Rising import and export activities through sea routes are positively impacting the ship repairs and maintenance services, pushing the market to expand at 6.5% CAGR, surpassing a valuation of around US$ 44.3 Bn by the end of 2031.
According to the latest report by Future Market Insights, ships transport contributed approximately 90% of the world's imported and exported goods. The ship repair and maintenance services market will exhibit a year-on-year (YoY) growth of 5.9% in 2021, reaching a valuation of around $ 23.6 Bn in 2021.
The market will witness healthy growth owing to the rising demand for passenger ships and ferries. The sea route remains the ideal transport channel for various products such as petroleum and coal, required in large quantities. Heavy tankers and vessels are being employed to transport these items across countries and continents. As these water vessels are prone to corrosion and breakdown, they often need repair services.
Some of the prominent players operating in the ship repair and maintenance services market include Damen Shipyards, Sembcorp Industries, Cochin Shipyard, China Shipbuilding Industry, Fincantieri, Dae Sun Shipbuilding & Engineering, Hyundai Mipo Dockyards, Arab Shipbuilding and Repair Yard, Keppel, United Shipbuilding, Alexandria Shipyard, Dormac Ship Repairs, Astican, Hosei, Tsuneishi Shipbuilding and Dunde Marine & Industrial Services.
The rise in marine tourism and various initiates undertook by governments will strengthen the maritime industry. This will continue to create lucrative growth opportunities for the ship repair and maintenance services market during the forecast period.
The leading market intelligence and consulting services provider said bulk carriers are currently leading the ship repair and maintenance services market with a healthy market share. Demand for bulk carriers is especially high across developing countries such as India, Brazil, and Mexico. They are being used on large scales to transport bulk cargo such as coal, oil, ores and cement.
As per the report, the North American market is projected to grow at a CAGR of 4.1% during the forecast period, while South Asia & Pacific will create an incremental opportunity worth $ 9.6 billion between 2021 and 2031.
The swift growth in these regions can be attributed to the growing maritime transport, increasing ships production and presence of leading ship repair & maintenance companies, the report said.
According to an analyst from the research company, continuous efforts made by government across the world to strengthen and expand their naval fleet is accelerating the growth of the ship repair and maintenance services market. As a result, key companies are likely to partner with local and regional manufacturing companies to get maximum repair contracts.
According to Future Market Insights's survey, China will continue to lead the ship repair and maintenance services market due to the large production of ships.
Germany is projected to create an absolute $ opportunity of more than $ 180 million during the forecast period.
With increasing investments in the navy sector, the US market is anticipated to register an absolute opportunity worth $ 541.1 million between 2021 and 2031.
Based on vessel type, the bulk carriers segment is projected to hold more than 30% of the global market share in 2021.
The hull part segment is expected to dominate the market during the forecast period by service type, accounting for around 29% of the total sales.
Rapid production of ships and the rise in seaborne trade will increase the demand for ship repair and maintenance services. In addition, increasing investment by governments worldwide to develop and expand their naval capabilities positively impacts market growth. Integration of the latest technologies such as the internet of things (IoT) in ship repair and maintenance services is transforming the market. Companies are innovating IoT platforms to drive fuel savings, reduce service costs, and lower lubes consumption, which will propel growth in the market.
However, high maintenance cost is hampering the growth of ship repair and maintenance services market. Besides, lack of skilled labour force and high cost advanced integration services for ship repair and maintenance might restrict the growth in emerging economies.
Major players operating in the ship repair and maintenance services market aim at technological innovations and improving their overall procedures to deliver timely repair and maintenance services.
Leading players also adopt various growth strategies such as mergers, acquisitions, new product launches, partnerships and collaborations to strengthen their global footprint, the market intelligence and consulting services company noted.
Courtesy: Future Market Insights. NB: Photo is representational; courtesy: Damen Shipyards.