Top 10 Ship Building Countries In The World

The shipbuilding industry is growing at a tremendous rate, with its market size expected to increase from USD 155.58 billion in 2025 to 203.76 billion in 2033, owing to greater container and dry bulk trade and the opening of new markets, per Straits Research. Around 85% of shipbuilding activities are concentrated in China, Japan, and South Korea, which are the top shipbuilding countries in the world.

Shipbuilding, which involves the construction of large seagoing vessels, manufacturing marine equipment, and refurbishing old vessels is a lucrative industry, propelled by the rising sea trade between countries, as the world population increases amidst rising consumer demands worldwide.

Apart from commercial vessels, naval vessels are also witnessing an increased demand with several navies like the Chinese and American, building new ships to showcase naval prowess.

In this article, we will mention the top 10 shipbuilding countries in the world, the majority of which are in Asia, Europe and the Americas, leading through their technological breakthroughs, and strategic investments in port infrastructure and ship equipment.

1. China

China is the world’s largest shipbuilding nation and this dominance can be attributed to factors like government subsidies, industrial policies like Five Year Plans, the Belt and Road Initiative and Made in China 2025.

Chinese shipyards booked 74% of all new-build orders in 2024. Per the data shared by the China Association of the National Shipbuilding Industry, the country got 113.05 million DWT of new building orders.

The total orderbook stood at 208.72 million DWT by December 2024, a 49.7% increase from 2023. Output from the shipyards also increased in 2024, with a 13.8% year-on-year increase to reach 48.1 million dwt, equating to a 55.7% share in the global market.

Chinese yards are shifting their focus from dry bulkers to low-carbon ship types, like cruise ships, and green vessels like LNG carriers and container ships. The country is also retiring old warships and building muti-mission naval vessels with advanced technology.

2. South Korea

The South Korean Shipbuilding Industry contributed around USD 700 billion to its economic exports and is dominated by three shipyards; Samsung Heavy Industries, Hanwha Ocean, and HD Hyundai Heavy Industries which secured orders for 112 vessels worth US$ 12.1 billion, 26 vessels worth US$ 5.7 billion, and 22 vessels worth US$ 4.9 billion in 2024, per the Observer Research Foundation.

China secured 46.45 million compensated gross tonnes, while South Korea reached 10.98 CGT across 250 ships.

South Korea’s biggest competitor is China, a leader in tankers, containers and bulkers, benefitting from rapid shipyard expansion allowing it to build more vessels, with orders extending till 2029 and full yards till 2027.

To counter this, South Korea plans to increase its investments in strategic projects.

Recently, Hanwa Systems and Hanwa Ocean invested US$ 100 million in the US Philly Shipyard. Seoul will also build on its strengths in research and development, vessel design and procurement.

3. Japan

Around 20% of the global output is produced by Japanese shipping companies, making it the third biggest shipbuilding country in the world. Bulk carriers fill up most part of the nation’s orderbook.

In 2024, Japanese shipbuilders received orders for 251 vessels worth 11,160,206 gross tonnes, which included 24 cargo ships, 196 bulk carriers and 31 liquid cargo vessels.

The Japanese shipbuilding industry is focussing on innovating and developing eco-friendly high-tech ships, emphasising on alternative fuels and decarbonisation strategies to meet global maritime emission standards.

Japan is known for its quality and efficiency in ship design and construction, including active research in developing LNG vessels and exploring options like hydrogen-powered ships.

As of March 2024, Kawasaki Heavy Industries Ltd was the biggest publicly listed shipbuilder in Japan by total assets.

While Japan is a major shipbuilder, it faces challenges like high manufacturing costs due to advanced technology integration and environmental compliance, rising prices of raw materials and labour costs which make Japanese vessels less competitive than other countries.

4. Italy

The Italian Shipbuilding Industry is rooted in its rich heritage and artisanal excellence. It is known for building luxury yachts, cruise liners and commercial vessels.

In 2024, the Italian Shipbuilding sector was dominated by Fincantieri, one of the biggest shipbuilding companies in the world. The country’s shipbuilding sector is expected to witness moderate growth with a focus on specialised ships, especially in the cruise ship and naval ship markets.

A few prominent Italian shipyards and groups include Azimut Benetti, Sanlorenzo, Italian Sea Group, Overmarine, Cantiere delle Marche and Baglietto.

Italian shipyards are widely recognised for their skills in refurbishing and modernising existing vessels, which attracts clients from across the world.

Italy also boasts a strong supply chain comprising local enterprises, enabling its shipping sector to maintain its position as one of the biggest while supporting the national economy and generating employment.

5. Germany

The German Shipbuilding industry is known for its high-tech ship construction, marine engineering and design. In 2024, it employed 15,000 people and generated an annual revenue of USD 6.17 billion.

The country has 130 shipyards which offer an array of services to commercial vessels, inland ships, recreational craft and naval vessels, including providing general repairs and conversions.

Approximately 70% of ships made in Germany are sent to foreign markets and one-third of the revenue comes from naval orders, both for domestic and international markets.

German yards are also known for their expertise in building yachts and research vessels. Some of the biggest players include Meyer Werft, German Naval Yards, Lurssen and Thyssen-Krupp-Marine-Systems.

Germany is now focussing on custom-built vessels with sophisticated onboard systems to compete with Asian manufacturers which can build a vessel at lower costs.

6. United States

The U.S. shipbuilding Industry depends heavily on government contracts which account for 80% of the total revenue of the sector. Most contracts come from the Department of Defense, especially the Department of Navy and so changes in the defense budget have an impact on the shipbuilding industry.

The shipbuilding industry has experienced moderate growth as tensions with China have led to increased defence spending.

The Navy’s 2025 shipbuilding plan has a $32.4 billion budget required for building 6 new ships and a goal to expand the fleet to 390 battleforce ships while retiring 19 existing vessels.

Its shipbuilding costs are estimated to average 40 billion dollars per year through 2054 as the navy plans to build more submarines, aircraft carriers, surface combatants etc. There are over 150 shipyards in the U.S with Virginia being the hub of military shipbuilding, since it is close to many military bases and its capabilities align with the national defence requirements.

The U.S. shipbuilding sector is expanding steadily. It employs 110,000 people and is a significant contributor to the country’s GDP.

7. France

The French shipbuilding sector has a rich history and heritage going back centuries. The country has many specialised facilities for building sophisticated vessels, like commercial ships, naval vessels, luxury yachts and cruise ships.

It is known for its high-tech infrastructure, skilled workforce and quality workmanship. Though the industry has faced competition from its Asian counterparts, it is expected to be driven by increased investments and rising demands for advanced and eco-friendly ships.

The industry generates around 32 billion euros of annual revenue and employs about 120,000 people.

The country’s major shipbuilders include the Naval Group, which specialises in naval defence and Chantiers de l’Atlantique, one of the biggest shipyards which construct cruise ships, and commercial and naval vessels.

8. The Philippines

Manila’s shipbuilding industry is considered one of the largest in the world, employing a massive workforce of about 48,000.

The industry is mainly concentrated in the Cebu region and is actively working to modernise and expand its capabilities through government initiatives like the Maritime Industry Development Plan to further solidify its position.

Companies such as Tsuneishi Heavy Industries (Cebu), Austal Philippines Pty Ltd., and Keppel Philippines Marine Inc. are key players in the industry.

The country will focus on building container ships, bulk carriers and tankers for export. It is also seen as a potential hub for offshore wind energy development.

9. The Netherlands

The Netherlands is known for constructing innovative ships and its shipbuilding sector is famous for its technical expertise and specialisation in custom-designed vessels.

Around 398 businesses comprise the country’s shipbuilding sector which grew at a CAGR of 5.3% between 2019 and 2024.

The centre of shipbuilding is Rotterdam and the country builds naval ships, luxury yachts, dredgers and superyachts.

In 2023, the country completed 34 ocean-going vessels and the government invested €60 million in “innovative shipbuilding”. It is also exploring autonomous navigation systems.

10. Vietnam

Vietnam’s shipbuilding sector is expected to witness a CAGR of 6% from 2023 to 2032, with the value of produced ships reaching around $680 million by 2032.

The nation has around 120 operational yards, producing a total capacity of about 2.6 million tonnes annually, though the actual production is closer to a million tonnes per year.

Most components are imported from nations like Japan, China, South Korea and European countries.

Many international companies are active in the country’s main centres for shipbuilding; Hai Phong, Da Nang and Ho Chi Minh City.

Vietnam has an extensive port infrastructure with approximately 120 ports, of which 37 can accommodate ocean-going vessels.

There are 9 main shipbuilding factories, two in the south with a capacity to build ships sized 25,000-50,000 DWT, in the centre are 4 factories while the north has the remaining 3.

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