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Ship Repair and Maintenance Services Market Size, Share & COVID-19 Impact Analysis, By Vessel Type (Commercial Vessel and Naval Vessel), By Commercial (Fishing Vessel, Container Ships, Passenger Ships & Ferry and Others), By Naval Vessel (Aircraft Carriers, Submarines, Frigates, Corvettes and Others), By Service (General Service, Engine Parts, Dockage, Electric Works and Others), By Dock Type (Graving Dock, Floating Dock and Others), By End-user (Government & Defense and Commercial) and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI105801

 

KEY MARKET INSIGHTS

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The global ship repair and maintenance services market size was valued at USD 39.83 billion in 2022 and is projected to grow from USD 41.47 billion in 2023 to USD 57.36 billion by 2030, exhibiting a CAGR of 4.7% during the forecast period.

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Ship repair and maintenance services encompass scheduled and unscheduled maintenance. They constitute an integral part of ship operations, focusing on crucial ship elements such as the engine, electrical system, propulsion, and others. Maintenance ensures vessels remain in optimal working condition. Ships are taken to repair docks for various activities, including rust removal, repainting, and engine repairs. Repair docks come in various types, such as dry docks, floating docks, ship lifts, sliding docks, and more. Additionally, there are four types of maintenance: preventive, corrective, risk-based, and condition-based maintenance.


Regular inspections occur; however, routine maintenance adheres to the ship's logbook, indicating specific items requiring inspection and upkeep frequency. This includes regular inspections, lubrication intervals, and major maintenance. The ship repair and maintenance services market is driven by the increasing age of marine fleets and stringent emissions regulations.


COVID-19 IMPACT


Supply Chain Disruption During the COVID-19 Pandemic Adversely Affected the Ship Repair and Maintenance Services Market


Since the COVID-19 outbreak in December 2019, the disease spread globally, leading the World Health Organization (WHO) to declare it a pandemic. The global impacts of COVID-19 significantly affected the market.


Additionally, UNCTAD estimated that global merchandise trade fell by 5% in the first quarter of 2020 and further contracted by 27% in the second quarter of the same year. For the full year, UNCTAD projected a 20% drop in maritime trade. This trade contraction caused by COVID-19 surpasses the one observed during the financial crisis of 2008-2009. Supply chain disruptions in spare parts greatly hindered the ship repair and maintenance services market share.


LATEST TRENDS


Growing Demand for Predictive Maintenance-as-a-Service (PdMaaS) to Propel Market Expansion


Predictive maintenance involves the systematic assessment of initial conditions to serve as warnings for timely maintenance before equipment failure occurs. Equipping machines with systems and sensors that provide early indications of failure is essential for this approach.


Furthermore, maintenance forecasting is a proactive strategy aimed at mitigating unplanned downtime caused by equipment failure, which often results in costly offshore downtime. This approach involves more abstract predictions compared to the strictly followed preventive maintenance regime onboard.


A crucial aspect of such services involves proactive analysis to identify and establish trends in the condition of the ship's equipment and machinery, thereby warning of impending failure. This ensures that seafarers understand both the current and future capabilities of their equipment.



  • In April 2022, the technology group Wärtsilä signed an Optimized Maintenance agreement with the Japanese shipping giant Nippon Yusen Kaisha (NYK) and Monohakobi Technology Institute (MTI) to evaluate Wärtsilä’s Expert Insight predictive maintenance service as part of a pilot programme. The agreement was signed in January 2022, and the programme could lead to NYK adopting the solution throughout its entire fleet.


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DRIVING FACTORS


Increasing Maritime Trade, Government Support, and Strategic Collaborations to Boost Market Growth


The international shipping industry handles approximately 80% of global trade. Seaborne trade consistently expands, delivering advantages for global consumers by offering competitive freight costs. The increasing efficiency of shipping as a transportation mode, coupled with heightened economic liberalization, stands as a pivotal factor driving further growth in the ship repair and maintenance services industry.



  • For instance, according to Russia Briefing Report, traffic on the Northern Sea Route is expected to rise to 80 million tons of shipments per year by 2025 across Arctic shipping. This rapid development generates economic, environmental, political, and social challenges, which are at the center of the attention of multiple governments.


In recent years, there has been consistent growth in global ship deliveries from countries outside the OECD Council Working Party on Shipbuilding (WP6). Non-WP6 economies accounted for 47.4% of worldwide deliveries in 2021, primarily driven by the significant rise in Chinese ship completions, constituting 41.1% of global completions.


China's robust ship production propelled it to become the world's largest shipbuilding economy. This achievement is credited to the extensive expansion of facilities by Chinese shipbuilders during a historic boom period, coupled with the Chinese government's policy initiatives aimed at promoting the shipbuilding industry as a pivotal strategic export sector.


IMO's Stringent Regulations Challenge Ship-Owners to Embrace Greener Vessels


Ship owners are encountering stricter environmental regulations effective from January 1st, 2023. Three new IMO regulations have been implemented to reduce greenhouse gas emissions and mitigate the environmental impact of ships at sea. Among these, the CII regulation indicates that 30-40% of container ships and bulk carriers were considered non-compliant by 2021.


Various classes and sizes of ships will be required to meet different standards. These standards will be measured against a benchmark set as the average performance of ships built between 1999 and 2009.



  • Phase I: The overall goal is to improve ship energy efficiency by 10% for new ships built from 2015 to 2019.

  • Phase II: Ships built from 2020 to 2024 will have to improve energy efficiency by 15 to 20%, depending on the type of ship.

  • Phase III: Ships delivered after 2025 must be 30% more efficient.


Smaller ships have distinct efficiency requirements for each phase. Energy Efficiency Existing Ship Index (EEXI), Carbon Intensity Indicator (CII), and Ship Energy Efficiency Management Plan (Part III) (SEEMP) represent some of the International and European decarbonization policies within the shipping sector.


The most immediate method to reduce emissions involves slow shipping. However, ship-owners also have the option to upgrade their vessels using energy-saving technologies or opt for alternative fuels such as LNG, methanol, ammonia, or electricity. Yet, these changes would increase costs, impact insurance coverage, and influence access to future investments and capital. Currently, alternative fuels cost 2 to 5 times more than conventional fuels, rendering them commercially unviable.


Nevertheless, fleet owners can still opt for dual-fuel vessels. As of March 1, 2022, nearly 40% of orders comprised vessels capable of operating on one or more fuels. To encourage the use of alternative fuels, ports need to provide low-emission energy supply infrastructure.


RESTRAINING FACTORS


Capital Intensive Ship Repair and Maintenance Services to Hamper Market Growth


The shipbuilding industry is capital-intensive, requiring specialized technologies for ship construction, maintenance, and repair, along with specialized professionals. This nature limits ship owners' financing options for repairs, posing financial risks to shipyards. Usually, ship owners must finance the total repair costs from their funds. In exceptional cases, they might secure short-term financing from banks or other institutions to complete repairs. However, these services are often costly, potentially hindering the global ship repair and maintenance services market growth.


SEGMENTATION


By Vessel Type Analysis


Naval Vessel Segment Dominates Owing to Rising Demand for Modern Naval Vessels


By vessel type, the market is divided into commercial vessel and naval vessel. The naval vessel segment held the largest market share and is anticipated to be the fastest-growing segment. This growth is propelled by the rising demand for advanced and modern naval vessels amid cross-border tensions.


Additionally, the commercial vessel segment is expected to witness significant growth owing to the increasing age of the marine fleet. Moreover, the backlog of scheduled repairs resulting from the pandemic is likely to stimulate the market further.


By Commercial Vessel Analysis


Container Ship Segment Leads Due to Increased Utilization Across E-commerce and Other Industries  


By commercial vessel type, the market is divided into fishing vessels, container ships, passenger ships & ferries, and others. The container ships segment holds market dominance due to its diverse applications within the e-commerce sector. Additionally, it's estimated to be the fastest-growing segment owing to its widespread use and larger global fleet size.


Asia Pacific is poised to emerge as a key market for these vessels, primarily due to the dominance of fish production in China, Japan, India, and Indonesia. The growing fish food industry, supporting restaurants and the tourism sector, is fueling the growth of the fishing vessel market.


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By Naval Vessel Analysis


Aircraft Carrier Segment’s Dominance Led by Rise in Demand for Fleet Modernization by Naval Organization


Based on naval vessel, the market is classified into aircraft carriers, submarines, frigates, corvettes, and others. The aircraft carrier segment dominated the market and is expected to be the fastest growing due to the growing emphasis of naval forces on modernization projects.



  • For instance, in August 2021, The Technical Solutions division of Huntington Ingalls Industries announced the award of a USD 273 million, five-year contract to support the U.S. Navy’s Carrier Engineering Maintenance Assistance Team, Surface Engineering Maintenance Assistance Team for West Coast Surface Ships, and other Maintenance and Material Readiness Programs.


The submarines segment is expected to be the second fastest growing segment due to the growing procurement of submarine fleets by different governments and defense bodies all around the world for maritime surveillance and security.



  • For instance, in October 2023, The U.K. awarded three British companies a USD 4.9 billion contract to design and build a nuclear attack submarine as part of the country's AUKUS program with Australia and the U.S.


By Service Analysis


General Service Segment to Foster Growth Owing to Low Cost Associated with Repair Work


Based on service, the market is segmented into general service, engine parts, dockage, electric works, and others. The general service segment is anticipated to lead the market due to its numerous service contracts and relatively low cost. This segment encompasses services such as painting, coating, general inspections, and more. It's also predicted to experience the fastest growth due to the frequent inspection demands across diverse ships.


The engine parts segment is projected to witness significant growth in the forecast period. This surge is attributed to the heightened and regular maintenance needs of engines to comply with stringent emission regulations.



  • In April 2021, Wartsila signed an agreement to provide optimal engine maintenance services to five LNG carriers owned and operated by Minerva Gas, a Greek-based company.


By Dock Type Analysis


Wide Application in Repair and Maintenance Work Boosts the Graving Dock Segment Growth


Based on dock type, the market is divided into graving dock, floating dock, and others. The market is expected to be dominated by the graving dock segment in the upcoming years. Graving docks represent the most popular dry docking solution for ship repairs and maintenance. Due to their widespread use across various shipyards, graving docks are predicted to experience the fastest growth during the forecast period.


The floating dock segment is also expected to grow significantly due to its application in repairing and servicing small-sized ships.


By End-user Analysis


Increased Investment to Drive Government & Defense Segment Growth


By end-user, the market is segmented into government & defense and commercial. The government & defense segment has dominated the market and is anticipated to continue as the fastest growing during the forecast period. This dominance is attributed to the growing investments by the navy and other government sectors aiming to modernize their fleets.


The commercial segment is also poised for significant growth due to various factors such as aging fleets, stricter emission norms, and increased maritime trade activities, among others.


REGIONAL INSIGHTS


The market is studied across North America, Europe, Asia Pacific, and the rest of the world.


Europe Ship Repair and Maintenance Services Market Size, 2022 (USD Billion)

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Europe is anticipated to experience significant growth throughout the forecast period, holding the largest market share for ship repair and maintenance services. Recent advancements in frigates and offshore patrol vessels, particularly in terms of lethality, speed, and maneuverability, are key drivers in the regional market. Events such as the rise in illegal immigration and increased drug trafficking in Italy, Spain, and Albania have escalated the demand for naval vessel development in the region. Additionally, factors such as the enforcement of the U.N. Convention on the Law of the Sea (UNCLOS) III necessitate patrols in Exclusive Economic Zones (EEZs) extending up to 200 miles, requiring robust naval forces. Major shipbuilding industries in the region, including the United Shipbuilding Corporation and Damen Ship Repair Rotterdam (DSR), among others, contribute to the market's growth.


North America is anticipated to experience significant growth throughout the forecast period. The region is increasingly focused on enhancing operational efficiency while concurrently minimizing environmental impacts. Furthermore, the U.S. administration is augmenting defense funding in response to heightened demands for naval vessels and the perceived threat of hostile interventions in coastal areas.


Asia Pacific is projected to achieve the highest CAGR during the forecast period. This growth in the region is attributed to the increased investments made by key players in the development of ship repair facilities and shipbuilding capabilities. Notable entities in the shipping industry include Cochin Shipyard (CMC), Goa Shipyard (GOWA), Mazagon Dock Shipbuilders Ltd. (MCD), Garden Reach Shipbuilders and Engineers Limited (GRE), Hyundai Mipo Dockyard (HM Dockyard), Dae Sun Shipbuilding Engineering (SSE), China Shipbuilding Industry Corporation (CSIC), among others.


The market in the Middle East & Africa is expected to grow at a moderate pace over the forecast period. Shipbuilding activity and dry dock capacity are expected to increase in the region. For instance, for a long time, the dry-docks in Dubai, operated by DWD, and the dry-docks in Bahrain, operated by Arab Shipbuilding and Repair Yard (ASRY), were the only two places in the Middle East that were really suitable for the repair and maintenance of large tankers. More recently, two new yards have been added in the region, capable of handling very large containers (VLCCs). These developments in the region have contributed to the growth of the market.


Latin America is poised to experience significant growth in the coming years. This growth can be attributed to the increase in maritime trade within the region. Furthermore, the rise in container trade within Latin America indicates a conducive trading environment for both shippers and exporters. Mexico and Brazil emerged as major competitors for container shipping companies in the Latin America region, seeking to expand their freight trade routes from simple to more diversified pathways.


KEY INDUSTRY PLAYERS


Key Players Focus on Long Term Contracts with Ship Operators to Increase Market Share


In terms of market players, a handful of key companies, including Sembcorp Marine Ltd., Garden Reach Shipbuilders and Engineers Limited, BAE Systems, and Damen Shipyards Group, dominate the market. These companies are focused on expanding their capabilities in ship repair and maintenance services, particularly in response to increased demand post the COVID-19 pandemic. Additionally, these major players are expanding their dry docks to accommodate a larger number of ships for repair and maintenance operations.


LIST OF COMPANIES PROFILED:



  • Sembcorp Marine Ltd (Singapore)

  • Garden Reach Shipbuilders and Engineers Limited (India)

  • Damen Shipyards Group (Netherlands)

  • BAE Systems (U.S.)

  • China Ship Repair and Maintenance Services Industry Corporation (China)

  • Dundee Marine & Industrial Services Pte Ltd. (Singapore)

  • General Dynamics NASSCO (U.S.)

  • HD Hyundai Heavy Industries Co., Ltd (South Korea)

  • Larsen & Toubro Ltd (India)

  • ST Engineering (Singapore)


KEY INDUSTRY DEVELOPMENTS:



  • July 2023: The Larsen and Toubro’s (L&T) Kattupalli shipyard, located near Chennai, has been granted a Master Shipyard Repair (MSRA) qualification and signed an agreement with the United States Navy (U.S. Navy) for the repair of vessels. The shipyard has been cleared by the Indian Navy (Navy) and the Coast Guard (CG).

  • September 2022: Vigor Marine LLC, based in Portland, Oregon, was awarded a contract for the dry-docking of Arleigh Burke-class guided-missile destroyers (“DDG 53”) to the contract value of USD 131 million for the completion of Arleigh Burke 2C1 (“Dreadnought 2C1”) dry-docking (DSRA).

  • July 2022: U.S. Navy Selects 14 Companies to Repair, Maintain, and Modernize Non-Nuclear Amphibious and Surface Combatant Ships in Norfolk, Virginia Under Two Indemnity/Indefinite-Quantity Multiple Contracts.

  • December 2021: U.S. Navy Announces USD 1.74 billion Multi-Year Contract for Maintenance, Repair and Modernization Services for Non-Nuclear Surface Combatant and Amphibious Ships in San Diego.

  • August 2021: The U.S. Defense Department and U.S. Navy have issued several multi-award contracts totalling up to USD 2.76 billion for the maintenance of its eastern Coast-based littoral combat ships (LCS). The contracts were awarded to the ship repair yard of BAE Systems in Jacksonville, Florida, and the Fincantieri Marine Systems located in Chesapeake, Virginia, each for a multi-award contract of up to USD 1.3 billion.


REPORT COVERAGE


An Infographic Representation of Ship Repair and Maintenance Services Market

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The report covers all aspects of the market, including the vessel type, the commercial vessel, the naval vessel, the service, the dock type, the end-user and the key players. In addition, the research report covers the ship repair and maintenance services trends, the competitive landscape, the market competition, the product pricing, and the market conditions, with an emphasis on the development of industry keys. The report also covers several factors that have contributed to the growth of the global market in recent years.


Report Scope & Segmentation




























































ATTRIBUTE



DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year 



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 4.7% from 2023 to 2030



Unit



Value (USD Billion)



Segmentation


 



By Vessel type



  • Commercial Vessel

  • Naval Vessel



By Commercial Vessel



  • Fishing Vessel

  • Container Ships

  • Passenger ships & Ferry

  • Others



By Naval Vessel



  • Aircraft Carriers

  • Submarine

  • Frigates

  • Corvettes

  • Others



By Service



  • General Service

  • Engine Parts

  • Dockage

  • Electric Works

  • Others



By Dock Type



  • Graving Dock

  • Floating Dock

  • Others



By End-user



  • Government & Defense

  • Commercial



By Region



  • North America (By Vessel Type, Commercial Vessel, Naval Vessel, Service, Dock Type, End-user, and Country)


    • U.S. (By Service)

    • Canada (By Service)


  • Europe (By Vessel Type, Commercial Vessel, Naval Vessel, Service, Dock Type, End-user, and Country)


    • U.K. (By Service)

    • Germany (By Service)

    • France (By Service)

    • Spain (By Service)

    • Italy (By Service)

    • Ireland (By Service)

    • Netherlands (By Service)

    • Sweden (By Service)

    • Norway (By Service)

    • Denmark (By Service)

    • Rest of the Europe (By Service)


  • Asia Pacific (By Vessel Type, Commercial Vessel, Naval Vessel, Service, Dock Type, End-user, and Country)


    • China (By Service)

    • India (By Service)

    • Japan (By Service)

    • South Korea (By Service)

    • Australia (By Service)

    • Malaysia (By Service)

    • Rest of the Asia Pacific (By Service)


  • Middle East & Africa (By Vessel Type, Commercial Vessel, Naval Vessel, Service, Dock Type, End-user, and Country)


    • Turkey (By Service)

    • UAE (By Service)

    • Saudi Arabia (By Service)

    • South Africa (By Service)

    • Rest of the Middle East & Africa (By Service)


  • Latin America (By Vessel Type, Commercial Vessel, Naval Vessel, Service, Dock Type, End-user, and Country)


    • Brazil (By Service)

    • Argentina (By Service)

    • Mexico (By Service)

    • Rest of the Latin America (By Service)







Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 39.83 billion in 2022 and is projected to reach USD 57.36 billion by 2030.

The market is projected to grow at a CAGR of 4.7% during the forecast period (2023-2030).

By vessel type, the naval vessel segment is expected to be the leading segment of the market.

BAE Systems, China Ship Repair and Maintenance Services Industry Corporation, Damen Shipyards Group, Dundee Marine & Industrial Services Pte Ltd., General Dynamics NASSCO, and Garden Reach Shipbuilders & Engineers Ltd are the leading players in the global markets.

Europe held the highest market share in 2022.

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