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China Leads Global Shipbuilding With Over 70% of Orders. Understand How It Surpassed South Korea and Dominates Ship Production in Shipyards.
China has taken the global lead in shipbuilding, surpassing South Korea in production volume and new orders. With large shipyards spread across various coastal regions and an industrial policy focused on exports, the Asian country accounts for over 70% of global new ship orders, solidifying its position as the industry’s top manufacturer.
Chinese Shipyards Concentrate Most Global Contracts
Data released in January 2025 by international maritime consultancies indicates that Chinese shipyards registered over 46 million compensatory gross tons (CGT) in orders throughout 2024. This represents approximately 74% of the total order volume placed worldwide. In comparison, South Korea, which for decades led the sector with companies like HD Hyundai and Samsung Heavy Industries, held about 15% of the market.
The change in leadership did not happen by chance. The Chinese government has heavily invested in modernizing the shipbuilding industry since the 2010s, unifying state-owned shipyards and offering subsidies to increase international competitiveness. The merger of the corporations CSSC (China State Shipbuilding Corporation) and CSIC (China Shipbuilding Industry Corporation) created the world’s largest naval conglomerate, capable of simultaneously handling dozens of large ship orders.
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Ship Production on an Industrial Scale
China has surpassed its competitors in the absolute number of vessels delivered. According to industry data, Chinese shipyards have completed the construction of approximately 1,700 ships per year, ranging from oil tankers and bulk carriers to container ships and specialized vessels.
Among the shipyards with the highest capacity are Jiangnan Shipyard, Hudong-Zhonghua, Dalian Shipbuilding Industry Company (DSIC), and Guangzhou Shipyard International. Together, these industrial complexes maintain hundreds of active production lines, with average delivery times ranging from two to four years, depending on project complexity.
Unlike South Korea, which focuses on higher-value-added ships and embedded technology, China prioritizes volume. This includes contracts for standardized vessels that can be built in series quickly, reducing the cost per unit and attracting more international buyers.
Technology and Labor Drive the Chinese Sector
China’s rise in shipbuilding is also related to the intensive use of technology and the availability of large-scale labor. Industrial robots, 3D modeling software, and integrated production management systems are already part of the routine of major Chinese shipyards.
With strong integration between research and development, Chinese universities work in partnership with shipyards to accelerate processes and test lighter and more resistant materials. Digitalization allows large vessels to be designed and ordered virtually, speeding up the start of physical production.
Another factor favoring China is its ability to adapt to international market demands. Shipyards have specialized in eco-friendly ships, such as LNG (liquefied natural gas) carriers, methanol-powered vessels, and projects compliant with the new environmental regulations of the International Maritime Organization (IMO).
South Korea Maintains Quality but Loses in Volume
Even with the decline in global market share, South Korea still stands as a reference in quality and innovation in shipbuilding. The shipyards of HD Hyundai and Samsung Heavy Industries continue to produce sophisticated ships, such as offshore platforms and high-performance military vessels. However, the higher labor costs and the limited number of active shipyards reduce competitiveness compared to Chinese mass production.
Currently, South Korean shipyards deliver about 110 ships per year, with a focus on large LNG carriers, cruise ships, and military vessels. In terms of embedded technology, South Korea still leads in specific segments, such as automated navigation systems and integrated energy solutions.
Participation in the International Market
The concentration of orders in China also reflects changes in logistical chains and maritime geopolitics. With the growth of the Chinese fleet and the increase in the country’s commercial influence, shipping companies have preferred to place orders directly with local shipyards. Easier access to state financing and a favorable exchange rate policy help make Chinese proposals more attractive than competitors.
European, Japanese, and even South Korean shipyards have lost ground to China’s advances, even while maintaining a solid reputation. The new scenario puts pressure on traditional manufacturers, who now need to seek more technical or customized niches to remain relevant.
Expectations for the Coming Years
The expectation is that China will maintain its global leadership in shipbuilding for the coming years, given the current production pace and the number of orders in the pipeline. According to market estimates, the country currently holds more than half of all ongoing orders worldwide.
For South Korea, the challenge will be to balance maintaining internationally recognized quality with greater operational efficiency to contain the loss of market space to Chinese shipyards. For international buyers, the wide Chinese offering represents the possibility of fleet renewal with lower costs and competitive delivery times.
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