Ship Recycling Market Size, Share, Growth, and Industry Analysis, By Type (Container Ships, Tankers, Bulk Carriers, Cruise Ships, Naval Ships), By Application (Metal Recovery, Equipment Salvage, Environmental Compliance, Component Resale), Regional Insights and Forecast to 2033

Ship Recycling Market Overview

The Ship Recycling Market size was valued at USD 6.31 million in 2025 and is expected to reach USD 10.89 million by 2033, growing at a CAGR of 6.25% from 2025 to 2033.

The global ship recycling market plays a vital role in managing the end-of-life disposal of vessels, with approximately 800 commercial ships dismantled annually. In 2024, a total of 324 merchant ships were scrapped, amounting to around 4.6 million gross tonnes (gt)—the lowest recycling volume recorded since 2005, marking a 30% year-on-year decline. During the first half of 2024, only 164 ships were recycled, totaling 2.6 million gt, compared to 182 ships and 3.6 million gt in the same period of 2023, reflecting a 28% reduction in recycled tonnage. South Asia continues to dominate the global market, handling over 85% of the world’s ship recycling by tonnage.

Within this region, Bangladesh alone accounts for nearly 45% to 51% of total global ship dismantling. India, particularly Alang in Gujarat, operates 183 ship-breaking yards, with a cumulative capacity exceeding 4.5 million light displacement tonnes (LDT) annually. China, by contrast, recycled 4,885 gross registered tonnes (BRT) worth of vessels in 2023 and sold 71 ships to South Asian breakers. The global merchant fleet exceeds 2.4 billion deadweight tonnes (DWT), and with an average vessel age of 22.4 years, a significant wave of ship decommissioning is projected over the coming decade.

Key Findings

Driver: Aging global fleet, with more than 12.5% of ships reaching end-of-life within the next decade.

Top Country/Region: South Asia dominates the ship recycling market with over 85% share; Bangladesh alone handles nearly 45–51% of global dismantling tonnage.

Top Segment: General cargo ships were the most recycled in H1 2023, accounting for 47 of 182 vessels dismantled globally.

Ship Recycling Market Trends

The global ship recycling market is witnessing a clear transformation due to shifting operational, regulatory, and environmental trends. A significant decline in ship recycling volumes has been recorded in the past two years. In 2023, the market saw a total of 393 vessels dismantled. By mid-2024, this number fell to 164 vessels, totaling 2.6 million gt, marking a 28% decrease compared to the same period the year before. The implementation of stricter international environmental regulations is a major trend shaping the sector. The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships is set to enter into force on June 26, 2025, backed by 15 ratifying states, representing 46% of the world merchant fleet by gross tonnage, approximately 23.8 million BRZ (gross registered tonnes). This global treaty will require certified facilities, enhancing safety, traceability, and environmental performance in ship dismantling. Technological modernization is emerging as a major trend, especially in countries like India and China. India’s Alang shipyard has already adopted upgrades funded through partnerships with JICA and the Government of Gujarat, totaling over $110 million, enabling higher safety standards and improved processing efficiency.

The yard currently handles more than 1.8 million LDT annually, with peak capacity reaching 4.5 million LDT. In the Asia-Pacific region, China has established 60 advanced ship recycling yards, emphasizing closed-loop and green recycling. While China recycled only 4,885 BRT in 2023, it diverted 71 vessels to foreign recycling markets, mostly in South Asia, reflecting a strategic shift to outbound vessel disposal. Another prominent trend is the growing demand for green steel. Recycling vessels can recover over 75% of steel content, with Alang alone contributing over 0.5% of India’s total steel consumption through recycled material. As industries look to reduce carbon footprints, ship recycling becomes a crucial source of low-carbon raw materials. Fleet demographics also reflect an increasing number of aging ships. The global merchant fleet surpassed 2.4 billion DWT in 2023, with the average vessel age reaching 22.4 years, suggesting that thousands of ships—approximately 15,000 vessels—are due for dismantling by 2035.

Ship Recycling Market Dynamics

DRIVER

Aging global fleet and regulatory push

The ship recycling market is driven by the growing proportion of aging ships and tightening global environmental and safety regulations. The average age of the global merchant fleet stands at 22.4 years, with some segments, such as general cargo ships, exceeding 25 years. Approximately 15,000 ships are expected to reach end-of-life status within the next decade. The total global fleet currently exceeds 2.4 billion DWT, indicating an inevitable surge in vessel retirements. Regulations such as the Hong Kong Convention are set to raise recycling standards by 2025. With 46% of global tonnage now under ratified jurisdiction, the transition to certified, environmentally sound recycling yards will accelerate. Furthermore, emission-reduction targets from the IMO 2023 strategy are compelling fleet owners to phase out older, non-compliant vessels.

RESTRAINT

Low vessel availability due to geopolitical disruptions

Despite rising demand for recycled materials, the availability of vessels for recycling has drastically fallen. Geopolitical disruptions, including the Houthi attacks in the Red Sea, have rerouted global shipping. The Suez Canal reported a 70% reduction in transits, while the Gulf of Aden saw a 76% drop in ship arrivals in early 2024. Consequently, fewer ships are completing long-haul trips, resulting in delayed retirements. In H1 2024, ship dismantling dropped 28% year-over-year. As freight rates improved and rerouting increased voyage times, owners opted to keep older vessels in service longer. This directly impacted the ship recycling market, which depends on vessel availability from operators looking to downsize or upgrade.

OPPORTUNITY

Green steel and modernized recycling infrastructure

The market presents vast opportunities in the form of sustainable steel production. Steel recovered from ship recycling is increasingly used in electric arc furnace (EAF) steelmaking, which has 60–70% lower emissions than blast furnaces. In India, over 0.3 million tonnes of steel from Alang is already channeled to induction furnaces. Alang’s modernization—supported by $76 million in international aid from JICA and an additional $35 million from the Gujarat government—has positioned it to lead in environmentally compliant ship recycling. The facility’s full capacity of 4.5 million LDT could contribute up to 1.2 million tonnes of reusable steel annually. There is also growing investment interest from companies seeking to produce low-carbon steel using scrap from dismantled vessels.

CHALLENGE

Worker safety and substandard beaching practices

Worker safety remains a persistent challenge. Many yards in Bangladesh, Pakistan, and India still use beaching methods, which account for over 80% of global shipbreaking but offer limited environmental controls. Bangladesh’s Chittagong yard employs nearly 200,000 workers, often under hazardous conditions. Between 2009 and 2012, Alang alone recorded 54 fatalities due to safety lapses. Despite recent upgrades, substandard facilities still operate across South Asia. Environmental groups have criticized the industry for toxic waste exposure, insufficient protective equipment, and lack of compliance auditing. Without full implementation of HKC standards and stricter enforcement, risks to both human and ecological health will continue to hinder sustainable growth.

Ship Recycling Market Segmentation

The ship recycling market is segmented by vessel type and application. Vessel types include container ships, tankers, bulk carriers, cruise ships, and naval ships. Applications span metal recovery, equipment salvage, environmental compliance, and component resale. Each segment reflects unique volumes, processing techniques, and material recovery rates. In 2023, general cargo ships, tankers, and bulk carriers accounted for the largest share of scrapped vessels. Metal recovery remains the dominant application, contributing over 75% of total material reclaimed from ships, with the steel content being of primary value for industrial reuse.

By Type

• Container Ships: In the first half of 2023, 34 container ships were dismantled globally. These vessels typically weigh between 20,000–40,000 DWT and yield high volumes of recyclable steel and reusable parts. Container ships often undergo recycling after reaching 25 years of service, and current fleet aging trends suggest a spike in container vessel scrapping in the next three years.
• Tankers: In early 2024, 17 tanker ships were scrapped, most of which were under 20,000 DWT. Tankers present complex recycling challenges due to the presence of oil residues, but they offer significant steel recovery, often contributing up to 95% of a vessel’s LDT in reusable materials.
• Bulk Carriers: made up 29 dismantled vessels in H1 2023, reflecting the sector’s aging profile. These ships typically yield large quantities of ferrous metals and are prioritized by recyclers due to their size and homogeneous steel structures, which simplify dismantling.
• Cruise Ships: recycling remains niche but has gained attention due to COVID-era fleet downsizing. These ships, often exceeding 100,000 GT, require more intricate dismantling due to onboard fittings and hazardous materials like asbestos and refrigerants.
• Naval Ships: recycling involves decommissioned defense ships, often requiring clearance from military bodies. These ships are complex to dismantle due to sensitive electronics and armament systems but offer substantial high-grade metal content and rare alloys.

By Application

• Metal Recovery: constitutes over 75% of the total recycling value. In India, Alang supplies 0.5% of national steel output from recycled ships. Ferrous scrap from hulls, decks, and structural components is in high demand for electric arc furnaces and induction furnaces.
• Equipment Salvage: Recyclers recover navigational instruments, engines, generators, and pumps for secondary sale. Salvageable components from over 40% of dismantled ships are reused in maritime or industrial applications, reducing waste and generating added value.
• Environmental Compliance: With HKC entering into force, ship recyclers must manage hazardous waste like asbestos, PCBs, bilge sludge, and lead. Facilities certified for safe environmental management are equipped to process over 12 classes of toxic material, enhancing compliance.
• Component Resale: Items such as furniture, piping, lighting, and valves are resold into secondary markets. On average, each dismantled ship contributes thousands of components suitable for resale, contributing to a 15–20% increase in yard profitability.

Ship Recycling Market Regional Outlook

The global ship recycling market demonstrates pronounced regional concentration, with South Asia leading both in volume and capacity. Over 85% of the world's ships by gross tonnage are dismantled in India, Bangladesh, and Pakistan. Regional performance varies significantly based on environmental standards, certification status, labor availability, and material demand from domestic steel industries. Each region’s performance is influenced by national regulations, international compliance with the Hong Kong Convention, and proximity to major shipping routes.

• North America

plays a relatively small role in ship recycling, with most dismantling occurring at a few certified facilities in the U.S. Gulf Coast region. The Modern American Recycling Services, Inc. (MARS) facility in Louisiana handles approximately 100,000–150,000 LDT annually. U.S. Navy and federal vessels are often recycled domestically due to compliance and security reasons. Over the past two years, North America processed less than 5% of global scrapped tonnage. However, interest in green ship recycling is growing. The U.S. Maritime Administration manages the MARAD program, which oversees the dismantling of obsolete government vessels. Additionally, high labor and environmental compliance costs limit commercial activity, but federal incentives may improve participation post-2025.

• Europe

has established high environmental and safety standards under the EU Ship Recycling Regulation, which mandates that EU-flagged ships must be dismantled in EU-approved yards. As of 2024, 48 yards across Europe, Turkey, and select Asian countries are certified under this framework. Turkey’s Aliaga ship recycling region remains the most active, handling approximately 1.5 million GT annually. European countries collectively recycle 10–12% of global ships by volume. However, stricter compliance requirements often result in higher recycling costs. The European list of approved yards was updated in 2023, adding 7 new facilities, expanding capacity by 400,000 GT/year. Italy, Spain, and the Netherlands continue to play niche roles, focusing on cruise ships and naval vessel dismantling.

• Asia-Pacific

dominates global ship recycling. India, Bangladesh, and Pakistan together dismantled over 324 ships in 2024, amounting to 4.6 million GT, despite a 30% YoY decline. Alang, India, hosts 183 yards with a maximum annual capacity of 4.5 million LDT. Bangladesh’s Chattogram yard dismantled over 150 vessels in 2023, contributing more than 1 million tonnes of ferrous scrap to the local steel industry. China, although previously active, now processes fewer ships domestically—recycling just 4,885 BRT in 2023—but offloads vessels to South Asian yards. The region remains cost-effective due to labor and high steel demand, with environmental upgrades aligning with the Hong Kong Convention coming into force in June 2025.

• Middle East & Africa

represent emerging ship recycling zones. Turkey’s Aliaga region remains the key hub in this region, processing over 150 vessels per year and up to 1.5 million GT annually. Turkey is fully compliant with the EU Ship Recycling Regulation and has 10 EU-approved yards, which recycled approximately 12% of European-flagged vessels in 2023. In Africa, limited activity is reported. Nigeria and Ghana have initiated preliminary recycling projects but lack industrial-scale facilities. Environmental oversight and investment gaps remain major barriers in this region. However, long-term opportunities exist due to growing regional shipping volumes and aging naval vessels requiring dismantling.

List of Top Ship Recycling Companies

• GMS (USA)
• Wirana Shipping Corporation (India)
• EMR Group (UK)
• Global Marketing Systems (USA)
• Best Oasis Ltd. (Hong Kong)
• cash buyer (USA)
• Sea2Cradle (Netherlands)
• NGD (Netherlands)
• Prysmian Group (Italy)
• Modern American Recycling Services Inc. (USA)

GMS (USA): is the largest cash buyer of ships for recycling, handling over 25% of the global ship recycling market by volume. In 2024, GMS managed the bidding and purchase of more than 80 vessels, primarily from aging container and tanker fleets. The company operates a digital platform that connects ship owners with certified yards in South Asia, managing over 400 active buyer-seller transactions annually. GMS has led transactions totaling over 6 million LDT in the past five years, positioning it as a dominant global facilitator in ship decommissioning.

Wirana Shipping Corporation (India): is a major ship recycling buyer, handling more than 15% of global ship recycling transactions in 2023 and 2024. The company executed high-value deals, including the purchase of multiple container vessels at over $500 per LDT in 2024, indicating strong demand for scrap steel in Indian markets. Wirana actively coordinates with IMO-compliant yards in Alang and engages in ship-specific IHM (Inventory of Hazardous Materials) management. The firm purchased over 60 vessels in the last 12 months, most of which were routed to upgraded yards in Gujarat.

Investment Analysis and Opportunities

Investment in ship recycling infrastructure has accelerated, with major funding initiatives aimed at modernizing facilities and aligning with upcoming regulatory standards. In 2017, the Government of India, through the Gujarat Maritime Board, signed a $76 million soft loan agreement with JICA (Japan International Cooperation Agency) to upgrade environmental and safety systems at Alang-Sosiya yards. The total project budget reached $111 million, including a $25 million contribution from the Gujarat government and an additional $10 million from the Ministry of Shipping and State authorities. The targeted completion year was 2022, with the objective of doubling dismantled ships and improving pollution controls. Facility upgrades are expected to boost direct employment from 50,000 to 92,000 workers and increase indirect job creation from 150,000 to 300,000. Modernization includes installing impervious floors, oil recovery systems, mobile cranes, and housing for 6,000 additional workers. Alang currently hosts 183 yards with a total 4.5 million LDT capacity. Globally, about 60 certified yards in China and over 150 in India are transitioning to green steel production through ship recycling. Recycling one tonne of steel scrap saves 1.1 tonnes of iron ore, 0.6–0.7 tonnes of coking coal, and reduces water use by 40% and greenhouse gas emissions by 58%. In India, recycled steel from ships already contributes 0.5% of national steel output and supports electric arc furnace operations supplying 0.3 million tonnes to induction processes.

Investment opportunities are rising in EAF/IF-ready yards, with modern processing units handling 75% of recovered steel. Alang’s modernization could inject up to 1.2 million tonnes of low-carbon steel annually. Additionally, adoption of Inventory of Hazardous Materials (IHM) protocols propels demand for certified dismantling services. With 15,000 vessels slated for retirement by 2035, market capacity may exceed 12 million LDT annually. Investors and policy sponsors have a clear pathway: fund upgrades that meet June 2025 Hong Kong Convention certification, secure a growing global scrap-stream, and tap into rising demand for low-emission steel. Public-private investment may leverage carbon credit schemes, enhancing facility value and broadening financial returns beyond traditional scrap margins.

New Product Development

Innovation in ship recycling has shifted toward advanced dismantling technologies, safety equipment, and digital tracking systems. Chinese shipyards now feature 60 certified green yards, employing mechanical shear cutters, remote cutting arms, and pollution-control modules. These facilities recycled 4,885 BRT in 2023 and redirected 71 vessels to South Asia. Remote hydraulic shears can reduce worker exposure by up to 50%, while closed-loop decontamination processes limit toxic runoff by 70%. India's Alang and Sosiya yards have integrated modern systems via the $111 million upgrade, including oil-water separators with capacities of 200 m³/hour, impervious floor area of 100 hectares, and mobile cranes capable of lifting 500 tonne vessel sections. These yards now handle critical tasks like safe asbestos removal, with over 3,000 tonnes processed annually, and offer Inventory of Hazardous Materials (IHM) services to vessels above 500 GT.

Digital innovation is led by platforms like GMS (Global Marketing Systems), which uses an online vessel tender system managing hundreds of bids weekly, and tracking lifecycle data for 324 vessels scrapped in 2024. Systems capture 50+ data points per vessel, including hazmat records, tonnage yield, and auction outcomes. Another development is the commercialization of modular scrapyard cells with built-in leachate collection and localized EAF feedstock chimneys. When fully installed, these cells can process up to 100,000 LDT/year each, allowing scalable expansion. Several yards in India and China have trialed up to 12 cells, handling 1.2 million LDT per yard. Component-level innovation is noticeable in salvage operations. Recyclers salvage 45–60% of on-board equipment: main engines, pumps, electronics, and steel furniture systems—for resale in maritime or industrial sectors. Recent tech includes laser scanning and 3D mapping of vessel interiors, yielding faster salvage cycles by up to 25% and raising component reclamation rates. Toward zero-discharge goals, high-capacity incinerators rated at 2 tonnes/hour are being trialed in Pakistan and Turkey. At Alang, a pilot unit completed emission validation at 0.15 mg/Nm³, outperforming international benchmarks by 75%. Novel partnerships between recycling yards and steel mills include long-term offtake agreements securing 500,000 tonnes/year of ship-derived scrap at stabilized pricing. This allows metal refiners to claim up to 60% reduction in Scope 3 emissions, supporting global low-carbon steel claims. These product and process innovations, from digital solutions and green infrastructure to value-chain collaboration, are rapidly evolving ship recycling from unregulated dismantling to a data-driven, environmentally compliant sector.

Five Recent Developments

• Hong Kong Convention ratified: As of June 26, 2025, the Hong Kong Convention achieves entry into force, backed by 15 ratifying states representing 46% of world merchant tonnage (~23.8 M BRZ).
• H1 2024 recycling volumes at 19-year low: Only 164 vessels totaling 2.6 million gt were recycled in the first half of 2024—down 28% from 182 ships and 3.6 million gt in H1 2023.
• India’s annual throughput projected to rise: Ship recycling in India grew from 2.3M to 2.6M gt in 2024 and is forecast to reach between 3.8M and 4.2M gt in 2025, supported by yard expansion and higher global supply.
• China recycles 4,885 BRT & sells 71 vessels: In 2023, Chinese yards processed 4,885 BRT and sold 71 vessels into South Asia—a significant outbound shift.
• $111M upgrade at Alang: The Alang-Sosiya project, funded with $76M from JICA and $35M from Gujarat State, was launched to support doubling dismantled vessels and outfitting 150 yards with environmental safeguards.

Report Coverage of Ship Recycling Market

This ship recycling market report spans an exhaustive analysis of the global market through 2022–2024, including detailed vessel-type segmentation, key regional assessments, and foresight into regulation and infrastructure evolution. The scope includes quantitative breakdowns of dismantled vessels by type—container ships, tankers, bulk carriers, cruise ships, and naval vessels—capturing over 800 ships scrapped annually and 324 merchant vessels in 2024. The report methodically covers both metal recovery—accounting for 75%+ of total recyclable volume—and non-metal applications such as equipment salvage, environmental compliance, and component resale. Recyclers recover engines, electronics, and structural appliances from more than 40% of dismantled ships, while environmental compliance processes manage 12 categories of hazardous materials under IHM protocols. The report documents market dynamics, including driver analytics (aging fleet of 2.4 B DWT, average ship age 22.4 years), restraints (Suez rerouting causing 70% drop in transit volumes), opportunities (low-carbon steel recovery, 1.2 million tonnes of potential scrap supply), and challenges (worker safety in 80% beaching yards).

Trends analysis includes the Hong Kong Convention entry into force, its implications for 23.8 M BRZ, and the shift toward certified safe-recycling. Infrastructure investments—$111M+ inyard modernization, petrochemical decontamination improvements, and digital lifecycle platforms—are detailed. The report encompasses 11 recent developments including regulatory milestones, yard upgrades, and volume fluctuations. Segment analysis spans vessel types and application uses with per-type scrutiny: container ships (34 vessels recycled in H1 2023), tankers (17 in H1 2024), bulk carriers (29 in H1 2023), and niche types (cruise, naval). Application breakdown discusses metal recovery (0.5% of national steel output), equipment salvage, component resale (15–20% profit uplift), and environmental compliance. Finally, investment sections showcase 3-phase funding for Alang upgrades, carbon credit-linked financing, and EAF-linked metal supply chain models. The report offers data-driven insight into upcoming capacity, infrastructure readiness (e.g. 150–200 certified yards), and global tonnage trends, serving stakeholders from policymakers and yard operators to investors and steel producers.

Frequently Asked Questions