U.S. Shipbuilding Market in 2025: Backed by Policy, Challenged by Execution

The U.S. shipbuilding sector in 2025 is undergoing a revitalization marked by historic federal investment, strategic military priorities, and long-standing structural inefficiencies. As global naval competition intensifies, the White House, Department of Defense, and oversight bodies are increasingly focused on restoring America’s maritime industrial base.

Latest Developments (2024–2025)

The commercial shipbuilding capacity and maritime workforce of the United States has been weakened by decades of Government neglect, leading to the decline of a once strong industrial base while simultaneously empowering our adversaries and eroding United States national security.  Both our allies and our strategic competitors produce ships for a fraction of the cost needed in the United States.  Recent data shows that the United States constructs less than one percent of commercial ships globally, while the People’s Republic of China (PRC) is responsible for producing approximately half.

On Capitol Hill, Navy Secretary John Phelan told lawmakers that increasing shipbuilding to better outfit the Navy, developing an accountable and innovative warfighter culture and improving the welfare of the fighting force were his top priorities. 

Systemic Challenges

Despite nearly doubling its shipbuilding budget over the last 2 decades, the U.S. Navy hasn’t increased its number of ships. The Navy and Department of Defense work with private companies to build ships and have invested billions of dollars to support the shipbuilding industrial base. But even with this investment, the industry has not been able to meet the Navy’s goals—jeopardizing the Navy’s ability to protect the U.S. from growing maritime threats and competition.

For instance, the Columbia-class submarine and Constellation-class frigate programs—both central to future fleet strategy—have suffered timeline extensions. The backlog has strained shipyard capacity, with knock-on effects on maintenance cycles and overall fleet readiness.

Key Players

• HD Hyundai Heavy Industries Co., Ltd.

One of the world’s largest shipbuilders, specializing in commercial vessels, naval ships, and offshore structures.

• China State Shipbuilding Corporation (CSSC)

China's largest state-owned shipbuilding conglomerate, leading in both commercial and military ship production.

• FINCANTIERI S.p.A.

An Italian shipbuilding giant known for constructing cruise ships, naval vessels, and offshore solutions.

• Samsung Heavy Industries Co., Ltd.

A global leader in high-value shipbuilding, particularly LNG carriers and offshore platforms.

• Hanwha Ocean Co., Ltd.

Formerly Daewoo Shipbuilding, known for advanced naval defense and commercial marine solutions.

• Sumitomo Heavy Industries Marine & Engineering Co., Ltd.

A prominent Japanese shipbuilder focused on energy-efficient and eco-friendly marine vessels.

MARAD Small Shipyard Grant Program – FY 2025 Snapshot

Adoption of Digitalization and Automation Technologies Creates Future Opportunities

The integration of robotics, automation, and 3D printing (additive manufacturing) in shipbuilding processes is enhancing efficiency, precision, and production speed. Shipyards adopting smart manufacturing solutions and digital twins can reduce costs and attract clients seeking modern, efficient vessels. Major shipyards are implementing automated systems and forming partnerships with technology providers to leverage advanced manufacturing capabilities. For instance, BAE Systems Australia trialed laser scanning technology in 2023 to create 3D models for naval frigates, a trend likely to expand in 2025. Adoption of such automation technologies is anticipated to create lucrative opportunities for market expansion.

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