Global Digital Shipyard Market Size, Share & Trends Analysis Report By Solution (Hardware, Software, and Services), By Capacity, By Shipyard Type, By Technology, By Regional Outlook and Forecast, 2024 - 2031

Global Digital Shipyard Market Size, Share & Trends Analysis Report By Solution (Hardware, Software, and Services), By Capacity, By Shipyard Type, By Technology, By Regional Outlook and Forecast, 2024 - 2031

The Global Digital Shipyard Market size is expected to reach $12.33 billion by 2031, rising at a market growth of 21.8% CAGR during the forecast period.

The Asia Pacific region witnessed 39% revenue share in the market in 2023. This leading share underscores the rapid digital transformation and modernization efforts within shipyards across countries such as China, Japan, South Korea, and Singapore. The region’s strong maritime industry, coupled with significant investments in technology, has propelled the adoption of these solutions.

The shipbuilding industry is transforming, driven by the increasing demand for automation and digitalization. As manufacturers seek to enhance efficiency, reduce human error, and lower operational costs, digital tools like automated systems, robotics, and AI-driven processes are becoming critical. These technologies allow shipyards to streamline operations, optimize production timelines, and improve quality control. In conclusion, increasing demand for automation and digitalization in shipbuilding processes drives the market's growth.

Additionally, Safety is a top priority in the shipbuilding industry due to the hazardous nature of shipyard operations and the complex machinery involved. The growing need for enhanced safety and risk management is a major driver for adopting digital technologies in shipyards. Automation and digital tools can help identify potential safety risks, ensure compliance with industry standards, and minimize human error, which is often a leading cause of accidents. In conclusion, the rising need for enhanced safety and risk management drives the market's growth.

However, One of the primary restraints for this market is the high initial investment required to establish digital infrastructure. Implementing digital technologies such as automation, robotics, AI systems, and advanced data analytics involves significant capital expenditure for software and hardware. Shipyards, particularly smaller ones, may find it difficult to justify such an investment, especially in regions where the demand for shipbuilding is more limited, or the competition is fierce. Hence, high initial investment and infrastructure costs for these shipyards hinder the market's growth.

Solution Outlook

Based on solution, the market is divided into hardware, software, and services. The software segment held 21% revenue share in the market in 2023. This segment includes software applications to enhance various aspects of shipyard operations, from design and planning to maintenance and logistics. Ship design software, for example, allows for the creation of detailed digital models of ships, enabling precise design and engineering.

Capacity Outlook

On the basis of capacity, the market is segmented into large, medium, and small. In 2023, the medium segment attained 35% revenue share in the market. Medium-sized shipyards, while smaller than their large counterparts, still represent a considerable portion of the market and are increasingly recognizing the benefits of digitalization. These shipyards leverage digital technologies to enhance their operational capabilities and maintain a competitive edge.

Shipyard Type Outlook

Based on shipyard type, the market is categorized into commercial and military. The military segment witnessed 48% revenue share in the market in 2023. Military shipyards, which are responsible for building and maintaining naval vessels such as warships, submarines, and support vessels, also embrace digital transformation. The adoption of digital technologies in military shipyards is driven by the need for precision, reliability, and enhanced operational capabilities.

Technology Outlook

By technology, the market is divided into AI & big data analytics, AR/VR, additive blockchain, digital twin, high-performance computing (HPC), blockchain, and others. The AR/VR segment procured 21% revenue share in the market in 2023. Augmented reality (AR) and virtual reality (VR) technologies transform shipyard operations by providing immersive visualization tools for design, training, and maintenance processes. AR/VR solutions enable shipyard workers to visualize complex components and assemblies in a virtual environment, facilitating better design accuracy and reducing the risk of errors.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America region generated 26% revenue share in the market in 2023. This notable share highlights the region’s commitment to digital innovation within its shipbuilding and maintenance sectors. The United States, in particular, has been a major contributor to this growth, with its strong naval and commercial shipbuilding industries leading the way in adopting digital technologies.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.

Recent Strategies Deployed in the Market

• Nov-2024: SAP SE collaborated with Newport News Shipbuilding, a leading U.S. military shipbuilder specializing in aircraft carriers and submarines, to implement SAP S/4HANA. This initiative supports the firm’s integrated digital shipbuilding journey by enhancing cooperation between IT and business units, minimizing system disruptions, and leveraging advanced SAP tools to streamline shipbuilding processes.
• Nov-2024: Wärtsilä Corporation formed a partnership with Qatar Shipyard Technology Solutions, a provider of advanced ship repair and maintenance services, to enhance service support for vessels with 2-stroke and 4-stroke engines. The partnership focuses on maintenance, retrofit projects, decarbonization, and hybrid propulsion solutions. The partnership aims to improve operational efficiency and sustainability by offering eco-friendly reconditioning and fuel conversion services for both local and international ship owners.
• Jul-2024: Accenture joined hands with Fincantieri, an international leader in shipbuilding, to advance digital transformation in the cruise, defense, and port services sectors. This collaboration focuses on developing a technological platform for integrating shipboard functions and creating innovative solutions for smarter, safer, and more efficient ports.
• May-2024: Siemens AG teamed up with HD Hyundai, a South Korean shipbuilding company, to create a digital platform for building smart shipyards. This initiative aims to integrate design and production through automation and digital twin technology. It will enhance efficiency and productivity across HD Hyundai’s affiliates, including Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries, by unifying data from design to production.
• Apr-2024: Schneider Electric collaborated with Nvidia, a leader in graphics processing and AI technologies, to optimize data center infrastructure for edge AI and digital twin applications. This collaboration will introduce AI data center reference designs tailored for Nvidia’s accelerated computing clusters, supporting industries such as engineering simulation, electronic design automation, and generative AI applications.

List of Key Companies Profiled

• SAP SE
• Dassault Systemes SE
• Schneider Electric SE (AVEVA Group PLC)
• Wartsila Corporation
• Hexagon AB
• Siemens AG
• BAE Systems PLC
• Accenture PLC
• Inmarsat Global Limited (Viasat, Inc.)
• Damen Shipyards Group

Global Digital Shipyard Market Report Segmentation

By Solution

• Hardware
• Software
• Services

By Capacity

• Large
• Medium
• Small

By Shipyard Type

• Commercial
• Military

By Technology

• AI & Big Data Analytics
• AR/VR
• Additive Blockchain
• Digital Twin
• High Performance Computing (HPC)
• Blockchain
• Other Technologies

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA