Ships and Boats: Trends, Developments and Prospects

Market value recovers

Market value grew by 3% CAGR over 2008-2014 to reach US$379.3 billion in the latter year. Growth accelerated towards the end of the review period, as weak demand for shipping and overcapacity suppressed demand over 2008-2011.

Production dominated by China and South Korea

Production value expanded at a CAGR of 5% over 2008-2014 to reach US$401.1 billion in the latter year. Growth was largely fuelled by excess investment in Chinese shipyards. China and South Korea remained leaders, accounting for over 50% of global production value in 2014.

China’s shipyards suffer from overinvestment

China is the largest shipbuilder globally, although its shipyards suffer from overinvestment and overcapacity. To improve the situation Chinese authorities plan to focus on more lucrative market segments and close least promising ventures.

US shipyards see recovery

US shipyards have witnessed recovery since 2013 thanks to the shale oil boom and regulations relating to the Jones Act. US shipyards have around 25 new tanker projects in the pipeline, securing production over the upcoming years.

Shipping alliances boost demand for container megaships

The shipping industry is experiencing rapid consolidation and new alliances are placing orders for container megaships. Such ships will play a crucial role on most lucrative shipping routes and will help to reduce shipping costs.

Industry to continue recovery with increasing focus on green technologies

The industry is forecast to accelerate growth momentum with a CAGR of 5% over 2014-2020. The upsurge will be driven by recovering container ship traffic and lucrative niches for shipbuilders in the oil exploration and renewable energy markets. Attention to green technologies will increase due to stricter emissions and fuel consumption requirements in developed economies.