Ship Breaking Market Size, Share, and COVID-19 Impact Analysis, By Ship (Bulk Carrier, Tanker, Passenger Ship, Container Ship, Fishing Vessels, Tugs, and Others), By Technique (Beaching, Domestic Recycling, Artificial Reefing, Hulking, Scuttling, and Others), By Weight (Below 20,000 GT, 20,000 GT 45,000 GT, and Above 45,000 GT), and Regional Forecast, 2024-2032

Ship breaking is the process of recycling or disposing a ship after a ship has been deemed unfit for further operations. Factors like corrosion, fatigue, and lack of parts often renders a ship un-economical to operate. The ship is dismantled and most of its parts are extracted to be sold for re-use or recycling.        

Key Market Insights:

Ship breaking is carried out using various techniques, such as beaching, hulking, scuttling, domestic recycling, and others. Different methods are employed for different groups of ships. The entire process of ship breaking involves the drainage of fuel, oils, and other fluids, waste treatment and disposal, material recovery for scraps, and processing of the waste materials. Newer technologies involve the use of more sophisticated equipment, such as grinders, plasma, pyrolysis, and others.

The market is driven by the growing demand for newer, more-efficient and economical ships. Older vessels are then sent to breaking yards to be dismantled, and to recover whatever value can be extracted from the ship. Induction of newer ships into fleets makes older ships un-economical for operation, which helps in market growth.

Restraint for the market include concerns for environmental safety due to the pollution while dismantling a ship, and the handling of hazardous substances. Nuclear-powered ships have radioactive waste, which, if not treated properly, can lead to unsafe working conditions, and a wide range of other issues.

Impact of COVID-19 on the Global Ship Breaking Market:

The COVID-19 pandemic broke out in early 2020, and impacted many industries across the globe. Production rates went down, and supply-chains were disrupted. Many nations imposed country-wide lockdowns, along with other restrictions. This also stopped people from going out, further increasing the negative impact on the industries. However, the ship breaking market saw an opportunity during this period. Due to the pandemic restriction, which included travel bans and social distancing norms, multiple ships were left empty, off coasts, or laid-up in the docks. The coronavirus outbreaks on the ships further weakened the industry. Due to this, many ships were sent off to ship dismantling yards, to help recover whatever little could be extracted from the ship’s scraps. For instance, Carnival Fantasy, a new ship recently sold by the Carnival Cruise Line, arrived at the Turkish Aliaga breaking yard after it reported losses of up to USD 4.4 billion by mid-2020. Such instances increased the traffic on ship breaking yards. Overall, the pandemic had a positive effect on the ship breaking market.

The global ship breaking market is segmented into three broad categories- by ship, by technique, and by. Based on the type of ship, the market is divided into bulk carrier, tanker, passenger ship, reefer, offshore service, and others. Based on the technique used, the market is divided into beaching, domestic recycling, artificial reefing, hulking, scuttling, and others. Based on the weight of the ships, the market is trifurcated into below 20,000 GT, 20,000 GT – 45,000 GT, and above 45,000 GT. Based on the region, the market is divided into North America, Europe, Asia Pacific, and the rest of the world.

Key Insights:

The report will describe the following key insights:

• The report analyzes a detailed industry overview, including qualitative and quantitative information.


• The report analyzes an overview and forecast of the global ship breaking market based on various segments.


• The report also analyzes comprehensive PEST analysis for all four regions, i.e. North America, Europe, Asia Pacific, and the Rest Of The World, after evaluating economic, social, political, and technological factors affecting the global ship breaking market in these regions.

Regional Analysis:

Asia Pacific is the dominant region for the market. The ship recycling industry is accounted for over 90% by India, Pakistan, China, and Bangladesh. The region also has the biggest ship breaking yards in the world- Alang Ship Breaking Yard and Chittagong Ship Breaking Yard, which further bolsters the region’s hold on the market. Multiple private organizations working in the area also boost the research and development of the technology used in the yards.

Europe is a projected to grow in the upcoming years. The region is seeing a rise in demand at yards in U.K., Belgium, Italy, Denmark, and Netherlands. The advancement of more environment-friendly and safer dismantling methods are boosting market growth.

Key Players Covered:

Some of the ley players in the global ship breaking market include Priya Blue Indsutries Pvt. Ltd., P Rajesh Ship Breaking Pvt. Ltd., Izmir Gemi Geri Donusum, All Star Metals, LLC, Bansal Group, Habib Group, Spot Shipping A.S., Dortel Ship Breaking Company, Leela Ship Recycling Pvt. Ltd., and Baijnath Melaram, and others.

Segmentation:

Key Industry Developments:

• In July 2023, Japanese firm NYK Group and its group company NYK Bulk and Projects Carriers Ltd. carried out the dismantling of Kamo, a cargo vessel at the PHP Ship Recycling Facility in Bangladesh. The NYK Group is the first Japanese company to complete dismantling at the yard, meeting the regulations specified in the Hong Kong Convention.


• In September 2020, the INS Viraat arrived at the Alang ship breaking yard to be dismantled. The ship remained in service in the Indian Navy for almost 30 years, and was the world’s longest serving warship. The Alang-based Shreem Ram group was awarded the contract for dismantling the ship.