Digital Shipyard Market Size, Share, Trends, Forecast, 2025–2028

According to Fortune Business Insights, the global digital shipyard market was valued at USD 963.6 million in 2020 and is projected to grow from USD 1,129.6 million in 2021 to USD 3,444.5 million by 2028, exhibiting a CAGR of 17.27% during the forecast period. Asia Pacific led the global market in 2020 with a 33.55% share, driven by the dominance of major shipbuilding nations such as South Korea, China, and Japan.

The digital shipyard refers to the integration of Industry 4.0 technologies into the design, production, and maintenance of marine vessels. These shipyards utilize advanced systems including the Internet of Things (IoT) and Cyber-Physical Systems (CPS) to modernize and optimize shipbuilding operations. Key tools such as 3D modeling, 3D scanning, 3D printing, and digital twin technologies are widely implemented to enhance manufacturing precision, reduce errors, and improve lifecycle management.

The growing global demand for modernization in shipbuilding processes, increased adoption of automation, and the need for faster and more cost-efficient ship construction are expected to significantly boost market growth in the coming years.

Fortune Business Insights™ presents this data in its report titled “Global Digital Shipyard Market, 2024–2032.”

Key Companies in the Digital Shipyard Market:

• IFS AB (Sweden)

• Pemamek Oy (Finland)

• Dassault Systèmes (France)

• BAE Systems (UK)

• Altair Engineering Inc. (US)

• AVEVA Group Plc. (UK)

• Wärtsilä (Finland)

• KUKA AG (Germany)

• Damen Shipyards Group (Netherlands)

• Prostep AG (Germany)

Source:

https://www.fortunebusinessinsights.com/digital-shipyard-market-106561

Key Market Segmentation:

1. By Shipyard Type – Commercial Segment Leads

Commercial shipyards held the largest market share in 2020. This dominance is attributed to the increasing volume of global maritime trade, which drives demand for new vessel construction. As more shipping companies expand their fleets, the need for digitalization in commercial shipyards has grown to improve efficiency, reduce production time, and meet rising demand.

2. By Technology Platform – Robotic Process Automation Dominates

Robotic Process Automation (RPA) emerged as the leading technology platform in 2020. Its wide adoption is driven by the need to automate critical shipbuilding tasks such as welding, cutting, painting, and assembly. This automation helps shipyards increase productivity while reducing labor costs and errors. Other key technologies gaining traction in digital shipyards include additive manufacturing, artificial intelligence (AI), big data analytics, Industrial Internet of Things (IIoT), digital twin, and blockchain — all contributing to smarter and faster shipbuilding processes.

3. By Digitalization Level – Fully Digital Shipyards to Grow Fastest

Semi-digital shipyards represented the largest market segment in 2020. This is due to a gradual shift by many shipbuilders towards modernization through partial automation and software integration. However, fully digital shipyards are expected to register the fastest growth over the forecast period. This surge is fueled by the increasing use of cutting-edge technologies like augmented reality (AR), IIoT, and digital twins, enabling advanced monitoring, simulation, and process optimization in shipbuilding.

Growth Drivers:

1. Rising Adoption of Industrial Internet of Things (IIoT)

The increasing deployment of Industrial Internet of Things (IIoT) in shipbuilding is significantly enhancing operational efficiency, reducing equipment downtime, and enabling real-time decision-making. By integrating IIoT with machine learning and big data, digital shipyards can optimize processes, improve safety, and streamline production, making it a major driver of market growth.

2. Digital Transformation Initiatives by Leading Shipbuilders

Global shipbuilders are investing in digital solutions to modernize their operations. For instance, Navantia, a prominent European shipbuilding company, has partnered with Siemens Digital Industries Software to fully digitalize its shipbuilding process. Such initiatives reflect a broader industry trend towards digital transformation, driving the adoption of digital shipyard technologies worldwide.

3. Growing Use of Robotics and Automation

Major shipbuilding companies like Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering are increasingly integrating robotic technologies into their manufacturing lines. These include welding, painting, cutting, and assembling operations, which not only speed up production but also reduce labor costs and increase precision. The rising focus on automation is playing a pivotal role in the expansion of the digital shipyard market.

Market Restraints:

1. High Capital Investment Requirements

The digital transformation of shipyards requires substantial upfront investment in advanced hardware, software platforms, integration services, and ongoing maintenance. For small and medium-sized shipbuilders, these high costs can be a significant barrier to entry. The initial financial burden includes not just the cost of equipment, but also training, infrastructure upgrades, and system integration.

2. Limited Adoption in Cost-Sensitive Regions

Due to the high capital expenditure and longer return-on-investment cycles, many shipbuilders in developing or cost-sensitive regions are hesitant to adopt digital technologies. These financial constraints delay the digitalization process, especially among smaller players that operate with low production volumes and tighter margins.

Regional Insights:

1. Asia Pacific – Leading the Global Market

Asia Pacific dominates the digital shipyard market, primarily due to its overwhelming share in global ship production. Approximately 90% of the world’s cargo ships are built in South Korea, Japan, and China. The strong presence of major shipbuilding companies, combined with government support and technological advancements, positions the region as the global hub for digital shipyard development and innovation.

2. Europe – Advancing with Automation

Europe is experiencing steady growth in the digital shipyard market, driven by the increasing adoption of robotics and automated manufacturing technologies. European shipbuilders are investing in advanced systems to enhance productivity and competitiveness. The region’s focus on industrial modernization and sustainability is also fostering the integration of digital tools into shipbuilding operations.

3. North America – Growth Driven by R&D

North America is projected to witness consistent market growth, fueled by strong research and development initiatives. Companies like Altair Engineering are leading efforts to implement cutting-edge digital technologies in shipyard operations. This focus on innovation and digital infrastructure is enabling gradual yet impactful transformation across the region’s shipbuilding sector.

Recent Industry Developments:

• In June 2021, Drydocks World launched a digital transformation initiative aimed at boosting operational efficiency. The company announced its adoption of IFS Cloud to streamline asset management and resource planning, strengthening its infrastructure and paving the way for a full transition to a digital shipyard.