Japan targets shipbuilding revival with plan to double output by 2030

Japan is considering major intervention to revitalise its shipbuilding industry, including the potential creation of a government-backed national shipyard, as part of a broader strategy to restore domestic maritime manufacturing capacity. A proposal submitted by the ruling Liberal Democratic Party (LDP) to Prime Minister Shigeru Ishiba urges the reactivation of dormant shipyards and targeted investment in next-generation infrastructure.

The move comes amid a steep decline in Japan’s global market share, which has dropped from nearly 50% in the 1990s to around 10% today. China currently leads the sector with 70% of global construction capacity and 90% of repair capacity, followed by South Korea.

Japan’s latest figures, released by the Japan Ship Exporters Association, show new orders fell by 48% year-on-year in May, totalling just 884,100gt.

Imabari Shipbuilding president Yukito Higaki, newly appointed chairman of the Japan Shipbuilding Industry Association, set a bold target: “To become a price leader who has the power to control pricing, we must at least achieve a 20% global market share by 2030.”

Japan is also exploring shipbuilding cooperation with the US, including a proposed Japan-US Shipbuilding Revitalization Fund. Talks include naval construction, LNG carriers, and ice-class vessels, aiming to reduce reliance on Chinese yards.