Japan's Shipbuilders to Invest $2.3 Billion to Enhance Competitiveness by 2035
Japan's Shipbuilders Association plans to invest $2.3 billion to modernize the domestic shipbuilding industry, aiming for a total of $6.5 billion by 2035 through public contributions. This initiative, supported by a Memorandum of Understanding with the U.S. for enhanced collaboration, seeks to address Japan's declining market share in new ship orders, which has dropped to just over 10%. The investment will focus on upgrading shipyards and introducing advanced automation, as Japan aims to become a leader in zero-emission and autonomous shipbuilding by 2040.
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The Shipbuilders Association of Japan (SAJ) plans to invest approximately $2.3 billion in the domestic shipbuilding industry, aiming to reach a total of $6.5 billion by 2035 through public contributions. The investment will modernize shipyards, replacing outdated machinery and introducing advanced automation.
The Japanese government signed a Memorandum of Understanding with the United States to enhance collaboration, facilitating US orders and maintenance contracts for US Navy vessels. Japan's market share of new ship orders has declined from over 35% to just over 10% as of October 2025, with China and South Korea dominating the market.
Japan's current orderbook includes 737 vessels totaling 40.7 million deadweight tons, primarily bulk carriers and tankers, with no LNG carrier orders. The industry faces structural challenges, including limited coastal space and an aging workforce, prompting an increased share of foreign workers. Japan aims to lead in zero-emission and autonomous shipbuilding by 2040.
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