Research and Markets: Asia Pacific Commercial Shipbuilding Market - Entrants Should Drop Anchor in the Ship Repair Yards to Tide over the Economic Downturn

Research and Markets ( http://www.researchandmarkets.com/research/07a8cb/asia_pacific_comme) has announced the addition of Frost & Sullivan's new report " Asia Pacific Commercial Shipbuilding Market" to their offering.

Entrants in the Shipbuilding Industry Should Drop Anchor in the Ship Repair Yards to Tide over the Economic Downturn

The shipbuilding market is sailing in choppy waters, with close to 30 percent of shipbuilding orders either being cancelled or delayed. Nevertheless, the market is soon expected to experience tail wind once the effects of the global economic slowdown blow over. Ship building yards need to be equipped to deal with the surge in demand for new ships once world trade and domestic production picks up and companies feel the need for fleet replacement. Shipyards need to augment product offerings to cope with the challenges of a lacklustre market that is expected to revive soon.

However, market entrants should tread carefully, as direct entry into the shipbuilding market could prove counterproductive. Their strategy should be to gain a foothold through the ship repair sector, as this will ensure adequate cash flow and sustainability for shipbuilding in the current straitened circumstances. "Ships incur operational and repair costs on a regular basis, irrespective of whether they are operational or not," says the analyst of this research. "This acts as a constant source of revenue and hence, the market will be less affected during times of slowdowns."

As shipbuilding is a technology- and labour-intensive industry, market entrants are at an inherent disadvantage. However, new participants from Vietnam, India, and the Philippines are well suited to make the most of the opportunities as they incur lesser overhead costs. Once they gain expertise, their rise to the top could be rapid. "Globally, there is higher demand for bigger ships to reduce per unit logistics costs," notes the analyst. "The global fleet is aging and therefore, new ships will be required to replace the old ones, driving market growth." The current trend is to build green ships due to rising environmental awareness and increasingly stringent regulations. Meanwhile, as the consumption of energy is fairly high and is expected to escalate further, the demand for specialized liquefied petroleum gas (LPG), liquefied nitrogen gas (LNG) carriers, and tankers is fairly high.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Product Type:

Wet ships (tankers)

Oil tanker
Chemical tanker
Gas tanker
Floating, production, storage, and offloading (FPSO)/ Floating, storage, and offloading (FSO)

Dry ships

Bulk carrier
Reefer ship
Roll on/Roll off
Container ship

By Geographic Region:

South Korea shipyard
Chinese shipyards
Japanese shipyards
Vietnamese shipyards
Indian shipyards

This Frost & Sullivan research service titled Asia Pacific Commercial Shipbuilding Market provides strategic recommendations to established and new shipyards as well as other stakeholders such as governmental agencies and allied industries to shipyards. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: wet ships (tankers) {oil tanker, chemical tanker, gas tanker, floating, production, storage, and offloading (FPSO)/ floating, storage, and offloading (FSO)} and dry ships (bulk carrier, reefer ship, roll on/roll off, and container ship).

Key Topics Covered:

1. Executive Summary