Insider Monkey

Top 15 Shipbuilding Countries in the World

Ramish Cheema
8 min read

In This Article:

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.

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