Making waves: Government efforts to increase the industry's export capabilities support demand

The Shipbuilding industry has grown strongly over the past five years. Industry revenue is forecast to expand at a compound annual rate of 3.6% over the five years through 2019-20 to reach £5.7 billion. Operators build military vessels for the Royal Navy and foreign governments, and growth has been supported by the construction of the Queen Elizabeth class aircraft carriers during the past five years. An anticipated rise in export revenue due to the weak pound is expected to boost industry revenue by 3.8% in 2019-20. The weak pound is expected to encourage foreign countries to bring forward orders, but due to the long turnaround times for construction, shipyards specialising in refits and rebuilds are more likely to benefit from increased more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Ongoing work on recently secured contracts is set to support growth over the next five years
  • Competition from Asian firms that benefit from lower production costs is limiting industry growth
  • Work on a number of major contracts is expected to support continued revenue growth
  • Industry Report - Industry Products Chapter

    WarshipsWarships include a range of surface ships such as aircraft carriers, assault ships, frigates, destroyers and patrol ships. This segment accounts for the largest proportion of industry revenue, estimated at 71.3% in 2019-20, and this share has grown over the past five years.Major players BAE Systems and Babcock International are heavily involved in this segment, building ships for the Royal Navy and the Ministry of Defence. Both have supported growth in this segment's share of revenue over the past five years. The Royal Navy embarked on a series of projects to improve its fleet and enhance capabilities, which has supported demand for warships. How...purchase to read more.

    Additional Insights for the Shipbuilding Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Shipbuilding Industry are

  • Access to highly skilled workforce
  • Undertaking technical research and development
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Government spending on defence and World price of steel in the Shipbuilding industry impact industry performance..

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    What's in this report

    What is the Shipbuilding Industry?

    Companies in this industry build ships and boats, and construct floating structures. The industry does not include repair activities, but does include ship rebuilding and overhauls. Industry participants do not build ships used for sport or recreation and do not manufacture parts of vessels, other than major hull assemblies.

    Industry Products
  • Passenger and cargo vessels
  • Other vessels
  • Warships
  • Floating structures
  • Refitting and rebuilds
  • Industry Activities
  • Constructing passenger and cargo vessels
  • Manufacturing ferry boats
  • Manufacturing warships
  • Manufacturing fishing boats and fish-processing factory vessels
  • Building floating or submersible drilling platforms
  • Constructing floating structures
  • Fabricating sections for ships and floating structures
  • Manufacturing lifeboats
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government spending on defence
  • World price of steel
  • Demand from sea and coastal freight water transport
  • Demand from sea and coastal passenger water transport

  • Current Performance
  • Military orders
  • Demand waves
  • Foreign shipbuilders
  • Industry profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong defence
  • International trade
  • Sailing forward
  • Table: Shipbuilding Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Shipbuilding Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sea & Coastal Passenger Water Transport
  • Sea & Coastal Freight Water Transport
  • Freight Forwarding & Customs Agents

  • Key Selling Industries
  • Iron & Steel Manufacturing
  • Lifting & Handling Equipment Manufacturing
  • Primary Form Plastics Manufacturing

  • Products & Services
  • Warships
  • Passenger and cargo vessels
  • Refitting and rebuilds
  • Other vessels
  • Floating structures
  • Chart: Shipbuilding Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Military
  • Other companies
  • Cargo ship operators
  • Passenger ship operators
  • Chart: Major Market Segmentation for the Shipbuilding Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Shipbuilding

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Shipbuilding Industry

  • Industry Globalization
    BAE Systems plc, Babcock International Group plc,
  • Table: BAE Systems plc - financial performance
  • Table: Babcock International Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Shipbuilding Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Shipbuilding Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A type of surface warship, larger than a frigate. The Royal Navy's destroyer fleet consists of six Type 45 destroyers.
  • Dredger
  • An excavating vessel deployed to gather bottom sediments and deposit them in a different location.
  • Freight Rates
  • A given price for the transportation of cargo from one point to another.
  • Frigate
  • A type of surface warship. The Royal Navy operates 13 Type 23 Frigates, with the Type 26 and Type 31e expected to enter operation during the 2020s.
  • Surface Ships
  • A ship designed for warfare on the surface of the water.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Shipbuilding market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Shipbuilding:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Shipbuilding market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Shipbuilding, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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