Global Shipbuilding Market Report: 2015 Edition - New Report by Koncept Analytics

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Global Shipbuilding Market Report ----------------------------------------2015


Executive Summary The shipbuilding industry is involved in the construction and modification of ships and these operations are carried out in specialized facilities called shipyards. The industry builds ships for commercial as well as military purposes. The shipbuilding market is segmented on the basis of ship type: Bulkers, Tankers, Containers, LPG & LNG and other special vessels. Shipbuilding industry is mostly dominated by Asian players, such as South Korea, China and Japan. Traditional large shipbuilders in the region, such as Korea, China, and Japan, as well as Southeast Asia, are enhancing their offshore capabilities and providing a single marine solution for both shipbuilding and offshore. In 2014, the global demand for shipbuilding declined primarily due to slow economic growth and imbalance in supply and demand of ship. The weaker demand was also due to increase in shipbuilding price and demand in 2013 along with freight rate declines in containership and bulk carrier that collectively contributed in decline of demand when compared to 2013. This report, “Global Shipbuilding Market� analyzes the development of the market on both global and regional level. Regional markets such as China, South Korea, Japan, Europe and other emerging markets have been analyzed. The major trends, growth drivers as well as issues being faced by the industry are being presented in this report. Increasing seaborne trade, strong commercial vessel market and increasing GDP of world economies among others are acting as growth drivers of the industry. Weakened ship prices and continued weakness in drillship new order market are some of the key trends of the industry. The industry is predominated by a handful of players including Hyundai Heavy Industries, Daewoo Shipbuilding, Mitsubishi Heavy Industries and Samsung Heavy Industries. The shipbuilding companies function in an extremely competitive environment with productivity, development capabilities and the skills and competence being the key aspects.


One of the major challenges faced by shipbuilding industry is orders backlog in the shipyard. Global Shipbuilding Deliveries (2008-2016E)  In 2014, global shipbuilding deliveries totaled … million GT, a decrease of …% from … million GT in 2013. Shipbuilding deliveries was at its peak in the year 2011 with volume … million GT. In 2015, shipbuilding deliveries are estimated to slightly increase to … million GT.

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 Global shipbuilding orderbook from 2008 declined continuously up till 2012 by … million GT. However, the year 2013 witnessed an increase of … million GT and in 2014 it was … million GT, an increase of …% from … million GT of previous year.  Global shipbuilding completions from 2008 to 2014 reflect a bell shaped curve with highest … million GT completions in 2011. However, in 2014 completions declined by …% to … million GT from … million GT in 2013. 2008

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Global Shipbuilding Orderbook (2008-2014)

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Global Shipbuilding Completions (2008-2014)

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By product, crude oil is traded more among others through sea. Global Shipbuilding New Orders (2008-2014)

 The global shipbuilding new orders have gone through many ups and downs during 2008 to 2014 with highest new orders of .. million GT in 2013. In 2014, it was ... million GT, a decrease of ..% from prior year.

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 Global shipbuilding industry is directly affected by world seaborne trade. From 2009 onwards volume of seaborne trade is increasing continuously from … billion tonnes to … billion tonnes in 2013 at a CAGR of ..%. It is estimated that seaborne trade volume reached … billion tonnes in 2014, representing an increase of …% from 2013.  Demand for commercial vessels remains sluggish. To date in 2015, the global new order volume for commercial vessels stands at … million DWT. Though, new orders for large-sized containership will accelerate by year end. 2008

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Global Seaborne Trade (2009-2014E)

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Global Commercial Vessel Market (2008-2014)

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The Korean shipbuilding industry outperformed Chinese firms in the amount of ship deliveries in the last five years . China’s Shipbuilding Activity (2008-2014)

 In 2014, China’s new orders and completions witnessed a decrease of ..million GT and … million GT when compared to 2013. In contrast, orderbook increased by … million GT to … million GT in 2014.

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 The Korean shipbuilding industry has performed generally well in the recent past. However, since 2011 output has gradually declined, to … million GT in 2014, reflecting a sharp drop in new contracts after the financial crisis. However, the orderbook is recovering from 2012 onwards reaching to … million GT in 2014.

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New Orders

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 In 2014, Japan witnessed an increase in new orders by … million GT reaching to … million GT, also total orderbook increased from …million GT in 2013 to … million GT in 2014. In contrast, shipbuilding completions declined slightly by …% to … million GT in 2014.

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South Korea's Shipbuilding Activity (2008-2014)

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Japan's Shipbuilding Activity (2008-2014)

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The shipbuilding market is segmented on the basis of ship type, of which Bulkers make up the largest demand.

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Global Demand Market Outlook for Shipbuilding (2013-2018E)

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Prospects for the global shipbuilding industry in 2015 do not appear overly positive. With an already-large orderbook in all of the three major shipping market sectors (bulk carriers, container ships, and tankers), there appears little opportunity for shipyards to increase relatively low, and in many cases unprofitable, pricing levels as new orders continue on their downward spiral. The major shipbuilding groups in South Korea and China are certainly focusing their marketing strategies on other vessel sectors, with the liquefied natural gas (LNG) and larger liquefied petroleum gas (LPG) sectors now being the focus of most attention. While there is certainly new business in the offing, and shipbuilding production in 2015 will continue at high levels because of ordering boom of 2013 and 2014, in general the shipping markets are expected to continue to be over tonnage throughout much of 2015.

In 2014, the global demand for shipbuilding declined by … million GT to … million GT primarily due to slow economic growth and imbalance in supply and demand of ship. The weaker demand was also due to increase in shipbuilding price and demand in 2013 along with freight rate declines in containership and bulk carrier that collectively contributed in decline of demand by …% in 2014 when compared to 2013.

In 2015, the lower demand for offshore vessel, investment decline in Eco-ship, higher level of backlog and with demand expected in mega-sized containership, LNGC, VLCC the global demand for shipbuilding is expected to reach … million GT similar to 2014. Global capacity is estimated to remain within the bracket of … to … million GT up to 2018.


Contact Us: These are abridged and sanitized sample pages from the comprehensive report on the “Global Shipbuilding Market”. To know more about this report or for any customized research requirement, please contact the following:

Koncept Analytics

Vikas Gupta BD Manager

CS-36, Second Floor, Ansal Plaza Vaishali, Ghaziabad, U.P. – 201010 T. +91-120-4130959 C: +91-9811715635 vikas@konceptanalytics.com

www.konceptanalytics.com


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