Ship Conversion

Global Ship Conversion Market to Reach US$22.4 Billion by 2030

The global market for Ship Conversion estimated at US$15.8 Billion in the year 2024, is expected to reach US$22.4 Billion by 2030, growing at a CAGR of 6.0% over the analysis period 2024-2030. Conversion, one of the segments analyzed in the report, is expected to record a 4.7% CAGR and reach US$5.1 Billion by the end of the analysis period. Growth in the Repair segment is estimated at 4.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$4.3 Billion While China is Forecast to Grow at 9.1% CAGR

The Ship Conversion market in the U.S. is estimated at US$4.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$4.5 Billion by the year 2030 trailing a CAGR of 9.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.0% and 5.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.9% CAGR.

Global "Ship Conversion" Market – Key Trends & Drivers Summarized

Is Ship Conversion the Maritime Industry’s Shortcut to Fleet Modernization?
Ship conversion has become an increasingly strategic solution in the maritime sector, allowing shipowners to upgrade, repurpose, or extend the life of existing vessels without the time and cost burdens of new builds. This includes structural modifications, engine retrofits, capacity expansion, fuel system reconfiguration, or complete role transformations—such as converting oil tankers to FPSOs (Floating Production Storage and Offloading units), bulkers to container ships, or drill ships to accommodation vessels. With surging demand in offshore energy, defense, and specialty cargo transport, conversions offer a faster go-to-market strategy than shipbuilding. Amid evolving regulations and operational demands, conversion provides a viable path to compliance, efficiency, and competitive differentiation. Major shipyards and maritime engineering firms are investing in dedicated conversion drydocks, modular retrofitting systems, and digital twin simulations to meet growing global demand for sophisticated reconfigurations.

How Are Decarbonization and Alternate Fuel Retrofits Reshaping Conversion Projects?
Decarbonization mandates from the IMO and national maritime authorities are triggering a wave of energy efficiency upgrades and fuel system conversions. Vessels are increasingly being retrofitted with dual-fuel engines, LNG or methanol storage systems, shore power connectivity, and energy-saving devices like propeller ducts, air lubrication systems, and advanced hull coatings. Conversion is a key enabler for meeting EEXI and CII benchmarks without scrapping viable assets. Ships originally designed for HFO (Heavy Fuel Oil) are now being modified to run on LNG, biofuels, or even hydrogen in the near future. Additionally, onboard systems such as boilers, auxiliary engines, and exhaust treatment modules are being re-engineered to support lower emissions and better energy recovery. These fuel conversions are not only environmentally necessary but also economically strategic, helping shipowners avoid carbon taxes and emission penalties while extending asset lifespans in a rapidly greening maritime economy.

Can Offshore and Defense Conversions Unlock New Lifecycle Value?
Beyond fuel and cargo roles, conversion is rapidly gaining traction in the offshore energy and naval sectors. Aging tankers are being transformed into FSOs/FPSOs to support deepwater oil and gas fields, while surplus drillships are being converted into offshore maintenance platforms, cable layers, or wind turbine installation vessels. In defense, navies are converting commercial hulls into auxiliary ships, training vessels, and surveillance platforms to reduce procurement cycles. Modular mission bay installations, reinforced hulls, and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) system retrofits are enabling faster deployment of flexible naval assets. With demand for offshore renewables growing, many conversions now focus on green operations—accommodating battery storage, power-from-shore systems, or hybrid propulsion. These role-adaptive conversions offer shipowners, oil majors, and defense ministries a cost-effective way to meet mission-specific needs without building from scratch.

What’s Fueling the Global Demand for Ship Conversion Services Across Sectors?
The growth in the global ship conversion market is driven by several factors including tightening environmental regulations, rising offshore energy projects, fleet aging, and capital constraints across the maritime value chain. With EEXI, CII, and regional emissions caps in effect, operators are converting older ships to meet compliance without grounding high-value assets. Offshore energy operators, especially in Brazil, West Africa, and Southeast Asia, are fueling demand for FPSO and FLNG conversions to reduce lead times and capex. Meanwhile, the global naval modernization wave is pushing cost-conscious defense ministries to pursue conversions for patrol, auxiliary, and combat support roles. In commercial shipping, charter rate volatility and container imbalances are prompting role-switching conversions such as PCTC-to-container retrofits or capacity expansions. Additionally, green finance availability and regulatory incentives are making fuel conversions and energy efficiency retrofits more attractive to shipowners. As shipyards diversify portfolios and digital design tools enable more complex reconfigurations, the ship conversion market is positioned for strong, diversified global growth.

SCOPE OF STUDY:

The report analyzes the Ship Conversion market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Service (Conversion, Repair, Maintenance, Refurbishment, Modernization, Life Extension, Other Services); Vessel Type (Container Vessels, Tankers, Bulk Carriers, Ferries & Passenger Ships, Offshore Vessels, Naval Vessels, Other Vessel Types); End-Use (Commercial, Defense, Offshore, Passenger Transport, Cargo Transport, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 32 Featured) -

• Abu Dhabi Ship Building
• Albwardy Damen
• China Shipbuilding Industry Corporation (CSIC)
• Cochin Shipyard Limited
• Damen Shipyards Group
• Fincantieri S.p.A.
• Global Maritime
• Groupe Beneteau
• Hyundai Heavy Industries
• Keppel Offshore & Marine
• Kongsberg Maritime
• Mercury Marine
• Neorion Shipyards
• Oman Drydock Company
• Orient Shipyard
• Royal Huisman
• Seatrium Limited
• STX France S.A.
• SYM Naval
• VARD Group AS

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