The Five Dominant Countries in the Global Shipbuilding Industry in 2025
The international shipbuilding industry, a cornerstone of maritime trade and logistics, is highly competitive. Several major players are expected to consolidate their positions and dominance by 2025.
These developments are the result of several key factors, including technological advancements, government support, growing demand for more efficient and environmentally friendly vessels, enhanced port infrastructure, and streamlined operational processes.
The global shipbuilding market was valued at $150.42 billion in 2024 and is projected to reach $155.58 billion by 2025.
This projected growth highlights the impact of increasing maritime trade and the corresponding demand for modern, sustainable vessels equipped with more efficient onboard systems and improved functionality.
The Asia-Pacific region alone accounts for at least 85% of the global shipbuilding industry, with China, South Korea, and Japan being the largest contributors.
The Five Major Shipbuilding Powers in the World in 2025
1. China
China has undoubtedly become the world’s largest shipbuilding nation and is expected to maintain and strengthen this position in 2025 and beyond.
China’s dominance is driven by its large and skilled workforce, government support, effective industrial policies, R&D investment, and rapid expansion of shipyard capacity.
In 2024, Chinese shipbuilders will have received orders for 46.45 million corrected gross tons (CGT), accounting for 70% of the global market share.
Chinese shipyards are fully booked for the next three to four years, with a vacancy rate of zero by the end of 2028.
Beijing leads in new orders for tankers, container ships, and bulk carriers, and is increasingly focusing on high-value and environmentally friendly vessels, which accounted for 78.5% of orders for alternative fuel vessels in 2024.
Major players in China’s shipbuilding industry include China State Shipbuilding Corporation (CSSC), New Era Shipbuilding, and Yangzijiang Shipbuilding Group.
China is not only focused on increasing annual shipbuilding output but also on technological innovation and sustainable development.
China is investing heavily in the development of new materials, digital shipbuilding technologies, and autonomous and environmentally friendly vessels.
Although concerns about US tariffs on Chinese ships may lead to a slight decline in order intake in the first half of 2025, China’s vast shipping capacity and diversified product portfolio ensure its continued leadership. China’s ability to build any type of vessel gives it a significant competitive advantage.
2. South Korea
South Korea is renowned for building high-value, technologically advanced ships.
South Korean shipbuilders have secured orders to build 10.98 million gross tons of ships by 2024, representing approximately 17% of the global market share.
Leading South Korean shipbuilders include Korea Shipbuilding & Offshore Engineering, Hanwha Marine, and Samsung Heavy Industries.
South Korea leads the construction of advanced liquefied natural gas (LNG) carriers, very large crude carriers (VLCCs), and large containerships. The country also specializes in ammonia and liquefied petroleum gas (LPG) carriers.
South Korea is investing in new liquefied natural gas (LNG) carrier technology, AI-based ship intelligence systems, and carbon capture and storage (CCS) technology or off-the-shelf CCS designs.
South Korea’s shipbuilding industry is benefiting from growing demand for liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers, as well as international environmental regulations promoting cleaner, more environmentally friendly fuels.
Despite facing competition from China, South Korea’s focus on advanced, high-tech ships and heavy investments in green technology research and development have secured its strong position in shipbuilding. Labor shortages are a major challenge for South Korea, but its focus on high-profit projects helps maintain its competitive advantage.
3. Japan
For decades, particularly from the 1960s to the 1980s, Japan was a dominant force in the shipbuilding industry, building nearly half of the world’s new ship tonnage.
While Japan remains a major player in the global shipbuilding industry, its ranking has fallen to third, behind China and South Korea.
Japan is shifting its focus to specialized, high-value vessels, such as environmentally friendly bulk carriers and advanced technology vessels, rather than simply competing with China in terms of volume.
Japan is exploring areas such as independent shipbuilding and other cutting-edge technologies to maintain its competitive advantage.
Japan’s order book reached 8.38 million tons in 2024, representing 13% of the global market. The country specializes in the design and construction of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) vessels, as well as refrigerated ships and vehicle carriers. Bulk carriers comprise a significant portion of its total order backlog in 2024.
The Japanese government has set a goal of doubling its shipbuilding capacity and increasing its global market share of new orders to 20% by 2030.
This includes plans to build a state-owned shipyard and merge private companies, such as the potential merger between Imabari Shipbuilding and Japan Marine United (JMU).
By 2025, Japan’s shipbuilding industry will focus on providing high-quality ships and investing in technological advances for environmentally friendly vessels (such as liquefied natural gas-powered car carriers), while also improving productivity.
Challenges such as an aging workforce and labor shortages remain; however, government initiatives and private sector consolidation are working to strengthen Japan’s position, particularly in high-value and specialized sectors.
4. Philippines
The Philippines’ geographical location and long coastline enable it to repair and build a large number of ships annually. The country focuses on building tankers, bulk carriers, and container ships for export.
The Philippine shipping industry has benefited from significant foreign investment, with companies such as Hanjin, Tsuneishi, and Austal operating in the country.
The country has medium-sized and large shipyards capable of handling a wide range of vessel types. While focused on exports, the country’s thriving shipbuilding and ship repair industry also meets domestic demand.
According to the United Nations Conference on Trade and Development (UNCTAD)’s “Shipping Review 2024,” the Philippines ranks among the world’s top five shipbuilding nations in 2023, with a total output of 805,938 tons.
The number of ships built by Philippine shipyards in 2024 increased by 4% compared to 2023, bringing the total number of domestically built ships to 506.
Currently, the Philippines primarily produces fishing vessels, bulk carriers, passenger ships, and tugboats. Bulk carriers are expected to dominate light commercial vehicle exports by 2024.
By 2025, the Philippines is expected to benefit from the construction of small and medium-sized vessels, such as tankers and bulk carriers. Furthermore, the Philippines enjoys the additional advantages of low labor costs and a strategic location in Asia.
The Philippine government is also actively promoting the development of its shipbuilding industry to attract foreign shipyards to set up shop in the country, thereby increasing production capacity and creating more jobs.
5. Vietnam
Vietnam’s shipbuilding industry has developed significantly, focusing on both domestic and international markets. The government has promoted the industry’s growth through tax incentives and subsidies.
Large amounts of foreign investment, particularly from Europe and South Korea, have stimulated Vietnam’s development. Vietnam has also invested in improving its maritime infrastructure and building numerous shipyards. Vietnam’s annual domestic new cargo shipbuilding capacity is 3.5 million tons.
In 2024, Vietnam’s shipbuilding industry experienced strong growth, with the construction and delivery of several specialized vessels.
Vietnam’s shipbuilding industry aims to account for 0.8% to 0.9% of global production by 2030. Its primary products are general cargo ships, container ships, liquefied petroleum gas carriers, and other service vessels.
While challenges such as aging infrastructure and reliance on imported materials persist, competitive labor costs and government efforts to increase localization and modernize technology will drive growth in the coming years.
Conclusion
In 2025, global shipbuilding will be shaped by powerhouse nations such as China, South Korea, and Japan, along with rising contributors like the Philippines and Vietnam. The industry is transforming rapidly, driven by demand for greener ships, smarter technologies, and continued innovation from established and emerging players.
