Degaussing System Market Trends

Degaussing System Market Overview

Degaussing System Market Size was valued at USD 5.7 billion in 2022. The degaussing system market industry is projected to grow from USD 5.9 Billion in 2023 to USD 7.45 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 3.91% during the forecast period (2024 - 2030). Increased government spending on military and defense, increased importance of degaussing systems in naval combat, and increased R&D for new technology are the key market drivers enhancing the market growth. Moreover, increasing marine warfare training, degaussing equipment technology development, and equipment safety and security requirements all present opportunities for market expansion.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Degaussing System Market Trends

• The growing marine surveillance is driving the market growth

Market CAGR for the degaussing system is being driven by the rising number of marine threats. Due to their obvious magnetic fingerprints and easy visibility, ships and warships are easily recognized. Submarines are especially susceptible to mines because they operate undersea, where mines are laid, and they play a vital role in naval operations. The need for degaussing and deperming systems, which are used to demagnetize submarines' magnetic signatures, has increased due to this vulnerability. The use of degaussing and deperming devices has expanded due to the rise in submarine delivery in developing nations like India, China, and South Korea. The Indian defense ministry wanted to carry out a dated plan to buy six units of conventional submarines in June 2021. This planned proposal aims to establish competition between two of the top shipbuilders, Mazagon Dock Shipbuilders Limited and Larsen & Toubro Ltd. (India) (India).

A maritime war exercise prepares naval forces to investigate conflict outcomes or test tactics without engaging in combat. It is a full-scale practice run for navy maneuvers used in wartime. A joint or combined exercise conducted between two or more nations is known as a maritime war exercise. Due to the requirement to improve the combat abilities of naval forces, the number of maritime warfare exercises has been exponentially growing over the past ten years. For instance, India participated in Rim of the Pacific (RIMPAC), the world's largest multinational biannual maritime combat exercise, which took place in June 2022. The employment of degaussing, ranging, and deperming equipment to neutralize or demagnetize the magnetic field of navy warships and shield them from sea mines has expanded due to these exercises. Thus, driving the degaussing system market revenue.

Degaussing System Market Segment Insights

The degaussing system market segmentation, based on type, includes degaussing, ranging, and deperming. In 2022, the degaussing sector dominated the market. Naval boats' magnetic signatures are diminished by degaussing devices, making it more difficult for undersea mines to locate and harm them. Degaussing systems were typically constructed from thick copper wires. Nevertheless, high-temperature superconductors are utilized in degaussing systems today because they are lighter and use less power than traditional degaussing systems.

January 2021 American Superconductor Company (AMSC) was granted a hybrid firm-fixed-price, cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract to provide a high-temperature superconducting degaussing system (HTS). The HTS will be provided in the class of landing platform docks. The contract costs USD 14.94 million, and delivery is scheduled for September 2023.

The Deperming System has seen the fastest increase in demand from naval forces of nations including the US, China, and Japan in the second decade of this century due to a rise in the need for equipment that gives submarines camouflage.

The degaussing system market segmentation, based on vessel type, includes small vessel (< 100 m), medium vessel (100-200 m), and large vessel (>200 m). Over the forecast period, the medium vessel (100-200 m) segment is anticipated to dominate the market. The main reasons for the dominance of the medium vessel category are the expanding requirement to defend submarines from hostile underwater mines by engaging in degaussing operations. However, in 2022, the large vessel sector showed the fastest growth rate. Liquefied petroleum gas (LPG) import demand is rising in Europe and India. In addition, rising demand for liquefied natural gas (LNG) in Asia and expanding U.S. supplies are other factors anticipated to contribute to the accelerated growth of this market.

The degaussing system market segmentation, based on end-user, includes OEM, aftermarket, and services. Due to increased the delivery of new ships worldwide, the OEM segment is anticipated to experience the fastest growth during the projected period. Due to increased demand for MRO of the old fleet, the aftermarket category is anticipated to develop at the quickest rate throughout the projected period.

Figure1: Degaussing System Market, by End-User, 2022& 2030(USD billion)

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The degaussing system market is dominated by North America, and this dominance is predicted to last for the entire projection period. This is linked to elements including the requirement to protect boats from adversaries and growing defense industry investments. The market development in this area is also being fueled by technological improvements made by numerous government and non-government groups to increase the efficacy of degaussing systems, particularly in the United States. For instance, the American Society of Military Comptrollers (ASMC) released their degaussing system in Special Purpose Ships (SPS) in June 2021. This system is intended to protect warships and is 90% lighter than standard degaussing goods.

Figure2: DEGAUSSING SYSTEM MARKET SHARE BY REGION 2022 (%)

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe’s degaussing system market accounts for the second-largest market share. The European shipbuilding sector maintains its position as a pioneer in innovation, a technology provider, and cleaner and safer ships. The European Union (EU) shipping industry provides USD 165 billion to the annual GDP growth of the EU with its diverse fleet of commercial boats. Further, the German degaussing system market held the largest market share, and the UK degaussing system market was the fastest growing market in the European region.

The Asia-Pacific Degaussing System Market is expected to grow at the fastest CAGR from 2023 to 2030. Due to escalating maritime border tensions between nations in this region, including India, China, Japan, and the Philippines, which have increased their military spending, Asia Pacific is predicted to rise in the degaussing system market continuously. China declared an RMB 1.55 trillion ($224.8 billion) annual defense budget in March 2023, which is a nominal 7.2 percent increase over the RMB 1.45 trillion ($229.6 billion) budget for 2022. In the near future, degaussing system sales will be driven by these nations' plans to construct, design, and acquire new naval warships. Moreover, China’s degaussing system market held the largest market share, and the Indian degaussing system market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the degaussing system market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, degaussing system industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the degaussing system industry to benefit clients and increase the market sector. In recent years, the degaussing system industry has offered some of the most significant medical advantages. Major players in the degaussing system market, including LARSEN & TOUBRO LIMITED (India), Ultra Electronics (UK), Surma Ltd (Finland), American Superconductor (US), and others, are attempting to increase market demand by investing in research and development operations.

Larsen & Toubro Ltd, or L&T, is a Mumbai-based Indian multinational conglomerate interested in engineering, construction, manufacturing, technology, information technology, and financial services. The corporation is ranked among the top five construction firms in the globe. In January 2022, Larsen & Turbo Limited announced the development of innovative defense technology for the Indian military. The company degausses cargo and oil tanker hulls and offers repair and installation services. These vessels, built at M/s L&T shipyard in Kattupally (Chennai), will conduct multi-role support activities like maritime surveillance and patrol, torpedo launch/recovery, and operation of various types of aerial, surface, and underwater targets for Gunnery/ ASW fire drills.

Marine Electricals provides customers with high-quality, comprehensive solutions through a single contact point. This allows clients to concentrate on their core tasks. Marine Electricals strives for long-term customer and supplier relationships. Marine Electricals is an independent technical service provider in India. In November 2021, Damen (Netherlands) awarded Marine Electrical Systems, a branch of Wartsila SAM Electronics GmbH, a contract under the F126 project to produce a degaussing system, switchgear, lighting system, power distribution system, and special equipment for an energy supply. The scope of supply and services comprise, in addition to the integration of all electrical components, the production and delivery of the switchgear, the power distribution system and the degaussing system, also the delivery of the lighting system and special equipment for energy supply, and the entire related ILS documentation.

Key Companies in the degaussing system market include

• American Superconductor (US)


• GroupeGorgé (France)


• Polyamp AB (Sweden)


• Surma Ltd (Finland)


• L3 Technologies Inc (US)


• Ultra Electronics (UK)


• LARSEN & TOUBRO LIMITED (India)


• STL Systems AG (Switzerland)


• Wärtsilä (Finland)


• IFEN SpA (Spain)

Degaussing System Industry Developments

For Instance, January 2022 The American Navy is considering installing an improved degaussing technology to all destroyers by 2023, according to Capt. Seth Miller, program manager for the Arleigh Burke class. National Defense Authorization Act of 2022 mandates that the Navy include an upgraded degaussing technology, which helps cancel out the ship's magnetic field, in the next multiyear procurement contract for Flight III Arleigh Burke-class destroyers.

Degaussing System Market Segmentation

Degaussing System Solution Outlook

• Ranging


• Degaussing


• Deperming

Degaussing System Vessel Type Channel Outlook

• Small Vessels (< 100 M)


• Medium Vessels (100-200 M)


• Large Vessels (>200 M)

Degaussing System End-User Outlook

• Services


• OEMs


• Aftermarket

Degaussing System Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America