This chapter delineates the structural framework of the Japanese shipbuilding industry, specifically the increasing concentration of domestic ownership and the shifting export volumes. It details the composition of the sector, analysing the consolidation trends among major shipbuilders and their transition toward alternative-fuel technologies. Additionally, the chapter evaluates the institutional support provided by MLIT, JBIC, and NEXI, focusing on export financing mechanisms and the implementation of the "Green Growth Strategy." Key emphasis is placed on the government's role in co-ordinating R&D through the Green Innovation Fund to ensure domestic self-sufficiency and technological autonomy.
Peer Review of the Japanese Shipbuilding Industry 2026
Abstract
Japan is a major maritime trading nation, with maritime transport accounting for 99.6% of its international logistics. In 2023, Japanese shipowners held 10.6% of the global fleet in deadweight tonnage (DWT), and domestic shipyards delivered 15.4% of newly built vessels in gross tonnage (GT). The maritime sector benefits from a robust industrial base, including shipbuilding, equipment manufacturing, and a supportive ship financing environment. Despite stable sales revenues, the financial performance of major Japanese shipbuilders has faced challenges, with operating profits remaining weak until signs of recovery emerged in 2023. Structural and cyclical issues, such as a downturn in global ship demand and a strong yen, have impacted profitability.
The reliance on domestic shipyards has increased, with Japanese entities owning nearly 70% of Japanese-built vessels by 2024, up from 10-20% before 2006. This shift is partly due to reduced foreign demand, particularly from China and Greece. The role of domestic shipowners has grown, with foreign ownership of Japanese-built ships declining from 76% in the early 2000s to 20-30% recently. Japan's ship export volumes and values have also decreased, with export volumes dropping from 17.6 million GT in 2010 to 9.1 million GT in 2023. The decline has been most notable for bulk carriers and tankers, while containership exports have shown moderate growth.
2.1.1. Economic significance of maritime industry
Japan is one of the world’s largest maritime trading nations, with maritime transport accounting for 99.6% of its international logistics (MLIT, 2025[26]). In 2023, Japanese shipowners held 10.6% of the global fleet in deadweight tonnage (DWT), and domestic shipyards delivered 15.4% of newly built vessels in gross tonnage (GT) (UNCTAD, 2025[27]). The maritime sector benefits from a strong industrial base, including shipbuilding, equipment manufacturing, and a ship financing environment supported by private financial institutions. This integrated ecosystem underpins Japan’s competitiveness in the global maritime industry.
Reflecting this macroeconomic significance, the financial performance of major Japanese shipbuilders offers further insights. As shown in Figure 2.1, the sales revenues of 11 firms affiliated with the Shipbuilders’ Association of Japan (SAJ) point to the sector’s stable contribution to GDP, peaking between 2017 and 2019. However, despite steady sales, operating income has remained weak. Following a record low in 2016, profitability showed limited improvement in subsequent years, with clearer signs of recovery only emerging in 2023.
This gap between revenue and profit highlights structural and cyclical issues. A downturn in global ship demand in 2016—driven by falling oil prices and freight rates—reduced orders for key ship types. While deliveries continued, fewer new contracts affected earnings. At the same time, a strong yen reduced the value of dollar-denominated contracts and weakened the price competitiveness of Japanese shipyards against regional rivals.
Note: Japan’s fiscal year is from 1 April to 31 March. Sales and operating profit are compiled by the Maritime Bureau of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) based on financial statements on company websites and official gazettes. GDP used in the figure is Nominal GDP of "Annual GDP Actual Amount" on the Cabinet Office website.
Looking ahead, the financial outlook for the Japanese shipbuilding industry appears to be improving. According to the SAJ, newbuilding activity in 2023 and 2024 is expected to remain stable, but profitability is projected to increase significantly, supported by the historically weak yen. All seven mid- and large-sized shipbuilding companies reported profits in 2023, and the current order book levels are considered sufficient. However, as in Korea, the industry's key challenge now lies in how to strategically invest in future capacity, innovation, and competitiveness.
2.1.2. Export and import
The reliance on domestic shipyards is seen in the ownership of Japanese-built vessels. Prior to 2006, only 10–20% of these ships were owned by Japanese entities, but the share rose to 40–50% between 2008 and 2014 and has recently approached 70% (Figure 2.2). The increase is partly due to a fall in foreign demand, particularly from Greece and China. China’s shift toward local procurement and rapid shipbuilding development significantly reduced its orders from Japan, while emerging economies like Viet Nam and India also scaled back orders.
Source: WFR.
As shown in Figure 2.3, in the early 2000s, foreign owners accounted for up to 76% of ships built in Japan. In recent years, this figure has declined to 20–30%, highlighting the growing role of domestic shipowners in sustaining Japan’s shipbuilding sector.
Source: WFR.
This shift toward domestic demand can also be observed in Japan’s ship export volumes and values. According to the Japan Ship Exporters’ Association (JSEA, Figure 2.3), the export volume declined from 17.6 million GT in 2010 to 9.1 million GT in 2023 — a decrease of approximately 48.3%. Export values followed a similar trend. By vessel type, the decline has been most notable for bulk carriers and tankers, with export volumes measured in CGT falling by 63% and 87%, respectively, compared to 2010 levels. In contrast, exports of containerships recorded moderate growth, reaching 110% of their 2010 level (Clarkson).
Note: Export volume is based on new export ship contract, which is 500 GT and above. Export value is based on all ships, boats, and floating structures under HS code 2002’s 89 code.
Source: “Figures for New Export Ship Orders” issued by Japan Ship Exporters' Association (JSEA), https://www.jsea.or.jp/en/results/.
Japan’s shipbuilding industry continues to operate a significant number of globally competitive yards, despite a long-term decline in global market share. Structural adjustments are underway, including consolidation of commercial shipbuilding activities under large groups such as Imabari Shipbuilding, and strategic moves toward high-value segments such as offshore energy platforms and marine equipment. In 2024, Japan ranked third globally by number of shipbuilders in the top 20 CGT producers, with six firms represented, including Imabari, Tsuneishi, JMU, Oshima, and Shin Kurushima. These yards reflect a diversified and competitive structure distinct from Korea, where three firms account for over 90% of national output. The Japanese shipbuilding sector, however, experienced some consolidation recently which would lead to a higher level of concentration of the sector. More than 35% of Japanese completions featured alternative fuel compatibility or energy-saving technologies.
Measured by 3-year interval CGT capacity, the top 10 Japanese shipbuilders held 83.7% of national capacity in 2024, with Imabari contributing 25.3%. Imabari has led capacity rankings since 2002. Under a 15-year interval estimate, the top 10 firms accounted for 68.1% of total capacity in 2024, with Imabari holding 16.7%. This reflects a gradual consolidation trend while maintaining a relatively dispersed industrial base compared to regional peers.
Japan’s public sector plays a central role in supporting the maritime industry through regulatory oversight, technological co-ordination, and export finance. The Maritime Bureau of MLIT oversees policy for shipbuilding and marine machinery and supports standards for safety, scrapping, and innovation. Export financing is led by JBIC, which offers buyer’s credits and bank-to-bank loans, and by NEXI, which insures ship exports against political and commercial risk. These institutions aim to sustain the global competitiveness of Japanese yards, particularly SMEs integrated into regional production networks.
Support for industrial transformation is provided through strategies such as the “Green Growth Strategy” and the 2024 MLIT roadmap for next-generation shipbuilding. The government promotes zero-emission vessel development, digital design processes, and modular production methods. As of 2023, the Green Innovation Fund supports R&D in hydrogen and ammonia fuel technologies, LNG-related engineering, and smart equipment systems. In addition, domestic self-sufficiency in equipment production—reported at 92% in 2022—is prioritised to reduce external supply shocks and align with strategic autonomy goals.
2.2.1. Private sector
Shipbuilder
Although Japan’s global market share in shipbuilding has declined in recent years, the country continues to host a significant number of competitive shipyards, supported by a long-standing industrial tradition. In response to intensified global competition and evolving market demands, Japanese shipbuilders are undergoing structural adjustments. These changes include a concentration of merchant vessel production among leading shipbuilding groups—most notably Imabari Shipbuilding—to enhance operational efficiency, as well as a strategic pivot toward higher-value segments of the maritime supply chain, such as offshore renewable energy platforms and marine engine manufacturing, to improve profitability.
Source: WFR.
Figure 2.5 presents the top 20 global shipbuilders by CGT completions in 2024. Japan has five shipyards included in this global ranking: Imabari Shipbuilding, Tsuneishi Shipbuilding, Japan Marine United (JMU), Oshima Shipbuilding, and Shin Kurushima Dockyard. This representation indicates that Japan’s shipbuilding industry remains globally competitive across a diverse range of firms. This places Japan second globally in terms of the number of companies represented in the top 20, following China and ahead of Korea. The presence of multiple firms confirms that Japan’s industrial competitiveness is not reliant on a single entity, but on a group of specialised and productive shipyards.
Imabari Shipbuilding leads among Japanese firms with 1.6 million CGT, reflecting its broad capacity and product portfolio. Tsuneishi Shipbuilding follows with 0.8 million CGT, specialising in Panamax bulkers and midsize containerships. JMU recorded 0.6 million CGT, maintaining a strong position in multipurpose commercial vessels. Oshima Shipbuilding and Shin Kurushima Dockyard each completed around 0.4–0.6 million CGT, mostly in Handymax bulkers and Ro-Ro vessels respectively.
Compared to Korea, where three firms dominate over 90% of national CGT, Japan’s shipbuilding structure in 2024 reflects broader diversity. This structural characteristic provides resilience, as production capacity is distributed among several competitive firms. However, a gradual process of consolidation is underway, with production of merchant vessels increasingly concentrated among major shipbuilding groups.
In terms of technological output, more than 35% of Japan’s ship completions featured either alternative fuel compatibility or energy-saving technologies. These ships are often aligned with Japan’s regulatory goals and supported by strategic government programs such as the Green Innovation Fund.
Note: Top 10 shipbuilders’ groups were selected based on the completion from 2015-2024 period. *Universal Shipbuilding Corporation and IHI Marine United Inc. united and became Japan Marine United in 2013.
Source: WFR.
Figure 2.6 compares cumulative CGT completions from 2005-2014 and 2015-2024 for Japan’s top 10 shipbuilding groups. The data reveals growing market concentration. Only Imabari and Oshima increased their completions in the recent decade, while others declined. Imabari led with around 18 million CGT—about 35% of completions among the top 10, up from 24% previously. The top five builders now account for over 66% of completions, compared to 55% in the earlier period, highlighting industry consolidation.
This trend toward concentration has been driven by major restructuring efforts. Imabari Shipbuilding played a leading role, acquiring Koyo Dockyard (2014), Tadotsu Shipbuilding (2015), and Minaminippon Shipbuilding (2018). In 2021, it partnered with Japan Marine United (JMU) to form Nihon Shipyard, consolidating merchant shipbuilding operations and acquiring a 30% stake in JMU. In 2025. Imabari Shipbuilding agreed to acquire a controlling 60% stake in Japan Marine United (JMU) (Financial Times, 2025[28]). This transaction aims to strengthen Japan’s position against Chinese and South Korean competitors. This agreement follows earlier collaboration between the two companies, including the establishment of Nihon Shipyard in 2021 for commercial vessel design. This latest move reflects a strategic effort to secure economies of scale and technological leadership in response to regional competition.
At the same time, other major players such as Sumitomo Heavy Industries and Mitsui E&S have exited merchant shipbuilding, shifting toward offshore wind infrastructure, marine engines, and engineering services—signalling a broader repositioning across the industry. According to MLIT shipbuilding statistics (2023), mid-tier Japanese shipyards such as Oshima Shipbuilding and Shin Kurushima Dockyard specialise in Handymax bulk carriers and short-sea Ro-Ro or PCTC vessels, respectively. Furthermore, the resilience of Japan’s mid-tier shipbuilders is supported by long-term relationships with domestic owners and continued demand for smaller, regulation-compliant vessels under environmental mandates. UNCTAD (2024) notes that Japan maintains a diversified production base with a higher share of domestic-oriented and technologically specialised yards compared to Korea or China.
Source: WFR.
Figure 2.7 ranks Japan’s top 20 individual shipyards by cumulative CGT completions over the period 2015 to 2024. This yard-level view supplements the group-based aggregation shown in Figure 2.6 and reveals the internal structure of Japan’s production base in more granular detail.
The top-ranking yard is Oshima, with nearly 6.5 million CGT over the decade. The next three are Imabari’s Marugame, Imabari’s Hiroshima, and Namura Shipbuilding, each completing between 3.5–4.5 million CGT. These figures confirm the presence of high-capacity yards outside the JMU and Imabari main yards, with notable contributions from specialised bulk carrier producers.
Multiple Imabari-affiliated yards appear in the top 15, including Imabari Saijo and Iwagi Zosen, demonstrating the geographic and operational breadth of Imabari’s network.
JMU yards (e.g. JMU Kure, JMU Ariake, JMU Tsu) and MHI Nagasaki, Tsuneishi, Shin Kurushima, and Sakaide yards also figure prominently, supporting the view that Japan’s mid-sized builders play a persistent and material role in national production, particularly in Handymax bulkers, PCTCs, ferries, and coastal Ro-Ro vessels.
The diversity of yards in the top 20 reinforces the notion of Japan’s relatively decentralised industrial structure. Japan’s shipbuilding output remains more geographically distributed and less oligopolistic than Korea’s, despite Imabari’s network scale.
Capacity of main shipbuilding groups
The capacity of the main Japanese shipbuilding groups for 2000 to 2024 are depicted using the 3-year interval calculation in Figure 2.8. On average, the ten largest groups accounted for 72.4% of total national capacity over this period. In 2000 they held 56.8%, with Mitsubishi HI at the top of the list at 10.7%. That year marked the lowest concentration of capacity among the top ten. The share then climbed, reaching a peak of 83.9% in 2021, when Imabari SB alone represented 24.5%. In 2024, the top ten still held 83.7%, Imabari SB contributing 25.3%. Mitsubishi HI was the largest group in 2000–01, but from 2002 onward Imabari SB has led in capacity.
Source: OECD estimation based on Clarkson Research Services Limited (February 2025), World Fleet Register, https://www.clarksons.net/wfr; S&P Global (February 2025), Maritime IHS database, https://maritime.ihs.com/.
The estimations of capacity using the 15-year interval for the leading ten Japanese shipbuilder groups are found in Figure 2.9. On average, between 2000 and 2024, the top ten shipbuilder groups made up 61.6% share of total shipbuilding capacity. In 2000, the top ten groups by capacity had a 51.4% share of total capacity, where Mitsubishi HI had the largest capacity, with 9.6% of the total share. The highest share during this period was in 2020, with 68.5% share of total capacity, where Imabari SB had the highest share with 15.7% of the total. The lowest share held by this group was in 2000. In 2024, the leading 10 yards by capacity had 68.1% of the total share of capacity, with Imabari SB leading, with 16.7% share. Between 2000 and 2001, Mitsubishi HI was the largest shipbuilder by capacity but since 2002, Imabari SB has maintained the most capacity. Overall, concentration ratios are lower under the 15-year window than under the three-year window.
Source: OECD estimation based on Clarkson Research Services Limited (February 2025), World Fleet Register, S&P Global (February 2025), Maritime IHS database, https://maritime.ihs.com/.
Industry associations
Japan’s shipbuilding sector is supported by a structured network of industry associations that play distinct roles in representing and promoting the interests of various segments of the industry. These organisations contribute to the policy dialogue, technical advancement, and international co-operation that underpin the competitiveness and resilience of Japan’s maritime cluster.
The Shipbuilders’ Association of Japan (SAJ): SAJ represents the interests of large and medium-sized shipbuilders and is the principal voice of Japan’s merchant shipbuilding sector. As of August 2024, the association counts 17 shipbuilding companies and one additional organisation among its members. SAJ’s mandate is to promote the sound and sustainable development of the shipbuilding industry, with a view to supporting both domestic and international economic growth and public welfare. Its core functions span business management support, technical research and development, international co-operation, and data collection and analysis. SAJ plays an active role in global shipbuilding forums. It is a founding member of the JECK forum (formerly JECKU), which brings together shipbuilding associations and major yards from Japan, Europe, China, and Korea. Although the United States withdrew from the forum in 2023, JECK continues to operate as a high-level dialogue platform. The 2024 Top Executive Meeting is scheduled to take place in Korea. SAJ is also a core member of the Active Shipbuilding Experts’ Federation (ASEF), established in 2015, which promotes co-operation among shipbuilding countries on issues of maritime safety and environmental regulation. ASEF attained consultative status at the IMO in 2017 and currently includes members from Japan, Korea, China, and several ASEAN and South Asian economies.
The Cooperative Association of Japan Shipbuilders (CAJS): CAJS represents small and medium-sized shipbuilders, comprising 50 regular corporate members and 38 supporting organisations as of August 2024. While regular members include smaller yards, supporting members consist of larger shipbuilders and marine equipment manufacturers, creating a collaborative platform across the supply chain. CAJS is dedicated to strengthening the technical and business capacities of smaller shipyards. Its activities aim to enhance competitiveness and ensure the sustainability of this segment, which remains crucial for Japan’s regional industrial base and domestic vessel demand. CAJS does not currently participate in international forums such as JECK or ASEF, reflecting its primarily domestic focus.
Japan Ship Machinery and Equipment Association (JSMEA): JSMEA is the key association representing Japan’s ship machinery and equipment manufacturers. As of August 2024, it includes 256 regular corporate members and 75 supporting organisations. Member firms are involved in the production, repair, and sales of a wide range of components including propulsion engines, pumps, compressors, heat exchangers, deck machinery, navigational aids, and various onboard systems. The association’s objective is to foster technological advancement and promote the development of the ship equipment sector in support of both domestic and global maritime industries. JSMEA does not currently engage in international industry co-operation forums.
Together, these associations reflect the layered structure of Japan’s shipbuilding ecosystem—from large, internationally active builders to specialised equipment suppliers and small- and medium-sized regional yards. Their differentiated mandates and membership bases allow them to address a broad range of sectoral challenges and policy priorities.
2.2.2. Public sector
Government
MLIT (Ministry of Land, Infrastructure, Transport and Tourism) Maritime Bureau and related maritime affairs in Japan fall under the jurisdiction of the Maritime Bureau, which operates within the MLIT. The Bureau oversees a broad portfolio, including the development, regulation, and co-ordination of the shipbuilding and ship machinery industries. Within its internal structure, the Shipbuilding and Ship Machinery Division is specifically responsible for the promotion of vessel manufacturing, repair, and scrapping, as well as the development of technical standards for safety and environmental protection. The Bureau also supports technological advancement in shipbuilding and marine engine production, while contributing to international regulatory alignment and the broader sustainability goals of Japan’s maritime sector.
Export credit Agencies
The Japan Bank for International Cooperation (JBIC) plays a pivotal role in supporting Japan's shipbuilding industry through export financing mechanisms. Primarily, JBIC offers Buyer’s Credit (B/C) and Bank-to-Bank Loans (B/L) to foreign importers and financial institutions, facilitating the procurement of Japanese-built vessels and related services. These financial instruments are designed to bolster the international competitiveness of Japanese shipbuilders, many of which are integral to regional economies and involve numerous small and medium-sized enterprises (SMEs). By providing such support, JBIC not only aids to maintaining the vitality of Japan's maritime sector but also ensures the continued global presence of its shipbuilding industry.
Nippon Export and Investment Insurance (NEXI) provides trade and investment insurance to support Japanese companies involved in international transactions, including shipbuilding exports. In the shipbuilding sector, NEXI offers insurance coverage for export credit risks, such as non-payment by foreign buyers due to political or commercial reasons. This includes insurance for buyer’s credit loans extended by Japanese banks and supplier’s credit arrangements for shipbuilders. By mitigating financial risks for both exporters and financial institutions, NEXI plays a key role in facilitating the export of Japanese-built vessels, particularly in competitive international markets where long-term financing is essential.
2.2.3. Support measures and policies
Based on the questionnaire to Japan and web research by the Secretariat, this provides the recent measures for shipbuilding sector in Japan.
Acts
Japan’s shipbuilding policy framework is anchored in several legislative acts designed to strengthen competitiveness, secure supply chains, and facilitate decarbonisation. The Economic Security Promotion Law (2022) integrates industrial measures to ensure a stable supply of critical materials, designate ship components as strategic goods, and encourage domestic production to reduce reliance on foreign suppliers. Complementing this, the Act on Strengthening Maritime Industries (2021) aims to enhance competitiveness in both shipbuilding and shipping. More recently, the GX Promotion Act (2023) has provided the legal basis for Japan’s transition toward a carbon-neutral economy, explicitly supporting the decarbonisation of shipping through the deployment of zero-emission vessels and related technologies.
Strategies
Strategic planning plays a pivotal role in Japan’s maritime policy. The Realisation of Transformation in the Shipbuilding and Marine Equipment Industries strategy (2024) outlines long-term objectives for the shipbuilding and maritime sectors, including a roadmap for technological development and industrial restructuring by 2030. In the area of decarbonisation, the GX Promotion Strategy (2023) creates financial incentives for the adoption of alternative fuel technologies such as ammonia, hydrogen, and LNG. These strategies are intended to align industrial competitiveness with Japan’s broader climate commitments while encouraging collaboration between shipyards, equipment makers, and academia.
Roadmaps
Japan also relies on detailed roadmaps to guide technological and industrial transformation. The Roadmap to Zero Emissions from International Shipping (2020) brings together government, industry, and academia to address the technological, regulatory, and market challenges of decarbonisation. This initiative not only promotes the development of new energy-saving and low-emission solutions but also seeks to influence international standards and regulatory frameworks, thereby reinforcing Japan’s role as a thought leader in shaping the global maritime decarbonisation agenda.
Support measures
Decarbonisation is supported through multiple instruments, including the Green Innovation Fund (2021) and GX Transition Bonds (2022 On the other hand, in the private sector, in terms of supporting ESG management from the perspective of investor relations, the Zero-Emission Accelerating Ship Finance scheme was jointly developed by ClassNK and DBJ.