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US Shipbuilding Market

ID: MRFR/AD/19297-HCR
100 Pages
Garvit Vyas
October 2025

US Shipbuilding Market

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US Shipbuilding Market Infographic
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US Shipbuilding Market Summary

As per analysis, the US shipbuilding market is projected to grow from USD 34.24 Billion in 2024 to USD 38.47 Billion in 2025, exhibiting a compound annual growth rate (CAGR) of 8.63% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US shipbuilding market is poised for growth driven by sustainability and defense initiatives.

  • The commercial shipping segment remains the largest contributor to the US shipbuilding market, reflecting robust demand for cargo vessels.
  • The defense segment is currently the fastest-growing area, propelled by increasing government contracts and security needs.
  • Sustainability initiatives are gaining traction, influencing ship design and operational practices across the industry.
  • Technological advancements and government investment are key drivers, particularly in the naval ship segment, which is experiencing rapid expansion.

Market Size & Forecast

2024 Market Size 34.24 (USD Billion)
2035 Market Size 85.11 (USD Billion)
CAGR (2025 - 2035) 8.63%

Major Players

Huntington Ingalls Industries (US), General Dynamics (US), Lockheed Martin (US), Bath Iron Works (US), Austal USA (US), Vigor Industrial (US), Bollinger Shipyards (US), Fincantieri Marinette Marine (US)

US Shipbuilding Market Trends

The US shipbuilding market is currently experiencing a period of transformation, driven by advancements in technology and evolving regulatory frameworks. The industry appears to be adapting to the increasing demand for environmentally friendly vessels, which suggests a shift towards sustainable practices. Furthermore, the focus on national security and defense capabilities has led to a resurgence in naval shipbuilding, indicating a strategic prioritization of military readiness. As the market evolves, collaboration between private shipbuilders and government entities seems to be fostering innovation and enhancing competitiveness. In addition, the US shipbuilding market is witnessing a growing emphasis on workforce development. The need for skilled labor is becoming increasingly apparent, as the industry grapples with an aging workforce and the necessity for specialized training programs. This focus on human capital development may play a crucial role in ensuring the long-term viability of the sector. Overall, the US shipbuilding market appears poised for growth, with various factors converging to shape its future trajectory.

Sustainability Initiatives

The US shipbuilding market is increasingly prioritizing sustainability, with shipbuilders exploring eco-friendly materials and energy-efficient designs. This trend reflects a broader commitment to reducing environmental impact and complying with stringent regulations.

Defense and Security Focus

The emphasis on national defense has led to a revitalization of naval shipbuilding within the US. This trend indicates a strategic investment in military capabilities, as the government seeks to enhance its maritime strength.

Workforce Development

The US shipbuilding market is facing challenges related to workforce shortages. As a result, there is a growing focus on training and education programs aimed at equipping the next generation of shipbuilders with necessary skills.

Market Segment Insights

By Application: Commercial Shipping (Largest) vs. Defense (Fastest-Growing)

In the US shipbuilding market, the application segment is primarily dominated by commercial shipping, which holds the largest market share. This is due to the increasing demand for cargo vessels that accommodate global trade and logistics. Following commercial shipping, the defense sector is rapidly expanding as government investments in naval capabilities enhance the construction of military vessels, reflecting a shift in focus on national security and modern warfare strategies. As growth trends unfold, commercial shipping continues to be driven by advancements in technology, shipping efficiency, and the need for sustainable practices. On the other hand, the defense application is fueled by a resurgence of geopolitical tensions and increased funding from the federal government towards military enhancements. This dynamic creates a competitive market landscape, showcasing the interplay between established commercial practices and emerging defense needs.

Commercial Shipping (Dominant) vs. Defense (Emerging)

The commercial shipping segment stands as the dominant force in the US shipbuilding market, characterized by a high volume of new builds and retrofits to accommodate larger and more fuel-efficient vessels. These ships are tailored for international trade, supporting a robust supply chain that is critical to the economy. In contrast, the defense segment is emerging with significant growth potential as it adapts to contemporary threats through innovative designs and technologies. Investment in advanced military vessels, such as submarines and surface combatants, reflects a strategic pivot towards enhancing naval power. As a result, while commercial shipping leads in volume, the defense sector shows strong promise driven by evolving defense priorities.

By Vessel Type: Cargo Ship (Largest) vs. Naval Ship (Fastest-Growing)

In the US shipbuilding market, the cargo ship segment emerges as the largest, capturing a significant portion of the overall market share. This dominance can be attributed to the increasing demand for goods transportation globally, leading to a steady increase in cargo vessel orders. Conversely, the naval ship segment, although smaller, is noted for its rapid growth. Factors such as rising defense budgets and the need for enhanced maritime security are driving the demand for naval ships, positioning this segment as the fastest-growing in the market. Growth trends indicate a burgeoning interest in both segments, driven by different needs. The cargo ship sector is bolstered by advancements in shipping efficiency and sustainability efforts, as companies seek larger and more eco-friendly vessels. On the other hand, the naval ship segment sees growth linked to geopolitical shifts and an emphasis on modernization of fleet capabilities, with investments focusing on advanced technologies and combat readiness in response to global security challenges.

Cargo Ship (Dominant) vs. Fishing Vessel (Emerging)

Cargo ships have long been the dominant force in the US shipbuilding market due to their crucial role in international trade and logistics. These vessels are characterized by their size and capacity, designed to transport goods across vast oceans efficiently. The growth of e-commerce and global supply chains has necessitated larger and more efficient cargo vessels, leading to innovations in design and technology. In contrast, fishing vessels represent an emerging segment, driven by increased focus on sustainable fishing practices and seafood demand. Fishing vessels are becoming more specialized, incorporating advanced technologies for navigation, fish finding, and environmental compliance. As regulatory pressures mount, investments in modern fishing vessels are expected to grow, reflecting shifting market dynamics.

By Material: Steel (Largest) vs. Aluminum (Fastest-Growing)

In the US shipbuilding market, steel is the predominant material, commanding a significant share due to its strength, durability, and cost-effectiveness. It is the go-to choice for a variety of vessel types, including cargo ships and naval vessels. Meanwhile, aluminum is witnessing rapid growth, favored for its lightweight properties and corrosion resistance, leading to increased adoption in specialized applications such as yachts and high-speed crafts.

Steel (Dominant) vs. Aluminum (Emerging)

Steel remains the dominant material in US shipbuilding, known for its robust structural integrity and versatility. It is primarily used in larger vessels where strength is essential. On the other hand, aluminum is considered an emerging contender due to its advantages in reducing overall vessel weight, thereby enhancing fuel efficiency and speed. As manufacturers seek to improve sustainability and reduce emissions, aluminum's appeal continues to rise, particularly in the construction of state-of-the-art vessels designed for recreational use.

By Technology: Electric Propulsion (Largest) vs. Hybrid Propulsion (Fastest-Growing)

In the US shipbuilding market, Electric Propulsion leads as the largest technology segment, favored for its efficiency and reduced environmental impact. Hybrid Propulsion follows closely, characterized by its increasing adoption among builders aiming to combine traditional and renewable energy solutions. Conventional Propulsion, though traditional, is gradually losing market share as shipbuilders shift toward more sustainable options. The demand for cleaner technologies has catalyzed the growth of non-diesel propulsion systems, reshaping the competitive landscape in favor of environmentally-friendly solutions. The growth trends in the technology segment indicate a significant shift toward innovative propulsion systems. Electric Propulsion continues to attract attention due to ongoing advancements in battery technology and energy storage, which enhance its feasibility for larger vessels. Meanwhile, Hybrid Propulsion is emerging rapidly, driven by regulatory pressures and a growing emphasis on sustainability. These trends reflect a broader industry transformation, emphasizing efficiency, regulatory compliance, and the push for decarbonization across the shipbuilding sector.

Technology: Electric Propulsion (Dominant) vs. Hybrid Propulsion (Emerging)

Electric Propulsion stands out as the dominant force in the US shipbuilding market, offering exceptional fuel efficiency and diminished carbon emissions. This technology resonates with shipowners seeking operational cost reductions and compliance with stringent environmental regulations. In contrast, Hybrid Propulsion has emerged as a compelling alternative, bridging the gap between conventional and fully electric systems. It caters to vessels requiring flexible operational capabilities while reducing environmental footprints. As shipbuilders integrate these technologies, Electric Propulsion remains a first-choice for large-scale operations, while Hybrid systems offer versatility for various vessel types, positioning themselves as integral components of the industry's evolution.

By End Use: Transportation (Largest) vs. Defense (Fastest-Growing)

In the US shipbuilding market, the 'End Use' segment is primarily represented by Transportation, Defense, Tourism, Research, and Aquaculture. Transportation leads the segment with a significant market share, driven by the demand for commercial vessels and cargo ships. It serves as the backbone of trade and logistics while enabling connectivity through passenger ships. Meanwhile, the Defense segment, while smaller in share, is experiencing rapid growth fueled by increasing government expenditure on naval defense capabilities and modernization programs.

Transportation (Dominant) vs. Defense (Emerging)

The Transportation segment remains dominant in the US shipbuilding landscape due to its essential role in facilitating commerce and passenger movement. This segment encompasses a wide range of vessels, including cargo ships, tankers, and ferries, all of which are critical in supporting the nation's economy. On the other hand, the Defense segment has been identified as an emerging area of growth as military budgets rise, prompting advancements in ship technology and design. It focuses on building advanced warships and support vessels, aligned with strategic defense initiatives, thereby showcasing a shift towards enhancing naval capabilities.

Get more detailed insights about US Shipbuilding Market

Key Players and Competitive Insights

The shipbuilding market in the US is characterized by a competitive landscape that is increasingly shaped by technological advancements and strategic partnerships. Key players such as Huntington Ingalls Industries (US), General Dynamics (US), and Lockheed Martin (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Huntington Ingalls Industries (US) focuses on innovation in naval shipbuilding, particularly in the development of advanced surface combatants, while General Dynamics (US) emphasizes diversification through its acquisition of smaller firms to bolster its capabilities in unmanned systems. Lockheed Martin (US) is leveraging its expertise in defense technology to integrate cutting-edge systems into its vessels, thereby enhancing operational efficiency and combat readiness. Collectively, these strategies contribute to a dynamic competitive environment, where innovation and technological prowess are paramount.

In terms of business tactics, companies are increasingly localizing manufacturing to reduce lead times and enhance supply chain resilience. The market structure appears moderately fragmented, with several players vying for dominance, yet the influence of major firms remains substantial. This competitive structure fosters an environment where collaboration and strategic alliances are essential for growth and sustainability.

In November 2025, Huntington Ingalls Industries (US) announced a partnership with a leading technology firm to develop next-generation autonomous vessels. This strategic move is likely to position the company as a pioneer in the integration of AI and automation in shipbuilding, potentially redefining operational capabilities and market expectations. The collaboration underscores the importance of technological innovation in maintaining competitive advantage.

In October 2025, General Dynamics (US) completed the acquisition of a prominent cybersecurity firm, enhancing its ability to secure naval systems against emerging threats. This acquisition is strategically significant as it not only broadens General Dynamics' portfolio but also addresses the growing demand for cybersecurity in maritime operations, reflecting a proactive approach to evolving market challenges.

In September 2025, Lockheed Martin (US) unveiled a new class of multi-mission surface combatants designed to meet the diverse needs of modern naval warfare. This initiative is indicative of the company's commitment to innovation and adaptability, as it seeks to provide versatile solutions that align with the changing dynamics of maritime security. The introduction of these vessels may strengthen Lockheed Martin's competitive position in the market.

As of December 2025, current trends in the shipbuilding market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, enabling companies to pool resources and expertise to tackle complex challenges. Looking ahead, competitive differentiation is expected to evolve, with a pronounced shift from price-based competition to a focus on innovation, technological advancement, and supply chain reliability. This transition may redefine success in the market, as companies that prioritize these elements are likely to emerge as leaders.

Key Companies in the US Shipbuilding Market market include

Future Outlook

US Shipbuilding Market Future Outlook

The US shipbuilding market is projected to grow at an 8.63% CAGR from 2024 to 2035, driven by technological advancements, increased defense spending, and environmental regulations.

New opportunities lie in:

  • Development of autonomous vessel technologies for commercial shipping.
  • Expansion of green shipbuilding practices to meet regulatory demands.
  • Investment in digital twin technology for enhanced design and maintenance efficiency.

By 2035, the US shipbuilding market is poised for robust growth and innovation.

Market Segmentation

US Shipbuilding Market End Use Outlook

  • Transportation
  • Defense
  • Tourism
  • Research
  • Aquaculture

US Shipbuilding Market Material Outlook

  • Steel
  • Aluminum
  • Composites
  • Fiberglass
  • Wood

US Shipbuilding Market Technology Outlook

  • Conventional Propulsion
  • Hybrid Propulsion
  • Electric Propulsion
  • Automation
  • Digitalization

US Shipbuilding Market Application Outlook

  • Commercial Shipping
  • Defense
  • Recreational
  • Research
  • Fishing

US Shipbuilding Market Vessel Type Outlook

  • Cargo Ship
  • Naval Ship
  • Passenger Ship
  • Fishing Vessel
  • Specialized Vessel

Report Scope

MARKET SIZE 202434.24(USD Billion)
MARKET SIZE 202538.47(USD Billion)
MARKET SIZE 203585.11(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)8.63% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledHuntington Ingalls Industries (US), General Dynamics (US), Lockheed Martin (US), Bath Iron Works (US), Austal USA (US), Vigor Industrial (US), Bollinger Shipyards (US), Fincantieri Marinette Marine (US)
Segments CoveredApplication, Vessel Type, Material, Technology, End Use
Key Market OpportunitiesAdoption of advanced automation and digitalization in the US shipbuilding market enhances efficiency and reduces costs.
Key Market DynamicsTechnological advancements and regulatory changes drive innovation and competition in the US shipbuilding market.
Countries CoveredUS

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