There are ups and down observed in shipbuilding growth. United Kingdom (UK) was the market leader of global shipbuilding before WWII. After that, Japan become the dominant ship building nation in 1960s and slowly lost its competitive advantage to the promising industrial nation South Korea, as they had the advantages of much cheaper wages, suitable shipbuilding strategy, strong government support and cheaper currency. South Korean shipbuilding overtook Japan's in 2003. In 2009, during and after global financial crisis China become global shipbuilding leader leaving behind South Korea and Japan by using the same strategy and technique of those two shipbuilding giant. China utilize global financial crisis to develop their shipbuilding and they initially target the medium and small global market of containers, tankers and cargo ships. Bangladesh is a maritime nation with glorious shipping and shipbuilding history. But country has failed to keep pace with the global shipbuilding race due to few reasons. We must utilize our potential and opportunities to meet the challenges for sustainable development of shipbuilding industry. This analytical paper will describe potentials and challenges of local shipbuilding in contest of global and will suggest the suitable shipbuilding market for Bangladesh.