The global shipbuilding industry is entering a pivotal phase as countries accelerate fleet modernization, expand energy transportation capacity, and enhance maritime security. Once a widely distributed industrial ecosystem, shipbuilding today is heavily centralized in East Asia, where large shipyards and state-backed financing models shape global output patterns. Rising demand for next-generation vessels—ranging from LNG carriers and dual-fuel containerships to offshore wind service vessels and high-performance naval platforms—continues to redefine growth trajectories.
According to the latest analysis from Coherent Market Insights, the Shipbuilding Market is expected to reach US$ 160.74 billion by the end of 2025 and exhibit a CAGR of 3.6% between 2025 and 2032. Sustainability transitions, maritime trade growth, and accelerating naval procurement programs worldwide primarily support the market 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
Global shipbuilding demand is accelerating as the industry shifts toward cleaner fuels and stricter IMO emission mandates. Fleet owners are replacing aging vessels with LNG-fueled carriers, methanol-ready containerships, ammonia-capable tankers, and hybrid-electric propulsion ships, prompting major South Korean and Chinese shipyards to secure long-term green-vessel contracts.
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.
Rising maritime trade—moving nearly 90% of global goods—is also boosting demand for large LNG carriers, while offshore wind expansion in Europe and the U.S. is increasing orders for WTIVs, service vessels, and cable-laying ships. Meanwhile, naval modernization programs across the U.S., India, Japan, South Korea, the U.K., and Australia continue to drive investments in frigates, submarines, and unmanned platforms, thereby strengthening military order books well into 2032.
Sources: Riviera
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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?
Investment in the global shipbuilding market spans four key segments: passenger, merchant, naval, and offshore vessels, each driven by evolving commercial and strategic priorities. Passenger vessels—including cruise liners, yachts, ferries, and Ro-Ro ships—are seeing renewed demand as global tourism recovers and operators modernize fleets with greener, more efficient designs.
The merchant segment, the largest by volume, covers bulk carriers, container vessels, tankers, LNG carriers, and specialized ships such as dredgers and tugs; this category continues to attract substantial investment due to rising seaborne trade and energy transport needs. In the naval segment, countries are accelerating the procurement of frigates, corvettes, patrol vessels, aircraft carriers, landing ships, and submarines to strengthen maritime security.
Meanwhile, the offshore segment—including FPSO/FSO units, LNG offshore platforms, OSVs, AHTS vessels, and PSVs—is expanding rapidly as offshore wind, LNG infrastructure, and deepwater exploration projects scale globally.
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Final Takeaway: The Future of Shipbuilding Through 2032
The next decade of global shipbuilding will be shaped by regional strengths and technology-focused differentiation. China will continue leading in overall production volume and commercial tonnage, supported by strong domestic financing and integrated supply chains. South Korea will retain its dominant position in premium, high-specification vessels, particularly LNG carriers and advanced containerships. Japan will remain competitive through its fuel-efficient bulk carriers and propulsion innovations, while Europe will hold its ground in complex cruise ships and specialized naval platforms.
As green-fuel transitions accelerate and maritime trade rebounds, the shipbuilding market is set for steady expansion. Together, regional leaders will drive a collaborative yet competitive global ecosystem where technology, sustainability, and industrial capability determine who commands the world’s oceans in the years ahead.
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