Shipbuilding is an ever-evolving industry. It encompasses design, engineering, material sourcing and assembly of ships and other watercraft, so there are plenty of areas for development.
PASSER SIDC GROUP operates in the European market, primarily focussing on yacht, supply vessels and cruise shipbuilding. However, it observes global shipbuilding market trends. This helps the company respond to their dynamics accordingly and stay competitive within the industry’s development.
Overall market growth 2025-2030
According to the shipbuilding market analysis, in 2024, it was valued at USD 150.42 billion; this market is projected to reach USD 155.58 billion in 2025 and increase by USD 26.1 billion by 2029 (Banerjee, A., 2024).
Several key trends are driving shipbuilding market growth. The need for new vessels is largely attributed to the increase in seaborne trading (approximately 90% of all goods thought to be transported by sea). The demand for eco-friendly ships fuels this growth further. Additionally, the construction of new vessels is backed by the expanding cruise industry, maritime tourism, and the need for military vessels. PASSER SIDC GROUP observes a demand for offshore service ships. According to Aivaras Kamas, CEO of PASSER SIDC GROUP, many of them are outdated and in short supply as their production stopped for some time following an oil crisis. He adds that shipyards in Europe are busy with military vessels due to the geopolitical situation and lack capacity for other types of shipbuilding.
PASSER SIDC project: Cargo ferry HAWAIKINUI 2
Fluctuations in raw material prices, particularly steel and iron, play a crucial role. Mr Kamas confirms that their price increased from around 650 euros per ton in 2016 to around 1,000 euros in 2025, but the growing demand for green shipping does not hinder the construction of new ships.
Market growth by segment
The market overview by segment provides other valuable insights. In 2019, the commercial shipbuilding segment (tankers, bulkers, containerships, cruise ships, and ferries) was valued at USD 59.30 billion. This sector should continue growing at least until 2029. The main drivers of this development are the expanding international trade and maritime logistics.
PASSER SIDC GROUP observes increased activity and a growing number of enquiries in the cruise ship sector, reflecting market recovery following the COVID-19 pandemic. The rising popularity of cruising and leisure travel is driving up the demand for new and upgraded cruise ships. According to the European director of the Cruise Lines International Association, there is a need for 300 new cruises in Europe alone.
Government spending on naval and defence initiatives drives the demand for military vessels (warships, submarines, and patrol boats). The PASSER SIDC GROUP initiates introductions in this market segment; however, Mr Kamas acknowledges the high-security requirements along with the limited scope.
Market overview by region
The shipbuilding industry is a crucial sector for Europe, holding approximately 6% of the market share in tonnage and 35% in marine equipment. This strong performance provides a robust position in the global shipbuilding market. According to the European Commission, there are about 150 large shipyards in the region, with around 40 acting in the international market for large commercial vessels. The European shipbuilding industry is recognized for the production of complex vessels, including cruise ships, mega-yachts, ferries, dredgers, submarines and other naval vessels. The PASSER SIDC GROUP specializes in supply vessel and cruise ship construction. Until now, company operations included component production such as hulls or piping systems. This year, it aims to take on a complete ship project.
PASSER SIDC project: mega-yacht HORIZON
There are projections for the European market to grow at a compound annual growth rate (CAGR) of 4.80%, generating USD 3.41 billion between 2025 and 2033. Meanwhile, the Asia-Pacific region, which includes China, Japan, and South Korea, accounts for about 85% of all shipbuilding activities and is anticipated to contribute around 61% to the growth of the global market during the forecast period. North America is also expected to experience steady growth.
Sustainability
The PASSER SIDC GROUP observes a growing trend towards eco-friendly ships. According to Mr Kamas, clients are requesting preparations to enable their ships to be converted to methanol or hydrogen in the future. The ageing oil tanker fleet and the importance of fuel efficiency in shipping add more dynamics to the market. Therefore, the shipping industry is evolving, emphasizing innovation and technological advancements to meet the changing demands of global developments. Here, Mr Kamas highlights another significant trend: the reduction of crew sizes, increased automation, and the adoption of energy-saving technologies.
Trade agreements and international regulations play a crucial role in shaping the market and mitigating the environmental impact of this industry. They outline various requirements relating to ballast water management or greenhouse gas emission reduction. The 2023 IMO Strategy on Reduction of GHG Emissions from Ships serves as a guide for sustainable development. It outlines the aim to lower carbon emissions by at least 20-30% by 2030 and achieve net-zero emissions by 2050.
Other market trends
The next generation of innovation is already here. Technological advancements, such as 3D printing technology, integration of big data and drones for production planning, and development of autonomous ships, are transforming the shipping industry, including the evolution of design standards and the revolution of production processes. Mr Kamas confirms a visible trend for fully automated ships to perform simple tasks. Remotely operated vessels (ROVs) and unmanned surface vessels (USVs) can function as mobile energy banks, data centres or communication modules; they can assist in conducting inspections and other underwater operations.
PASSER SIDC project: Hulls of two automated supply vessels
The demand for efficient and sustainable shipping solutions will have a positive impact on market growth. Key trends for the 2025-2034 period will see the increased use of robotics, digital twin technology, solar and wind-powered ships, the integration of artificial intelligence (AI), green shipbuilding technologies, and the rise in LNG (liquefied natural gas)-fueled engines. Partnerships and collaborations, along with increased investments in the industry, are also anticipated. PASSER SIDC GROUP is excited to be part of this development.
