Japan plans to double its shipbuilding capacity by 2035

The Japanese government has set a new target for the shipbuilding industry, aiming to increase shipbuilding to 18 million gross tons by 2035, approximately double the current level. The government is considering investment in expanding shipbuilding capacity and supporting the development of shipbuilding professionals. With China’s per-ship construction costs approximately 20% lower than Japan’s, strengthening Japan’s competitiveness is a challenge.

This target was announced at a Liberal Democratic Party meeting on September 17th. Japan aims to build 9.08 million gross tons of ships by 2024. If achieved, the country’s global market share will increase from the current 13% to approximately 20%, establishing a system in which the domestic shipbuilding industry can meet the needs of domestic shipowners.

The Japan-US tariff agreement lists shipbuilding as an area of ​​cooperation for Japanese investment in the US. The Japanese government will prioritize policies to enhance the status of the domestic shipbuilding industry.

Currently, Japan’s shipbuilding industry faces competition from China and South Korea, which hold the largest and second largest global market shares, and its market presence continues to decline.

The Japanese government plans to formulate a roadmap by autumn, clarifying policy details and the scale of government and business investment, including quantitative indicators. Specific support measures will be introduced in the fiscal 2025 supplementary budget and the fiscal 2026 budget. Furthermore, the Japanese government will encourage inter-business collaboration and investment in digital transformation (DX).

Cost is a core challenge. According to an analysis by Japan’s Ministry of Land, Infrastructure, Transport and Tourism, if the cost of building a bulk carrier in Japan is 100, the cost in China is only around 80. Cost-control measures, such as reducing material costs through joint procurement and improving production efficiency, are particularly important.