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  • Korea’s Large Shipbuilding Companies Maintain Market Status Focusing on Ships with High Added-Value Close
    Korea’s Large Shipbuilding Companies Maintain Market Status Focusing on Ships with High Added-Value
    As the global cargo volume increased following the rapid economic growth of China in the early 2000s, the Korean shipbuilding industry showed continuous growth.
    Among the big three shipbuilding countries (Korea, China, and Japan), Korea has shown a competitive advantage by receiving orders of ships with high added-value (extra-large tankers, container ships, LNG carriers).
    In 2019, the amount of orders received by Korean shipbuilders was 9.43 million CGT, taking the lead in the global market with a 37% share, followed by China (34%) and Japan (13%).
    "Statistics of Major Countries in the Shipbuilding Industry"
    (Unit: Million CGT)
    Please refer to the information below
    Statistics of Major Countries in the Shipbuilding Industry Country, Figure, Unit
    Country Figure 2012 2013 2014 2015 2016 2017 2018 2019
    Korea Order 6.8 15.5 12.1 10.1 2.5 6.3 13.2 9.4
    Market share 28% 31% 32% 28% 23% 33% 38% 37%
    China Order 8.1 17.7 13.2 11.8 3.4 6.7 10.5 8.6
    Market share 33% 35% 35% 33% 32% 34% 30% 34%
    Japan Order 4.3 6.9 8.8 9.7 1.5 1.2 7.29 3.3
    Market share 18% 14% 23% 27% 14% 6.1% 21% 13%
    Large view of images
    ※ Source : Korea Shipbuilding & Marine Engineering Association
    "Total global order"
    한국 37.3%, 중국 33.8%, 유럽연합 13.9%, 일본 13.0%, 기타 2.0% (기준: 2019) Large view of images
  • Korean Shipbuilding Companies Expect to Benefit from Increasing Demand for LNG Carriers Open
    Korean Shipbuilding Companies Expect to Benefit from Increasing Demand for LNG Carriers
    A worldwide boom for eco-friendly energy lifted a demand for LNG, which is expected to increase orders for LNG carriers.
    The Korean shipbuilding industry, whose LNG carrier building capacity has already been recognized in the global shipbuilding market, is expected to grow accordingly.
    In 2019, Korea made the remarkable achievement of receiving 80% of all worldwide orders for LNG carriers.
    In 2020, Korea also received an order for 100 LNG carriers from Qatar Petroleum, a state-owned oil company of Qatar.
    "Demand for LNG around the World"
    Demand for LNG around the World Large view of images
    Demand for LNG around the World
    Category 2017 2018 2019 2020 2021 2022 2023 2024 2025
    Asia Pacific 205 232 240 255 263 277 295 309 326
    Europe 45 48 60 53 51 51 55 57 65
    Middle East - - - 0.21 1.06 2.35 3.82 5.05 5.59
    North America 19.85 16.01 16.11 17.01 18.68 20.1 20.22 22.44 25.38
    Africa 7.45 8.23 5.39 4.77 3.91 4.28 4.99 5.65 6.35
    South America 9.08 9.13 7.62 8.02 11.29 13.61 16.18 17.82 17.97
    ※ Source : Morgan Stanley; Wood Mackenzie
    Following the increased demand for LNG carriers worldwide, a significant proportion of the Korean shipbuilding
    industry’s order backlog has shifted from tankers to LNG carriers
    "Percentage of Korea's order balance by type"
    Please refer to the information below
    (Unit: CGT)
    Percentage of Korea's order balance by type LNG, Tankers, Containers, Bulk, LPG, Others
    기간 LNG Tankers Containers Bulk LPG Others Total
    by late October 2017 21.7% 46.1% 10.8% 7.2% 5.8% 8.3% 15.87 million CGT
    by late October 2018 35.9% 30.3% 21.9% 4.9% 3.2% 3.9% 20.74 million CGT
    by late May 2019 43.3% 23.2% 21.3% 4.2% 3.3% 4.7% 20.67 million CGT
    Large view of images
    ※ Source: Meritz Research, Meritz 2019 H2 Outlook Series 16
  • New Leap for the Marine Equipment Following Stronger Marine Environmental Regulations Open
    New Leap for the Marine Equipment Following Stronger Marine Environmental Regulations
    The International Maritime Organization (IMO) has strengthened environmental regulations on existing vessels as well as new vessels from 2020 by, for example, making it mandatory to install sulfur oxide reduction systems.
    As a result, Korean marine equipment companies that manufacture eco-friendly equipment, such as scrubbers and ballast water treatment systems, are expected to grow as well.
    Sales of eco-friendly equipment by Korean marine equipment companies reached USD 544 million (KRW 633.1 billion) in 2019,
    which was more than doubled YoY.
    Please refer to the information below
    Sales of Marine Equipment in the Past Five Years (Unit: USD million)
    Sales of Marine Equipment in the Past Five Years 2015~2019년도간 General marine equipment Eco-friendly marine equipment
    Category 2015 2016 2017 2018 2019
    General marine equipment 3,372 2,834 2,490 2,533 2,508
    Eco-friendly marine equipment 515 394 277 288 544
    Large view of images
    ※ Source: Busan Marine Equipment Association
  • Location of Korean Shipbuilding, Marine and Equipment Industries Open
    Location of Korean Shipbuilding, Marine and Equipment Industries
    Shipbuilding and marine companies are located in Busan, Ulsan, Gyeongsangnam-do, and the Seoul metropolitan area.
    A majority of vessel and offshore plant parts manufacturers (over 50%) and marine leisure vessel companies (over 40%) are located in Busan, Gyeongsangnam-do, and the southeastern area.
    Clusters have been created, which means active networking is guaranteed.
    Please refer to the information below
    조선해양 및 기자재 산업 16년 기준 전체 사업 수 17,854개
    The shipbuilding industry in the Seoul-Incheon area accounts for 22.9% of the total.
    The shipbuilding industry in Busan, Ulsan, and Gyeongsangnam-do has higher proportion of large-scale shipbuilding companies and related companies compared to other regions.
    The shipbuilding industry in the Jeollanam-do area is led by Hyundai Samho Heavy Industries, and many small- and medium-sized shipbuilding and marine equipment companies are spread throughout the region.
    Large view of images
    ※ Source: Korea Maritime Institute, January 2019, Research on the Construction of New Marine City
    ※ Support: National Korea Maritime and Ocean University
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