The maritime sector plays a critical role in global supply chains, with maritime transport carrying more than 80% of world trade by volume. As international trade patterns evolve and the energy transition gathers pace, shipping is increasingly called upon to accommodate new types of cargo, including liquid CO₂, hydrogen, and other emerging energy carriers. The shipbuilding industry is at the heart of this transformation, designing and constructing the vessels needed to ensure the continuity, resilience, and efficiency of global supply chains while supporting the development of the maritime sector.
Shipbuilding
The shipbuilding industry is vital to global maritime transport and trade, which underpin economic growth and prosperity. Yet the sector faces market distortions, overcapacity, and geopolitical disruptions that strain global supply chains and competitiveness. Given this strategic importance, the OECD promotes fair and competitive market conditions, supports its members in developing their shipbuilding industries, and fosters a global level playing field.
Key messages
While subsidies can lead to market distortions, overcapacity, reduced profitability and financial strain in the industry, they remain a critical tool for advancing decarbonisation efforts in ship construction. However, a trend is emerging: despite the increase in subsidies, they are not consistently aligned with decarbonisation objectives. Often, subsidies focus on downstream infrastructure and overlook the urgent need to advance the uptake of technologies that enable ships to become more efficient and capable of using alternative fuels.
Shipbuilding and maritime equipment industries worldwide are grappling with labour and skills shortages. Experts estimate that 40% of the workforce in these industries will retire in the next decade while the green and digital transitions are introducing new skill demands. At the same time, these industries struggle to attract and retain skilled and young talent, exacerbated by increasing international worker mobility. Additionally, there is an ongoing challenge to address the underrepresentation of women and protect the rights of vulnerable workers in the sector.
Investment in emerging and innovative technologies often entails significant additional costs, making access to finance a critical factor in their uptake and deployment. In this context, financing mechanisms play a key role in accelerating the diffusion of these technologies across the maritime sector. One notable development is the growing use of export credits to support the construction of highly energy-efficient vessels, helping to reduce the financial burden associated with adopting new technologies and facilitating investment in the transition to more sustainable shipping.
The global maritime fleet is ageing, with vessels averaging 12.6 years old in 2023. Meanwhile, stringent decarbonisation regulations from the International Maritime Organization and national efforts are intensifying. This trend is driving heightened demand for new ships and retrofits, posing both opportunities and challenges for shipbuilders worldwide. To navigate this landscape, we need stronger intergovernmental co-operation, policy transparency and an in-depth understanding of market dynamics. These will be pivotal to shaping coherent and effective decarbonisation strategies and promoting sustainable industry development across shipbuilding economies.
Context
Shipbuilding production continues to rise amidst growing market concentration
Shipbuilding production is increasing, growing by over 25% between 2021 and 2025, and is expected to continue to rise, driven by a strong orderbook standing at 169 million CGT in 2025 equivalent to 16% of the existing fleet.
At the same time, shipbuilding production is becoming increasingly concentrated in East Asia. Since 2023, China has accounted for around half of global deliveries in CGT and held nearly 60% of the orderbook in 2025. This rising market concentration raises important economic security concerns for OECD countries as shipbuilding underpins maritime transport and supports broader manufacturing capabilities.
Government support to the shipbuilding industry creates an uneven playing field
Evidence from the report on policy developments in non-Shipbuilding Committee economies and from the OECD MAGIC database highlights a large imbalance in the mix and extent of policy support to shipbuilding between China and the OECD. In 2024, Chinese shipyards received, on average, ten times more subsidies relative to their revenue than OECD shipbuilders. This disparity undermines the level playing field in the global shipbuilding industry, distorting competition and shifting outcomes away from market fundamentals.
Growing demand for new technologies and emerging vessel segments represents significant opportunities for shipbuilding industry actors
Demand for energy-saving solutions and alternative propulsion technologies are pushing up the price of vessels while new types of cargoes – including hydrogen, ammonia, liquid CO2 and others – are increasingly being ordered, creating strong diversification and growth opportunities for shipbuilders and firms along the value chain. The development of autonomous technologies for vessels is also accelerating, representing further opportunities for shipbuilding industry actors and their suppliers.
-
Industrial decarbonisation is pivotal to achieving net-zero emission targets. Effective decarbonisation pathways require swift and bold action from both industry stakeholders and governments worldwide. The OECD provides data-driven, factual analyses and policy recommendations to assist governments and industries in this crucial transition to net zero.Learn more
-
The ocean covers two-thirds of our planet and provides invaluable ecosystem services that are vital for humanity’s well-being, global food security, economic growth, employment, and development. However, the ocean is under immense pressure, primarily because of human activity. Governments need to take bold action from local to international levels to ensure conservation and sustainable use of the ocean, while enhancing economic development.Learn more
-
The ocean economy is attracting attention across the globe as a source of economic growth, while marine ecosystems are increasingly facing the consequences of unbridled pollution, climate change and biodiversity loss. OECD monitors the ocean economy to offer insights and policy advice on balancing economic development with ocean health. It supports national ocean economy measurement strategies and provides best practices to harness ocean science and innovation to boost sustainable uses.Learn more