Global Market for Shipbuilding to Increase at CAGR of 22.7 Percent During 2011-2013

September 2, 2011

The global economic crisis has severely affected shipbuilding industry. However, with its capacity and experience, the industry is capable of surviving over the peaks and slumps of the economy. This is evident from the fact that while the global shipbuilding market suffered steep decline in new shipbuilding orders for two consecutive years spanning 2008 to 2009, a remarkable revival in new orders was witnessed in 2010 following the global economic recovery.

Further, with the reported increase in oil demand, stronger availability of financial support and continuously improving economic fundamentals, the market for shipbuilding is forecast to increase at a CAGR (Compound annual growth rate) of 22.7% (in terms of dwt) during 2011-2013.

After the European dominance during the middle of the last century, first Japan and then Korea took the lead and finally giving way to the Chinese dominance in global shipbuilding industry. Presently, China accounts for the largest market share in all major global shipbuilding activities. India, Vietnam, Brazil, and Philippines are the other emerging shipbuilding nations striving to compete for a share in the global market, while at the same time providing opportunities for the existing leading shipbuilding nations. Of the various vessels manufactured in the global shipbuilding market, bulk carriers, tankers, and container ships form the major categories.

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Source: researchandmarkets, September 2, 2011; Image:salis