The fleet flagged under EU Member States accounts for approximately 11.2% of the global fleet, with 15 385 vessels registered as of the first quarter of 2025. In terms of gross tonnage (GT) and deadweight (DWT), the EU fleet amounts to 249.1 million GT, equivalent to 14.8% of the global fleet, and to 315.1 million DWT, equivalent to 12.9% of the global fleet, respectively
Most of the European flagged cargo ships, measured in terms of GT, are container ships, representing 19% of the global vessels of this category, and tankers, accounting for 15% of the global fleet for this type.
European seagoing ships transporting only passengers, Pax, represent 22% of the global fleet in terms of numbers and 15% in terms of GT, whilst those transporting both passengers and vehicles, RoPax, account for 26% of the global fleet and 53% in terms of GT. Finally, European flagged cruise ships account for 29% of the global fleet and 39% of global GT for this type.
The total number of fishing vessels 2024 in EU is 68 900, 63% of which are less than 8 meters long, 91% of which are less than 15 meters long, and only 3% are longer than 24 meters. Most of the fishing vessels are flagged in Italy (12 300), Greece (11 500) and Spain (8 400).
The average age of ships flying an EU flag is 23.35, compared to a NON-EU average of 24.72. There are large differences by type: floating production, storage and offloading (FPSO) vessels are on average the oldest in EU (34.17 vs 24.83 NON-EU), followed by refrigerated cargos (30.88 in EU vs 34.31 NON-EU), passengers (30.69 in EU vs 28.72 NON-EU) and fishing vessels (30.38 in EU vs 34.34 NON-EU); at the opposite end, liquified gas tankers are on average 10.47 years old in EU (15.76 NON-EU) and bulk carriers are 12.54 in EU (13.91 NON-EU).
The EU's shipbuilding industry comprises approximately 150 major shipyards engaged in the construction of various types of vessels, both civilian and naval, as well as platforms and other maritime equipment. In 2024, a total of 312 ships were built in EU shipyards, around one in ten of global newbuilt ships (3 034), with the majority consisting of tugs/dredgers (67), general cargo ships (41), and passenger ships (29).
In terms of GT, in EU shipyards were built 1.33 million GT in 2024 (almost 2% of the global shipbuilding), the majority of which in Italy (455 600 GT) and in France (289 200 GT). In 2025, Italy counted the highest number of orders, mostly thanks to Fincantieri that recorded the highest ever order intake, EUR 20.3 billion (+32% compared to previous financial year). The German shipbuilder Meyer Werft’s and the French shipbuilder Chantiers de l’Atlantique recorded the second and third largest of new orders that year.
In 2024, a total of 399 ships were recycled worldwide. Among them, 30 were dismantled at EU ship recycling facilities, while eight EU-flagged vessels were scrapped outside the EU.
Definition of shipbuilding and repair industry
For the purpose of this analysis, the sector Shipbuilding and repair includes the following sub-sectors:
- Shipbuilding includes building of ships, floating structures, pleasure and sporting boats as well as repair and maintenance of ships and boats.
- Equipment and machinery includes manufacture of cordage, rope, twine and netting, textiles articles (except apparel); manufacture of engines and turbines (except aircraft) as well as of instruments and appliances for measuring, testing and navigation, and manufacture of sport goods.
The sector generated a GVA of EUR 22.7 billion in 2023, a 14% increase compared to 2022. Gross profit, at EUR 6.5 billion, increased by 24% on the previous year. The turnover reported for 2023 was EUR 82.6 billion, recording a 17% increase on the previous year (Figure 1).
In 2023, about 333 000 persons were directly employed in the sector (5% increase on 2022), and the annual average wage was estimated at EUR 48 700, up 5% compared to 2022 (Figure 1).
In 2023, the sector shipbuilding and repair accounted for 16.4% of the jobs, 8.9% of the GVA and 5.7% of the profits in the EU Blue Economy.
Source: Eurostat (SBS) and includes own calculations
Results by sub-sectors and Member States
France led employment within Shipbuilding and repair, contributing with 19% of the jobs, followed by Italy (16%) and Germany (13%). In terms of GVA, France recorded 28% of the Members States’ GVA, followed by Italy (19%) and Germany (15%) (Figure 2).
Shipbuilding generated about 84% of jobs and about 77% of the sector’s GVA; while Equipment and machinery generated the remaining 16% of jobs and 23% of GVA.
For more detailed economic and social data, please consult the dashboard on the Blue Economy Indicators.
Source: Eurostat (SBS) and includes own calculations
EU policy context
EU shipbuilding and shipping are recognised as essential to the Union’s strategic autonomy, global trade flows, mobility and defence capabilities, as well as for safeguarding assets and resources within Europe’s Exclusive Economic Zones.
EU maritime manufacturing industry represents a strategic ecosystem that includes shipyards, maritime equipment manufacturers and specialised service providers. Maritime transport carries around 75% of the EU’s external trade and approximately 30% of intra-EU freight, highlighting the importance of maintaining a competitive and sustainable maritime industrial base.
The European Commission has adopted a comprehensive Industrial Maritime Strategy aimed at strengthening the competitiveness, innovation and technological leadership of Europe’s maritime manufacturing and shipping industries, by leveraging digital transformation and the development of sustainable maritime technologies. It also highlights the importance of strengthening Europe’s industrial resilience and strategic autonomy in maritime technologies and supply chains by mobilising EU, national and private funding to support investments in fleet decarbonisation, innovation and defence. Examples of existing funds include the Connecting Europe Facility, Innovation Fund, Horizon Europe, European Defence Fund programmes, and national EU ETS revenues.
Advancing shipbuilding sustainability is also a prerogative of the Fit for 55 package. Instruments such as the EU ETS and FuelEU Maritime drive demand for more efficient vessels, alternative-fuel solutions, and retrofits, while requirements like shore-side electricity influence ship design. This creates opportunities for EU shipyards, particularly in high-value and retrofit segments.
The strategic role of the shipbuilding industry is also reflected in the Horizon Europe Programme, where Cluster 8 on Climate, Energy and Mobility highlights the need to advance the sustainability of waterborne transport by design, incorporating considerations such as air and water pollution, circularity, and life-cycle assessments across vessel design and construction.
Some EU initiatives also underscore the significance of the social dimension, fostering skill development and the creation of high‑quality employment. For example, the EU Industrial Maritime Strategy not only seeks to identify gaps in the labour market but also aims to boost enrolment in maritime higher‑education programmes. In a similar vein, the Pact for Skills for Shipbuilding and Maritime Technology unites industry players, educational institutions, and public stakeholders to attract, train, and retain qualified personnel in the shipbuilding and maritime‑technology sectors. This partnership supports innovation and the transition to zero‑emission vessels by 2030, while committing to upskill and reskill roughly 7% of the ecosystem’s workforce each year.
There are some factors that are currently influencing the shipbuilding and repair sector and are expected to significantly impact it in the near future. The geopolitical instability resulting from Russia’s war of aggression against Ukraine has affected the shipbuilding industry in the recent past. Uncertainties surrounding shipping routes in the region have led some companies to postpone long-term investment decisions. One direct consequence has been a surge in global demand for LNG vessels, driven by shifts in energy trade flows—while Russia exports more fuel oil to Asia, Europe has increasingly relied on LNG carriers for gas imports instead of pipeline deliveries from Russia. The geopolitical instability has also led the European Commission to publish the Joint White Paper European Defence – Readiness 2030, which will most likely impact positively on the shipbuilding industry. Finally, the roadmap to a greener industry affects the shipbuilding and retrofitting of ships but also the disposal at the end of life.
Boating
Boating industry
According to the European Boating Industry (EBI), the boating industry is the comprehensive recreational maritime sector encompassing boat building, equipment manufacturing, marinas, chartering, and service providers. These activities are scattered across different sectors, according to the categorisation of the EU Blue Economy Observatory. For example, boat building and equipment manufacturing are allocated to shipbuilding and repair, whilst marinas (e.g. harbours and retail activities) are reported under port activities and coastal tourism. In this section, the focus is mostly on the activities of the EBI that overlap with shipbuilding and repair.
Europe is a global leader in technologically advanced segments of the maritime industry, including the construction of yachts and recreational vessels, as well as clean propulsion systems and advanced maritime equipment[1]. According to EUROSTAT, the building of pleasure and sporting boats in EU generated a turnover of EUR 17.7 billion in 2023 (+31% compared to 2022), a GVA of EUR 4.7 billion (+32%) and a profit of EUR 2.1 billion (+59%). Almost 59 000 people were employed in this sector in 2023 (+ 10% on the previous year), earning an average salary of 45 600 per year (+6%).
The leading EU nations in the recreational‑craft shipbuilding sector are Italy, France, Germany, the United Kingdom, Poland and the Netherlands. Italy hosts the greatest number of production facilities for recreational crafts in Europe, Germany holds the majority of the sector’s distribution network, and the United Kingdom contains most of the suppliers serving the industry. In terms of boat type, it emerges a clear distinction between motor and sail boats by country[2]. Among countries with a relatively large boating industry, Finland (98%), Greece (97%) and Italy (96%) have a relatively high proportion of motorboats. Countries with a relatively high proportion of sailboats are Germany (40%), Croatia (40%), Poland (40%) and United Kingdom (38%)[3].
The FuelEU Maritime[4] regulation imposes a gradual reduction in the greenhouse‑gas intensity of energy used on board ships, starting with a 2 % cut in 2025 and rising to as much as 80 % by 2050. This will increase compliance costs for operators and demand substantial technological adaptation, while Baltic and International Maritime Council (BIMCO)’s contractual frameworks allocate the associated responsibilities and costs under both FuelEU Maritime and the EU Emissions Trading System. Although the rules mainly target larger vessels, they illustrate a broader decarbonisation trend that also affects the recreational boating sector, where emissions from craft represent roughly 0.4 % of transport‑related CO₂, up to 0.6 % of NOx and up to 11 % of carbon‑monoxide emissions[5]. The shift toward cleaner propulsion—particularly hybrid and electric systems—offers both opportunities and challenges, requiring investment in research and development, new infrastructure, and supply‑chain adjustments, as well as advances in battery performance. Smaller manufacturers may confront higher costs that could render some technologies uneconomic. Additional challenges for the sector include evolving safety, emissions and environmental regulations, the need for improved end‑of‑life boat management, circular‑economy practices and eco‑design, and a shortage of specialised skills, with training identified as an emerging priority.
[1] EU Maritime Industrial Strategy, COM(2026) 111 final – 2026. European Commission
[2] Study to Determine the Advantages and Drawbacks of a Possible Mutual Recognition of Boating Licences for Recreational Boat Operators - 2025. European Commission
[3] Study to Determine the Advantages and Drawbacks of a Possible Mutual Recognition of Boating Licences for Recreational Boat Operators - 2025. European Commission
[4]The use of renewable and low-carbon fuels in maritime transport, and amending
Directive 2009/16/EC – 2023. EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION
[5] Review study on the Recreational Craft Directive 2013/53/EU – 2021. European Commission
Naval defence ship orders
The Joint White Paper for European Defence Readiness 2030 calls for “a massive increase in European defence spending” to support the development of a stronger, more resilient defence industrial base and an ecosystem of technological innovation for the defence industries. The document identifies seven priority capability areas, including some relevant to the blue economy, such as EU-wide network of seaports that facilitate the seamless and fast transport of troops and military equipment across the EU and partner countries (i.e. military mobility), and strategic enablers and critical infrastructure protection in the maritime domain.
According to JANES database, the total output value (value of final assembly) of the EU maritime sea vehicles production industry, which includes ships and submarines, amounts to EUR 12.6 billion in 2025.
For more detailed information on this sector, consult the section Maritime Defence on the EU Blue Economy Observatory.
Recycling and scrapping
Circular economy principles are becoming increasingly important in the maritime sector, as ship recycling enables valuable materials such as steel, copper and aluminium to be recovered and reused, reducing the demand for primary raw materials and supporting resource efficiency across industrial value chains. Globally, more than 16 000 ships are expected to be recycled over the next decade, underlining the importance of environmentally sound recycling practices[1].
Within the EU, ship recycling activities are regulated under Regulation (EU) No 1257/2013, which requires EU-flagged vessels to be dismantled only in facilities included in the European List of approved ship recycling facilities. The regulation establishes requirements for both ships and recycling facilities, including limits on the use of hazardous materials and the obligation to maintain an Inventory of Hazardous Materials (IHM) throughout a vessel’s operational life. This regulatory framework aims to ensure high environmental and safety standards for ship dismantling while promoting the circular use of materials.
The ageing profile of the global fleet reinforces the importance of recycling and retrofitting strategies. The average age of vessels is 23.25 years[2], raising concerns regarding safety, operational performance and maintenance requirements[3].
Between 1 January 2019 and 31 December 2021, EU Member States and Norway reported a total of 90 ships that received a ready-for-recycling certificate, confirming they met environmental and safety standards for dismantling and recycling in EU-approved yards. Of these, 41 vessels completed the recycling process, which took place in seven facilities, with Turkey handling the largest share (50%).
In 2022, vessels flagged in EU Member States represented 13.2% of the global fleet, but only 7% of end-of-life vessels recycled were flagged under an EU Member State at the time of recycling. This indicates that the goal of ensuring safe and environmentally sound recycling, as outlined by EU legislation, is still challenged by the practice of re-flagging. Therefore, the EU regulatory framework has since been further strengthened[4], notably to ensure full alignment with Regulation (EU) No 1257/2013 and the Hong Kong International Convention thereby enhancing legal certainty and international consistency. In parallel, the European list of ship recycling facilities has been updated to reflect renewed authorisations, incorporate new capacity in Germany and remove facilities in Finland, the United Kingdom, and Turkey that either did not renew their authorizations or failed to demonstrate compliance with waste containment and marine protection requirements[5]. In parallel, the European Commission adopted updated formats for the Inventory of Hazardous Materials (IHM) certificate and the Ready-for-Recycling certificate in January 2025, enabling shipowners to comply simultaneously with both the EU Ship Recycling Regulation and the Hong Kong Convention while reducing administrative burden.
Strengthening the link between shipbuilding, ship recycling and steel value chains has therefore been identified as a priority for developing circular maritime industrial ecosystems in Europe[6].
These elements contribute to the greening of the sector, in line with the EU strategy of transitioning towards a green industry. EU-funded research and innovation projects are supporting the transition towards more sustainable shipbuilding and recycling practices. Initiatives such as EcoShipYard focus on reducing the environmental impact of shipyards, improving energy efficiency and developing tools to monitor lifecycle environmental performance[7]. In parallel, the CirclesOfLife project develops methodologies such as lifecycle passports and environmental performance indicators to enhance circularity and transparency across shipbuilding and recycling processes[8]. Additionally, the SHEREC project explores the application of robotics and automation to improve the safety, efficiency and environmental performance of ship dismantling operations[9].
[1] Communication on the EU Industrial Maritime Strategy, COM(2026) 111 final. European Commission
[2] The EU Maritime Profile – the maritime cluster in the EU. EMSA
[3] IUMI Statistics Report 2025. IUMI
[4] Commission Implementing Decision (EU) 2026/116 of 19 January 2026 amending Commission Implementing Decision (EU) 2016/2321 on the format of the ready for recycling certificate issued in accordance with Regulation (EU) No 1257/2013 of the European Parliament and of the Council on ship recycling. Official Journal of the European Union. European Commission
[5] Commission Implementing Decision (EU) 2026/448 of 27 February 2026 amending Implementing Decision (EU) 2016/2323 as regards updates to the European List of ship recycling facilities. Official Journal of the European Union. European Commission
[6] Communication on the EU Industrial Maritime Strategy, COM(2026) 111 final. European Commission
[7] EcoShipYard project - 2024. European Commission
[8] European Commission - 2024. European Commission
[9] European Commission - 2024. European Commission
Green shipbuilding and recycling
Shipbuilding plays a critical role in the decarbonisation of maritime transport, as ship design determines the ability of vessels to integrate low-carbon propulsion systems, alternative fuels and energy-efficient technologies[1]. Maritime transport carries around 80% of global trade by volume and accounts for approximately 3% of global greenhouse gas (GHG) emissions, making decarbonisation of the sector a key priority for international climate policy[2].
The shipbuilding industry is responsible for approximately 4-8% of the total life cycle CO₂ emissions of diesel-powered ships and accounts for 29% of carbon monoxide emissions. Additionally, it generates volatile organic compounds (VOCs), which contribute to the formation of tropospheric ozone, posing risks to both human health and the environment. Although the greatest potential for reducing a vessel’s lifetime emissions lies in the fuels used during operation, the construction phase plays a crucial role in determining a vessel’s embodied energy and overall environmental footprint.
Developing zero- and near-zero-emission vessels requires a lifecycle approach to assess key environmental impacts across all stages, including design, construction, operation, and disposal. Shipyards, as industrial production facilities, rely on materials and energy-intensive processes such as steel fabrication, cutting, bending, welding, sandblasting, painting, and coating. These processes are complex and contribute significantly to environmental and climate impacts.
The International Maritime Organisation’s Energy Efficiency Design Index (EEDI) and Carbon Intensity Indicator (CII) are pushing shipbuilders to create more energy-efficient vessels that meet strict emissions targets. In parallel, regulatory frameworks such as the Energy Efficiency Existing Ship Index (EEXI) and enhanced the Ship Energy Efficiency Management Plan (SEEMP) requirements further extend these efficiency obligations to the existing fleet, reinforcing a lifecycle approach to decarbonisation. These measures, in force since 2013 and further strengthened in 2023, represent the first global regulatory framework to reduce greenhouse gas emissions in an international industry and aim to reduce the carbon intensity of shipping by at least 40% by 2030 compared to 2008 levels[3].
Industry 4.0 technologies, like digital design tools, robotic welding and automated cutting, improve shipyard efficiency, by increasing precision, reducing material waste and shortening construction times, as well as reducing GHG emissions[4]. Additionally, integrating renewable energy, microgrids, and battery storage can lower the carbon footprint, though space limitations and high costs remain challenges[5]. Using sustainable materials like eco-friendly composites and green steel also enhances environmental performance, though green steel production is largely concentrated in Europe. Green Supply Chain Management is crucial in shipbuilding, where 60–80% of a vessel’s value is outsourced[6], meaning that upstream suppliers play a significant role in determining the overall environmental footprint of ship construction. Recent evidence suggests that this dependency may be even higher, with purchasing values accounting for approximately 65% to 90% of total production value, reflecting the structural reliance of shipyards on complex, multi-tier supplier networks[7]. This multi-layered supply chain includes both first-tier and second-tier suppliers providing specialised components, materials and services, often characterised by a high degree of fragmentation and the dominance of small and medium-sized enterprises (SMEs), which play a critical role in innovation and technology diffusion across the sector[8].
[1] The Role of Shipbuilding in Maritime Decarbonisation, 2025. OECD
[2] The Role of Shipbuilding in Maritime Decarbonisation, 2025. OECD
[3]Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2025. International Maritime Organization
[4] The Role of Shipbuilding in Maritime Decarbonisation, 2025. OECD
[5] Vakili, S., Schönborn, A. and Ölçer, A.I., 2023. The road to zero emission shipbuilding industry: A systematic and transdisciplinary approach to modern multi-energy shipyards. Energy Conversion and Management: X, 18, p.100365
[6] Caniëls, M.C., Cleophas, E. and Semeijn, J., 2016. Implementing green supply chain practices: an empirical investigation in the shipbuilding industry. Maritime Policy & Management, 43(8), pp.1005-1020.
[7] European Shipbuilding Supply Chain Statistics. Report for SEA Europe - 2025. Bremen: BALance Technology Consulting
[8] European Shipbuilding Supply Chain Statistics. Report for SEA Europe - 2025. Bremen: BALance Technology Consulting
Retrofitting
As new regulations, such as FuelEU Maritime, take effect, many vessels risk non-compliance unless significant improvements are made. The shipping industry faces a complex decision between retrofitting existing vessels, investing in new ships, and securing green fuel supplies, all of which require substantial capital investment. Retrofitting has gained strategic and economic importance as a key solution for transforming high-emission ships into climate-friendly vessels, ensuring compliance with international and EU environmental regulations, especially given the long lifespan of vessels and the large share of the existing fleet that will remain in operation by 2050. However, uncertainty regarding future fuel pathways remains a major barrier, as no single dominant solution has yet emerged, complicating retrofit investment decisions.
Retrofitting involves upgrading ships to improve their environmental performance, particularly given the significant number of older vessels contributing to global emissions. Traditional ship designs and propulsion systems release large amounts of sulphur oxides (SOx), nitrogen oxides (NOx), carbon dioxide (CO2), and particulate matter16. Retrofitting solutions—such as exhaust gas cleaning systems (scrubbers), alternative fuel systems (LNG, hydrogen, ammonia), and energy efficiency enhancements (air lubrication systems, hull coatings)—can significantly lower emissions and ensure compliance with IMO 2020 sulphur cap and CII requirements. Beyond compliance, these technologies also improve fuel efficiency, reduce operational costs, and enhance the competitiveness of shipping companies. Recent regulatory developments, such as FuelEU Maritime and the inclusion of maritime transport in the EU Emissions Trading System (ETS), are strengthening the business case for retrofitting, and are creating cost incentives for shipowners to adopt low- and zero-emission technologies.
Among all retrofit options, the most impactful from both shipyard and GHG emissions perspectives is the installation of a new engine and fuel system capable of running on alternative fuels like methanol, ammonia, or hydrogen. However, engine replacement is a technically complex process requiring skilled labour, specialised facilities, and significant investments. It also involves integrating new fuel systems and tanks, which can be challenging and costly depending on the fuel type. Engine retrofits for alternative fuels, such as methanol and ammonia, are emerging but remain at an early stage of deployment, with only a limited number of conversions completed and most projects expected to scale up after 2025. As an alternative, ships can be supplemented with battery systems to reduce diesel dependency. Other retrofitting measures include expanding shore power capabilities to reduce emissions while at berth and exploring wind-assisted propulsion to cut fuel consumption.
Despite its potential, eco-friendly retrofitting is not without risks. While European Ship Maintenance, Repair and Conversion (SMRC) shipyards and their supply chains are well-positioned to benefit from retrofitting activities, technological aspects (e.g. feasibility, efficiency, safety, and longevity of new systems), environmental concerns (e.g. lifecycle impact of retrofitting solutions), economic factors (e.g. high upfront costs, uncertain long-term financial returns), social elements (e.g. shortage of skilled labour) as well as evolving regulations and unfair competition from subsidised shipyards in other regions are key challenges that the sector faces. In addition, retrofit capacity is constrained by the limited number of shipyards capable of carrying out complex fuel conversions, as well as by supply chain bottlenecks and long lead times for key components.