The ship conversion market involves upgrading, modifying or reconstructing existing ships to improve their functionality and adopt modern technologies. Ship conversion helps extend the lifespan of vessels and optimize performance by installing upgraded safety systems, digital navigation aids, propulsion systems and other marine applications. The conversion process enables ships to comply with latest emission norms and incorporate connected ship technologies for remote monitoring. The global ship conversion market is estimated to be valued at US$20 Billion in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Digital transformation solutions driving ship conversion activities
One of the major trends spurring growth in the ship conversion market is the increasing adoption of digital technologies across the maritime industry. Ship owners are upgrading their vessels with smart ship systems and advanced sensors to collect onboard data and monitor assets remotely. The collected data helps optimize operations and maintenance. Digital solutions like augmented/virtual reality, IoT, analytics and AI are being integrated to improve ship performance, safety, cargo management and reduce downtime. This shift towards digital-first solutions is driving higher demand for ship retrofitting and performance upgrades, thus propelling the ship conversion market. Advanced digital systems also help ships comply with new emission norms and environmental regulations in a cost-effective manner. The growing focus on digitally transforming ship fleets will continue driving opportunities in the global ship conversion market over the forecast period.
SWOT Analysis
Strength: Ship conversion allows enhancing capabilities and service life of existing vessels without commissioning newbuilds, enabling significant cost savings.
Weakness: Conversions involve technical challenges of integrating new systems within existing ship infrastructure and require regulatory approvals.
Opportunity: Growing demand for specialized ships like cruise ships, offshore support vessels, and green technology upgrades offer opportunities for conversions.
Threats: Supply chain disruptions and skilled labor shortages pose challenges for shipyards during conversion projects.
Key Takeaways
The global ship conversion market is expected to witness high growth. Regional analysis related content comprises
The Asia Pacific region currently dominates the global ship conversion market and is expected to continue its dominance over the forecast period. This can be attributed to the presence of major ship conversion yards in China, Japan, and South Korea. These countries have a large number of specialized shipbuilding yards with expertise and facilities for undertaking complex conversion projects.
Key players operating in the ship conversion market are Keppel Offshore & Marine, Sembcorp Marine Ltd., Hyundai Heavy Industries, China Shipbuilding Industry Corporation, and Damen Shipyards Group. Keppel Offshore & Marine is a leader in conducting conversions of offshore oil and gas rigs as well as cruise and navy vessels. Sembcorp Marine has capabilities across conversions, repairs and upgrades of rigs, floaters, and specialized vessels.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
