The global shipbuilding industry is entering a pivotal phase as countries accelerate fleet modernization, expand energy transportation capacity, and enhance maritime security. While generally a dispersed industrial sector in the past, the modern shipbuilding sector has become increasingly East Asia-centric because of the influence of large shipbuilding companies' JV-oriented business structures. The need for a new generation of ships, such as LNG ships, DF cargo ships, OFSVs, and advanced naval ships, continuously rethinks the future of growth.
Below is a detailed breakdown of the key demand drivers, market forecast, and major segments shaping industry investment in the coming decade.
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What’s Driving Global Demand? Key Growth Forces for 2025–2032
The global market for shipbuilding is accelerating due to the adoption of cleaner fuels and stricter IMO emission standards. The requirement for replacing old vessels with LNG-powered vessels, methanol-ready vessels, ammonia-enabled tankers, and hybrid/electric vessels has encouraged large Chinese and Korean shipbuilders to take up long-term orders for ‘Green Ships’.
According to shipbuilding data, 2024 recorded around 55.7M CGT of alternative-fuelled tonnage, up from 47.2M CGT in 2022—an 18% increase driven largely by LNG- and methanol-capable container-ship orders. For instance, 70 methanol-fuelled vessels were ordered globally in 2024, reflecting growing confidence in methanol as a transitional fuel, along with the first set of ammonia-ready ship orders.
Growing maritime trade, pertinent to transporting almost 90% of goods by sea, is also increasing the demand for LNG carriers, apart from the expanding offshore wind farm contracts in the EU and US, resulting in an increase in demand for WTIVs, service vessels, and cable layer vessels. Simultaneously, navies in the US, India, Japan, South Korea, the UK, and Australia are undergoing modernization programs, increasing demands for frigates, submarines, and unmanned vessels, thus satisfying military demands until 2032.
(Sources: Riviera and Kushne Nagel)
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Forecast Numbers: How Big Will the Market Get?
The shipbuilding sector is poised for measured but strategically significant expansion through 2032, driven by both commercial transformation and renewed maritime security priorities. Several structural trends: the accelerated transition toward low-carbon fleets, a global shift to alternative fuels, and a rising need for specialized vessels across energy and offshore industries are shaping this momentum.
Regional orderbook trends highlight the dominance of Asia Pacific, which represents around 40% of global activity and is anchored by major shipbuilding clusters in China, South Korea, and Japan. China recorded the world’s largest order backlog in 2024—96.8M CGT, equal to 59% of global share, underscoring its shipbuilding strength.
(Sources: Korea Joongang Daily)
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Major Segments: Where Are Investments Flowing?
The investments made in the global shipbuilding market are for four major segments of passenger, merchant, naval, and offshore ships. Of these, passenger ships, which include cruise liners, yachts, ferries, and Ro-Ro vessels, have started seeing a renewed interest due to the fact that the world tourism industry has now projected a positive outlook.
The merchant segment includes bulk carriers, container ships, tankers, LNG carriers, and other specialized vessels such as dredgers and tugboats. This is the biggest segment in terms of volumes and a major attraction for investors due to increasing ocean-bound cargo transport and energy shipping. The naval sector is also witnessing increased efforts by nations to buy frigates, corvettes, and patrol craft, besides aircraft carriers, landing ships, and submarines.
At the same time, the offshore segment, comprising FPSO/FSO vessels, LNG offshore platforms, OSVs, AHTS vessels, and PSVs, has also been observed to grow fast with the development of projects on offshore wind, LNG infrastructure, and exploration in deep waters.
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Final Takeaway: The Future of Shipbuilding Through 2032
The future outlook for the global shipbuilding industry will be shaped by “regional strengths and technology differentiators,” where China will continue to remain the leader in terms of global production volume. South Korea will continue to remain at the top in the category of “premium, high-specification ships” such as LNG carriers and high-tech container vessels. Japan will continue to remain strong with “fuel-efficient bulk carriers” and “propulsion systems,” while Europe will continue to “maintain its position” in cruise ships and “specialized naval vessels” respectively.
With the rate of transition to green fuels accelerating and international maritime trade on the mend, the future is bright for the global shipbuilding industry. Together, the region's biggest players are ready to kick off a competitively collaborative world in which innovation, sustainability, and capability determine who dominates the world’s oceans.
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