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Shipbuilding in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Shipbuilding Market Research Report | SIC C30.110 | Feb 2017

The rising tide: A rise in government defence spending boosts demand from the military

IBISWorld’s Shipbuilding market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Babcock International Group plc Babcock International Group plc market share
BAE Systems plc BAE Systems plc market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Industry Threats & Opportunities
  • The production of warships for foreign militaries has grown over the past five years
  • Subdued economic conditions have affected Chinese shipbuilders, benefiting the industry
  • The impending completion of major projects could contribute to a slight lull in industry activity in the near future
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Industry Analysis & Industry Trends

The Shipbuilding industry has grown over the past five years. Industry revenue is expected to rise at a compound annual rate of 5% over the five years through 2016-17 to £4.5 billion. Revenue is forecast to expand by 4% in 2016-17 as a result of a rise in government defence spending boosting demand from the industry’s biggest market, military vessel production. An anticipated rise in exports and slowdown in import competition due to the depreciation of the pound are also expected to slightly boost revenue.

Import competition in the passenger ship segment has remained intense in recent years, although imports have remained volatile while exports risen strongly over the past five years. A... purchase to read more

Industry Report - Industry Investment Chapter

The industry has a medium level of capital intensity, with an estimated £1.00 spent on capital for every £5.82 spent on labour. Wages account for approximately 24.4% of revenue in 2016-17. This marks a decline in the percentage of revenue attributed to wages over the past five years. However, the industry's average wage is still high compared with most of the manufacturing sector, indicating the specialised skills required. Depreciation costs account for approximately 4.2% of revenue. The industry requires facilities and equipment to build ships, such as specialised lifting cranes and building facilities.

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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... purchase to read more


    Industry ProductsRelated Reports

    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 vesselsOther vesselsWarshipsFloating structures
    Industry Activities
    Passenger and cargo vessel constructionFerry boatWarshipFishing boat and fish-processing factory vesselFloating or submersible drilling platform buildingFloating structure constructionFabricating sections for ships and floating structuresLifeboat

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Asian shipbuilders
  • Tourism and imports
  • Profit and enterprise numbers
  • Chart: Revenue Growth
  • Industry Outlook
  • Defence spending
  • International trade
  • Profitability and steel prices
  • Table: Shipbuilding Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Shipbuilding Industry Lifecycle vs The Economy
  • Products & Markets
    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
  • Other vessels
  • Floating structures
  • Chart: Shipbuilding Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Military
  • Other companies
  • Passenger ship operators
  • Cargo ship operators
  • Chart: Major Market Segmentation for the Shipbuilding Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Subcontractors and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Shipbuilding
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Shipbuilding Industry
  • Industry Globalization
    Major Companies
    BAE Systems plc
    Babcock International Group plc
  • Table: BAE Systems plc - financial performance
  • Table: Babcock International Group plc - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Shipbuilding Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
  • A surface warship that in the United Kingdom consists of two types: Type 42 and Type 45. Type 45 Destroyers are superseding the Type 42 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. Type 23 Frigates account for nearly half of the Royal Navy's destroyer fleet.
  • Surface Ships
  • A warship designed for warfare on the surface of the water.

  • Why Buy this Report?
    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 of 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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