Ship & Boat Building Market

Ship & Boat Building Market Outlook (2024 to 2034)

Expanding at a CAGR of 11.1%, the global ship & boat building market is projected to increase from a valuation of US$ 183.69 billion in 2024 to US$ 527.61 billion by 2034.

The process of designing and creating large marine boats in a specialized facility called a shipyard is referred to as ship construction. Oil tankers, bulk carriers, container ships, cruise ships, ferries, tugs, and military boats are all included in this category. Steel, aluminum, alloys, wood, glass fibers, foam polymers, and composites are just some of the basic materials used in shipbuilding.

Panel construction, block building, section assembly, launching, pre-outfitting, erection, painting, and slipway outfitting are some of the production processes involved. To guarantee hull integrity and optimal operation of onboard equipment, manufactured ships go through several testing processes, including hydrostatic tests, sea trials, and engine tests.

The need for luxury boats, growing maritime trade, and rising leisure boating activities all highlight the need for the boat manufacturing industry. Important uses range from recreational boats to specialized ships for military purposes. Individual customers, travel agencies, business traders, and defense organizations are all included in the wide range of end users.

Technological developments, such as the incorporation of AI and IoT for intelligent navigation systems, and the trend toward sustainability, which is shown in the growing popularity of hybrid and completely electric boats, are growth factors. New prospects are presented by the growth in water sports and marine tourism, especially in potentially high growth economies.

The potential of this industry is further enhanced by favorable government laws that encourage marine trade.

Report Attribute	Detail
Ship & Boat Building Market Size (2024E)	US$ 183.69 Billion
Forecasted Market Value (2034F)	US$ 527.61 Billion
Global Market Growth Rate (2024 to 2034)	11.1% CAGR
East Asia Market Growth Rate (2024 to 2034)	11.6%
North America Market Value (2034F)	4.77 Billion
Tankers Segment Value (2034F)	US$ 115.27 Billion
Passenger Companies Segment Value (2034F)	US$ 14.4 Billion
Key Companies Profiled	Mitsubishi Heavy Industries Ltd; Hyundai Heavy Industries Co. Ltd; China State Shipbuilding Corporation; Daewoo Shipbuilding & Marine Engineering Co. Ltd.; Samsung Heavy Industries; Sumitomo Heavy Industries; Hanjin Heavy Industries and Construction Co.; Yangzijiang Shipbuilding Ltd; United Shipbuilding Corporation; STX Group

What is Making the Market for Ship and Boat Building Jump to New Heights?

“Rising International Trades Fastening Economic Growth”

One of the main drivers of market expansion is the increase in international seaborne trade brought on by fast economic growth and globalization.

Because of their great load-carrying capacity, affordability, and fuel efficiency, shipbuilding is widely used to build bulk carriers, larger cargo ships, and tankers that are used for transporting petroleum products, crude oils, mineral ores, steel, vehicles, raw materials, fruits and vegetables, consumer electronics, machinery, and other similar manufactured goods.

Another element driving development is the execution of several government programs to increase marine commerce, such as building new port infrastructure and establishing free trade agreements. In addition, the need for shipbuilding to build cutting-edge military vessels, including frigates, aircraft carriers, cruisers, destroyers, littoral combat ships, full-service carriers, fast patrol vessels, corvettes, and amphibious assault ships is facilitated by the rapid modernization of the military and rising defense spending.

Furthermore, the market is expanding favorably due to the use of a modular construction strategy in shipbuilding, which enables several shipyards to create significant ship parts before final assembly and testing. This technique saves time, improves quality, and lowers prices, which is further contributing to the overall expansion of the ship & boat building market growth.

The use of augmented and virtual reality (AR/VR) technology in shipbuilding is driving market expansion by giving workers immersive training and enabling engineers to visualize digital data to confirm design concepts. The market is expanding because of other factors, such as growing import and export activities, rising demand for environment-friendly ships, and the use of robotics in shipbuilding, which is subsequently resulting in rising ship & boat building market size.

“World Becoming More Interconnected Making Globalized Trade More Common”

Marine transportation is the backbone of globalized trade and the manufacturing supply chain, accounting for about four-fifths of all international merchandise transactions. Over the past ten years, the volume of trade has increased at a growth rate of more than 10%. The far more notable increase in import volume is explained by the surge in consumer demand in potentially high growth countries.

Over time, the need for marine transportation has grown, leading to a rise in import and export activities worldwide.

Opportunities for international commerce in products are growing as globalization becomes entrenched in several economies, providing a wider range of commodities at different price points. Since 75% of European goods are imported from outside sources by sea, shipping is the most cost-effective way to operate. Cargo ships are the most common maritime vessels used in commerce.

Global import and export volumes increased because of the growing need for marine transportation.

What is Slowing Down Manufacturers to Make Huge Profits?

“Workforce Management Becoming Major Hindrance”

The stability of the workforce significantly affects the growth and decline of the shipbuilding industry. Moreover, the shipbuilding sector recently suffered a shortage of new workers and an aging working base because of the lack of resources. There is a labor shortage due to young people selecting white-collar jobs over other career options.

BAE Systems Ship Repair yard’s general manager stated in one of his recent interviews in Florida, that the average age of the yard's personnel is 55 and that most of the workers and professional managers are retiring.

The growth of the shipbuilding sector is also hampered by differences in the yard's workflow. The Virginia Ship Repair Association's president stated in a different interview that the high level of workplace stress on workers makes it hard for them to acquire and retain new staff, which makes an impact on the company.

Country-wise Analysis

The world is more interconnected than ever and countries need to work on their coastlines to streamline the transportation of goods process, which is further driving the sales of ships thus making manufacturers' profits escalate. The market in South Korea with a good coastline is contributing heavily to the ship & boat building market share in East Asia.

What is Leading to Growing Profit Margins for Manufacturers in the United States?

“Global Power Leading to More Marine Time Trades and Exports and Imports”

Attribute	United States
Market Value (2024E)	US$ 1.63 Billion
Growth Rate (2024 to 2034)	10.02% CAGR
Projected Value (2034F)	US$ 4.24 Billion

The growing profit margins for manufacturers in the United States are largely driven by the country's position as a global power engaged in extensive maritime trade. As international commerce continues to expand, manufacturers in the United States are benefitting from increased exports and imports, which enhance their market opportunities.

The demand for high-quality American-made products, particularly in the maritime industry, supports competitive pricing and profitability. Moreover, advancements in technology and automation are enabling manufacturers to improve efficiency, reduce production costs, and increase output.

Why is the Market in China Showing Significant Growth in Ship and Boat Building?

“Established Reputation of Exporting Making Ship Building a Good Business for the Country”

Attribute	China
Market Value (2024E)	US$ 63.73 Billion
Growth Rate (2024 to 2034)	12% CAGR
Projected Value (2034F)	US$ 197.3 Billion

The significant growth in ship and boat building in China is attributed to the country's established reputation as a leading exporter. Over the years, China developed a strong industrial base, enabling it to produce ships and boats efficiently and cost-effectively.

The government invested heavily in infrastructure and technology, enhancing production capacities and fostering innovation within the maritime industry. Moreover, China's strategic location along with key trade routes provides easy access to global markets, further promoting export activities.

Category-wise Evaluation

Several products and services are available in the market to make it an easy process for freight business to carry out their operations. Some of the major products and services include bulk carriers, dry cargo ships, and tankers.

Which Products and Services are Highly Common in this Market?

“Bulk Carriers Becoming Increasingly Profitable for Ship and Boat Building Manufacturers”

Attribute	Bulk Carriers
Segment Value (2024E)	US$ 57.44 Billion
Growth Rate (2024 to 2034)	10.3% CAGR
Projected Value (2034F)	US$ 152.73 Billion

In the current maritime landscape, bulk carriers emerged as a highly profitable segment for ship and boat building manufacturers. These vessels are designed to transport unpackaged bulk cargo, such as grains, coal, and minerals, which account for a significant share of international trade.

The demand for bulk carriers is driven by global economic growth and the increasing need for efficient transportation of raw materials. In addition, several manufacturers are focusing on innovative technologies to enhance fuel efficiency and reduce emissions, responding to environmental regulations.

What Major Market is Heavily Investing in Ships and Cruises?

“Commodity Carriers Businesses Increasingly Investing in the Ships and Boats”

Attribute	Commodity Carrier
Segment Value (2024E)	US$ 101.98 Billion
Growth Rate (2024 to 2034)	10.5% CAGR
Projected Value (2034F)	US$ 276.19 Billion

The commodity carriers segment is currently witnessing substantial investments, particularly in ships and boats. This surge is fueled by the growing demand for transporting commodities, such as coal, iron ore, and agricultural products across several regions.

Major industry players and shipping companies are ramping up investments in modernizing their fleets to improve efficiencies and meet evolving regulatory standards. The trend toward larger, more efficient vessels, coupled with advances in maritime technology, is attracting capital from both established shipping companies and new entrants eager to capture market share.

Business Landscape

Key players in the ship & boat building market are focusing on introducing new facilities to make ship transport more convenient, which is further positively impacting the ship & boat building market trends.

• China Merchants Energy Shipping ordered multiple newcastlemax bulk ships from New Times Shipbuilding in June 2024. The Jiangsu-based shipyard has been hired by the Hong Kong-based company to build eight additional buildings with a combined 210,000-dwt capacity for conventional marine fuel. The facilities are expected to be delivered in 2028.
• In June 2024, Damen Shipyards signed a contract with the Portland Harbour Authority (PHA) in the United Kingdom to supply one of its newest tugs, Damen ASD Tug 2111. The incredibly agile and 21-meter-long ASD Tug 2111 has the capacity to pull 50 tons of bollards.

Fact.MR provides detailed information about the price points of key players in the ship & boat building market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Ship & Boat Building Market Research

• By Product & Service:

  • Bulk Carriers
  • Dry Cargo Ships
  • Tankers
  • Others

• By Major Market:

  • Commodity Carriers
  • Containers & Other Cargo Lines
  • Passenger Companies
  • Others

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa