The ship repair market - France

The global ship repair and maintenancemarket, estimated at $23.5 billion in 2021, is set to grow at an average annual rate of 6.5% over the decade, reaching $44.3 billion in 2031. In France, with a significant military component driven by the French Navy, whose operational maintenance budget amounts to some 1.5 billion euros, the ship repair sector is proving resilient despite economic fluctuations. Demand for ship repair and maintenance services comprises a mix of military vessels, merchant navy ships and pleasure craft, with varying requirements.

Pleasure boat production in France remains robust with a strong export market, producing 3,538 sailboats and 9,745 powerboats by 2021, which will fuel future repair needs. Aging fishing fleets also point to a potential increase in repair demand.

The French ship repair sector is largely characterized by numerous small businesses, as evidenced by the dominant presence of around 360 companies in the Provence-Alpes-Côte d'Azur region.

Competition and international cooperation are strategic. Fincantieri's deal in China underlines the importance of international partnerships and EU state control of the market. Regulations and subsidies shape the market, with EU approval required for major transactions and French subsidies available for innovative repair processes.

The main players operate in both civil and military segments, with Naval Group sales reaching €14.1 billion in 2021, demonstrating the scale of activity in this sector.

The changing landscape of the French ship repair and maintenance market

The ship repair and maintenance market in France is an important segment of the broader shipbuilding industry, with stable growth driven by private and military naval demand. The market, closely linked to the shipbuilding industry, has experienced its own series of fluctuations, but has regained momentum, showing a promising trajectory for future expansion. The French ship repair and maintenance market has seen moderate growth, with a peak increase of around 16% and a marginal decline in 2021. Early figures for 2022 indicate that the market should continue to grow, with January to May sales reaching almost half the previous year's total.

The French navy is driving much of this demand, with the military repair segment accounting for over 90% of the market. France's commitment to increase its national defense budget to around 2% of GDP by 2025 points to accelerating growth in this segment.

The repair and maintenance of civilian vessels, including the merchant marine and pleasure fleets, also contribute to market demand, although they represent a smaller fraction compared to military requirements. Merchant navy fleet numbers are stable, with fluctuations largely due to registrations of foreign-flagged vessels. Service vessels show a downward trend, while figures for France's fishing fleet reflect thousands of boats, many of which are aging and due to be replaced in the coming years.

The yachting industry, in particular, has seen a sharp increase in infrastructure for this market. Yacht building has been robust, with a large percentage of production destined for export, leaving a substantial number for the French domestic market. These vessels will eventually contribute to the repair and maintenance industry, increasing demand over time. Despite a slight upward trend in the number of ship renovation and maintenance companies, the market remains structured, with price variations depending on the volume of vessels and services required. In particular, the Port of Concarneau has detailed its pricing structure, with the ascent and descent of the ship into the dry dock being billed according to the volume of the vessel, and the service being billed according to the size of the vessel.1,200 per maneuver, with daily dry dock rates adjusted accordingly.

Strategic cooperation agreements between facilities, such as that between Fincantieri and Huarun Dadong Dockyard, testify to a dynamic market. In addition, state and European Union controls provide strategic and political oversight, influencing market dynamics, particularly in the military sector.

Key players driving the ship repair and maintenance market

The ship repair and maintenance market is a crucial element of the maritime sector, significantly supported by the presence of several key players specializing in various aspects of ship services. These companies form the backbone of the sector, from complete overhauls to complex maintenance operations.

• Naval Group: A titan of naval defense and civil ship services Naval Group, which operates in both the civil and military spheres, is perhaps the most remarkable of them all. Renowned for its expertise in the defense sector, Naval Group has established itself as an integral service provider for navies worldwide, bringing its high technology and extensive experience to bear.
• Piriou: Versatile solutions, from new builds to repairs Another important entity is Piriou, which is known for its flexibility in meeting both civilian and military needs. Its services range from new construction to repair and modernization, underlining its adaptive approach to maritime solutions.
• CMN: refined expertise on the world stage CMN (Constructions Mécaniques de Normandie) illustrates the breadth of its ship repair capabilities thanks to its rich history in shipbuilding and repair. Its diversified portfolio includes military vessels and sophisticated yachts, testifying to its versatility.
• Damen: Global network of shipyards and maritime expertise The Dutch conglomerate Damen is a global player which, while focusing primarily on the civil maritime sector, has a solid base and extensive network of shipyards, enabling it to extend its influence beyond national borders.
• OCEA: a specialist in custom shipbuilding OCEA contributes to the market with a more focused approach, targeting specific boat niches and meeting specialized needs in the civil sector of the market.
• Monaco Marine France: A blend of luxury and technical expertise Looking after some of the most luxurious vessels afloat, Monaco Marine France is a distinguished player that comfortably navigates the high demands of yacht maintenance and refit in both civil and military applications.
• SOCARENAM: Expertise in various types of vessels SOCARENAM has made a name for itself by meeting a wide range of maritime demands, fluctuating between civil use and defense obligations, which highlights its broad range of capabilities.
• Compositeworks France: Excellence in marine composites Compositeworks France stands out for its niche specialization, excelling in the world of marine composite materials and the meticulous art of ship repair and maintenance that accompanies them.
• Navtis: Maintenance and conversion wholesalers.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 08/08/2022

Summary and extracts

List of charts

• Breakdown of shipbuilding industry activities
• European shipbuilding and ship repair market
• Domestic and export markets - Ship repair and maintenance
• Number of French-flagged transport vessels by type of use
• Number of French-flagged service vessels by type of use
• Number of fishing vessels by size
• Number of registered pleasure boats, by category
• New sailboat and motorboat registrations
• Socio-professional categories of boat buyers (new and used)
• Equipment rate for marinas and river marinas
• Number of ship repair and maintenance companies in NAF code 33.15Z
• Number of employees in the ship repair and maintenance sector