Global Ship Recycling Market Projected to Reach $11.5 Billion by 2028, BCC Research Study Forecasted Compound Annual Growth Rate of 3.7% for the Period of 2023-2028 Indicates Gradual Market Expansion.
BOSTON, April 2, 2024 /PRNewswire/ — In the world of ship recycling, India and Bangladesh are major players, accounting for about 80% of the global market. This industry demands significant infrastructure and labor, but investments like Wreckdock’s facility and innovations like GMS’s digital platform are set to drive its development further.
“According to the latest BCC Research study, the demand for Global Ship Recycling Market is estimated to reach $11.5 billion by 2028, at a compound annual growth rate (CAGR) of 3.7% for the forecast period 2023-2028.”
This report offers a comprehensive examination of the ship recycling industry, exploring its current status, prospects, and the evolving landscape shaped by governmental initiatives and technological advancements. It delves into the operational mechanisms within the maritime sector, shedding light on both traditional dismantling methods and innovative recycling technologies. Through detailed analysis, the report identifies key growth drivers and challenges inherent to the global ship recycling business, providing insights into market dynamics, major players, and regional dynamics. Moreover, it furnishes crucial data and statistics essential for evaluating market stability, trends, and projections, thereby offering valuable insights for stakeholders navigating this dynamic industry.
India emerges as a dominant player in the global ship recycling market, commanding over 40% of the industry share. The labor-intensive process of ship dismantling is exemplified by the breakdown of a 40,000-ton vessel, which typically requires approximately three months of work involving 50 workers. However, this operation is not without its challenges. Ship recycling poses significant risks to workers, who engage in hazardous manual labor, dismantling ships while exposed to toxic substances. This perilous aspect underscores a major obstacle confronting the ship recycling industry, calling for heightened attention to occupational safety measures and environmentally sustainable practices within this critical sector.
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Global Ship Recycling Market Drivers
Stringent Ship End-of-Life Regulations: The implementation of strict regulations regarding the disposal of decommissioned ships has significantly contributed to the growth of the ship recycling industry. These regulations ensure safe and environmentally responsible dismantling processes.
Growing Demand for Metal Scrap: The global increase in demand for scrap metals, such as steel, copper, and aluminum, is a major driving force behind the expansion of the ship recycling market. Shipbreaking yards, often located near coastlines, are equipped with the necessary facilities and infrastructure to handle the dismantling process efficiently.
Aging Fleet and Vessel Replacement: Shipping companies continuously evaluate the competitiveness and efficiency of their fleets. Older ships tend to lose fuel economy and incur higher maintenance costs, affecting the industry’s profitability. Consequently, decommissioned ships are frequently sold off, leading to a steady supply of ship recycling.
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Report Synopsis
|
Report Metrics |
Details |
|
Base year considered |
2022 |
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Forecast Period considered |
2023-2028 |
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Base year market size |
$9.2 billion |
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Market Size Forecast |
$11.5 billion |
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Growth Rate |
CAGR of 3.7% for the forecast period of 2023-2028 |
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Segment Covered |
Vessel Type, Vessel Size, Method |
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Countries covered |
India, Bangladesh, Pakistan, Turkey |
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Key Market Drivers |
• Growth in Maritime Trade • Ship Recycling Support Environment and Sustainability Issues • Rising Demand for Scrap Metal |
Global Ship Recycling Market Segmentation Analysis
Vessel Type Segmentation
Vessel types encompass a diverse array of ships tailored for specific purposes, including oil tankers designed for the transportation of oil and petroleum products, bulk carriers facilitating the movement of commodities like coal and grain, and offshore vessels utilized in oil exploration and maintenance operations. Additionally, liquefied gas carriers specialize in transporting gases such as LNG and LPG, while ferries and passenger ships serve short sea routes for passenger transport. Chemical tankers are tailored for the safe carriage of various chemicals and hazardous materials, while general cargo ships offer versatility in transporting a wide range of goods. Container ships, built to accommodate standardized shipping containers, facilitate efficient global trade.
Vessel Size Segmentation
Vessel sizes further delineate the market, catering to varying tonnage capacities and operational scales. Ships below 60,000 DWT (Deadweight Tonnage) represent smaller vessels with capacities under 60,000 metric tons, suitable for specific transport needs. Mid-sized vessels falling within the 60,000 to 125,000 DWT range provide an intermediary option, balancing capacity and maneuverability. Large ships exceeding 125,000 DWT offer extensive carrying capacities, catering to substantial cargo demands and long-haul routes. This segmentation enables stakeholders to tailor recycling strategies and facilities to match the scale and requirements of different vessel sizes, ensuring efficient and sustainable dismantling processes.
Method Segmentation
Recycling methods delineate the approach employed in dismantling retired vessels, each presenting distinct advantages and considerations. Beaching involves intentionally running ships aground on beaches for dismantling, offering accessibility but raising environmental and safety concerns. Sideways and alongside/pier-breaking methods entail dismantling alongside a pier or quay, providing controlled environments but requiring specialized infrastructure. Dry-docking facilitates safe dismantling by bringing ships into dry docks, ensuring containment of pollutants and enhancing worker safety.
This report on the Global Ship Recycling Market provides comprehensive insights and analysis, addressing the following key questions:
- What is the projected market size and growth rate of the market?
The global ship recycling market was valued at $9.2 billion in 2022 and will reach $11.5 billion by 2028, and the growth rate is 3.7% for the forecast period 2023-2028.
- What are the key factors driving the growth of the market?
• Growth in maritime trade
• Ship recycling support environment and sustainability issues
• Rising demand for scrapped metals - What segments are covered in the market?
• By Vessel Type (Oil tankers, Bulk carriers, Offshore vessels, Liquefied gas carriers, Ferries and passenger ships, Chemical tankers, General cargo ships, Container ships and Other)
• By Vessel Size (Below 60,000 DWT, 60,000 DWT To 125,000 DWT and Above 125,000 DWT)
• By Methods (Beaching, Berthing, Dry-Dock, Alongside and Others) - By Methods, which segment will dominate the market by 2028?
The beaching method dominates the method segment.
- Which region has the highest market share in the market?
Bangladesh has the highest market share in the market.
Some of the Key Market Players Are:
- ALANG INFO SERVICES
- DORTEL SHIP RECYCLING
- IZMIR SHIP RECYCLING CO.
- KSRM STEEL PLANT LTD.
- LEYAL GEMI GERI DONUSUM GRUBU
- MARINE RECYCLING CORP.
- OSM THOME
- R L KALTHIA SHIP BREAKING PVT. LTD.
- SALASAR BALAJI SHIPBREAKERS PVT. LTD.
- SPOT SHIPPING A.S.
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