Some nations bet on shipbuilding to drive economic growth
Western shipbuilding companies face intense competition from Asian rivals.
Interest in shipbuilding is increasing, with some countries considering it a critical factor in their growth strategies.
According to the United Nations Trade and Development’s (UNCTAD) latest maritime industry analysis, Asian shipbuilders are showing potential to become a major rival for Western firms, as the US averaged only 0.04% of global shipbuilding output in 2024 and only 0.1% of the global orderbook by gross tonnage at the start of 2025.
“The share by gross tonnage of ships registered under the United States’ flag and operating internationally has declined since the 1980s, alongside growth in open registries such as Liberia, Panama and the Republic of the Marshall Islands,” the report read.
UNCTAD said about 348 operational shipyards worldwide reportedly secured new contracts or completed deliveries in 2024. This is half the peak of 2007 before shipyard consolidation.
Over the years, China has emerged as a leading global shipbuilder, with the East Asian superpower accounting for half of the world's shipbuilding output by gross tonnage in 2023. In 2024, this share increased to around 55%, as it also accounted for 74.4% of contracted gross tonnage.
At the start of 2025, it had 63.7% of the global orderbook by gross tonnage. As of May 2025, 6 of the 10 leading shipyard groups were in China.
“Support through targeted industrial policy, available capacity, cost competitiveness and reliance on a comprehensive shipbuilding supply chain have helped China’s shipbuilding expansion,” the report read.
In 2024, China entered a new phase of shipbuilding expansion. Once this is complete, the current global shipbuilding capacity is projected to grow by about 200 more ships per year, with total capacity rising to 1,700 ships per year.
South Korea and Japan are also major players in shipbuilding, leading in the high-value and high-tech segment. Specifically, Seoul accounted for 28.02% of the global shipbuilding output in 2024, ranking next to China, whilst Tokyo accounted for 12.56%.
However, the South Korean market specifically is facing labour issues, leading the Government to relax national immigration laws in 2023. The government also set up a shipbuilding training centre in Indonesia in 2024, whilst shipbuilders are investing abroad and outsourcing production to China, the Philippines and Viet Nam to expand their production base.
“In the longer term, leading shipbuilders such as Japan and the Republic of Korea could regain some market share by leveraging technology and taking advantage of anticipated growth in demand for higher-value ships fitted with energy-saving technologies or running on low- or zero-carbon fuels,” UNCTAD said.
