Shipbuilding is no longer a competition over how much you make, but how smart and eco-friendly you make it. The era has begun in which AI transformation (AX) and decarbonization determine new competitiveness.
Vidar Dolonen, head of the Korea office of the global classification society DNV (Det Norske Veritas), known as the "McKinsey of shipbuilding," said in a recent interview with ChosunBiz, "Global shipbuilding has entered a structural supercycle intertwined with eco-friendliness and digital transformation, not a simple cyclical recovery."
Founded in 1864 in Oslo, Norway, DNV is a classification society that conducts ship inspections and quality certifications, and provides consulting on shipbuilding and operations. It operates in more than 100 countries worldwide, including Korea, the United States, the United Kingdom, Germany and China, and posted revenue of 35,291 million kroner (about 5.53 trillion won) last year. As of last year, 26% of newbuilds worldwide received DNV classification. That means one out of every four ships is being certified. DNV conducts certification and consulting not only in shipbuilding, but also in heavy industry, automotive, electronics and energy.
Dolonen said, "Korea has world-class technology and project execution capabilities in ultra-high value-added vessels such as LNG carriers." He added, "As China is rapidly catching up by leveraging production capacity and supply chains, production innovation such as AX and smart yards will determine the competitiveness of Korea's shipbuilding industry going forward." The following is a Q&A with Dolonen.
— How would you assess the current global shipbuilding market?
Shipbuilding today has entered a structural supercycle different from the past. Demand for high value-added vessels such as LNG carriers and eco-friendly regulations are driving the market at the same time. In the past, increased cargo volumes brought boom times; now, decarbonization, the energy transition and vessel aging are creating long-term demand. However, shortages of skilled labor, capacity constraints and supply chain issues remain variables for market growth. In the end, competitiveness will hinge less on "how much you make" and more on "how smart and sustainable you make it."
— Decarbonization and the energy transition are driving a paradigm shift in shipbuilding.
Eco-friendly regulations and the energy transition are no longer options but structural changes. As a "multi-fuel era," in which various fuels such as methanol and ammonia coexist beyond LNG, takes full shape, the role of shipyards is also changing. The industry is evolving from simply building ships into one that provides integrated solutions encompassing eco-friendly fuel-based ship design, fuel storage and supply systems, and even operational efficiency. Shipbuilding is entering a new paradigm centered on decarbonization and AX.
— What is the current level of AX in shipbuilding?
AX has become a survival strategy across global manufacturing, and shipbuilding is no exception. Shipyards once seen as labor-intensive industries are now transforming into data-driven smart manufacturing. The use of AI has already moved beyond pilot projects to delivering real results. Korea's shipbuilding sector is rapidly adopting AI and Robotics to integrate and manage process, materials and workforce data, and AI is being used to predict process delays and optimize production planning to shorten construction periods. In addition, through Digital Twin technology, ships and shipyards are implemented in virtual space to simulate from design to construction, reducing design errors and rework. Quality and safety are also improving thanks to AI-based inspections and expanded automation equipment.
— AX in shipbuilding is still in its early stages, with clear limits.
We have not yet reached the stage of full automation. For now, you can see this as a phase where AI is applied by process to partially raise productivity. AI-based production planning systems and smart yard technologies will optimize work schedules, materials and workforce operations, and, although capacity is limited while orders are increasingly complex, will help shipyards build vessels faster and more efficiently.
The most important element in this process is the platform. It is the core infrastructure that consolidates design, production, quality and operations data into one, enabling end-to-end integrated management and supporting decision-making. When AI is combined on top of the platform, optimization can move beyond individual processes to optimizing the operation of the entire shipyard. The pace of AX will determine the future competitiveness of shipbuilding.
— How competitive is Korea's shipbuilding industry?
Korea possesses world-class technology in ultra-high value-added vessels such as LNG carriers. High-difficulty technologies such as cryogenic cargo containment systems and reliquefaction systems are setting global standards. Korea is also competitive in next-generation eco-friendly ship technologies, including ammonia and methanol. Above all, the ability to provide integrated services from design and engineering to project execution and quality control is the greatest strength of Korea's shipbuilding industry.
— How do you assess China's catch-up?
China is very strong in production capacity and supply chain competitiveness. However, future competition will be decided not by sheer volume, but by high-difficulty technologies, systems integration and the ability to accommodate future fuels. Korea is expected to continue to maintain strengths in high value-added ship types where safety and reliability are critical.
— What is the solution to Korea's chronic labor shortage in shipbuilding?
The labor issue is also tied to AX. When AI, smart shipyards and Robotics are combined, the same workforce can produce more, and reliance on physical labor can be reduced. At the same time, the industry needs to be restructured around core technical personnel. The shipyard of the future will evolve into a "fully smart yard." Robots will perform most repetitive tasks such as welding, painting and logistics, while workers will take on roles managing and controlling them. In the end, shipyards will shift from "labor-centered worksites" to "operations-centered intelligent factories."
— Spurred by the Trump administration's "MASGA (Make American Shipbuilding Great Again)" project, Korean shipbuilders are expanding investment and local production in the United States.
This aligns with the trend of shipbuilding being reorganized as a strategic industry. As supply chain reconfigurations and geopolitical risks grow, shipbuilding is once again drawing attention as a national core industry underpinning energy, trade and security. Going forward, regional production structures, technical standards and supply chain strategies will become more segmented, and the strategic importance of shipbuilding will continue to grow. Ultimately, Korea's shipbuilding industry must further strengthen its competitiveness around three key pillars: decarbonization, digital transformation and AX, and strategic industrialization.