A record wave of global investment in new ships is translating into sustained growth for Germany’s marine equipment industry, with suppliers reporting rising revenues, strong order books and growing optimism despite mounting geopolitical and competitive pressures.
According to the latest industry survey from VDMA, Germany’s maritime supplier sector posted average revenue growth of 5.2% in 2025marking its fourth consecutive year of expansion. The results underscore how a historic global shipbuilding cycle—driven by fleet renewal, decarbonization investments and naval rearmament—is benefiting companies that supply propulsion systems, machinery, automation, digital technologies and other critical shipboard equipment.
The global shipbuilding landscape has become increasingly concentrated, however. China now accounts for approximately 60% of all commercial ship construction worldwidefurther strengthening its dominant position. South Korea and Japan remain the second- and third-largest shipbuilding nations, while India and several emerging Asian markets continue to expand their industrial capabilities.
For German equipment manufacturers, that reality presents both opportunity and challenge. With approximately 80% of production exported, the industry is closely tied to international shipbuilding activity regardless of where vessels are constructed. At the same time, VDMA argues that European policymakers must do more to ensure fair competition in markets where state subsidies and local-content requirements can disadvantage foreign suppliers.
“Our industry has continued its positive development despite global challenges and a highly competitive environment,” said Martin Johannsmann, Chairman of VDMA Marine Equipment and Systems. Nearly 90% of surveyed companies expect medium-term market conditions to remain stable or improve, reflecting confidence that global shipbuilding demand will remain robust.
The positive outlook is reinforced by strong order activity. Incoming orders increased by an average of 5% in 2025, while companies expect demand to remain stable or grow further during 2026. Employment has also edged higher, with the sector now employing approximately 65,000 people in Germany.
Beyond newbuild activity, aftermarket services continue to provide an important source of stability. Service, maintenance and spare parts now account for roughly one-quarter of industry revenues, highlighting the long-term lifecycle support required by increasingly sophisticated vessels.
Looking ahead, VDMA identifies decarbonization as one of the industry’s strongest growth drivers. Demand for alternative propulsion technologies, integrated onboard energy systems, digital vessel management and efficiency-enhancing technologies continues to accelerate as shipowners work to meet increasingly stringent environmental regulations.
Defense shipbuilding is also emerging as a significant growth market. Germany’s ongoing naval modernization program under “Course Navy 2035” is expected to generate additional demand for domestic marine equipment suppliers as European governments increase defense spending.
Despite the positive market fundamentals, VDMA warns that Germany must address structural challenges—including high labor and energy costs, taxation and regulatory complexity—to remain globally competitive. The association is also calling for stronger investment in research, digitalization and workforce development while advocating for free trade and a level international competitive environment.
