Korea, Japan Accelerate Shipbuilding Innovation as China Leads

Korean shipbuilders are stepping up research programmes and automation projects as China claims the bulk of newbuilding orders, while Japan pursues a government-backed roadmap to restore its shipyard capacity.

China’s market share

At a maritime forum in Singapore, a senior official from the Chinese shipbuilding sector highlighted that the region has dominated newbuilding activity for many years. Government statistics released for the first half of 2026 indicate that China produced 62.2% of the world’s total shipbuilding output during that period.

The same data set reveal that Chinese yards were responsible for 82.3% of all new orders received and held 71.2% of the orders that were still on hand, highlighting the country’s strong position in the global market.

Korea’s response

During the Asian Shipbuilding Experts Forum, the vice-chair of the Korea Offshore and Shipbuilding Association explained that domestic firms are constantly measuring their competitive edge against regional rivals. He said that Korean yards are reviewing every stage of the design-to-delivery chain to find efficiency gains.

He added, “Korean shipbuilders continuously question themselves, ‘are you are still on the first line?’ So, they invest a lot in research and development for technological innovation, and especially for high value and eco-friendly ones.”

Key investment streams focus on liquefied natural gas (LNG) carriers, floating LNG units, and floating production storage and offloading (FPSO) vessels. Automation, robotics and artificial-intelligence tools are being introduced to lift yard productivity and reduce manual labour.

Major yards such as Hyundai, Samsung and Hanwha benefit from a well-established domestic supply chain, yet officials stress that partnerships with overseas firms are essential for securing critical components that are not produced locally.

In addition to equipment, Korean shipbuilders are exploring joint ventures that could give them access to advanced digital-engineering platforms and new-material technologies.

Japan’s strategy

Representatives of Japan’s shipbuilding association outlined a plan that seeks to deliver competitively priced vessels while supporting a greener maritime sector. The executive emphasized the historic ties among shipbuilders, ship owners, marine-equipment manufacturers and engineering experts within the country.

He remarked, “Our challenge is to translate that strength into greater productivity and faster commercial deployment, and the government’s shipbuilding revitalisation roadmap,”

The roadmap sets a target of 80 million gross tonnage of shipbuilding capacity by 2035. Reaching this ambition will require simultaneous upgrades of physical facilities, the adoption of digital engineering tools, and tighter coordination across the supply chain.

Efforts under the plan also include the development of vessels powered by methanol, ammonia and hydrogen, as well as the integration of energy-saving technologies such as waste-heat recovery and advanced hull designs.

Supply-chain and technology challenges

Both Korea and Japan acknowledge that shortages of specialised components—such as high-efficiency turbines, advanced control systems and corrosion-resistant alloys—could limit the speed at which new designs reach the market. By forging alliances with firms in Europe, North America and Southeast Asia, they hope to diversify sources and reduce reliance on any single supplier.

Future outlook

Looking ahead, the ability of Korean and Japanese shipbuilders to collaborate with overseas partners may shape whether they can retain or regain market share as China continues to grow its order book. The pace of technology transfer, especially in the areas of autonomous navigation and zero-carbon propulsion, will be a key determinant of competitive positioning. Ultimately, the success of these efforts will determine the future of Korean and Japanese shipbuilding in the global market.