export and the imposition of lockdown to curb the effects of COVID-19 has hampered the supply chains of majorly all the sectors. The shipbuilding market has also witnessed huge loss due to this pandemic.
Moreover, the pandemic has also negatively affected the establishment of new shipyards, conversion, and repairs projects. This pandemic also has forced many companies in this sector to stop their operations due to less demand in the market. For example, due to this pandemic, Irving shipbuilding has issued a notice which resulted in the shutdown of Halifax shipyard for a few weeks.
Market Growth Factors
Technological advancements
The rising development of the latest technologies in the shipbuilding sector is likely to result in the growth of the shipbuilding market. The major issue of the shipping industry is the communication gap. The role of shipyards is to enhance the efficiency of the transportation sector by reducing the time taken for the delivery of goods over the seas. But they face many issues due to different time zones and not having control over necessary information due to lack of proper communication facilities.
Increasing investment in naval defense
The safety and security of the country is the major concern of the ruling government of all the 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 thus there is a need to have proper defense facilities in the coastal regions.
Marketing Restraining Factor
Harmful for environment
The governments, as well as the public, are concerned about continuous environmental changes taking place all over the globe. The major contributors to these increasing climate changes and global warming are the various activities performed by the industrial sector. The shipbuilding industry is one of the pollution-causing industries. Similar to all other modes of transportation, ships also release carbon dioxide due to the use of fossil fuels.
Type Outlook
On the basis of type, the shipbuilding market is segmented into oil 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 amounts of unpacked cargo, like coal, ore, cement, steel coils, grains. These ships can be abrasive as well as dense. These kinds of ships are designed to increase capacity, durability, and efficiency.
End Use Outlook
Based on end-use, the shipbuilding market is classified into transport and military. In 2020, the transport segment has dominated the shipbuilding market by acquiring the maximum revenue share. Ships are widely used for transportation of various commodities from large machines to even oil, and passengers also. This mode of transportation is widely being used since the last couple of years. Transportation through water is cheaper as compared to that of air, exempting the changing exchange rates and the currency adjustment factor which means the fee imposed on the carrier companies.
Regional Outlook
Region-wise, 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 rising development in the regional seaborne transportation and naval shipbuilding sector in the region is expected to support the shipbuilding industry. Countries such as China, Japan, and Korea are the major contributors to the shipbuilding market in the region.
Cardinal Matrix - Shipbuilding Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; General Dynamics Corporation is the major forerunner in the Shipbuilding Market. Companies such as Huntington Ingalls Industries, Inc., Samsung Heavy Industries Co., Ltd., Damen Shipyards Group are some of the key innovators in the Market.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include:
- Huntington Ingalls Industries, Inc.
- Samsung Heavy Industries Co., Ltd. (Samsung Group)
- Sumitomo Heavy Industries, Ltd.
- BAE Systems PLC
- Damen Shipyards Group
- China State Shipbuilding Corporation
- Fincantieri S.p.A. (CDP Industria S.p.A.)
- Korea Shipbuilding & Offshore Engineering Co. Ltd.
- General Dynamics Corporation
- Mitsubishi Heavy Industries Ltd.
Recent Strategies Deployed
Partnerships, Collaborations and Agreements
- Nov-2021: Samsung Heavy Industries collaborated with Microsoft Korea, a computer software, consumer electronics, personal computers, and related services providing company. Under this collaboration, Microsoft is expected to provide cloud computing service Azure, artificial intelligence, group chat software Teams, and metaverse technologies to Samsung. The company aimed to build up a collaboration system among every shipbuilding sector in its shipyard.
- Aug-2021: China State Shipbuilding Corporation (CSSC) came into an agreement with Shanghai municipal government. This agreement aimed to strengthen the development of high-end industries and advanced resources in Shanghai and enhance the development of the marine equipment industry along with the improvement of the industrial chain and supply chain.
- Jul-2021: Samsung Heavy Industries entered into a partnership with Dae Sun, a compatriot midsize shipbuilder. Under this partnership, Samsung Heavily is expected to share SVESSEL, a smart ship system, with Dae Sun. Through this partnership, the companies aimed to boost technology exchange in smart and eco-friendly ships and help shipbuilders gain a competitive advantage in the midsized shipbuilding market.
- Jun-2021: Samsung Heavy Industries partnered with 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 power ships and market offshore power plants, and plan to build nuclear-powered merchant ships.
- Mar-2021: Korea Shipbuilding & Offshore Engineering (KSOE) came into partnership with Korean Register (KR), a not-for-profit classification society offering verification and certification services for ships and marine structures. Under this partnership, the companies aimed to design the world's first hydrogen vessel standard. In addition, companies signed an MOU on establishing safety design regulations with the hydrogen ships, reported Business Korea.
Product Launches and Product Expansions
- May-2021: Damen introduced its new product, Crane Barge 7532. By this launch, the yard is expected to make the end preparations for its coming journey to Huisman's Chinese yard in Fujian Province. The company took time to know the exact water depth required to perform the triumphant launch of the barge.
- May-2021: Damen Yichang Shipyard unveiled RoPax 6716 into the water. Port Authority of Timor-Leste (APORTIL) is expected to operate the vessel between Timor-Leste's capital Dili, the Oecusse enclave, and the Atauro island, carrying up to 308 passengers, vehicles, and cargo. In addition, this ferry is expected to enhance access to trade, employment, and education.
For more information about this report visit https://www.researchandmarkets.com/r/vtmfwy
