German shipbuilding looks to growth markets amid rising global competition
Germany’s shipbuilding and marine engineering sectors are entering an unusually dynamic phase. Global orders for new vessels are expected to reach the second-highest level in the sector’s history this year, creating significant opportunities both for German shipyards and their suppliers. At the same time, however, China is rapidly expanding its industrial capacity and strengthening its position in the international market.
Speaking at the annual press conference of the German Shipbuilding and Ocean Industries Association (VSM), Managing Director Dr Reinhard Lüken said that German companies are technologically well-placed and active in potentially buoyant vessel sectors. The key challenge, he argued, is to convert this position into investment, industrial value creation and long-term employment in Germany.
China’s growing dominance is particularly evident in the mass market. Since 2020, global shipbuilding orders have more than quadrupled, while the number of vessels ordered worldwide has exceeded deliveries for six consecutive years.
By 2027, global deliveries are expected to have increased by 17 million compensated gross tonnes (cgt), or 38% compared with 2025. Around 15 million cgt are likely to be built in Chinese shipyards.
For German shipbuilders, the strongest prospects lie in technically demanding segments rather than in standard commercial tonnage. Lüken stressed that naval shipbuilding was an important growth factor for Germany, but not the only one. Offshore projects, cruise ships and superyachts were also key markets, he said.
The cruise sector is already experiencing record investment. New cruise ships worth USD 31.8 billion were ordered in 2025, almost twice the pre-pandemic level, followed by a further USD 11.4 billion in orders during the first half of 2026. European shipyards account for 97% of the global cruise fleet, while German manufacturers hold an estimated 30% share of the market for superyachts longer than 80 metres.
Lüken also pointed to significant potential for closer cooperation with India, whose large delegation is expected at the SMM maritime trade fair. India’s young working-age population could help address Germany’s shortage of skilled labour, he suggested, while creating new opportunities for industrial partnerships.
The VSM is calling for competitive shipbuilding finance, reliable investment conditions, greater industrial participation in offshore wind, faster procedures for expanding naval capacity and stronger support for inland navigation. Although Germany needs new inland vessels, Lüken said the direct potential for German shipyards in this segment remained limited.
He also issued a sharp political warning, describing the Alternative für Deutschland (AfD) as a catastrophe for Germany and stressing the importance of stable, reliable conditions for this truly international sector.
VSM at SMM: Hall B4 / Stand 207 & 209
