Degaussing System Market Size, Share & Russia-Ukraine War Impact Analysis, By Component (Power Supplies, Degaussing Coils, Control Units, Monitoring Systems, and Others), By Solution (Degaussing, Deperming, and Ranging), By Vessel Type (Amphibious Ships, Destroyers, Frigates, Landing Craft, Offshore Patrol Vessel (OPV), Mine Warfare/Countermeasure, Submarine, and Others), By End User (OEM, Aftermarket, and Services) and Regional Forecast, 2024-2032

The global degaussing system market size was valued at USD 0.90 billion in 2023 and is projected to grow from USD 0.93 billion in 2024 to USD 1.46 billion by 2032, exhibiting a CAGR of 5.7% during the forecast period.

Structures and machinery used in ships and submarines are made of ferromagnetic materials that cause magnetic anomalies (magnetic indiscretion) due to the Earth's magnetic field. These anomalies can be detected by sensors on underwater mines along the coast and ports, as well as sensors built into patrol aircraft. Degaussing systems protect naval platforms by significantly reducing magnetic signatures that make them vulnerable to detection and attack. Degaussing helps eliminate the permanent and induced longitudinal, vertical, and athwartship magnetism in naval vessels by arranging coils and magnetometers accordingly.

During the degaussing of a vessel, the structure is surrounded in all the three dimensions by copper coils, which carry bidirectional direct current. The system amplifier supplies each coil with a current calculated by the central processing unit. This produces a magnetic field that is opposite to that produced by a ship or submarine as it moves through its environment (geographic location, heading, roll, pitch). The rising threat of naval mines is expected to drive the growth of the global market size from 2023 to 2030.

RUSSIA-UKRAINE WAR IMPACT

Owing to Increased Threat on Naval Mines, the Russia-Ukraine War Had a Positive Impact on Market Growth

The war between Russia and Ukraine changed the geopolitical landscape. In the wake of the conflict between Russia and Ukraine, countries bordering the Black Sea and other sensitive water areas have placed a high priority on naval security. This includes a renewed focus on the threat of magnetic mines and, more broadly, on degaussing equipment. The increasing demand for these systems across conflict-affected regions, such as the Black Sea and the Baltic Sea, is changing the market situation.

In response to the evolving threat landscape, defense agencies are driving innovative magnetic signature management solutions. This momentum will propel the research and development efforts that could lead to breakthroughs in degaussing technology. Europe is a region where conflict indirectly promotes technological progress. Nations with maritime interests are reevaluating their naval capabilities, which is leading to fleet expansion and modernization efforts. The demagnetizing equipment is an essential part of this modernization, and the conflict is accelerating efforts in unexpected places, such as the Nordic countries, which are building up their naval forces.

Degaussing System Market Trends

Unmanned Surface and Underwater Vessels USUV's are Major Trends in the Market for Degaussing Systems

Sea operations are being revolutionized through the deployment of unmanned surface and submarine vessels (USUVs). Their ability and stealth have led to an increase in the use of these independent ships. The use of surface vessels and unmanned submarines is expected to increase over the forecast period as maritime technology progresses. This will increase the capabilities for surveillance, reconnaissance, and additional defense measures. Innovations in demagnetization technology over these platforms are paving a new way to operate with reduced magnetic signatures.

For instance, in April 2023, American Superconductor Corporation (AMSC), a U.S.-based energy technology company, announced that it had signed a contract worth USD 8 million with Textron Systems for a pre-production High-Temperature Superconductor (HTS) Magnetic Influence Mine Countermeasure Payload System.

Textron Systems, as prime contractor, secured an initial contract worth over USD 20 million, with a USD 8 million allocation for AMSC. The design, development, and integration of a next generation Minesweeper System for the Common Unmanned Vessel SurfaceCUSV Platform are covered by this U.S. Navy contract. The Dubbed Magnetic and Acoustic Generation Next Unmanned Superconducting Sweep (MAGNUSS) program receives backing from the Office of Naval Research (ONR) within its Future Naval Capabilities portfolio to replace traditional legacy towed mine-sweep systems.

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Degaussing System Market Growth Factors

Market Growth is Expected to be Driven by Rising Demand for Advanced Degaussing Systems

Magnetic mines are a potential danger to military ships because they're intended for detecting and affixing the ship's magnet signature. The improved demagnetization systems have a significant effect on reducing the ship'smagnetic signature, thereby making it less vulnerable to those deadly mines. The survivability of military ships and the success rate of missions will be greatly improved by this technology. Naval defense has evolved significantly over the years, with an increasing emphasis on electronic warfare and the use of magnetic mines by adversaries. Therefore, the demand for advanced demagnetization systems to counter these threats is becoming more and more important in modern navies around the globe.

For instance, in January 2022, By 2023, the U.S. Navy intends to equip all destroyers with state of the art demagnetization systems. The National Defense Authorisation Act of Fiscal Year 2022 calls for the Navy to incorporate modern degaussing systems that enable Flight III Arleigh Burke class destroyers to deactivate their electromagnetic fields. The degaussing systems industry is also benefiting from the provision of maintenance and modernization services for military vessels as part of the development of new systems. This aspect of the industry supports its sustainable growth.

The Government's Efforts to Establish a Global Fleet of Ships will only Exacerbate Market Growth.

Naval forces are increasingly engaged in turning their attention to the expansion of their naval vessel fleets globally. Countries are equipping these vessels with the latest degaussing technology as they invest in the expansion and modernisation of their naval fleets. Moreover, the market growth is enhanced by retrofitting of existing vessels with new technology.

Thyssenkrupp Marine Systems (TMS), a prominent German firm, signed a Memorandum of Understanding (MoU) with Mazagon Docks and Shipbuilders Limited (MDL) for the project. Thyssenkrupp Group is providing submarine design and consultancy, while MDL will handle construction with emphasis on local content.

In June 2023, Increased maritime security and strategic influence in the Indian Ocean region, as a result of China's expanding naval presence, has become India's primary focus for the Indian Navy. To address this, the Indian Navy has started a project called Project 75 I to build six state of the art submarines for replacing its ageing submarine fleet.

The submarines will feature a stealthy profile, degaussing equipment, sound-absorbing hull coating, optimized shaping for reduced detection, torpedo tubes, flexible reserve weapons storage, a vertical multi-purpose lock, and a Swimmer Delivery Vehicle (SDV) for special forces operations.

RESTRAINING FACTORS

High Initial Costs and Maintenance Expenses May Hamper Market Growth     

Degaussing or demagnetizing systems are made to reduce a ship's magnetic signature and protect it from magnetic mines. These systems are essentially important in modern naval warfare, but the large initial investment required for these systems is prohibitive for many naval defenses. Associated costs not only include purchasing the system itself but also the high cost of retrofit installation, customization, training, and compliance with stringent standards and regulations.

This spending strains the defense budget and poses a significant restraint to the modernization and protection of the naval fleet. Additionally, preventative maintenance of automatic demagnetizing systems is extensive. Degaussing panels and remote control panels are sensitive to heat and dirt, which require frequent cleaning and inspection. Maintenance and servicing of these systems require special technical expertise. Hiring or contracting qualified personnel to perform these tasks can be costly, especially in countries where access to trained professionals is limited. These factors are set to affect the degaussing system market growth negatively.

Degaussing System Market Segmentation Analysis

By Component Type Analysis

Degaussing Coils Segment Dominates Due to Increasing Demand for Maintenance and Retrofitting for Naval Vessels

By component type, the segment is categorized into power supplies, degaussing coils, control units, monitoring systems, and others.

Degaussing coils, also known as degaussing cables or demagnetizing coils, are a critical component of a system. The insulated copper wire that has been wound into a specific configuration is usually used for these coils. The electric current from the power supply flows in and out of these coils, generating a magnetic field. With increasing demand for maintenance, repair and modernization of ships, this segment is estimated to be the largest in terms of market share during the forecast period.

The electrical energy required for generating the magnetic field necessary to perform degaussing is provided by power supplies in a demagnetizing device. In order to eliminate residual magnetism in the ship's hull or electronic equipment, these power supplies are normally generated by controlling current that flows over degaussing lines. This segment is expected to grow on the back of the increasing demand for small amplifier.

By Solution Analysis

Rising Demand for Onboard Demagnetizing Systems to Drive Degaussing Segment Growth

By solution, the market is divided into degaussing, deperming, and ranging.

Degaussing ensures that the ship maintains its magnetic neutrality, allowing for accurate navigation and reducing the risk of detection by magnetic sensors or mines. This segment is the dominating one and is expected to register significant growth during the forecast period due to the rising demand for onboard demagnetizing systems.

The degaussing range assesses the effectiveness of the ship's degaussing equipment. The ship undergoes this range test for calibration and to verify its signature. Every new ship must conduct the degaussing range test for calibration purposes, which establishes the initial ship's signature and the settings for degaussing coil currents. The ranging segment is expected to be the fastest growing due to the increasing demand for prolonged systems' reliability and accuracy.

By Vessel Type Analysis

Offshore Patrol Vessel (OPV) Segment Dominates the Market Owing to the Growing Demand for Maritime Security and Border Control

By vessel type, the market is segmented into amphibious ships, destroyers, frigates, landing craft, offshore patrol vessel (OPV), mine warfare/countermeasure, submarine, and others.

An Offshore Patrol Vessel (OPV) is a compact surface vessel specially designed for coastal defense purposes. These ships are meant to handle various tasks, including combating smuggling, countering terrorism, providing disaster relief, and others. This segment dominates the market and is expected to register significant growth owing to the rising demand for maritime security and border control.

The mission of modern frigates is to protect other ships in fleets, merchant ships, amphibious expeditionary forces, and others from threats emanating from the sea, especially submarines. Therefore, it is equipped with various sensors and weapons. Modern frigates also have stealth capabilities. The frigates segment is expected to be the fastest growing due to the increasing demand for surface combatants with advanced capabilities.

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By End User Analysis

Owing to Rising Demand for Calibration and Maintenance, Aftermarket Segment Is Dominating in the Market

By end user, the market is bifurcated into OEM, aftermarket, and services. Services includes reduction of permanent magnetization and return of all ships in the same class to standard conditions. This is typically done once a year or if major structural changes are made during a refurbishment. This segment is the dominating one and is expected to register significant growth during the forecast period due to rising demand for advanced demagnetizing techniques.

Aftermarket deals with the sale of components, parts, maintenance services, upgrades, and support for magnetic silencing systems after they have been initially installed or delivered. This segment is expected to be the fastest growing due to increasing demand for calibration and maintenance to determine the systems configurations.

REGIONAL INSIGHTS

In terms of geography, the market is divided into North America, Europe, Asia Pacific, and the Rest of the World.

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Asia Pacific dominated the market and was valued at USD 436.2 million in 2023. This growth is attributed to the presence of a major fleet in this region. For instance, in July 2021, the Royal Australian Navy announced its plans to build an innovative magnetic treatment facility off the coast of Western Australia. The facility is designed to speed up the meticulous process while reducing the magnetic signature of passing ships. SEA 1350 Phase 2 naval magnetic processing facility is expected to be operational in 2023. The project is expected to be worth between USD 50 - 100 million and will replace the existing debarking facility at West Fleet Base.

Europe captured the second-largest part in the market share in 2023. The market growth is attributed to the growing maritime security threats. For instance, in March 2023, the European Union will hold joint naval exercises as part of plans to step up efforts to protect critical maritime infrastructure. An attack on the Nord Stream pipeline in September, which spilled natural gas into the Baltic Sea, heightened concerns about threats to Europe's maritime infrastructure. The EU will update its maritime security strategy, hold annual naval exercises from 2024, and member states' national efforts to protect gas pipelines, undersea data cables, offshore wind farms, and other critical maritime infrastructure outlined plans to adjust the

North America is the fastest-growing region during the forecast period and held a significant share in 2022. This growth is due to the expansion of naval defense capabilities. Defense spending has increased over the past six years as the U.S. military rebuilds and reorganizes its military to compete with other major powers. In April 2022, the U.S. Navy's 2022 Shipbuilding Plan, from fiscal years 2023 to 2052, calls for a larger, more modern, sustainable, and more lethal Navy. Additionally, modernizing and upgradation the naval fleet also bolsters the market growth in this region.

Rest of the World, which includes Latin America and the Middle East & Africa, are anticipated to witness significant growth in the market during the forecast period. The emerging maritime surveillance and increasing government initiatives are expected to lead the market growth in this region.

List of Key Companies in Degaussing System Market

Product Innovations, Emerging Markets, and Long Term Contracts are a Key Focus of Leading Players

Global degaussing system market share is concentrated with key players, such as Wärtsilä Corporation, Larsen & Toubro Limited, Ultra Electronics Holdings plc, L3 Harris Technologies, Inc., American Superconductor Corporation (AMSC), and others. Major players are focusing on product innovation, technological advancements, and mergers & acquisitions to increase their market share. For instance, in January 2021, American Superconductor Corporation (AMSC) received a USD 14.94 million contract from the U.S. Naval Surface Warfare Center to provide equipment and services for a high-temperature superconductor (HTS) degaussing system. The HTS system will be installed on USN ships and USMC Landing Platform Dock.

LIST OF KEY COMPANIES PROFILED:

• Wärtsilä Corporation (Finland)


• Larsen & Toubro Limited (India)


• Ultra Electronics Holdings plc (U.K.)


• L3 Harris Technologies, Inc. (U.S.)


• American Superconductor Corporation (U.S.)


• Polyamp AB (Sweden)


• Raytheon Technologies Corporation (U.S.)


• Groupe Gorgé (France)


• STL Systems AG (Switzerland)


• Hensoldt AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 - The U.S. Department of Defense announced that Fincantieri's U.S. subsidiary Marinette Marine (FMM) has been awarded a USD 526 million contract to build the fourth Constellation-class destroyer for the U.S. Navy. The contract for the main destroyer and nine option ships, signed in 2020, has a cumulative value of USD 5.5 billion, including post-delivery readiness support and crew training.


• December 2022 - American Superconductor Corporation (AMSC), a U.S.-based energy technology company, announced that it has entered into a supply agreement with Huntington Ingalls Industries through its Ingalls Shipbuilding division for ship protection systems based on high temperature superconductors (HTS). They plan to deploy these systems aboard the San Antonio-class amphibious dock transport ship LPD-32.


• November 2022 - BAE Systems, a U.K.-based aerospace and defense company, announced that the company inked a deal with the Ministry of Defense worth USD 5 billion to supply five anti-submarine warfare frigates for the U.K. Royal Navy.


• August 2022 - The U.S. Navy has signed a contract with Bollinger Shipyards to design and build an unmanned surface ship capable of mine-sweeping and mine-hunting operations. The initial contract covers three vessels, with options for up to 27 more vessels. Bollinger is a privately held company that designs and manufactures military and commercial vessels.


• February 2022 - The U.K. has commissioned marine technology manufacturer ATLAS ELEKTRONIK U.K. to supply the Royal Navy with another autonomous minesweeper. Unmanned surface vehicles for mine countermeasures can autonomously detect and remove landmines. The ship will be equipped with advanced "detect and avoid" autonomy, towed side scan sonar, and launch and recovery systems.

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REPORT COVERAGE

The degaussing system market statistics report provides a detailed market analysis. It comprises all major aspects, such as R&D capabilities and optimization of the operating services. Moreover, the market research and analysis report offers insights into the industry forecast, supply chain analysis, market dynamics, regional analysis, Porter’s five forces analysis, and the competitive landscape of various companies profiled with market competition and primarily highlights key industry developments. In addition to the above-mentioned factors, it mainly focuses on several factors that have contributed to the global market growth over recent years.

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