The global digital shipyard market was valued at USD 963.6 million in 2020 and is expected to reach USD 3,444.5 million by 2028, growing at a CAGR of 17.27% during the forecast period (2021–2028), according to Fortune Business Insights™. The market grew from USD 1,129.6 million in 2021, driven by increasing demand for modernization in shipbuilding processes. As shipbuilders seek greater efficiency, automation, and data-driven operations, digital technologies are playing a vital role in transforming traditional shipyards into smart, interconnected facilities.

Technology Adoption Driving Market Growth

A digital shipyard leverages technologies such as digital twins, artificial intelligence (AI), robotics, additive manufacturing, and automation to streamline shipbuilding operations. These technologies significantly reduce production time and cost, enhance safety and quality, and allow for higher customization and flexibility. The growing focus on cost-efficiency, operational effectiveness, and reduced environmental impact is expected to further drive the adoption of digital shipyard solutions.

Key Market Players

IFS AB (Sweden)

Pemamek Oy (Finland)

Dassault Systèmes (France)

BAE Systems (U.K.)

Altair Engineering, Inc. (U.S.)

AVEVA Group Plc (U.K.)

Wärtsilä (Finland)

KUKA AG (Germany)

Damen Shipyards Group (Netherlands)

Prostep AG (Germany)

Information Source

https://www.fortunebusinessinsights.com/digital-shipyard-market-106561

Role of IIoT in Shipyard Transformation

One of the key growth drivers is the increased utilization of the Industrial Internet of Things (IIoT) in shipbuilding. IIoT combines the power of machine learning, big data analytics, and advanced sensors to enhance decision-making and improve real-time operational efficiency. Shipyards are using IIoT to monitor machinery, predict maintenance needs, minimize downtime, and boost overall productivity—paving the way for smart manufacturing in maritime industries.

Market Segmentation

The market is segmented based on shipyard type, technology platform, and digitalization level:

By Shipyard Type:

Commercial

Military

By Technology Platform:

Robotic Process Automation (RPA)

Additive Manufacturing

AI and Big Data Analytics

Digital Twin

Blockchain

Industrial Internet of Things (IIoT)

Others

Note: The RPA segment led the market in 2020 due to high demand for automating tasks such as welding, cutting, and painting.

By Digitalization Level:

Semi-Digital Shipyard

Fully Digital Shipyard

Regional Insights

Asia Pacific held the largest market share in 2020, valued at USD 323.3 million, and is expected to maintain dominance throughout the forecast period due to rapid adoption of digital technologies in countries like China, South Korea, and Japan.

Europe is expected to grow rapidly, driven by significant investments from shipbuilders in automation and robotics.

North America will also see steady growth, supported by strong R&D initiatives from companies like Altair Engineering Inc. focusing on digitalization of shipyards.

Competitive Landscape

The competitive landscape of the digital shipyard market is marked by continuous innovation, strategic collaborations, and new product developments. Major players are adopting various strategies to enhance their market position and cater to evolving customer needs.

Industry Development

June 2021: Drydocks World announced a major digital transformation initiative aimed at improving operational efficiency. The company selected IFS Cloud for asset management and resource planning—laying the groundwork for a fully digital shipyard infrastructure.