Japan Aims for 20% Global Shipbuilding Market Share by 2035, Backed by ¥1 Trillion Fund

Tokyo – Japan's Liberal Democratic Party (LDP) policy chief, Kobayashi Takayuki, announced on Saturday an ambitious plan to elevate the nation's global shipbuilding market share to 20% by 2035. This significant increase from the current 13% will be supported by a newly proposed ¥1 trillion state-led fund. The initiative underscores Japan's determination to reclaim a more prominent position in the highly competitive global shipbuilding industry.

"He aims for Japan's shipbuilding industry to raise its global market share from 13% to '20% in the next decade by 2035,' also revealing plans to set up a ¥1 trillion state-led fund," a tweet from Rintaro Nishimura highlighted. This strategic move comes as Japan, once a dominant force, has seen its market share decline significantly over recent decades, primarily due to intense competition from China and South Korea.

Currently, Japan ranks as the world's third-largest shipbuilding nation, behind China and South Korea, which together command the majority of the global market. While Japan's market share fluctuates, recent data indicates it holds approximately 10-12% of the global newbuilding orderbook. The industry faces challenges such as high manufacturing costs, labor shortages, and a historical over-reliance on domestic demand.

The proposed ¥1 trillion fund is expected to inject crucial capital into the sector, aiming to foster innovation, enhance technological capabilities, and improve competitiveness. This investment is anticipated to support research and development in areas like zero-emission vessels, autonomous shipping, and IoT solutions, which are critical for future market relevance. Japanese shipbuilders have already begun exploring next-generation fuels such as ammonia and hydrogen.

Industry experts note that Japan's shipbuilding sector has been under pressure to adapt to global market shifts and environmental regulations. Alliances among major Japanese players, such as the joint venture Nihon Shipyard formed by Imabari Shipbuilding and Japan Marine United, reflect efforts to consolidate resources and boost international competitiveness. The new government initiative seeks to further accelerate these efforts and address structural issues.

The goal of reaching 20% market share by 2035 presents a formidable challenge, given the current dominance of its East Asian rivals. However, the substantial state-led fund and a renewed focus on advanced, environmentally friendly technologies signal a robust commitment from the Japanese government to revitalize this crucial industry. The success of this plan will depend on effective implementation and the industry's ability to innovate and expand beyond its traditional domestic focus.