The Global Ship Recycling market is predicted to reach USD 96.8 billion in 2024 and USD 128.93 billion by 2029, growing at a CAGR of 5.9% during the forecast period.
Ship recycling signifies a substantial and ecologically aware industry which is experiencing the yearly reprocessing of around 1000 outdated and abandoned vessels worldwide. Presently, the market is mainly commanded by three South Asian nations with 90 percent of the end-of-life (EOL) ships. These are India, Pakistan and Bangladesh. Although this market exhibits opportunities, it also constitutes issues for the surrounding environment, coastal zone management, law and order, and workplace safety difficulties. The increase in the need for ship recycling has caused greater regulatory inspection at both international and national levels. On the other hand, the beaching ship recycling approach is predominantly exercised in Southeast Asia because of tidal conditions and geographical benefits. In contrast, building and operating dry docks is fairly costly, though this docking is the most secure method. More environmentally sensitive economies like the European Union and the USA accept the dry-dock method.
Industry demand for mild steel scraps and other products, regulations & adherence expenses, worldwide costs for steel plates, population and economic expansion, construction and urbanisation and escalating demand for feedstock from rolling and re-rolling mills, all are driving the ship recycling market growth. According to a study, the requirement for scrap could rise to 964 million tons, a time limit set by various global steel manufacturers to attain the object of carbon neutrality. Also, by 2030 the worldwide need for steel scrap will touch 778 million tons which is about 15 per cent higher than 2021. This is expected to push the market forward.
The market growth is also propelled by the strict ship End of Life (EOL) laws. The enforcement of stringent rules concerning the dumping of decommissioned vessels or boats has considerably augmented the expansion of the ship recycling market. These laws ensure a secure and ecologically conscious dismantling procedure.
Apart from these, the industry’s development is also influenced by vessel replacement and aging fleets. The ongoing geopolitical tension and high volatility in the oil and gas industry due to war in Europe and the Middle East has significantly surged the demand for tankers. This ultimately elevated the ship recycling of old vessels and boats. Also, goods owners need younger and more competent vessels. As per the study, around 29 percent of the VLCC’s fleet of 200000 plus DWT has crossed 15 years of age. And, this will further rise to 2 percent for the fleet of Suezmax 125–199000 DWT. 50 percent for the fleet of Aframax 85–124999 dwt
The ship recycling market growth is restricted by the absence of environmental protection. This is because of the pollution increasing from the dismantling process. Moreover, issues related to the unsatisfactory management of hazardous waste. In India, the ship recycling industry faces multiple problems with its leading ship recycling place which is known as ASSRY in Alang, Gujarat. The present situation shows a shocking figure of 48 per cent of its current ship dismantling capacity continues to be idle or inactive. Also, of 153 plots, 131 plots are being fit for usage and the remaining 22 are not in application due to lawsuits pending. But, the number of operational plats out of 131 is only 80.
The ship recycling market is expected to witness substantial growth with the setup of new infrastructure in Brazil, Turkiye, Bahrain, Indonesia, the UAE and certain European Union countries. This progress is mainly due to gaining traction in green steel. Several new building shipyards, big metal plants and large, conscious shipowners are now promoting the application of steel derived from secured and environmentally friendly ship reprocessing to obtain for further manufacturing instead of utilizing steel made from iron ore.
A vital challenge includes the ship recycling market struggling with elevated legal and administrative expenditures associated with adhering to Health, Safety, and Environment (HSE) laws, especially in India. The need to meet strict legal criteria demands significant investments to make sure workers are provided with security gear and ecological protection, thus contributing a substantial financial strain to the industry. As a result, there is an urgent requirement for extensive policy changes and amendments, strategic planning, and partnership measures to solve regulatory, functional, and economic challenges collectively.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2023 to 2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024 to 2029 |
|
CAGR |
5.9% |
|
Segments Covered |
By Vessel Size, Method, Vessel Type, and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
|
Market Leaders Profiled |
Spot Shipping A.S., Alang Info Services, Salasar Balaji Shipbreakers Pvt. Ltd., Dortel Ship Recycling, R L Kalthia Ship Breaking Pvt. Ltd., Izmir Ship Recycling Co., Osm Thome, Ksrm Steel Plant Ltd., Marine Recycling Corp., Leyal Gemi Geri Donusum Grubu. |
Reprocessing these vessel sizes provides several advantages. Ships falling under this category cause a considerable volume of recyclable materials like steel and other essential metals. Extra substances can be retrieved from bigger vessels and ship demolition yards. Consequently, it can engage in a financially beneficial way in the dismantling procedure. Moreover, the demand for reprocessed materials, especially steel, continues to be robust in several sectors. So, the ship of this class offers a principal source of the feedstocks.
According to 2024 research, beaching is the most common, feasible, and nearly sustainable ship recycling method in Asian nations. Specifically, more prevalent in Southeast Asia because of geopolitical benefits and tidal behavior.
But, a certain number of nations in Asia and Europe have accepted the pier-breaking or alongside method in place of beaching such as China or Turkey. Currently, Aliaga in Turkey and some more locations in the European Union are the most expressive against landing or slipway recycling methods with the greater ecologically friendly process. Those South Asian economies are executing an impressive job as they are adopting reprocessing of outdated old and End-Of-Life (EOL) ships with higher productivity but in a less professional way.
However, both segments witnessed a major dip in terms of new orders due to the ongoing security condition in the Red Sea is the newest in a string of jolts that has fuelled the need for ships. A greater quantity of ships is required to transport the same quantity of goods or consignment as traveling distances surge when vessels redirect through the Cape of Good Hope owing to the threat of Houthi attacks. Throughout 2022 and 2023, trade and other sanctions on coal exports and Russian oil had the same and prolonged effect on the tanker and bulk segments. In addition, shifting customer behaviors over the COVID-19 period resulted in a sudden rise in demand for containers.
Presently, China, Bangladesh, India, Turkey, and Pakistan have the majority of the ship recycling operations worldwide. Moreover, Turkey and India are the two biggest players in this industry and are key steel makers with a greater proportion of electric arc furnace applications. Over the last five years, these nations have recycled 34 per cent and 25 per cent of ship deadweight capacity and quantity of vessels respectively. But, on the other hand, the current and catastrophic state of the circumstances in both Pakistan and Bangladesh on ends of the spectrum, along with the start of the usually dull summer/monsoon season, has progressively declined the Indian sub-continent ship recycling industry into a tough position. Additionally, India too jumbling due to the effect of its fresh election results on the other hand Turkey is on the lookout for any kind of tonnage to arrive.
Spot Shipping A.S., Alang Info Services, Salasar Balaji Shipbreakers Pvt. Ltd., Dortel Ship Recycling, R L Kalthia Ship Breaking Pvt. Ltd., Izmir Ship Recycling Co., Osm Thome, Ksrm Steel Plant Ltd., Marine Recycling Corp., Leyal Gemi Geri Donusum Grubu are some of the notable companies in the global Ship Recycling market.
By Vessel Size
By Method
By Vessel Type
By Region
Frequently Asked Questions
Key drivers include the increasing demand for steel, the growing number of aging ships, stringent environmental regulations, and the economic benefits of recycling.
Challenges include dealing with hazardous waste, fluctuating steel prices, compliance with environmental regulations, and competition from alternative materials.
The market is expected to grow due to the increasing number of ships reaching the end of their lifespan and the rising demand for recycled materials, especially in developing regions.
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region