Ship repair and maintenance activities are geographically dispersed, and in order to stay ahead in this business, ordinary ship repairs are carried out near ship operating routes. World trade activities and GDP growth are poised to support the growth of the ship repair and maintenance services market. As per a recent report published by FMI, the global ship repair and maintenance services market is expected to reach a valuation of US$ 41.4 Bn by 2030, expanding at a CAGR of nearly 7% during the forecast period of 2020-2030.
The COVID-19 pandemic is likely to impact the overall economic growth of nations across the world, which, in turn, will directly impact overall trade. A majority of trade activities are performed through maritime transport that is directly getting affected by the pandemic. This decline in trade activities is having a negative impact on ship repair and maintenance services market at present.
“Ship owners choose ship repair facilities based on location, price, and quality, as well as increasing safety regulations and specialization. Moreover, they are dependent on whether the maintenance activity is routine or due to an unforeseen problem. Market participants are developing their service offerings according to geographical locations and price bands with optimum level of quality.”
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Key Takeaways from Ship Repair and Maintenance Services Market Study
- With reliance of global trade and transport on seaborne connectivity, and increasing operations with economies across the globe strengthening import-export ties, the need for maintenance and repair services has put shipbuilding and ship repair firms at the forefront in the entire cycle. These tailwinds are anticipated to propel the ship repair and maintenance services market over the coming years.
- The market is characterized for being labour-intensive, and thus, the prices of ship repair services have decreased dramatically in countries where labour costs are low. These low prices are driven by preferences of ship-owners, optimizing their profit pools for cost-effective services.
- By vessel type, bulk carrier vessels would capture a leading revenue share in the ship repair and maintenance services market.
- South East Asia & Pacific (SEAP) continues to reflect opportunities of growth and profitability, followed by China and Japan.
Ship Repair and Maintenance Services Market: Participant Insights
The ship repair and maintenance services market is fragmented, owing to the presence of several service providers across the globe. Sembcorp Industries Ltd., Damen Shipyards Group, Hyundai Mipo Dockyard Co., Ltd., and China Shipbuilding Industry Corporation are considered to be the leading players in the ship repair and maintenance services market. The nature as well as fragmentation of the ship repair and maintenance services market make cost an important consideration. Availability of skilled labour and cost-effective techniques are steering the cost of various services, and, in turn, impacting the global ship repair and maintenance services market. Key market participants are involved in shipyard capacity expansion activities to enhance their geographical presence in the market across the globe and improve their profitability.
Know More about Ship Repair and Maintenance Services Market
A recently published research report by FMI analyses the total sales of ship repair and maintenance services on the basis of value (US$ Mn), segmented into vessel type, service type, and region. The market is projected on the basis of factors such as oil & gas industries performance forecast, seaborne trade activities, shipbuilding industry growth, and labour costs. The report also offers a COVID-19 impact on market growth, and projected demand growth over the forecast period. The scope of the research report includes services for ship repair and maintenance for oil and chemical tankers, bulk carriers, general cargo, container ships, gas carriers, offshore vessels, passenger ships and ferries, mega yachts, and other vessels.
SHIP REPAIR AND MAINTENANCE SERVICES MARKET: STRUCTURE ANALYSIS
- Tier-3 players cater to 57.3% of the global ship repair and maintenance services market share, while the remaining share is being held by tier-1 and tier-2 players, with operations mainly in international markets.
- Sembcorp Industries Ltd., China Shipbuilding Industry Corporation, Cochin Shipyard Limited, and Hyundai Mipo Dockyard Co., Ltd. are amongst the few prominent market participants in the global ship repair and maintenance services market.
- Service providers in the market focusing on providing services to vessels in compliance with the rules, regulations, and norms that are being imposed by governmental authorities of respective nations. These providers are also looking to venture into the international market to increase their sales footprint across diverse regions.
- Base Year – 2019
- Historical Period – 2015-2019
- Forecast Period – 2020-2030
- Market Value in 2019 – US$ 21.7 Bn
- Segments Covered – Vessel Type, Service Type, and Region
- Regions Covered – North America, Latin America, Western Europe, Eastern Europe, China, India, Japan, South East Asia & Pacific, Middle East & Africa, Nigeria, Egypt, Morocco, and South Africa
- Key Companies – Sembcorp Industries Ltd., Damen Shipyards Group, China Shipbuilding Industry Corporation, Cochin Shipyard Limited, Hyundai Mipo Dockyards Co. Ltd., Dae Sun Shipbuilding & Engineering Co. Ltd., Arab Shipbuilding and Repair Yard Company, Fincantieri S.p.A., United Shipbuilding Corporation, Keppel Corporation Limited, Orskov Group, Oman Drydock Company, Dundee Marine & Industrial Services Pte Ltd., HOSEI CO. LTD., and TSUNEISHI SHIPBUILDING Co. Ltd.
- Growth Drivers –
- Upsurge in ocean-based trade activities
- Stringent safety regulations and specialization
- Increasing need for routine maintenance to curb expenses