Global Ship Breaking Market Insights Forecasts to 2033

• The Global Ship Breaking Market Size was Valued at USD 3.90 Billion in 2023
• The Market Size is Growing at a CAGR of 8.19% from 2023 to 2033
• The Worldwide Ship Breaking Market Size is Expected to Reach USD 8.57 Billion by 2033
• North America is Expected to Grow the fastest during the forecast period.

The Ship Breaking Market Size is Anticipated to Exceed USD 8.57 Billion by 2033, Growing at a CAGR of 8.19% from 2023 to 2033.

Market Overview

Ship breaking, frequently referred to as ship dismantling, ship demolition, ship recycling, or ship cracking, is a form of ship removal in which ships are broken up for the purpose of extracting raw materials, primarily scrap, or as a source of parts that can be sold for future use. Large ships are broken down for scrap, recycling, and disposal in a process known as shipbreaking or ship recycling. Even the biggest ships undergo a thorough dismantling process to divide them into their component pieces and raw materials. A pier, dry dock, or specialized ship breaker yard can be the location of shipbreaking however, the majority of shipbreaking occurs in South Asian nations, frequently on the exposed coastline. The Recycling of Ships Act of 2019 requires ships to be recycled utilizing a ship-specific recycling scheme.  There are 10 critical procedures that must be completed, beginning with the anchoring of a ship and concluding with the shipment of ferrous and non-ferrous parts for recycling, in addition to the removal of various waste materials generated during ship recycling. A comprehensive and prospective analysis of the ship breaking market reveals tremendous development potential due to increased demand for steel and other metals in industries such as building and manufacturing. Furthermore, the development of new ship recycling yards, along with automation and robots, provide numerous lucrative opportunities in the next years.

Report Coverage

This research report categorizes the market for the ship breaking market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the ship breaking market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the ship breaking market.

Driving Factors

One of the main factors propelling the growth of the ship breaking market is the rise in demand for scrap metals, including aluminum, copper, and steel, on a global scale. Ship breaking yards have the infrastructure and facilities needed to manage the elimination process effectively. Ship breaking yards are often located near coastlines. The number of factors, including the aging fleet, pollution laws, and safety measures, are driving the market's expansion.

Restraining Factors

Ship breaking involves a variety of vital activities, such as metal cutting and material management. On-the-floor professionals must take serious safety precautions. When performing these jobs or handling hazardous materials, people have died or suffered severe injuries due to a lack of protective gear. Hence it may hamper the market growth.

Market Segmentation

The ship breaking market share is classified into light displacement tonnage, method, and type of ship.

• The below 20,000 tons segment accounted for the largest revenue share over the forecast period.

Based on the light displacement tonnage, the ship breaking market is classified into below 20,000 tons, 20,000 to 40,000 tons, and above 40,000 tons. Among these, the below 20,000 tons segment accounted for the largest revenue share over the forecast period. The below 20,000 tons segment accounted largest share due to a rise in the scrapping of small vessels. The standard lifetime of the small size vessels is helping to propel future market expansion.

• The beaching segment dominates the market with the highest market share through the forecast period.

Based on the method, the ship breaking market is divided into alongside, beaching, dry dock, and others. Among these, the beaching segment dominates the market with the highest market share through the forecast period. The rapid expansion is attributed due to its affordability and widespread use in South Asian shipyards. The supremacy in the area is weighed down by the low cost of labor.

• The tankers segment is anticipated to grow at the highest CAGR during the forecast period.

Based on the type of ship, the ship breaking market is categorized into tankers, bulk carriers, farriers and passenger ships, container ship, general cargo ship, and others. Among these, the tankers segment is anticipated to grow at the highest CAGR during the forecast period. The combination of tanker aging and rising tanker scrapping by ship owners and operators, the tanker category held a dominant market position in ship breaking. Market dominance continues to be weighed down by the new environmental regulations and the requirement to replace the outdated fleet in order to achieve net zero carbon emissions.

Regional Segment Analysis of the Ship Breaking Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Europe is anticipated to hold the largest share of the ship breaking market over the predicted timeframe.

Europe is projected to hold the largest share of the ship breaking market over the predicted timeframe. The region dominance can be attributed to the fact that European operators possess a large percentage of ships and dominate the market. Because of the aging of the current fleet and the implementation of new maritime pollution standards, the regional market is also predicted to develop at the fastest rate.

North America is expected to grow at the fastest CAGR growth in the ship breaking market during the forecast period. The rapid expansion is propelled due to operators' purchases of new fleets and their disposal of older ships. The expansion of the business is also being fueled by the construction of new facilities around the region.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the ship breaking market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Habib Group
• Ratanpur Ship Recycling Industries
• Chittagong Ship Yard
• Arefin Enterprise
• Changjiang
• PHP Ship Breaking and Recycling Industries
• Alang Ship Yard
• iZMiR Ship Recycling
• Spot Shipping AS
• Zhengyuan Shipping Pte Ltd
• Best Oasis Limited
• Indigo Marine Services LLP
• Avinash Ship Breaking Industries Pvt. Ltd.
• S.R. Shipping Limited
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In July 2023, The European Union expanded the number of shipyards permitted for vessel disposal under EU regulations to 48. The updated list includes 38 shipyards across Europe, 9 from Turkey, and 1 from the United States.

• In December 2023, The UAE government has enacted new regulations for establishing a dry dock or comparable infrastructure for ship recycling operations. This legislation also seeks to prohibit beaching and reflagging of end-of-life vessels.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the ship breaking market based on the below-mentioned segments: 

Global Ship Breaking Market, By Light Displacement Tonnage

• Below 20,000 Tons
• 20,000 to 40,000 Tons
• Above 40,000 Tons

Global Ship Breaking Market, By Method

• Alongside
• Beaching
• Dry Dock
• Other

Global Ship Breaking Market, By Type of Ship

• Tankers
• Bulk Carriers
• Farriers and Passenger Ships
• Container Ship
• General Cargo Ship
• Others

Global Ship Breaking Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa