EY-Parthenon: Greece poised to become a regional shipbuilding and repair hub

The analysis examines the global and Greek maritime value chain and outlines the conditions required to strengthen the international competitiveness of Greek shipyards. According to its findings, Greece benefits from significant comparative advantages, primarily due to its geographical location, specialised workforce and the strong presence of the Greek-owned shipping fleet. However, the domestic market continues to capture only a small share of the available opportunities.

The Global Shipbuilding Market Is Changing

At international level, the growth of the global fleet is now driven more by increases in capacity than by increases in the number of vessels. This trend is leading to the construction of larger ships, particularly in the bulk carrier and containership segments, while also increasing demand for specialised infrastructure and maintenance and repair services.

According to EY-Parthenon, shipyard activities account for more than half—specifically 53%—of the total value of a vessel. A significant part of the technical complexity relates to electrical and mechanical installation works (outfitting), which require high levels of expertise and a substantial number of labour hours.

The remaining 47% of a vessel’s value is distributed among steel, accounting for 14%, the propulsion system at 12%, equipment and installation materials at 10%, and other consumables and materials at 11%.

At the same time, digitalisation, technology and decarbonisation are fundamentally transforming the shipbuilding industry. The use of digital tools enhances efficiency and enables more accurate project planning and execution, while the energy transition is driving the adoption of new technologies, alternative fuels and vessel redesign.

As a result, international competitiveness is no longer determined solely by labour costs and infrastructure capacity, but increasingly by technological maturity, innovation and the ability to adapt to new environmental and regulatory requirements.

Meanwhile, the ageing European fleet is creating growing demand for repairs, conversions and energy upgrades, strengthening the prospects of the repair and retrofit market compared with new vessel construction.

Greece Has Competitive Advantages

Greek shipyards possess significant comparative advantages in the field of repairs and conversions. Relatively lower operating costs, a specialised workforce and Greece’s geographical position at the crossroads of Europe, Asia and Africa create the conditions for developing a strong regional ship repair hub.

However, the market remains significantly underutilised. Based on 2023 data, Greek shipyards capture less than 1% of the available global maintenance workload, highlighting the substantial untapped growth potential.

At the same time, revenues from Greece’s ship repair and shipbuilding sector currently stand at approximately €197 million, representing just 0.4% of the global market.

Structural Challenges

Realising these opportunities, however, requires addressing significant structural challenges. According to EY-Parthenon, the shrinking availability of skilled labour, due to workforce ageing and limited retraining opportunities, represents one of the sector’s main challenges.

In addition, working conditions, bureaucracy, and complex and time-consuming licensing and regulatory approval procedures reduce productivity and increase costs.

Another obstacle is the limited capacity of existing infrastructure, particularly regarding the size and capacity of dry docks. This issue is becoming increasingly important as the global fleet shifts towards larger vessels and more complex operations.

Furthermore, low levels of process digitalisation limit efficiency, while the current operating model relies heavily on outsourcing. Although outsourcing provides flexibility, it limits the accumulation of internal expertise, increases uncertainty and intensifies pressure on supply chains.

Additionally, the highly customised nature of ship repair and construction projects has so far prevented Greek shipyards from fully benefiting from economies of scale, production repeatability and more predictable cost structures.

Market Could Reach €759 Million with Targeted Growth

Despite these challenges, EY-Parthenon estimates that there is significant potential for strengthening the international presence of Greece’s shipbuilding and ship repair sector.

Under a realistic growth scenario based on targeted focus on specific priority vessel categories, the Greek market could increase its share of the global market from 0.4% to 1.6%.

Such an outcome could raise revenues in Greece’s shipbuilding and repair sector to €759 million, compared with approximately €197 million today.

Defence and Luxury Yachting Create New Opportunities

The development of strategic partnerships, particularly in the defence sector, is emerging as one of the most important opportunities. Through such partnerships, Greek shipyards could move away from lower-value activities, such as hull-only repairs, towards more complex and higher-value defence projects.

At the same time, emerging segments such as luxury yachting are creating additional growth opportunities in specialised construction, repairs and high-value services.

“The Greek shipbuilding and ship repair sector has significant comparative advantages, including a specialised workforce, the country’s strategic geographical position and the size of the Greek-owned fleet,” said Dimitris Papakanellou, Partner at EY-Parthenon Greece.

He noted that, after many years, positive prospects are emerging for the sector, provided that existing obstacles are addressed in a targeted manner and that international trends and strategic partnerships reshaping the market are effectively leveraged.

According to him, the strategy should focus on investments in digital transformation, green technologies, and the education and retraining of the workforce.

The EY-Parthenon analysis concludes that Greece possesses the fundamental conditions required to claim a larger role in the global shipbuilding and ship repair market.

The key challenge now is the transition from a model based primarily on individual projects and outsourcing towards a more organised and technologically advanced ecosystem capable of leveraging Greece’s geographical position and the strength of the Greek-owned shipping fleet.