The global shipbuilding market was valued at USD 163.4 billion in 2025 and is projected to reach USD 245.9 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.6%, according to a recent market analysis. Growth in global trade, fleet modernisation, naval procurement and demand for next-generation vessels underpin this expansion.
Artificial intelligence and automated manufacturing as key trends
Shipyards are deploying AI-based machine vision and automated welding systems to detect plate defects in real time and boost production output, reducing processing on large block fabrication lines. Digital modelling of hull sections, propulsion systems and piping enables performance to be simulated before steel cutting, shortening design-to-delivery cycles for complex vessels such as LNG carriers and dual-fuel container ships.
Standardised modular block-construction platforms are also being adopted to compress build schedules and lower unit costs.
Fleet modernisation and government programmes as key drivers
Ageing naval fleets and heightened geopolitical tensions are pushing major maritime powers to accelerate warship replacement cycles, raising order volumes for frigates, destroyers and submarines. The China Association of the National Shipbuilding Industry reported 59.53 million DWT of new orders in the first quarter of 2026, reflecting a pronounced structural shift toward LNG carriers and dual-fuel vessels.
In its 2026 Shipbuilding Plan, the U.S. Department of the Navy set a goal of expanding its battle force fleet from 291 to 450 ships by 2031, including next-generation nuclear-powered warships and dozens of unmanned surface and undersea vessels.
Segment analysis
By vessel type: cargo ships hold the largest market share, with containerships alone accounting for roughly one third of new orders, while LNG carriers are expected to grow at the fastest rate.
By propulsion technology: conventional propulsion dominates, but LNG dual-fuel and alternative-fuel propulsion are projected to grow fastest, driven by stricter efficiency regulations and emission costs.
By material: steel holds the largest share, while composites and advanced alloys grow fastest, driven by their adoption in high-speed ferries, naval vessels and offshore support craft.
By end user: commercial shipping companies dominate, while offshore energy operators are projected to grow fastest, particularly in the Middle East.
Regional analysis
Asia-Pacific holds the largest market share, supported by strong shipbuilding industries in China, South Korea, Japan and India. China remains the region’s dominant hub, South Korea maintains its technological leadership, and India is emerging as a promising growth market. The Middle East and Africa are projected to be the fastest-growing region through 2034.
Key players
Leading shipbuilders include China State Shipbuilding Corporation, Hanwha Ocean, HD Hyundai Heavy Industries, Samsung Heavy Industries, Mitsubishi Heavy Industries, Imabari Shipbuilding, COSCO SHIPPING Heavy Industry, Yangzijiang Shipbuilding and New Times Shipbuilding, alongside European and American players such as Fincantieri, Damen Shipyards, Huntington Ingalls Industries, General Dynamics, Naval Group and thyssenkrupp Marine Systems.
Recent developments
- August 2025: Hanwha announced a USD 5 billion investment in Hanwha Philly Shipyard to expand and modernise U.S. shipbuilding capacity.
- February 2026: Hanwha Ocean signed a memorandum of understanding with Ontario Shipyards to support the relaunch of large-scale shipbuilding in Ontario.