Marine Vessel Market Size, Growth, Share, Forecast and Analysis, 2024–2032

According to Fortune Business Insights™, the global marine vessel market size was valued at USD 152.38 billion in 2023 and is projected to grow from USD 160.56 billion in 2024 to USD 247.96 billion by 2032, exhibiting a CAGR of 5.6% during the forecast period. Asia Pacific dominated the market in 2023, accounting for 52.46% of the global share.

Market Overview

Marine vessels are essential for global trade and transportation, serving as the backbone for cargo and passenger movement across international waters. The sector is experiencing growth driven by increasing seaborne trade, technological advancements, and strong government support for domestic shipbuilding industries. Although the COVID-19 pandemic caused a temporary decline in shipping activities, long-term demand remains strong due to globalization and industrialization.

Shipbuilding, an industry with high capital intensity, plays a critical role in the market. Governments worldwide are investing in indigenous shipbuilding programs, ensuring political and economic stability in the sector.

Growth Factors

1. Rising International Maritime Trade

Maritime transport plays a critical role in sustaining global supply chains, as nearly 90% of world trade volume moves by sea. It remains the most cost-effective and environmentally friendly mode of transporting large quantities of goods across borders, producing significantly lower carbon emissions than road or air freight. According to UNCTAD, over 11 billion tons of goods were shipped in 2019, highlighting the immense scale of seaborne trade. Even during economic slowdowns, demand for crude oil, ores, coal, steel, agricultural produce, and finished goods such as motor vehicles continues to push marine transportation forward. This growing trade volume directly increases the demand for tankers, cargo ships, bulk carriers, and specialized vessels, which in turn fuels the global shipbuilding sector. Shipyards across Asia, particularly in China, Japan, and South Korea, have been witnessing record-breaking orders for new vessels, supported by both commercial operators and government-backed initiatives to modernize fleets.

2. Expansion of Trade-related Agreements

The increasing number of trade-related agreements between developed and developing economies has become another major driver for the marine vessel market. Free Trade Agreements (FTAs) and regional trade blocs help reduce or eliminate customs duties, streamline border checks, and simplify compliance procedures, which makes waterborne trade more attractive and efficient. This shift has encouraged suppliers and exporters to rely more on containerized cargo and bulk shipping routes, stimulating demand for larger and technologically advanced vessels. Moreover, the post-pandemic recovery has accelerated global trade flows, particularly in energy, raw materials, and consumer goods, driving up marine cargo movements. A key example is India’s participation in multilateral trade negotiations in September 2022, aimed at expanding export markets and improving access to critical imports like natural resources and intermediate goods. Similar initiatives across Asia-Pacific, Europe, and Latin America are creating favorable conditions for shipbuilding, as cargo operators seek to upgrade fleets with better fuel efficiency, digitalized operations, and compliance with stricter environmental regulations.

Restraining Factors

1. High Costs of Development and Maintenance

The construction of modern marine vessels demands substantial capital investment, as they are equipped with advanced propulsion systems, navigation technologies, communication modules, and integrated control systems. These components, while enhancing efficiency and compliance with global maritime regulations, significantly increase the initial cost of vessel development. Furthermore, the maintenance of these ships adds to the financial burden on operators. For older vessels, maintenance costs can account for 25% to 30% of total operational expenses, compared to around 10% for newer fleets. Rising costs are linked to unforeseen repairs, unavailability of spare parts, and the need for skilled technicians. This makes it difficult for smaller operators to remain competitive. Without proper maintenance planning and lifecycle cost management, expenses escalate quickly, limiting profitability and deterring new ship investments.

2. Rapid Technological Changes

The fast-paced evolution of marine technologies poses another major challenge for shipowners. The industry is under constant pressure to adopt innovations in propulsion, navigation, and environmental compliance systems, such as hybrid engines, LNG-powered systems, and digitalized monitoring platforms. While these upgrades improve operational efficiency and reduce emissions, they also result in frequent system overhauls, retrofits, and training requirements for crew members. This leads to higher operational costs and shorter technology cycles, forcing owners to spend more on modernization than anticipated. For example, new regulations such as the IMO 2023 GHG emission standards require ships to integrate energy efficiency and carbon reduction technologies, which demand heavy investments. Such rapid technological shifts place a financial strain on operators and shipbuilders, particularly in emerging markets.

Information Source:

https://www.fortunebusinessinsights.com/marine-vessel-market-102699

Market Trends

Digital Transformation in Shipbuilding

• Adoption of IoT, robotics, 3D printing, smart ship solutions, and hybrid propulsion systems is reshaping ship design and construction.

• Example: In July 2022, French LNG containment specialist GTT signed a contract to equip more than 30 LNG vessels with its GTT Digital smart shipping solution to optimize energy efficiency and environmental performance.

Segmentation Analysis

By Ship Type

In 2023, container ships accounted for the largest market share and are projected to remain the fastest-growing segment during the forecast period. The expansion of global e-commerce, rising seaborne trade, and increasing demand for efficient cargo handling systems are driving this growth. Container vessels are also adopting digitalized tracking systems and eco-friendly propulsion to meet stringent IMO environmental standards. For instance, in April 2023, China State Shipbuilding Corporation (CSSC) and CMA CGM signed a USD 3.06 billion contract to build 16 advanced container ships, reflecting industry confidence in containerized trade. Bulk carriers represented the second-fastest growing segment, driven by demand for transporting grains, coal, and ores. Industrial expansion and energy requirements in Asia-Pacific are further boosting demand for bulk shipping. In June 2023, Mitsui O.S.K. Lines announced a dual-fuel bulk carrier project equipped with LNG propulsion capabilities, showcasing the industry’s shift toward sustainable solutions.

By Dead Weight (DWT)

Ships ranging between 25,000 GT and 59,999 GT are expected to grow at the fastest pace, supported by increasing demand for chemical tankers and medium-sized container ships. These vessels provide flexibility in transporting specialized cargo, making them highly suitable for niche shipping requirements. Meanwhile, vessels above 60,000 GT dominated the market in 2023, largely due to their extensive use as bulk carriers and liquefied gas carriers. Global LNG and LPG transportation continues to rise, particularly across Asia and Europe, which is expected to sustain the dominance of this category.

By System

The propulsion system segment held the largest share in 2023 and is projected to grow at the fastest pace, primarily due to decarbonization initiatives such as the Carbon Intensity Indicator (CII) and IMO 2050 carbon-neutral goals. Shipowners are increasingly investing in dual-fuel engines, LNG-powered propulsion, and hybrid-electric solutions to reduce emissions and optimize fuel consumption. On the other hand, the deck machinery segment emerged as the second-fastest growing category, supported by the integration of automated mooring systems, advanced winches, and hybrid vessel applications that improve efficiency and reduce crew workload.

By Solution

Line-fit solutions dominated the market in 2023 and are anticipated to expand at the highest rate throughout the forecast period, driven by rising indigenous shipbuilding programs and large-scale contracts for new vessel construction. For example, in April 2023, CMA CGM and CSSC signed a USD 3.06 billion deal to build 21 container ships, underscoring the momentum in line-fit demand. Retrofit solutions are also gaining traction, supported by modernization efforts to extend the service life of vessels while meeting new regulatory standards. IMO 2023 greenhouse gas (GHG) emission regulations are compelling shipowners to retrofit older fleets with scrubbers, LNG propulsion, and hybrid systems.

Regional Insights

Asia Pacific

Asia Pacific emerged as the largest market in 2023, valued at USD 79.94 billion. The region’s dominance is reinforced by countries such as China, Japan, and South Korea, which together account for nearly 94% of global shipbuilding output (UNCTAD, 2021). Strong domestic demand, extensive shipbuilding infrastructure, and government-backed innovation in green shipping technologies continue to drive the region’s leadership.

Europe

Europe is the second-fastest growing market, supported by rising investments in LNG carriers and advanced ship designs. European shipbuilders are at the forefront of sustainable maritime solutions, focusing on low-emission propulsion systems and automation technologies that align with the region’s strict environmental regulations.

North America

North America is projected to record significant growth, largely driven by U.S. federal investments in next-generation naval and commercial vessels. The focus on modernizing naval fleets and developing eco-efficient ships is expected to strengthen the region’s position in the global marine vessel market.

Latin America

Latin America’s growth is primarily supported by hybrid vessel upgrades and modernization of offshore fleets. A notable example is the 2020 partnership between Wärtsilä and CBO, which involved retrofitting offshore support vessels with hybrid propulsion systems, reducing emissions while improving operational efficiency.

Middle East & Africa

The Middle East & Africa is witnessing market expansion through fleet acquisitions and maritime infrastructure investments. In 2023, for example, AD Ports Group enhanced its shipping capabilities by acquiring five bulk carriers, signaling the region’s growing focus on strengthening trade and logistics capacity.

Key Industry Players

The market is fragmented, with major players focusing on M&A, partnerships, and advanced technologies.

• BAE Systems (U.K.)

• Mazagon Dock Shipbuilders Limited (India)

• Garden Reach Shipbuilders and Engineers (GRSE) (India)

• Hyundai Heavy Industries Co. Ltd (HHI) (South Korea)

• Hyundai Mipo Dockyard (South Korea)

• General Dynamics Corp NASSCO (U.S.)

• Larsen & Toubro Ltd. (India)

• Navantia (Spain)

• ThyssenKrupp Marine Systems (Germany)

• Damen Shipyards Group (Netherlands)

Recent Developments:

• July 2023: Hyundai Mipo Dockyard announced plans to develop a hybrid electric propulsion system for CSOVs.

• June 2023: Acta Marine signed a contract with Tersan Shipyard for the construction of two new CSOVs, expanding its green fleet.