The global cruise ship industry is projected to grow substantially, reaching an estimated US$16.7 billion by 2031, according to a report from Allied Market Research. The industry is expected to experience an average annual growth rate of 7.9% over the next decade. This growth is driven by several factors, including technological advancements, increased automation, and the ongoing development of new onboard leisure activities and experiences. Additionally, there is a noticeable shift in consumer demand toward luxury cruising.
However, the industry faces challenges that could restrain its growth. Post-COVID, rising inventory and transportation costs, along with supply chain disruptions, remain concerns. Environmental and overtourism issues, particularly in Europe, have led to new regulations limiting cruise ship calls in certain destinations, which could impact the growth of the large mega-ship segment.
Despite these challenges, Allied Market Research indicates that the mainstream cruise ship segment will continue to dominate the market through 2031, having comprised nearly half of the global market in 2021. Similarly, the large ship segment, which represented over half of the market in 2021, is expected to maintain its dominance. The leisure cruise segment, accounting for more than four-fifths of the market, will continue to be a key driver of growth through 2031.
Cruise ship construction remains concentrated in a few European shipyards located in Italy, France, Germany, and Finland, with major shipbuilders including Fincantieri, STX France, and Meyer Werft.
Despite Meyer Werft's financial difficulties, the company is close to securing a state bailout, which would stabilize its operations and secure its US$12 billion order book of cruise projects.
China has also emerged as a new player in cruise ship construction, completing its first large homegrown cruise ship in 2023. A second, larger vessel is currently under construction, following the initial joint venture between Carnival Corporation, China State Shipbuilding Corporation/CSSC and Fincantieri for the Adora brand.