Impact of decarbonisation on global ship repair yard industry

Background

• The client approached Drewry to submit a proposal for conducting a comprehensive market study on the ship repair industry and upgrades business, particularly in light of the decarbonisation drive. The study was to support the client’s internal strategic planning and help the client decide on potential investment or acquisition opportunities. 

Client Objectives

• To provide an understanding of the global ship repair market landscape and carry out a supply-demand analysis

• To provide demand projections of the ship repair market, especially retrofits for alternative fuel (dual fuel) and energy-saving technologies

• To provide competitor analysis for the target regions

• To provide key success factors for ship repair yards

Approach

• Drewry developed a forecast for alternative fuel (dual fuel) retrofits, taking the decarbonisation regulations into consideration.
• Drewry developed a retrofit forecast for Propulsion-Improving Devices and Energy-Saving Devices, taking the decarbonisation regulations into account.
• Thereafter, Drewry estimated the current ship repair market and demand-supply gap in the industry.
• The client was also presented with a region-wise breakdown of the repair yard activities.
• Drewry provided a comparative analysis of various maritime industries, including ship repair, shipbuilding, engine maintenance, ship operators, and equipment makers, along with a company-wise assessment of ship repair companies

Results achieved

• Drewry delivered an in-depth market due diligence report detailing the global landscape of the ship repair yard industry;
• The final report supported the client in making informed investment decisions across targeted regions;
• Drewry assisted the client in determining region-specific challenges and operational considerations;
• In addition, Drewry also helped the client identify key manufacturers and component suppliers within the ship repair ecosystem;
• Due to dynamic market conditions at the time, the client withdrew pursuing an investment in the shipyard.