Ship Building in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS 33661aRevenue
$40.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
115k
Businesses
404
Wages
$X.Xbn
Ship Building in the US industry analysis
Shipbuilders design, build and repair ships and other vessels for military and commercial clients. Long project lead times, primarily for defense contracts, have led to a consistent flow of revenue, keeping shipyards busy with work. In general, protectionist policies, like the Jones Act, protect shipbuilders from foreign competition, leading to steady domestic growth. The pandemic temporarily halted growth, particularly as the federal government shifted spending to pandemic relief, but rebounding defense spending, strong consumer markets, pent-up demand for travel and increased US oil and gas production have spurred demand from commercial and defense markets. Overall, revenue will expand at an expected CAGR of 4.9% to $40.3 billion through the current period, including a 13.1% jump in 2024.
Trends and Insights
- Increased defense spending has supported shipbuilders. New military contracts provide manufacturers with a steady stream of work, especially as companies develop newer, more advanced vessels.
- The US military remains the industry's largest market. The Department of Defense has increased military spending due to rising world tensions.
- Most companies operate near key buyers. The Southeast, Southwest and West region have a high concentration of military and commercial buyers.
- Leading shipbuilders dominate defense markets, contributing to lower market share concentration. Leading companies leverage reputation and economies of scale to dominate smaller companies.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.9 % over the past five years, to reach an estimated $40.3bn in 2024.
Trends and Insights
The pandemic hinders growth
- The federal government halted military spending during the pandemic as it prioritized COVID-19 relief programs, like the CARES Act and American Rescue Plan. Reduced government spending led to fewer available contracts for defense contractors.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Mounting world tensions will support demand from defense markets
- Continued world tensions and increased conflict with US allies will create opportunities for shipbuilders in defense markets despite expected nominal declines in federal funding for defense.
Biggest companies in the Ship Building in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Huntington Ingalls Industries, Inc. | 11,258.0 | 756.0 | 6.7 | |
General Dynamics Corporation | 10,113.1 | 1,175.1 | 11.6 | |
Bae Systems Plc | 1,828.2 | 200.1 | 10.9 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Military shipbuilding, Nonmilitary shipbuilding and repair and Military ship repair. Military shipbuilding is the largest segment of the Ship Building in the US.
Trends and Insights
Shipbuilders primarily supply new military vessel
- Shipbuilders offer a variety of ships for United States defense buyers, including surface vessels, aircraft carriers, submersible vessels and support ships. More than half of shipbuilding revenue is generated from building new military vessels.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Boat Building in the US
Complementors
- Ocean & Coastal Transportation in the US
- Inland Water Transportation in the US
- Dry Docks & Cargo Inspection Services in the US
International industries
- Global Ship & Boat Building
- Ship Building in Canada
- Shipbuilding and Repair Services in Australia
- Shipbuilding and Repair Services in New Zealand
- Shipbuilding in the UK
Table of Contents
About this industry
Industry definition
Shipbuilders operate shipyards, which are fixed facilities with dry docks and fabrication equipment capable of building a ship. A ship is defined as watercraft typically suitable or intended for use other than for personal or recreational purposes. Shipyard activities include ship construction, repair, conversion and alteration; the production of prefabricated ship and barge sections; and specialized services, such as ship scaling.
What's included in this industry?
Building barges Building cargo shipsBuilding passenger shipsBuilding submarinesBuilding drilling and production platforms Repairing shipsConverting or altering ships Producing prefabrication ship and barge sections Building military shipsCompanies
Huntington Ingalls Industries, Inc.General Dynamics CorporationBae Systems PlcPurchase this report to view all 3 major companies in this industry.
Related Terms
DRY DOCKBARGESHIPYARDOBLIGATIONSOUTLAYSIndustry Code
NAICS 336611 - Ship Building in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Increased defense spending has supported shipbuilders. New military contracts provide manufacturers with a steady stream of work, especially as companies develop newer, more ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The US military remains the industry's largest market. The Department of Defense has increased military spending due to rising world tensions.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most companies operate near key buyers. The Southeast, Southwest and West region have a high concentration of military and commercial buyers.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Leading shipbuilders dominate defense markets, contributing to lower market share concentration. Leading companies leverage reputation and economies of scale to dominate smal...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Leading shipbuilders dominate defense markets. These shipbuilders leverage stronger reputations and economies of scale to propose more attractive bids and acquire more contra...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Huntington Ingalls Industries, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of General Dynamics Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bae Systems Plc's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Huntington Ingalls Industries, Inc., and factors influencing its performance in the industry
- Description and key data for General Dynamics Corporation, and factors influencing its performance in the industry
- Description and key data for Bae Systems Plc, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Shipbuilders benefit from multiple protectionist policies. In particular, the Jones Act eliminates most competition from foreign commercial shipbuilders to protect national s...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Companies have faced severe supply chain disruptions. Rising steel prices have posed a major threat to profit, leading to temporary declines in 2021.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Ship Building in the US industry in United States in 2024?
The market size of the Ship Building in the US industry in United States is $40.3bn in 2024.
How many businesses are there in the Ship Building in the US industry in 2024?
There are 404 businesses in the Ship Building in the US industry in United States, which has declined at a CAGR of 2.5 % between 2019 and 2024.
Has the Ship Building in the US industry in United States grown or declined over the past 5 years?
The market size of the Ship Building in the US industry in United States has been growing at a CAGR of 4.9 % between 2019 and 2024.
What is the forecast growth of the Ship Building in the US industry in United States over the next 5 years?
Over the next five years, the Ship Building in the US industry in United States is expected to grow.
What are the biggest companies in the Ship Building in the US market in United States?
The biggest companies operating in the Ship Building market in United States are Huntington Ingalls Industries, Inc., General Dynamics Corporation and Bae Systems Plc
What does the Ship Building in the US in United States include?
Building barges and Building cargo ships are part of the Ship Building in the US industry.
Which companies have the highest market share in the Ship Building in the US in United States?
The company holding the most market share in United States is Huntington Ingalls Industries, Inc..
How competitive is the Ship Building in the US industry in United States?
The level of competition is moderate and steady in the Ship Building in the US industry in United States.
