The global cruise ship industry is expected to grow significantly, reaching $16.7 billion by 2031, according to a new report from Allied Market Research. The report forecasts an average annual growth rate of 7.9% through 2031.
Growing Demand for Cruising
The report points to a number of factors, such as new technology innovations being implemented. These include a shift towards more automation and continued development of new shipboard leisure activities and experiences. The report suggests a growing consumer shift towards luxury, too.
| However, post-pandemic, inventory and transportation costs, as well as supply chain issues, could still restrain market growth. Environmental and overtourism concerns, especially in Europe, lead to new legislation to cap cruise ship calls in some destinations. This could hamper long-term growth, especially for the large mega ship segment. |
Still, Allied Market Research says the mainstream cruise ships segment will continue to dominate into the next decade. This segment comprised nearly half of the global cruise ship market in 2021.
Large ship construction driving growth
Likewise, when analyzing the market based on ship size, the large ship segment represented more than half of the overall market in 2021. This dominance is expected to continue through 2031. The report puts the leisure cruise segment at more than four-fifths of the overall market and is expected to continue driving growth through 2031.
Cruise ship construction is focused on a small number of shipyards across Europe—in Italy, France, Germany, and Finland. The main players are Fincantieri, STX Europe, and Meyer Werft.
The latter remains in financial difficulty but is very close to confirming a state bailout that will secure its short-term future. This is significant as it has a full order book of cruise ship construction projects worth about $12 billion, lasting several years.
China has emerged recently as a new outlet for cruise ship construction, with the first homegrown large cruise ship completed in 2023.
A second larger ship is currently under construction. This China shipbuilding project was initially established under a joint venture between China State Shipbuilding Corporation, Carnival Corporation and Fincantieri.
