by The global 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:
Ship conversion involves refurbishment and modernization of existing ships to enhance their efficiency and functionality. Ship conversion helps ship owners and operators extend the working life of vessels and upgrade them as per changing market trends and regulatory requirements.
Market key trends:
One of the key trends in the ship conversion market is the growing demand for environment-friendly and low emission ships. Stringent emission norms by International Maritime Organization (IMO) to curb air and water pollution are driving ship owners and operators to retrofit their existing fleet with advanced emission control systems, energy-efficient engines, and other green technologies. For instance, in 2020, IMO introduced a mandate to reduce sulfur content in marine fuel from 3.5% to 0.5%, which is spurring investments in ship conversions for sulfur scrubbers installation.
Market Key Trends:
One of the key trends in the ship conversion market is the growing adoption of eco-friendly technologies and upgrades by shipowners and operators. With increasing environmental regulations regarding emission reductions, many shipowners are opting for ship conversions to install ballast water treatment systems, exhaust gas cleaning systems, energy-efficient engines, and other upgrades to meet IMO’s efficiency targets. Moreover, innovations in hybrid systems, fuel cell technology, and use of alternative fuels are also driving several commercial ships to undergo conversion works for reducing their carbon and environmental footprint.
SWOT Analysis
Strengths: Ship conversion works allow extending the operational life of existing vessels cost-effectively as compared to newbuild ships. This provides flexibility to shipowners during market fluctuations.
Weaknesses: Frequent drydocks can be expensive and result in loss of revenue. Significant structural modifications may hamper vessel stability and integrity.
Opportunities: Growing focus on eco-compliance and emissions cuts is boosting demand for retrofitting green technologies. Adoption of advanced materials and digital solutions during conversion opens up new avenues.
Threats: Slowdown in global trade due to economic uncertainties can negatively impact scheduling of refit and conversion activities. Stringent environmental norms require substantial investments.
Key Takeaways
The global ship conversion market size is expected to reach US$ 13.46 Billion by 2023, expanding at a CAGR of 7.7% during 2023-2030. The market is driven by the increasing need for complying with stringent environmental regulations regarding emission reductions in the marine industry.
Regionally, Asia Pacific dominated the ship conversion market in 2021 with over 35% share, led by countries such as China, Korea, Japan, and Singapore. The region is home to prominent shipbuilding hubs and repair facilities and has been witnessing substantial investments in expanding eco-technology capabilities.
Key players operating in the ship conversion market include 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, Drydocks World, Dae Sun Shipbuilding, Shunzheng Shipyard, HHIC-Phil. These companies are involved in new construction as well as conversion, refurbishment, repair and maintenance of vessels.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
