In this piece, we will take a look at the top 15 shipbuilding countries in the world. For more countries, head on over to 5 Biggest Shipbuilding Countries in the World.
While it’s the airplanes that often steal the show, ships form an integral part of the global economy, for both supply chains and military purposes. A large portion of America’s ability of power projection comes through its aircraft carriers. These are among the largest ships in the world, and there are only thirteen countries in the world that operate them.
As of now, there are 29 aircraft carriers that are operational, out of which, more than one third is with the U.S. Navy – which is only the military force in the world with carriers in the double digits. Most of these are the Nimitz class carriers that became operational during the Cold War era and are capable of operating for 20 years without having to dock. The largest carrier in the navy’s fleet is the Gerald R. Ford class carrier, the first of which became operational in 2017 and is capable of operating for a whopping 50 years without the need to refuel.
The shipbuilding industry is a diverse enterprise. A research report from Market Reports World points out that business is booming in the sector. According to the research firm, the global shipbuilding industry was worth $167 billion in 2022 and it will grow at a compounded annual growth rate (CAGR) of 5.45% between then and 2028 to be worth an estimated $229 billion by the end of the forecast period.
A report from Straits Research shares that the industry was worth $139 billion in 2021 and will have a CAGR of 3% to sit at an estimated $181 billion by 2030 end. The research firm adds that the bulk of the industry involves building ships for trade purposes, especially since 90% of all global freight is transported on the ocean. The growth in global trade acts as a stimulant for the shipbuilding industry as well, since more firms require large vessels to haul containers, dry goods, chemicals, oil, and other products all over the world. Within the sector itself, the vessel segment will outpace the broader market in terms of growth by posting a 4.97% CAGR. These vessels include bulk and dry bulk carriers which transport goods such as fertilizers and coal. Building on this, Straits Research adds that the transportation sector is the biggest user of ships as well, and it will also grow faster than the industry by posting a 4.85% CAGR. Asia is the global leader in the shipbuilding sector, with 85% of the total activity present in the region.
Within the industry, the push towards reduced emissions and environmentally friendly ships is also taking hold. A lot of this is influenced by the fact that ships, simply due to the vast number which sail the oceans, are responsible for vast chunks of carbon dioxide and other emissions. In fact, according to Oceana – an organization that aims to protect the world’s oceans – more than three percent of global carbon dioxide emissions are due to the global shipping industry. In percentage terms, this is comparable to Japan, which was the world’s fifth largest C02 emitter in percentage terms in 2017, after China, the U.S., Russia, and India.
This spotlight on the industry has perhaps come at the right time, as estimates from European Commission fear that if left unchecked, the growth in maritime trade that we’ve also mentioned above will make the shipping sector a greater culprit in the global emissions crime. It estimates that without prompt actions, carbon dioxide emissions from the sector can touch as much as 13% of the total global emissions. The United Nations’ International Maritime Organization, made up of 175 member states, aims to make member countries cut down shipping emissions to half by 2050 from the levels at which they stood in 2008. Some of the strategies introduced by the IMO could also see the firms generate a stunning $3.7 trillion dollars by 2050.
Some technologies that are currently being developed in the shipbuilding industry to combat greenhouse gas emissions include solid oxide fuel cells (SOFC) which are among the most efficient at reducing emissions. These cells are flexible and can be powered by liquefied natural gas (LNG), liquefied petroleum gas (LPG), ammonia, and other fuels. These are capable of efficiencies greater than 80% since they have a high operating temperature that exceeds 800 degrees centigrade. Commercially available proton exchange membrane FC (PEMFC) are also quite powerful, and can generate up to 3.2 megawatts of electricity.
Photo by Dorian Mongel on Unsplash
Some of the largest shipbuilding companies in the world are located in Asia, which include Mitsubishi Heavy Industries Ltd, Daewoo Shipbuilding & Marine Engineering Co. Ltd, Sumitomo Heavy Industries, and China State Shipbuilding Corporation.
As for the U.S., here’s what Huntington Ingalls Industries, Inc. (NYSE:HII), the builder of the Gerald R. Ford aircraft carrier, had to say during its latest earnings call with analysts in February 2023 about last year’s performance and what lies ahead:
Significant wins in 2022 included, the Decisive Mission Actions and Technology Services contract, Mobility Air Forces Distributed Mission Operations contract and the Remus 300 selection as the U.S. Navy as small UUV program of record. From an operational perspective, we have integrated Alion into our Mission Technologies and HII team and with the integration complete, we can turn our full attention towards executing our growth strategy. Moving on to slide four. We are providing the major milestones for 2023 and 2024. I am proud to say that we met all of the Shipbuilding milestones that we highlighted back in the second quarter of last year for 2022 and we are maintaining all of the 2023 milestones. This demonstrates growing confidence in our ship schedules and provides a solid platform to continue to improve our cost performance.
Notable anticipated 2023 milestones at Newport News include the planned delivery of SSN 796 New Jersey and planned float off of SSN 798 Massachusetts, as well as the planned re-delivery of CVN 73 and planned crew move aboard on CVN 79. At Ingalls, DDG 125, NSC 10 Calhoun and LPD 29 Richard M. McCool Jr. are all forecast to deliver this year, while LHA 8 Bougainville is expected to launch. In addition to these Shipbuilding milestones, Mission Technologies expects to see continued growth resulting from our large opportunity pipeline, including the several award decisions that we expect to be made in the first half of the year.
Our Methodology
To compile our list, we used data from the United Nations Conference on Trade and Development (UNCTAD) which lists down the percentage of ships built in 2021 by countries around the globe.
Top 15 Shipbuilding Countries in the World
15. Republic of India
Percentage of Global Ships Built In 2021: 0.12%
The Republic of India is the world’s second largest country in terms of population and the third biggest economy in the world in terms of purchasing power parity. There are numerous shipbuilding yards in India, which are owned by both the government and the private sector.
14. Netherlands
Percentage of Global Ships Built In 2021: 0.19%
The Netherlands, also known as Holland, is a prosperous European country. It has a historic link with shipbuilding, as it is one of the first colonial powers in the world which built its empire through ships and sailing through the oceans. The Dutch have been making ships for hundreds of years now.
13. Republic of Turkiye
Percentage of Global Ships Built In 2021: 0.22%
The Republic of Turkiye is a European and Asian country. It has a $3.54 trillion economy and a $40,883 GDP per capita. Turkey has an advanced shipbuilding sector, especially when it comes to specialized small tonnage chemical tankers.
12. Russian Federation
Percentage of Global Ships Built In 2021: 0.22%
The Russian Federation, or Russia, is the largest country in the world in landmass. It is also of the few countries with aircraft carriers, and it has dozens of shipyards all over its territory. Some of Russia’s shipyards have been operating for centuries, and the state owned United Shipbuilding Corporation is a major player.
11. Kingdom of Norway
Percentage of Global Ships Built In 2021: 0.24%
The Kingdom of Norway is a prosperous European nation. Most of its shipbuilding facilities are located on the West Coast, and they are highly specialized, with some focusing on cruise ships and others on fishing ships.
10. French Republic
Percentage of Global Ships Built In 2021: 0.29%
The French Republic, or France, is a developed European country and one of the few with an aircraft carrier. It is Europe’s second largest shipbuilder after Germany and it has several shipyards including some of the world’s largest.
9. Republic of China
Percentage of Global Ships Built In 2021: 0.30%
The Republic of China, also known as Taiwan, is a disputed region in the South China Sea. Its shipbuilding industry is concentrated around Kaohsiung, with CSBC Corporation, Taiwan being a major player.
8. Republic of Finland
Percentage of Global Ships Built In 2021: 0.36%
The Republic of Finland received a boost to its shipbuilding industry after reparations were paid to the Soviet Union after the Second World War. Its biggest shipbuilding companies are Meyer Turku and Rauma Marine Constructions.
7. Socialist Republic of Vietnam
Percentage of Global Ships Built In 2021: 0.61%
The Socialist Republic of Vietnam is an Asian country. It has more than a hundred ports and almost two dozen shipyards
6. Federal Republic of Germany
Percentage of Global Ships Built In 2021: 0.63%
The Federal Republic of Germany is specialized in primarily building cruise ships.
Click to continue reading and see Top 5 Shipbuilding Countries in the World.
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Disclosure: None. Top 15 Shipbuilding Countries in the World is originally published on Insider Monkey.