Trends in Marine Supplies Industries Industry Dimension Industry ... · 5.Systems/Equipment – Ship Operation (steering gear, anchor, deck machinery, life saving equipment, MARPOL

© BALance 2019WP6 WORKSHOP ON SHIPBUILDING AND THE MARINE EQUIPMENT INDUSTRY 11/2019

Trends in Marine Supplies Industries

Industry DimensionIndustry StructureDemand PatternsJoachim Brodda,BALance Technology Consulting

© BALance 2019


Customers:Shipping Companies, Offshore-Operators,

Navies, Private Customers, Energy Firms, Authorities

Global Maritime Technoloy Market Dimension

© BALance Analytics 2017


World Shipbuilding Model by Value (Shipyards + Suppliers)Va

lue

Chai

n Co

mpa

rison

(201

0 –

2014

)


Global Trade Balance marine supplies (2010 – 2014)

Note: trade balance of 1st and 2nd tier suppliers without intra EU import/export


Swap of manufacturing from Europe to Asia is obvious

Source: BALance Analytics, MarED 11/2019

EU Marine Equipment Directive


Swap of manufacturing from Europe to Asia is obvious – Driving Countries

Source: BALance Analytics, MarED 11/2019

EU Marine Equipment Directive


Globally >11.500 marine supplies companies exist based on analysis of certificates

Source: BALance Analytics, MarED 2014

0

200

400

600

800

1.000

1.200

1.400

1.600

N° of Companies in top 20 Countries

Source: BALance TC calculations


Industry Structure

© Fotos Raytheon, BALance


1.External services and subcontracts - engineering, design and consulting services2.Materials – Steel (half raw materials, subassemblies)3.Materials – Pipes and Ducts (half raw materials, subassemblies)4.Materials – Paint, Coating (paints, painting services)5.Systems/Equipment – Ship Operation (steering gear, anchor, deck machinery, life

saving equipment, MARPOL equipment, general outfitting components)6.Systems/Equipment - Cargo Handling Equipment and Special Cargo Plants7.Systems/Equipment – Accommodation (cabins, public rooms, functional rooms)8.Systems/Equipment – Propulsion Plants and Chains, Power Generation9.Systems/Equipment - Auxiliary Systems10.Systems/Equipment - Electrical Plants and Electronic Systems, Navigation,

Entertainment

Basic Marine Supplies Structure


vertical, pyramidal co-operation

Horizontal co-operation

Shipyard AShipyard B,

module factory

„1st tier supplier“

Supplier Subcontractor

Material Component Systems

Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design

„2nd tier supplier“

„market level“

Horizontal and vertical co-operation of shipyards and suppliers


Pattern of Supply Chains changing


Increasing Globalisation of Supply Chains


Increasing Globalisation of Supply Chains

Can have a bigmeaning for the Value of nationalmaritime industries!


Supplies have different impact on supply chains and products


Meaning of supplies varies, Shiptype values show significant differences

25.000

20.000

15.000

10.000

5.000

0

(USD/GT)0 0,5 1,0 1,5 2,0 2,5 3,0 3,5DWT/GT

Merchant Shipbuilding forecast 2016-2025, BALance Analytics 2017

LNG=

Liqu

id N

atur

al G

as, L

PG=L

iqui

d Pe

trol

Gas

, PX=

Pass

enge

r, M

/H=M

ultih

ull,

NCC

V=N

on C

argo

Car

ryin

gVe

ssel

s, O

F=O

ffsho

re, A

HT/S

=Anc

hor H

andl

ing

Tug

and

Supp

ly V

esse

l,O

SV=O

ffhor

eSu

pply

Ves

sel,

Expl

& C

ons=

Expl

orat

ion

and

Cons

utru

ctio

nVe

ssel


Meaning of supplies varies, Shiptype values show significant differences

25.000

20.000

15.000

10.000

5.000

0

(USD/GT)0 0,5 1,0 1,5 2,0 2,5 3,0 3,5DWT/GT


LNG=

Liqu

id N

atur

al G

as, L

PG=L

iqui

d Pe

trol

Gas

, PX=

Pass

enge

r, M

/H=M

ultih

ull,

NCC

V=N

on C

argo

Car

ryin

gVe

ssel

s, O

F=O

ffsho

re, A

HT/S

=Anc

hor H

andl

ing

Tug

and

Supp

ly V

esse

l,O

SV=O

ffhor

eSu

pply

Ves

sel,

Expl

& C

ons=

Expl

orat

ion

and

Cons

utru

ctio

nVe

ssel

More sophisticatedMore systemsMore tradesMore qualityMore playersMore dataMore Integration


Demand Patterns

© BALance 2019


World market for marine supplies – merchant shipbuilding only



World Market Marine Supplies (Forecast 2016-2025)

[mil USD]

Mer

chan

t Shi

pbui

ldin

g fo

reca

st 2

016-

2025

, BAL

ance

Ana

lytic

s 201

5


World Market Marine Supplies (Forecast 2016-2025)

[mil USD]

Mer

chan

t Shi

pbui

ldin

g fo

reca

st 2

016-

2025

, BAL

ance

Ana

lytic

s 201

5


Marine supplies are differently critical – depending on shiptypes



Europe and Japan are strong in critical and strategic supplies, but have to follow markets

EuropeJapan

EuropeJapan

EuropeJapan

EuropeJapan

Note: dark blue = strong position of suppliers in these supplies classes


Korea is good at critical supplies but has shortcomings in some strategic supplies

Korea Korea

KoreaKorea

Note: dark red = strong position of suppliers in these supplies classes


China has shortcomings in strategic and critical suppliesand has to create attractive market conditions

China China

ChinaChina



China has shortcomings in strategic and critical suppliesand has to create attractive market conditions


MIIT - Action Plan 2016-2020 – “Boosting Capabilities of Marine Equipment Industry” (status 10/2016)QuotesTargets for the next decade

By 2020 a world class level of marine component industry shall be achieved in respect of power system, deck machinery, navigation/communication system, IT technology for marine application. The ratioof localisation of marine components shallbe more than 80% for conventional vesselssuch as tanker, bulker and container vessel.


Technological challenges will bring new kids on the block

Markets for SuppliesShipbuildingBoatbuildingRepair + RetrofittingOffshore Wind/EnergyOffshore Oil & GasOffshore MineralsShippingHarboursNaviesFishingMaricultureMarine SciencesSovereign Tasks…


Future Trends influencing supplies and supply chains

• Consolidation of suppliers – from components to systems and multi systems suppliers

• Digitalisation – all ship systems have an IT dimensions – sensors and networks – new regulatory regime required including certification and classification

• Sustainability – zero emission vessels - new ships with new technologies

• Autonomous sustainable ships as ultimate (long term?) challenge

• Digitalisation – ships to become integral parts of logistical supply chain

• World fleet decarbonisation - increasing demand of retrofitting

• Faster retrofitting cycles in order to cope with regulatory updating – advanced life cycle management with suppliers and new services involved

• 3D-Printing – Central design and marketing - local manufacturing and certification


Die maritime Branche wächst zusammenAdvanced Marine Supplies

are a vital elementfor innovative global

shipbuilding

© Foto Siem Offshore

ContactJoachim BroddaBALance Technology Consulting [email protected]

Documents

Trends in Marine Supplies Industries Industry Dimension Industry ... · 5.Systems/Equipment – Ship Operation (steering gear, anchor, deck machinery, life saving equipment, MARPOL