China’s shipbuilding industry has been developing rapidly with the government’s policy support and cost advantages since the beginning of the 21st century. Shipbuilding is a modern and comprehensive industry of strategic importance that provides technical equipment to industries such as water traffic, ocean development and national defense.

China-made mainstream ships including container ships, bulk carriers and oil tankers and high-end ships including liquefied gas carriers have certain competitive advantages on the international market. In the recent decade, the global shipbuilding industry presented a market structure of tripartite China-South Korea-Japan competition.

According to CRI, in 2020, affected by the COVID-19 epidemic, the global new shipbuilding market remains sluggish. In 2020, pessimistic expectations in the global newbuilding market will increase, new ship transactions will decrease significantly, and the number of new ship orders received by major shipbuilding countries will decline year-on-year.

From January to November 2020, China received orders for new ships of 22.52 million dwt, a year-on-year decrease of 8.7%. Among them, orders for export ships were 19.77 million dwt, a year-on-year decrease of 13.5%, and export orders accounted for 87.8%. In the same period, Japan’s orders for new ships dropped by 66.7% year-on-year, and South Korea’s orders for new ships dropped by 8.4% year-on-year. The global market share has increased.

From January to November, China’s shipbuilding completions, new orders, and hand-held orders accounted for 40.4%, 50.8% and 46.9% of the global market, respectively. The three major indicators are higher than in 2019. The completion of shipbuilding industry was better than expected.
The COVID-19 epidemic that broke out in early 2020 has had a major impact on China’s shipbuilding industry in the first quarter of 2020.

In the first quarter of 2020, China’s shipbuilding completion volume fell by 27.3% year-on-year. It will gradually recover from April 2020. From January to November 2020, China’s shipbuilding completed 33.24 million deadweight tons, down 2.6% year-on-year.

Among them, the completed export ship volume was 30.03 million deadweight tons, a year-on-year decrease of 5.8%, and the completed export ship volume accounted for 90.3%.

On November 15, 2020, the ten ASEAN countries, China, Japan, South Korea, Australia, and New Zealand formally signed the Regional Comprehensive Economic Partnership Agreement (RCEP). RCEP is currently the world’s largest free trade zone.

In 2019, the 15 member states of RCEP have a total population of 2.27 billion, GDP of 26 trillion U.S. dollars, and total exports of 5.2 trillion U.S. dollars, each accounting for about 30% of the global total. The establishment of the RCEP free trade zone means that about one-third of the world’s economy will form an integrated market.

After the agreement comes into effect, more than 90% of the goods trade in the region will eventually achieve zero tariffs, and the tax will be reduced to zero immediately and within 10 years, so that the RCEP free trade zone is expected to fulfill all the goods trade liberalization commitments in a relatively short time .

According to CRI analysis, After the RECP takes effect, it will greatly promote the import and export trade between the contracting states, thereby promoting the rapid development of intra-regional and external maritime trade. Shipping is still the most important mode of transportation in global trade.

The signing of the RCEP agreement may bring new growth momentum to the shipping industry, and the development and growth of the shipping industry will create new market space for the shipbuilding industry.

According to CRI’s forecast, if the COVID-19 epidemic can be alleviated in 2021, the global and Chinese shipbuilding industry is expected to recover. If the epidemic continues, the global shipbuilding industry will still be in a downturn in 2021 and may not gradually recover until 2022.

Topics Covered:
– The impact of COVID-19 on the global shipbuilding market
– Development environment of shipbuilding in China
-Sales volume and value of shipbuilding in China 2015-2025
-Sales volume and value of shipbuilding in China by section 2015-2025
– Major shipbuilding Manufacturers and their market share in China
– Export volumes and values of shipbuilding in China
– Major export destinations of China’s shipbuilding
– Prices of shipbuilding in China
– Prospects of Chinese shipbuilding Market 2021-2025

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The post Research Report on China’s Shipbuilding Industry, 2021-2025 first appeared on CRI Report.

The shipbuilding industry is later in starting and inferior in development than that of developed shipbuilding countries like Japan and South Korea. The total volume of the shipbuilding ranks the highest in the world for ten consecutive years while the technology and the ship equipment loading rate are low. The local matching rate of developed countries reaches over 70% while that of China is less than 50%.

At present, the bottleneck of the ship equipment industry is the largest barrier of China to become a shipbuilding power with the direct influence of the matching rate on the shipbuilding profit margin, which needs researches. The total export value of the ship equipment was USD 974.68 million while the total import value of that was USD 1.45 billion in China in 2017.

According to CRI, the ship equipment is mainly manufactured through the introduction of licenses and the cooperation with foreign enterprises due to the lack of core technologies in China. The equipment R&D mainly depends on government investment while the independent one is insufficient. Ship equipment manufacturers are committed to the expansion of production capacity instead of the independent R&D for rapid development. The innovation ability of them in China is inferior to that in Japan and South Korea.

According to CRI, the number of ship equipment manufacturers was 420 by the end of 2018. Meanwhile, the total market share of top 8 enterprises including Wuhan Marine Machinery Plant Co., Ltd., Hudong Heavy Machinery Co., Ltd., etc. And Hudong Heavy Machinery Co., Ltd. was about 7.66%, leading to a fully competitive status of the industry. Numerous ship equipment manufacturers are large in product homogeneity which leads to the overcapacity and cutthroat competition. Meanwhile, redundant building projects also exist in partial fields of advantage products.

According to CRI, the sales revenue of the ship equipment industry decreased from CNY 160.6 billion in 2015 to CNY 55.33 billion in 2018. The ship equipment industry was slump from 2015 to 2018 with a decrease for four consecutive years, which was a great influence on the development of this industry. New orders in the shipbuilding industry declined due to the decreasing BDI.
CRI estimates that the ship equipment industry in China would generally keep stable in the next few years.

Topics covered:
Definition and Classification of Ship Equipment
Research Methods of the Report
Development Environment of Ship Equipment Manufacturing Industry in China
Supply and Demand Status of Ship Equipment in China
Import and Export Status of Ship Equipment in China
Competition Status in Ship Equipment Industry in China
Analysis on Top 8 Enterprises in Ship Equipment Industry in China
Development Opportunities and Driving Forces Faced by Ship Equipment Industry in China
Price Trend of Raw Materials and Products of Ship Equipment in China
Prediction on Development of Ship Equipment Industry in China

The post Research Report on China’s Ship Accessory Equipment Industry 2020-2024 first appeared on CRI Report.