Retrofit growth set to accelerate amid decarbonisation drive, says Drewry

Drewry Maritime Advisors expects rapid growth in retrofit activity as tightening environmental regulations and decarbonisation targets reshape global shipyard investment, according to analysts reviewing trends across newbuilding and shiprepair markets.
Shivam Sharma, Drewry environmental social and governance (ESG) analyst, and Captain Hemant Gupta, deputy director, Drewry Maritime Advisors, said expanding newbuilding capacity reflected national efforts to support economic security and strategic autonomy, while shiprepair yard development would primarily address rising retrofit demand linked to emissions compliance.
The analysts reported that shipyards remain fully booked for the next three years, creating capacity constraints that have triggered expansion projects, reactivation of idle facilities and new yard developments, including Jiangsu New Rongsheng Heavy Industry. Governments in the USA, India and Indonesia have also promoted domestic shipbuilding investment.
Drewry noted that repair yards benefit from steadier demand driven by emergency repairs, scheduled maintenance, conversions and regulatory retrofits, resulting in stronger operating margins than newbuilding yards. However, yards require access to specialised engineering support, efficient spare parts logistics and strong international transport links to remain competitive.
The analysts stated that environmental regulation had significantly accelerated retrofit adoption, reporting a compound annual growth rate of about 24% for retrofits for energy-saving devices and performance-improving devices between 2021 and 2025. Drewry added that adoption of the IMO Net-Zero Framework without revisions would cause alternative fuel and efficiency retrofits to increase rapidly.