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The ship conversion market involves refurbishment and conversion of existing ships for new purposes. Ships are commonly converted for passenger transportation in the maritime tourism industry. Cruise ships are retrofitted with amenities and facilities suitable for tourists including spa centers, restaurants, shops, entertainment zones, and luxurious cabins. This allows ship owners to efficiently utilize existing vessels for tourism rather than decommissioning them. The conversion process enables cruise liners to regularly update ship interiors and onboard experiences as per evolving tourist demands and trends. This helps improve occupancy rates and average ticket prices. The global ship conversion market is estimated to be valued at US$ 5.32 Billion in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the primary trends in the ship conversion market is the growing focus on eco-friendly and energy-efficient conversions. Ship owners and retrofit service providers are increasingly incorporating green technologies and solutions during the conversion process to lower carbon footprint and operational costs. Some examples are use of renewable fuels like hydro-treated vegetable oil (HVO) or liquefied natural gas (LNG) instead of conventional fuels, installation of advanced waste heat recovery systems, ballast water treatment systems, and energy-efficient equipment. Regulatory norms pertaining to emission reductions in marine industry are further driving investments in environment-friendly conversions.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as significant capital investment is required to set up facilities while existing players enjoy economies of scale.
Bargaining power of buyers: The bargaining power of buyers is high as the ships and related services can be sourced from multiple manufacturers and service providers globally.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as engine manufacturers and equipment suppliers have a mix of international players.
Threat of new substitutes: The threat of substitutes is low as ships have limited alternatives for large scale freight transportation and specialized functions.
Competitive rivalry: The competitive rivalry is high among existing international players.
Key Takeaways
The global ship conversion market is expected to witness high growth.
Regional analysis related content comprises demand for ship conversion is highest in Asia Pacific region mainly in China, Japan and South Korea. Countries in this region have presence of major shipbuilding companies and ship owners.
Key players operating in the ship conversion market are Damen Shipyards Group, Xingyung Shipbuilding, De Hoop, Fosen, Cemre Shipyard, Wan Hai Shipyard, Mitsui E&S Holdings Co., China Shipbuilding Industry Corporation, Hitzler Werft, Yonker Shipyard, Changde Mipu Shipbuilding, Hebei Pengchang Shipbuilding, Jiangsu Dajin Heavy Industry Corporation and Keppel Corporation.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
