Digital Shipyard Market Size

Digital Shipyard Market Size

Digital Shipyard Market size was valued at USD 1.6 billion in 2022 and is predicted to register at a CAGR of over 15% between 2023 and 2032. The digital shipyard industry has been influenced by the integration of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), and digital twin technology. These technologies enhance efficiency, reduce downtime, and improve overall productivity in shipbuilding processes. By leveraging cutting-edge solutions, the industry is better equipped to make data-driven decisions, reduce downtime, and optimize overall performance, fostering a dynamic and competitive shipbuilding landscape.

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For instance, in October 2023, Hanwha Ocean Co. of South Korea announced a fundamental agreement with the Houston-based American Bureau of Shipping (ABS) to validate digital production technology, cybersecurity, self-navigation, and smart ship solutions. The company aims to enhance production efficiency by testing and validating digital shipbuilding technology until 2026. According to the agreement, Hanwha Ocean will collaborate on research to certify its smart shipyard and vessel technologies. The initial focus is on securing approval for the product design and manufacturing of its self-developed vessel draft measurement system, utilizing artificial intelligence image analysis.

Increased emphasis on data-driven decision-making is a key driver behind the growth of the digital shipyard market. By collecting and analyzing data from various stages of shipbuilding, companies can gain valuable insights that help optimize workflows, predict maintenance needs, and enhance overall performance.
 

Quoting an instance, in February 2023, GE revealed that its Indian subsidiary has entered into a agreement with Cochin Shipyard Limited to deliver an all-encompassing digital solutions package, enhancing the capabilities of LM2500 marine gas turbines powering the Indian Navy’s IAC-1 Vikrant, commissioned in August 2022. The package includes GE's SmartSignal solution, providing early indications of potential engine issues.
 

Utilizing predictive analytics in the shore-based digital twin of Vikrant’s gas turbine engine, the Navy aims to transition to a more predictive operational mode, minimizing risks and enhancing overall effectiveness. Data-driven decision-making is crucial for improving competitiveness in the maritime industry, which will help strengthen the digital shipyard market outlook over the next ten years.
 

However, the integration of advanced digital technologies in shipyards often requires significant upfront investments in infrastructure, hardware, software, and employee training. Some shipbuilding companies, especially smaller ones, may find the initial costs prohibitive, limiting their ability to adopt comprehensive digital solutions.