Digital Shipyard Market Size - By Technology (Digital Twin, Internet of Things (IoT), Automation & Robotics, Data Analytics & Big Data), Type (Military, Commercial), Process, Capacity, Digitalization Level, End User, Regional Outlook & Forecast, 2023 – 2032

Digital Shipyard Market Size

Digital Shipyard Market size was valued at USD 1.6 billion in 2022 and is predicted to register at a CAGR of over 15% between 2023 and 2032. The digital shipyard industry has been influenced by the integration of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), and digital twin technology. These technologies enhance efficiency, reduce downtime, and improve overall productivity in shipbuilding processes. By leveraging cutting-edge solutions, the industry is better equipped to make data-driven decisions, reduce downtime, and optimize overall performance, fostering a dynamic and competitive shipbuilding landscape.
 

For instance, in October 2023, Hanwha Ocean Co. of South Korea announced a fundamental agreement with the Houston-based American Bureau of Shipping (ABS) to validate digital production technology, cybersecurity, self-navigation, and smart ship solutions. The company aims to enhance production efficiency by testing and validating digital shipbuilding technology until 2026. According to the agreement, Hanwha Ocean will collaborate on research to certify its smart shipyard and vessel technologies. The initial focus is on securing approval for the product design and manufacturing of its self-developed vessel draft measurement system, utilizing artificial intelligence image analysis.

Increased emphasis on data-driven decision-making is a key driver behind the growth of the digital shipyard market. By collecting and analyzing data from various stages of shipbuilding, companies can gain valuable insights that help optimize workflows, predict maintenance needs, and enhance overall performance.
 

Quoting an instance, in February 2023, GE revealed that its Indian subsidiary has entered into a agreement with Cochin Shipyard Limited to deliver an all-encompassing digital solutions package, enhancing the capabilities of LM2500 marine gas turbines powering the Indian Navy’s IAC-1 Vikrant, commissioned in August 2022. The package includes GE's SmartSignal solution, providing early indications of potential engine issues.
 

Utilizing predictive analytics in the shore-based digital twin of Vikrant’s gas turbine engine, the Navy aims to transition to a more predictive operational mode, minimizing risks and enhancing overall effectiveness. Data-driven decision-making is crucial for improving competitiveness in the maritime industry, which will help strengthen the digital shipyard market outlook over the next ten years.
 

However, the integration of advanced digital technologies in shipyards often requires significant upfront investments in infrastructure, hardware, software, and employee training. Some shipbuilding companies, especially smaller ones, may find the initial costs prohibitive, limiting their ability to adopt comprehensive digital solutions.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the digital shipyard market by disrupting global supply chains, delaying shipbuilding projects, and prompting a shift towards remote work. Social distancing measures affected on-site operations, prompting a greater reliance on digital technologies for communication and collaboration. While the pandemic underscored the importance of digitalization for resilience, it also posed challenges in terms of project timelines and workforce adaptation. Despite setbacks, the industry accelerated its adoption of digital solutions to navigate the complexities imposed by the ongoing global health crisis.
 

Digital Shipyard Market Trends

The application of artificial intelligence (AI) for predictive maintenance is likely to grow and could emerge as a prominent trend in the digital shipyard industry. AI algorithms can analyze data from sensors and other sources to predict equipment failures and maintenance needs, enabling proactive and cost-effective maintenance strategies while minimizing downtime.
 

Against this backdrop, in April 2023, ShipIn Systems revealed that Zeaborn Ship Management, a Hamburg and Singapore-based third-party ship manager, will deploy the visual fleet management platform, FleetVision™, across a significant portion of its diverse vessel portfolio. With operations spanning Europe and Asia, Zeaborn aims for a cohesive strategy to boost transparency, efficiency, and overall performance. The adoption of ShipIn System's digital platform on Zeaborn-managed vessels is geared towards enhancing safety, operational compliance, and achieving overarching performance objectives.
 

Digital Shipyard Market Analysis

Based on technology, the data analytics & big data segment is expected to grow at a CAGR of over 14% through 2032, led by a compelling need for enhanced operational efficiency and informed decision-making. By harnessing vast amounts of data generated throughout the shipbuilding lifecycle, these technologies empower shipyards to optimize processes, predict maintenance requirements, and streamline workflows. The insights derived from data analytics enable a more proactive and strategic approach, reducing downtime, improving resource utilization, and ultimately contributing to a more competitive and resilient shipbuilding industry.
 

Based on type, the digital shipyard market size from commercial shipyards segment dominated around USD 900 million in 2022, propelled by the global demand for maritime transportation and logistics. As international trade continues to grow, the need for construction, repair, and maintenance of commercial vessels will continue to grow. Shipyards play a crucial role in meeting this demand, providing essential infrastructure for the maritime industry. The increasing globalization of trade, coupled with the expansion of shipping routes, reinforces the significance of commercial shipyards as key contributors to the dynamic and evolving maritime landscape.
 

Asia Pacific digital shipyard market size is set to witness 18% CAGR during the forecast period. The region's prominent shipbuilding hubs, such as South Korea, China, and Japan, are embracing advanced technologies to enhance operational efficiency and maintain a competitive edge. Governments and industry stakeholders in Asia Pacific are investing significantly in digitalization, fostering innovation in ship design, construction, and maintenance. The growing demand for technologically advanced and environmentally sustainable vessels further propels the adoption of digital solutions, positioning the region at the forefront of the industry.
 

Digital Shipyard Market Share

Major companies operating in the digital shipyard industry are:

• Altair Engineering Inc.
• Aras
• Aveva Group plc
• BAE Systems
• Dassault Systèmes
• Hexagon AB
• iBase-t
• SAP
• Siemens
• SSI
• Wartsila

The digital shipyard market is highly competitive with dominant players such as Siemens and Dassault Systèmes. Major companies in the digital shipyard industry are adopting strategic approaches to strengthen their market presence. This includes investing in cutting-edge technologies, forming strategic partnerships, offering comprehensive solutions, and focusing on research and development, all aimed at enhancing their competitive edge and meeting evolving industry demands.
 

Digital Shipyard Industry News

• In November 2022, Dassault Systèmes and Samsung Heavy Industries (SHI) inked a memorandum of understanding (MoU) to establish a smart digital shipyard. This innovative facility will utilize virtual twin technologies, driving the digital transformation of SHI's shipyard and business endeavors. Built on Dassault's 3DEXPERIENCE platform, the smart yard will seamlessly integrate diverse data sources and real-time operational information to optimize efficiency and enhance the overall performance of Samsung Heavy Industries' shipyard operations.
   

The digital shipyard market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Technology

• Digital twin technology
• Internet of Things (IoT)
• Automation & robotics
• Data analytics & big data
• Others

Market, By Type

• Military shipyards
• Commercial shipyards

Market, By Process

• Design & planning
• Construction
• Maintenance & repair

Market, By Capacity

• Small shipyards
• Medium shipyards
• Large shipyards

Market, By Digitalization Level

• Semi-digital shipyard
• Fully digital shipyard

Market, By End User

• Shipbuilders & shipyards
• Ship Owners & operators
• Defense & military

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia