A few benefits include reduced costs, improved efficiency and quality, increased safety, increased innovation, improved ability to satisfy customer needs, and improved responsiveness to market trends. Additionally, businesses are able to develop more specialised solutions to meet the specific needs of their clients thanks to the fabrication and repair of offshore rigs and ships. They are consequently in a position to provide better products at market-competitive prices without compromising product quality.
The fabrication and repair of offshore drilling rigs as well as shipbuilding both have a demand for skilled workers with specialised knowledge. These employees ought to have qualifications in electrical engineering, welding, metalworking, and machining. For shipbuilding and offshore rig fabrication and repair projects to be successful, high-quality materials must be used. This includes steel plates, piping systems, pumps, turbines, pigments, paints, and other materials needed to complete a project. Modern technologies like 3D printing make it possible to complete fabrication and repair projects for offshore rigs and shipbuilding more quickly and accurately.
Numerous advantages of the shipbuilding and offshore rig fabrication and repair markets can be credited for its rising popularity. First off, there are time and money-saving options available for both big and small businesses. Second, it provides a unique setting for the development of original ideas, technological breakthroughs, and products that can be used in the construction of ships and offshore rigs. Thirdly, it can be used in production testing and quality control procedures that ensure the finished product complies with all safety requirements. The shipbuilding and offshore rig fabrication and repair market also provides a chance to reduce operational costs associated with shipbuilding and offshore rig fabrication activities by minimising waste materials.
The global shipbuilding and offshore rig fabrication and repair market, which was valued at USD 98.79 billion in 2021 and is anticipated to reach USD 117.01 billion by 2031, is expected to grow at a CAGR of 3.4%. (2021-2031).
The primary driver of this market's growth is the increased demand for offshore services and maritime transportation on a global scale. The growing demand for offshore services and maritime transportation around the world is a major factor driving the growth of the shipbuilding and offshore rig fabrication and repair markets.
The market segment known as "shipbuilding and offshore rig fabrication and repair" includes businesses that produce and repair ships, offshore rigs, and marine vessels. This market includes shipbuilding, ship repair, ship conversion, refitting of existing vessels, offshore platform construction, and installation of drilling equipment. Shipbuilders are in charge of designing, engineering, building, and furnishing various types of ships. Shipyards build and repair commercial vessels such as yachts, passenger liners, oil tankers, fishing boats, and cargo ships. Offshore rig fabricators offer custom-built rigs for deepwater exploration, production, and development tasks. To ensure that the vessel is seaworthy, repair services also include inspection and maintenance tasks.
Several factors influence the shipbuilding and offshore rig fabrication and repair market. These include A rise in demand for maritime transportation as a result of the expansion of global trade is driving the need for shipbuilding and offshore rig fabrication and repair services. Demand for shipbuilding, fabrication, and repair services for offshore rigs has increased as a result of increased oil exploration activities. Increased demand from the commercial sector, which includes passenger ships, cargo vessels, tugs, and barges, is also opening up opportunities for this market. Government efforts to encourage businesses to invest in modernising their current fleet of vessels and building new ones are driving the need for shipbuilding and offshore rig fabrication and repair services. The availability of more effective and reasonably priced vessels thanks to technological advancements has increased demand for these services.
Several factors are restricting the market for shipbuilding and the fabrication and repair of offshore rigs.
It can be difficult to secure large capital investments in the current economic environment. This might limit the growth of the market and prevent the development of new projects. The cost of overhead for shipbuilding, fabrication, and repair of offshore drilling platforms has increased as a result of tightening environmental regulations over time. Businesses have been discouraged from investing in new endeavours or growing current ones as a result of the financial burden associated with adhering to regulatory requirements. There is a severe shortage of skilled workers in the shipbuilding and fabrication and repair of offshore rigs industries. This has led to an increase in labour costs and wages, which has raised operating costs for companies involved in such activities. The rise of low-cost nations like China poses a serious threat to established players in the shipbuilding and offshore rig fabrication and repair industries due to their lower costs than those found in developed nations.
IHI Corporation, Hanjin Heavy Industries & Construction Co., Ltd., Kawasaki Heavy Industries, Ltd., STX Offshore & Shipbuilding Co., Ltd., Hyundai Heavy Industries Co., Ltd., DSME, Mitsubishi Heavy Industries, Imabari Shipbuilding Co., Ltd., Imabari Shipbuilding Co., Ltd., Hudong-Zhonghua Shipbuilding (Group) Co., Ltd., Imabari Shipbuilding Co., Ltd.
The Tankers, Bulkers, Containers, Cruise and Ferry, Offshore Rig, and Others segments are used in the Shipbuilding and Offshore Rig Fabrication and Repair Market. The tankers market segment accounts for the largest share. One of them, tankers, accounted for the largest market share in 2019 and is projected to grow at a CAGR of 5.2% from 2020 to 2027. This industry is expanding primarily as a result of an increase in tanker demand from international oil and gas companies. An increase in trading activities and a rise in demand for crude oil and other petroleum products are also contributing to the sector's growth.
The fabrication industry is growing in terms of applications. The two market sectors for shipbuilding and offshore rigs are fabrication and repair. Fabrication is the market segment with the highest revenue. Due to the rise in demand for ships and offshore rigs, there is a need for increased fabrication of such structures. The repair segment has the second-highest revenue in this market because of the rise in the number of ships, the use of offshore rigs, and the need for routine repair and maintenance activities.
The power is in North America.
According to the regional analysis of the Shipbuilding and Offshore Rig Fabrication and Repair Market, North America is the dominant region. This may be explained by the region's high level of disposable income, abundance of leading market players, and accessibility to cutting-edge technology. High growth is anticipated in the Asia-Pacific region during the forecast period. This may be due to the increasing investments in maritime infrastructure and the growth of offshore business in countries like China and India.
Impact of the market and COVID-19 on offshore rig fabrication and repair and shipbuilding
The COVID-19 pandemic has had a significant impact on the market for shipbuilding and the fabrication and repair of offshore rigs. The demand for new ships has drastically decreased as a result of the pandemic's profoundly detrimental effects on the global economy. This has led to a significant decrease in new orders for ships and offshore rigs. As a result, it is anticipated that production of offshore rigs and ships will decline in 2020. The market is predicted to recover starting in 2021 as the demand for new vessels is predicted to increase and the global economy is predicted to grow. Additionally, it is anticipated that demand for repairs and maintenance of existing vessels will continue to be high as ship owners look for ways to reduce costs. The market's growth is anticipated to be moderate in 2020 and 2021 as a result of the effects of COVID-19. The market is anticipated to grow at a 3.2% annual rate from 2022 to 2026. The main factors influencing this growth will be the demand for new vessels as well as the need for repairs and maintenance services. The shipbuilding and offshore rig fabrication and repair market is expected to experience a decline in 2020 as a result of COVID-19, but it is anticipated to start recovering in 2021. Additionally, a moderate growth in the market is anticipated over the forecast period of 2022–2026.
Recent Market Developments
• In 2019, it is predicted that growth in the global shipbuilding and offshore rig fabrication and repair market will accelerate due to rising demand in the Asia-Pacific region. The creation of new technologies and materials is another factor driving this market sector's expansion.
• Ship owners are anticipated to invest significantly in high-tech rigs for deepwater exploration work as well as offshore rig repair services in 2021 as a result of rising oil prices. Additionally, it is anticipated that increased demand for specialised ships equipped with cutting-edge navigational systems will drive market expansion during this period.
Shipbuilding and Offshore Rig Fabrication and Repair Market Scope
|Revenue forecast in 2031
|USD 117.01 billion
|CAGR of 3.4 % during 2021-2031
|by Type, By Application , Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|IHI Corporation, Hanjin Heavy Industries & Construction Co., Ltd., Kawasaki Heavy Industries, Ltd., STX Offshore & Shipbuilding Co., Ltd., Hyundai Heavy Industries Co., Ltd., DSME, Mitsubishi Heavy Industries, Imabari Shipbuilding Co., Ltd., Imabari Shipbuilding Co., Ltd., Hudong-Zhonghua Shipbuilding (Group) Co., Ltd., Imabari Shipbuilding Co., Ltd.
Key Segments of the Shipbuilding and Offshore Rig Fabrication and Repair Market
By Type Overview, 2021-2031 (USD Billion)
• Cruise and Ferry
• Offshore Rig
By Application Overview, 2021-2031 (USD Billion)
By Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and Africa