Existing research in the shipbuilding field tends to focus on isolated single aspects of Industry 4.0 (I4.0) without a full picture. To address this gap, this paper seeks to offer a thorough and in-depth examination of the concepts and technologies necessary to integrate I4.0 into the design, construction, maintenance, and other stages throughout the entire life cycle of a ship. This paper will firstly examine the recent developments and identify the gaps in I4.0 application within shipbuilding. By conducting a systematic literature review on 68 publications through an appropriate review methodology, we synthesize the current state of I4.0 research in the shipbuilding industry, propose a framework for the application of I4.0 in shipbuilding to analyze the progression and research agenda of I4.0 in the shipbuilding sector, and discuss its implications. The Shipbuilding 4.0 framework proposed comprises five main components: concepts, value chain, smart factory, smart manufacturing, infrastructure, and technologies. The proposed framework aims to enhance the understanding of both academics and practitioners regarding the specific needs of the shipbuilding industry and the role I4.0 can and should play in its advancement.