Digital Shipyard Market Strategic Growth, Innovation & Investment Trends

Digital Shipyard Market Trends, Challenges & Strategic Recommendations

The digital shipyard market is expected to increase from USD 3.74 billion in 2025 to USD 10.88 billion by 2034, growing at a CAGR of 12.6% throughout the forecast period from 2025 to 2034.

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Introduction

The digital shipyard market is a prominent branch of the maritime industry. This industry deals in manufacturing and distribution of digital solutions for developing the shipbuilding industry. These solutions are comprised of various components consisting of software, hardware and services. It is designed for numerous types of shipyards including commercial shipyards and military shipyards. There are different types of technologies used in this sector such as AR/VR, digital twin, additive manufacturing, AI & big data analytics, high performance computing (HPC), blockchain and some others.

The growing investment by government for developing the shipbuilding industry has contributed to the industrial growth. This market is expected to rise significantly with the growth of the marine sector around the world.

Highlights of the Digital Shipyard Market

• North America generated highest revenue of the digital shipyard market.
• Asia Pacific is expected to rise with the highest CAGR during the forecast period.
• By solution, the hardware segment dominated this industry.
• By solution, the services segment is expanding with a significant CAGR during the forecast period.
• By shipyard, the commercial segment held the largest share of the market.
• By shipyard, the military segment is expected to grow with the fastest CAGR during the forecast period.

What are the Trends of Digital Shipyard Market in 2025?

The major trends in this market consists of partnerships, adoption of Industry 4.0 in shipbuilding sector and financial grants by government.

Partnerships

Several shipbuilding brands are partnering with software developers for developing advanced software to accelerate digitalization in the shipyards. For instance, in January 2024, HD Hyundai Heavy Industries announced partnership with NAPA and CADMATIC. This partnership is done for accelerating the digital transformation across the shipbuilding industry. (Source: https://www.offshore-energy.biz/hd-hyundai-heavy-napa-and-cadmatic-team-up-on-digital-shipyard/)

Adoption of Industry 4.0

The shipbuilders are constantly adopting Industry 4.0 for transforming the ship manufacturing and repairing processes.

Financial Grants by Government

Government of several countries such as India, China, the U.S. and some others have started providing grants for developing the shipbuilding industry. For instance, in February 2025, the government of India announced to invest around Rs 25000 crore. This investment is done for developing the shipbuilding industry of India. (Source: Moneycontrol)

Solution Insights

Why Hardware Segment Held the Largest Share of the Digital Shipyard Market in 2025?

The hardware segment dominated this industry. The growing demand for advanced sensors and auxiliary systems from modern shipyards has boosted the market expansion. Additionally, the integration of automated navigation systems and GPS trackers in shipbuilding premises is expected to drive the growth of the digital shipyard market.

The services segment is expected to rise with a significant CAGR during the forecast period. The rising demand for ship maintenance and repairing services has driven the market growth. Also, the integration of advanced technologies such as AI, ML, blockchain and some others in modern shipyards to enhance their servicing capabilities is expected to boost the growth of the digital shipyard market.

Shipyard Insights

How did the Commercial Segment Led the Digital Shipyard Market in 2025?

The commercial segment dominated the market. The rapid adoption of advanced technologies such as AI and IoT in commercial shipyards for enhancing the shipbuilding process is expected to boost the market growth. Additionally, the growing investment by shipbuilding companies for deploying digital solutions in modern shipyards is expected to drive the growth of the digital shipyard market.

• In June 2025, BAE Systems announced to open a commercial shipyard in Jacksonville, Florida. This shipyard is inaugurated for enhancing the ship repairing process by using advanced technologies such as AI, IoT, Big Data Analytics and some others. (Source: https://euro-sd.com/2025/06/major-news/44791/bae-systems-new-shiplift/)

The military segment is expanding with the fastest CAGR during the forecast period. The rising investment by government of several countries such as the U.S., Russia, Israel and some others for strengthening the defense sector has contributed to the industrial expansion. Additionally, the integration of additive manufacturing and big data analytics in military shipyards to improve ship development process is expected to foster the growth of the digital shipyard market.

• According to the Department of Defense (DOD), the defense expenditure of the U.S. was around US$ 872.89 billion in 2025. (Source: USA Spending)

Geographical Insights

Why North America dominated the digital shipyard market in 2025?

North America held the largest share of the digital shipyard market. The rapid investment by government of the U.S. and Canada for digitalizing the military shipyards has boosted the market expansion. Also, the rising adoption of advanced technologies such as AI and IoT in the shipbuilding sector coupled with increasing demand for luxury boats is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as Altair Engineering, Inc., IBM Corporation, Huntington Ingalls Industries, Inc and some others is expected to propel the growth of the digital shipyard market in this region.

• In January 2025, Huntington Ingalls Industries, Inc announced to open a virtual reality (VR) welding lab in Mississippi, U.S. This lab is inaugurated to enhance the shipbuilding capacities across the U.S. region. (Source: HII)

Asia Pacific is expected to grow with the fastest CAGR during the forecast period. The increasing demand for electric ships to reduce marine emission has driven the market growth. Also, rapid investment by government of several nations such as India, Japan, China, South Korea and some others for developing the shipbuilding industry is shaping the industry in a positive direction. Moreover, the presence of several digital shipyard companies such as Hanwha, Hyundai Heavy Industries, Samsung Heavy Industries and some others is expected to drive the growth of the digital shipyard market in this region.

• In May 2023, Hanwha acquired Daewoo Shipbuilding & Marine Engineering. This acquisition is done for developing advanced technologies for the digital shipyards across South Korea. (Source: Hanwha)

Competitive Landscape

The digital shipyard market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of BAE Systems; Dassault Systèmes; AVEVA Group Limited; Siemens; Accenture; Hexagon AB; SAP; Wärtsilä; Inmarsat Global Limited; Damen Shipyards Group and some others. These companies are constantly engaged in developing digital shipyards and adopting numerous strategies such as joint ventures, partnerships, business expansions, launches, collaborations, acquisitions, and some others to maintain their dominance in this industry.

• According to the annual report of Hexagon AB, around 39% of the company’s revenue was generated from the Americas region followed by EMEA (34%) and Asia (27%). (Source: Hexagon)

Industry Leader Announcement

• In February 2025, Yoshimichi Sasaki, the General Manager of Digital Transformation Center at ClassNK made an announcement stating that,” We now have people from across a diverse range of maritime business areas and roles offering their valuable perspectives. With “K” LINE, NYK/MTI, MOL, and Marubeni/MMSL Japan involved, we also have representation from many prominent Japanese shipowners, highlighting the significance of Digital Twin technology and the strength of the collaborative project.”

Key Players Profiled in the Digital Shipyard Market

• SAP
• Wärtsilä
• Hexagon AB
• Inmarsat Global Limited
• Damen Shipyards Group
• BAE Systems
• Dassault Systèmes
• AVEVA Group Limited
• Siemens
• Accenture

Recent Developments

• In May 2025, Hudong-Zhonghua Shipbuilding announced to inaugurate a new digital shipyard in Changxing Island. This shipyard is developed with an initial investment of around US$ 2.5 billion to enhance the production capacity of LNG carriers. (Source: Marine Insight)
• In April 2025, Accenture partnered with Fincantieri SpA. This partnership is done for developing digital solutions for the shipbuilding industry. (Source: Benzinga)
• In October 2024, Wartsila partnered with Qatar Shipyard Technology Solutions. This partnership aims at delivering various digital services to ship owners and operators. (Source: Wartsila)

Segments Covered in the Report

By Solution

• Hardware
• Software
• Services

By Shipyard Type

• Commercial
• Military

By Capacity

• Small
• Medium
• Large

By Technology

• AR/VR
• Digital Twin
• Additive Manufacturing
• AI & Big Data Analytics
• High Performance Computing (HPC)
• Blockchain
• Others

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa