The ship breaking market size was valued at USD 3.98 billion in 2023 and is expected to be worth USD 4.08 billion in 2024. The market is projected to reach USD 7.64 billion by 2032, recording a CAGR of 8.2% during the forecast period.
Ship breaking refers to breaking down older ships to help operators increase the efficiency of their fleets. Many aspects, such as the overall condition and wear & tear of the vessel are considered before it is sent for recycling or scrapping. Moreover, prolonged use of older ships can negatively impact the environment as they leave more carbon emissions. This factor has prompted more owners to send their ships for recycling, thereby fueling the ship breaking market growth.
The COVID-19 pandemic favored the market’s outlook as many fleet operators scrapped some of their ships before their planned or actual age, which increased the demand for ship recycling activities.
Fortune Business Insights™ displays this information in a report titled, "Ship Breaking Market, 2023-2030."
Browse In-depth Summary of This Research Insight:
https://www.fortunebusinessinsights.com/ship-breaking-market-108231
LIST OF KEY COMPANIES PROFILED IN THE REPORT
Alang Ship Yard (India)
iZMiR Ship Recycling (Turkey)
Spot Shipping AS (Turkey)
Habib Group (Bangladesh)
Ratanpur Ship Recycling Industries (Bangladesh)
Chittagong Ship Yard (Bangladesh)
Arefin Enterprise (Bangladesh)
Changjiang (China)
Zhoushan (China)
PHP Ship Breaking and Recycling Industries (Bangladesh)
Segmentation: Ship Breaking Market
Ships With Below 20,000 Ton LDT Became Popular Due to Increased Recycling of Small-Sized Vessels
Based on Light Displacement Tonnage (LDT) type, the market is divided into below 20,000 tons, 20,000 to 40,000 tons, and above 40,000 tons. The below 20,000 tons segment dominated the ship breaking market as an increasing number of small-sized and lightweight ships are being scrapped or recycled.
Demand for Recycling of Tankers Increased Due to Increased Scrapping of Tankers
By type of ship, the market is classified into tankers, bulk carriers, farriers & passenger ships, container ship, general cargo ship, and others. The tankers segment held a dominant ship breaking market share due to aging and rising scrapping of these vessels.
Cost-Effectiveness of Beaching Method Boosted Its Use in Shipyards
By method, the ship breaking market is divided into alongside, beaching, dry dock, and others. The beaching method segment held the largest market share as this method is quite cost-effective as compared to other techniques.
With respect to region, the market covers North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Report Coverage:
The report studies the market in detail and gives valuable insights about the leading market players and popular ship recycling methods. It also highlights the recent developments in the market and top market trends. In addition to the factors listed above, the report delves into other factors that have helped the market grow.
Drivers and Restraints:
Construction of New Ship Breaking Yards to Boost Market Progress
The demand for the ship breaking process is growing at a strong rate due to the growing burden of aging ships. This demand is being catered to by the shipyards in India, Bangladesh, and Pakistan. However, it has led to some Western countries being over-dependent on these nations for carrying out the ship recycling process. This factor has boosted the demand for building new ship breaking yards in different locations, which is expected to accelerate the market’s growth.
However, many facilities do not adhere to safety regulations while conducting ship recycling activities, which can slow down the market’s development.
Regional Insights:
Introduction of New Maritime Emission Laws Helped Europe to Dominate Market
Europe dominated the global ship breaking market as the region is introducing a wide range of maritime emission rules to reduce the carbon footprint of the shipping industry. Moreover, the ship ownership rate is increasing across the region, which will further propel the market’s growth.
Asia Pacific is predicted to grow at an appreciable pace due to the rising presence of leading ship owners in countries, such as Japan, South Korea, and China.
Competitive Landscape:
Market Leaders to Boost Their Dominance by Introducing Automation in Ship Recycling
The market’s competitive landscape is consolidated due to the presence of notable firms, such as Ratanpur Ship Recycling Industries, PHP Ship Breaking and Recycling Industries, Alang Ship Yard, and Chittagong Ship Yard, among many others. These companies are introducing automation into their ship scrapping processes to boost their performance and efficiency. They are also receiving the government’s support for their shipyards in the form of subsidies, which will further help them increase their dominance in the market.
Notable Industry Development:
November 2022: ASECO Europe, Damen Shipyards, KCI, and many other companies collaborated to construct an autonomous ship recycling facility. The project aimed to create safe and sustainable working conditions for ship recycling activities with the help of automation.