Exclusive extracts from this 69-page-long report:
- Who are the key players?
The shipbuilding industry is dominated by East Asian players, in particular from China, Japan, and South Korea (which together account for 85% of the world's production of non-military vessels in 2016). East Asian players tend to specialise in merchant ships and offshore vessels, while European producers are leaders in the high-added-value cruise ship segment. On the demand side, European shipping companies are the industry's main customers, although the Chinese, Japanese, and South Korean governments also play an important role in supporting their respective industries. […]
Groups analysed in this report include: Mitsubishi Heavy Industries, Hyundai Heavy Industries, Daewoo Shipbuilding, Samsung Heavy Industries, CSIC, Fincantieri, CSSC, Hanjin Heavy, Yangzijiang Shipbuilding, and CSBC Co.
- What are the players' strategies?
Rivalry in the shipbuilding industry has been growing over the past few years on the back of a marked fall in demand volumes and new building prices. Receiving fewer orders, shipbuilders are forced to cut prices to attempt to retain market shares, while they are increasingly competing in high-value, technology-intensive segments, such as LNG-propelled vessels, and cruise ships. For instance, Hyundai Heavy plans to invest $1.8bn in R&D, recruit 2,300 new R&D staff, and appoint a Chief Digital Officer over the next five years. […]
- What are the players' key growth and profitability drivers?
Shipbuilders are looking towards technology-intensive vessels to increase revenues, given that tightening international environmental regulations, as well as increased demand for more fuel-efficient ships are boosting demand for these products. Competition in the segment is further exacerbated by Chinese companies moving upmarket: in 2017 for example, Korea's HHI, SHI, and DSME, lost a $1.4bn contract for the construction of nine ultra-large container ships to Chinese rivals. […]