Challenges and Prospects of the Global Ship-breaking and Recycling Industry

By Sherazur Rahman

The global ship-breaking and recycling industry plays a vital role in the maritime economy. The Ship Recycling Market Report 2025, published by Research and Markets, states that the global ship recycling market was valued at about US$9.1 billion in 2025. It could reach around US$13 billion by 2030, showing a substantial growth potential of 7.4% (CAGR) in the coming years.

We measure the size of the global shipbreaking and recycling industry by how many ships are dismantled and by Light Displacement Tonnage (LDT). LDT is a key indicator of the recoverable material in a vessel. Major players in ship recycling include India, Bangladesh, Pakistan, Türkiye, and China, along with several other countries.

According to the NGO Shipbreaking Platform, 139 ships were dismantled and recycled in Bangladesh, India, Pakistan, Türkiye, and China during the first six months of 2026. Of these, 57 were dismantled in Bangladesh, 50 in India, 10 in Pakistan, 20 in Türkiye, and 2 in China. The number for Türkiye is reported only up to March 2026, so it does not cover the entire six-month period.

BigMint reports that approximately 1.01 million LDT of vessels were dismantled and recycled in South Asia during the first six months of 2026. India accounted for roughly 569,000 LDT, Bangladesh for about 392,000 LDT, and Pakistan for around 51,000 LDT. As with most industry data, these figures may vary somewhat based on the reporting period, methodology, and the vessels included in the statistics.

Ship recycling is now economically important because it enables the recovery and reuse of valuable materials like steel and other equipment. It also lessens the demand for certain raw materials obtained through new extraction. Additionally, it creates jobs and business opportunities in coastal industrial areas.

However, the industry faces major challenges, especially regarding worker safety, environmental protection, and the management of hazardous materials. The NGO Shipbreaking Platform reports that since 2009, about 8,221 ships have been broken up on beaches, resulting in 480 deaths and 520 injuries.

These statistics underscore the urgent need for ongoing improvements in safety standards and working conditions. Also, end-of-life vessels can hold hazardous substances such as asbestos, heavy metals, residual oils, and other toxic materials. If not properly identified, removed, and disposed of, these substances can threaten workers, nearby communities, and the marine and coastal environment.

The global shipbreaking and recycling industry is moving into a new phase with a stronger focus on safety and sustainability. With the Hong Kong International Convention taking effect on June 26, 2025, there is now an international framework in place to encourage more responsible ship recycling. Its implementation is expected to enhance worker protection, environmental safeguards, and promote sustainable industrial practices.

Bangladesh and India, which are home to significant shipbreaking yards, are increasingly adopting global safety standards, green recycling technologies, and better infrastructure. As the number of aging vessels rises, more attention will be required for worker welfare, environmental protection, and responsible recycling practices. Ship recycling will likely continue to play a crucial role in the maritime and industrial economy, contributing to resource recovery and a more sustainable circular economy.

Sources: Research and Markets (Ship Recycling Market Report 2025), BigMint, NGO Shipbreaking Platform

Author: Sherazur Rahman, Teacher & Writer, Bangladesh