Digital Shipyard Market Size, Share, Trends, Growth and Forecast, 2021–2028

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. This significant growth is driven by increasing demand for modernization in shipbuilding, the integration of Industry 4.0 technologies, and a global shift toward automation and operational efficiency in the maritime sector.

Key Market Insights

Digital shipyards represent the transformation of conventional shipbuilding facilities through the integration of advanced technologies such as IoT, AI, robotics, big data analytics, digital twin, and additive manufacturing. The implementation of these technologies enables real-time decision-making, lifecycle optimization, and streamlined ship design and production processes.

The adoption of cyber-physical systems (CPS) and robotic process automation (RPA) is accelerating across global shipyards to enhance manufacturing accuracy, reduce production costs, and shorten delivery timelines. The rise in global maritime trade, coupled with the growing need for technologically enabled fleet renewal, continues to propel the market forward.

Key Companies Profiled

• IFS AB (Sweden)

• Pemamek Oy (Finland)

• Dassault Systèmes (France)

• BAE Systems (UK)

• Altair Engineering Inc. (U.S.)

• 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

Market Drivers

1. Growing Adoption of IIoT in Shipbuilding

The increasing integration of the Industrial Internet of Things (IIoT) in shipbuilding allows real-time monitoring, predictive maintenance, and data-driven optimization of workflows. Shipbuilders are leveraging IIoT to improve productivity, reduce downtime, and enable smart manufacturing capabilities.

2. Rising Investments in Digital Transformation

Major shipbuilding nations and leading OEMs are undertaking strategic digitalization initiatives. For instance, Navantia has collaborated with Siemens Digital Industries Software to transform its shipyards into fully digital environments. This trend is indicative of the broader global push toward end-to-end digitalization in the shipbuilding lifecycle.

3. Expansion of Robotics and Automation

Companies such as Hyundai Heavy Industries, Samsung Heavy Industries, and Damen Shipyards Group are increasingly deploying robotic systems for welding, cutting, assembly, and painting. Robotics reduce manual errors, improve throughput, and significantly enhance operational safety and repeatability.

Market Restraints

1. High Initial Investment and Integration Costs

Digital shipyard implementation demands considerable capital for hardware, software, infrastructure upgrades, system integration, and personnel training. This is a major barrier for small and medium-sized enterprises (SMEs) and operators in developing economies.

2. Limited Penetration in Cost-Sensitive Markets

In regions with budget-constrained shipbuilders, the adoption of digital shipyard solutions remains slow due to the longer ROI cycle and lack of digital readiness. This limits the growth potential in Africa, Latin America, and parts of Southeast Asia.

Segmentation Overview

By Shipyard Type

• Commercial Shipyards (Dominant Segment)
  Held the largest market share in 2020. Driven by growing international trade, rising demand for cargo vessel construction, and increasing fleet expansion initiatives among shipping companies.

• Military Shipyards
  Witnessing increasing digital adoption to meet the precision and safety requirements of modern naval fleets.

By Technology Platform

• Robotic Process Automation (RPA)
  Leading segment in 2020. Applied in key shipbuilding operations such as welding, painting, pipe-cutting, and component assembly.

• Additive Manufacturing (3D Printing)
  Enables production of complex parts, rapid prototyping, and reduced material waste.

• AI & Machine Learning
  Supports simulation, predictive maintenance, and design optimization.

• Digital Twin Technology
  Used for performance monitoring, fault detection, and lifecycle management.

• Big Data Analytics, Blockchain, AR, and IIoT
  Facilitating integrated, secure, and traceable manufacturing ecosystems.

By Digitalization Level

• Semi-Digital Shipyards (Largest Segment)
  Many global shipyards are in the transition phase, using hybrid approaches with software integration and partial automation.

• Fully Digital Shipyards (Fastest Growing)
  Expected to dominate over the long term, with full automation, IIoT networks, AR/VR simulation tools, and digital twins enabling autonomous decision-making and smart fabrication.

Regional Analysis

Asia Pacific (Leading Region)

Asia Pacific held the largest market share in 2020 at 33.55%, owing to its dominance in global shipbuilding. Countries such as China, South Korea, and Japan account for over 90% of global commercial ship production. Government investments, large-scale R&D, and strong domestic players are accelerating digitalization across the region.

Europe

Europe is advancing rapidly due to its focus on automated and sustainable shipbuilding practices. Leading companies are investing in AI, robotics, and energy-efficient platforms. Countries like Finland, the UK, Germany, and the Netherlands are home to several digital shipyard pioneers.

North America

North America is gaining traction in digital shipbuilding through defense R&D investments and innovation by key players like Altair Engineering and BAE Systems. Government-funded programs are enhancing domestic naval shipbuilding capabilities using advanced digital platforms.

Rest of the World

Moderate adoption in Latin America and the Middle East, primarily for commercial ship repairs and regional trade vessel upgrades. Opportunities for growth lie in offshore oil & gas, coastal surveillance, and marine logistics.

Recent Industry Developments

• June 2021 – Drydocks World launched a digital transformation program powered by IFS Cloud, enabling optimized resource planning, predictive asset management, and seamless integration across operations.

• October 2021 – Dassault Systèmes announced enhancements to its 3DEXPERIENCE platform, supporting digital continuity and real-time collaboration in shipyard design and planning processes.

• February 2021 – Navantia and Siemens deepened their strategic collaboration to fully implement digital twin technology in Spain’s naval shipbuilding program.