Menon Economics has, on behalf of the Norwegian Ministry of Climate and Environment, prepared a report on what measures are needed to increase the export of green maritime solutions.

The Norwegian Maritime industry had a total turnover in 2019 of just over NOK 100 billion, of which NOK 56 billion was export revenue. The industry has repeatedly shown a strong ability to adapt to new markets in challenging situations. If Norway succeeds in leading the green restructuring of the maritime industry, Norwegian stakeholders have the potential to strengthen international market shares.

Menon Economics have estimated that annual export revenues from the maritime industry (shipyards and equipment) can double from 2019 to 2030, so that their total revenues increase from NOK 100 billion in 2019 to NOK 200 billion in 2030. In order to succeed with such an objective, efforts must be made systematically on a) research-based innovation, b) increased production efficiency, c) development of domestic markets and d) targeted export work. Menon Economics have identified 23 specific instruments and measures within these four areas.

The full report can be read here (In Norwegian)

Key takeout’s:

  • This report focuses on the maritime industry, ie equipment manufacturers and shipyards. Maritime industry had a total turnover in 2019 of just over NOK 100 billion, of which 56 billion were export revenues.
  • The maritime industry is becoming ever greener: The green part of the industry, both on the shipping and industrial side, has clearly the highest growth.
  • Activity in the world’s newbuilding markets has fallen sharply in recent years, and order books are historically small – due to both high newbuilding activity before the financial crisis and the fact that many shipping companies are waiting for international climate / environmental regulations.
  • There is reason to expect a sharp increase in newbuilding activity, especially in the period 2026-2030. Although the growth will be greatest in niche segments such as offshore wind, aquaculture and seabed minerals, the market will still be dominated by freighters – both deep-sea and short sea shipping.
  • Norwegian shipping companies have a very strong position internationally and control the world’s fourth most valuable fleet. As demanding customers, the shipping companies are another key success in export markets for green Norwegian maritime industry.
  • Norwegian shipyards have high global market shares in niches such as expedition cruise ships, advanced offshore vessels and well boats, but are still a marginal player in global shipbuilding (1.7 percent of the world market). Competition from foreign shipyards in Asia, Turkey and Europe also appears to be increasing in segments where Norwegian shipyards have strong positions.
  • Norwegian equipment suppliers have a significantly stronger competitive position than the shipyards, with a market share of about 7 per cent. Norwegian equipment packages are largest on vessels built in Norway, but are also significant when Norwegian shipping companies order vessels from foreign shipyards. The question is whether competitiveness can be maintained without it ships are being built in Norway.
  • Competitiveness is clearly strongest in markets characterized by technological development, new solutions and small volumes – often early in the development of new segments and markets.
  • When products are standardized and volumes increase, competitiveness weakens. Both shipyards and equipment manufacturers experience to a large extent that they lose in price competition due to of high costs.