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Thursday 3 April 2014

Global Shipbuilding Market Report: 2013 Edition

Global Shipbuilding Market Report: 2013 Edition

The shipbuilding industry comprises the production of several vessels such as bulk carriers, tankers, and container ships, deployed for serving varied purposes. The global shipbuilding industry witnessed remarkable fluctuations. The very industry grew continuously from 2003 till 2007, but the industrial output moved in the negative quadrant during 2008-2009 on account of the ragged macro-economic conditions and financial crisis. The industry did perform modestly better in 2010, but again collapsed in 2011. The sluggish movement of global shipbuilding market was reflective of weak economic fundamentals, euro zone debt crisis, and unavailability of shipping loans.

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The industry outlook for 2013 appears bleak on account of over-capacities. The over-capacities are results of two key factors: the huge productivity improvements in shipyards over the last 30 years; and the over-investment in the industry. The industry stock value remained volatile in the European capital markets due to tighter ship financing and continuous fall in new building prices.

Shipbuilding industry is largely subjugated by Asian players, such as South Korea, China and Japan. China reined the market with the largest order-book in 2012, while Korea re-established its leadership position in new-building order activity. The emerging nations of the world such as India, Vietnam, Brazil, the Philippines, and Turkey recorded significant growth in their domestic shipbuilding industry.

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In 2012, the total shipyard orders declined as more tonnage was delivered than contracted. Only one-third of global yard capacity was in demand during the period cited. Small and medium-sized shipyards struggled to meet their delivery schedules. Therefore, it is expected that many yards will be running out of orders in the year 2013 and 2014.

On the industry development front, research and innovation is the core of shipbuilding industry; with worldwide companies in fray for introducing technologically advanced and eco-friendly products. The shipbuilding companies operate in an intensely competitive environment with productivity and production range of shipyards; research and development capabilities; and the level of worker skill and competence being the key factors driving contention. The shipbuilding industry is chiefly dominated by Korean players such as Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering, and Samsung Heavy Industries.

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The report analyzes the global shipbuilding market with focus on Europe, Korea, Japan and China. It discusses the major trends, growth drivers and challenges for the shipbuilding industry. The report presents the competitive structure of the industry and profiles major players with a discussion of their key business strategies.

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