A new analysis by EY-Parthenon – the corporate strategy and transactions arm of EY Greece – presents Greece’s potential to develop into a regional hub for shipbuilding, ship repair and specialised services, provided that it addresses significant structural challenges.
The analysis examines the value chain and the data of the global and domestic market and provides a comprehensive strategic assessment of the Greek shipbuilding and ship repair market, drawing on the in-depth understanding of the local ecosystem developed by EY-Parthenon teams.
The international environment
The growth of the global fleet is now driven by the increase in capacity rather than in the number of vessels, with a clear shift towards larger-scale ships, particularly bulk carriers and containerships.
According to the analysis, shipyard activities account for more than half (53%) of the total value of a ship, with outfitting concentrating a significant part of the technical complexity and the required man-hours. The remaining 47% is allocated between the cost of steel (14%), the propulsion system (12%), outfitting materials and installation materials (10%), and other consumables and materials (11%).
Technology, digitalisation and decarbonisation initiatives act as key transformation catalysts for the shipbuilding industry, leading to a radical restructuring of shipyard operating models. The integration of digital tools increases efficiency and enables more accurate project planning. At the same time, the transition towards decarbonisation requires the adoption of new technologies and fuels, as well as the redesign of ships so that they comply with stricter environmental standards. As a result, competition at the global level is no longer determined solely by labour costs or production capacity, but increasingly by technological maturity, innovation capability and the flexibility to adapt to new regulatory and environmental requirements.
At the same time, the ageing of the European fleet creates structural demand for repairs, conversions and energy upgrades, strengthening the role of these services compared with new shipbuilding.
The Greek market
Greek shipyards have clear comparative advantages in repairs and conversions due to lower operating costs, a specialised workforce and the country’s strategic geographical position between Europe, Asia and Africa.
Despite these advantages, however, the domestic market remains at a significantly low level of utilisation, as it absorbs less than 1% (2023 data) of the available maintenance workload, highlighting the substantial untapped growth potential.
The competitiveness of the sector is constrained by significant structural challenges. The shrinking available workforce, due to ageing and insufficient reskilling, working conditions and institutional obstacles, such as bureaucracy and slow and complex regulatory approval and licensing procedures, hinder productivity, innovation and growth while increasing costs.
Infrastructure limitations, such as dock capacity and dock size, together with the low level of work digitalisation, emerge as critical restraining factors for taking advantage of growing demand, especially as ship size and the complexity of requirements continue to increase.
At the same time, the current operating model of Greek shipyards is based, to a large extent, on outsourcing, which provides flexibility but limits capability development, intensifies instability and increases pressure on the supply chain. Operating largely on the basis of customised, individual projects, Greek shipyards have so far failed to secure the economies of scale, productivity improvements and predictable cost structures associated with repeatable production.
Opportunities for increasing revenues and international presence
Current revenues of the Greek shipbuilding and ship repair sector amount to approximately €197 million, corresponding to a limited global market penetration of around 0.4%.
According to EY-Parthenon’s analysis, under a realistic strengthening scenario, based on a targeted focus on priority vessel categories, market penetration could increase to 1.6%, raising revenues to €759 million.
At the same time, the analysis identifies specific opportunities for expanding the sector, such as:
The development of strategic partnerships, particularly in the defence sector, could enable the transition from lower-value repair work, such as hull-only services, to more complex and higher-value defence projects.
New growth areas, such as luxury yachting, create additional opportunities for specialised construction and high value-added services.
Commenting on the findings of the analysis, Dimitris Papakanellou, Partner at EY-Parthenon in Greece, stated:
“The Greek shipbuilding and ship repair sector possesses significant comparative advantages, such as the specialised workforce, the country’s strategic geographical location and the size of the Greek-owned fleet. Today, after many years, positive prospects are emerging, provided that specific obstacles are addressed in a targeted manner and the international trends and strategic partnerships reshaping the sector are leveraged. In order to strengthen their competitiveness in a market that is becoming increasingly demanding and specialised, Greek shipyards must invest immediately in digital transformation, green technologies and the training of human resources.”
Source: EY Greece
