The Ship Conversion Market is estimated to be valued at US$ 13.46 Bn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The ship conversion market involves modifying existing ships by reconstructing or enhancing their structures and systems to adapt them for new purposes or to meet new regulatory standards. Ship conversions improve operational efficiencies by extending ship lifespans and upgrading their functionalities as per evolving market needs and regulations. It allows ships to ply for longer durations with new capabilities to maximize returns on investments.

Market key trends:

One of the major trends driving the ship conversion market is the increasing adoption of new shipbuilding technologies. Shipowners are increasingly opting for conversions to install digital technologies like remote monitoring systems, big data analytics, augmented reality, and virtual reality solutions to enhance onboard operations and safety. Conversion yards are also integrating cutting-edge technologies like 3D printing, robotics, and automation to streamline conversion workflows. Technological advancements enable cost-effective, precise, and efficient modernizations that boost ship performance and prolong their lifespans. This widens the scope and necessity of conversion activities globally.

Porter’s Analysis

Threat of new entrants: The ship conversion market requires huge capital investments and technological expertise which acts as a barrier for new players. Strict maritime regulations also deter new entrants.

Bargaining power of buyers: A large number of ship owners gives buyers significant bargaining power to negotiate on price and delivery timelines. However, specialized skills required limits switching to alternate suppliers.

Bargaining power of suppliers: Key raw material suppliers like ship equipment manufacturers wield influence over prices and timely delivery due to their specialized expertise and established customer relationships.

Threat of new substitutes:While new shipbuilding is an alternative, converted ships provide a cost effective solution to upgrade or change ship type. Hence threat from substitutes is low.

Competitive rivalry: Intense competition exists among establishedconversion yards on pricing, quality, technology and timely deliveries.

SWOT Analysis

Strength: Established global presence, technical expertise, quality ship conversions.

Weakness: High dependence on maritime trading, economic cycles, capital intensive operations.

Opportunity: Growing seaborne trade, regulations on emissions reducing life of older ships.

Threats: Trade wars, geopolitical tensions impacting shipping demand, low freight rates.

Key Takeaways

The global ship conversion market is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing maritime trade and regulations on emission reduction. The market size for ship conversion is estimated to reach US$ 23.45 Bn by 2030.

Regional analysis: Asia Pacific dominates the global market with major ship conversion hubs in China, South Korea, Japan and India. Lower costs and large shipbuilding capacity in China and India are driving the market. Europe and Middle East are other major markets growing over 6% annually.

Key players operating in the ship conversion market are Sembcorp Marine, Hyundai Heavy Industries, CSSC Chengxi Shipyard, Damen Shipyards Group, Cochin Shipyard, Fincantieri, Orient Shipyard, VARD Group, Wilson Sons, Oman Drydock Company, Bahri Abha Shipyard, Abu Dhabi Ship Building, N-KOM, Keppel Shipyard, Tebma Shipyards, Lamprell, and Drydocks World. Leading players are investing in R&D to develop fuel-efficient and emission free technologies for eco-friendly conversions.

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https://www.ukwebwire.com/ship-conversion-market-size-share-growth-outlook-2023/