The global ship recycling market is projected to grow from $9.1 billion in 2025 to $13 billion by the end of 2030, according to BCC Research.
This represents a compound annual growth rate of 7.4% for the period from 2025 to 2030.
The report analyzes market performance in revenue terms and segments vessels by type — bulk carriers, container ships, oil tankers, general cargo ships, and others — as well as by size: below 60,000 DWT, between 60,000 DWT and 125,000 DWT, and above 125,000 DWT.
Ship recycling methods examined include beaching, dry-docking, alongside/pier-breaking, and other emerging techniques.
South Asia remains the dominant region, with India and Bangladesh accounting for 80% of the market share. Bangladesh, India, and Pakistan together hold over 90% of the global market.
Bangladesh has the largest share, supported by high prices offered by local recyclers and less stringent regulatory requirements.
The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships came into force on June 26, 2025.
Adopted in 2009, it introduces stricter global standards intended to reduce risks to human health, safety, and the environment when dismantling end-of-life ships.
Market growth is driven by increasing demand for scrap steel, the rising age of the global shipping fleet, and stricter regulations on ship dismantling.
Challenges include limited vessel availability, the impact of global trade trends, and health risks from unsafe recycling practices.
In 2024, general cargo ships, bulk carriers, and container ships together represented 60% of market share.
Dismantling a 40,000-ton ship can take about three months for a team of 50 workers.
Emerging companies in the sector include Wreckdock Vessel Recycling, which operates a new facility in Saudi Arabia designed for safe dismantling of ships and offshore assets, and Elegant Exit Co., which develops financial and operational models for ship recycling, including owning vessels until their planned dismantling.