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The global degaussing system market size was valued at USD 881.7 million in 2022 and is projected to grow from USD 905.9 million in 2023 to USD 1,164.6 million by 2030, exhibiting a CAGR of 3.7% 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.
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.
Unmanned Surface and Underwater Vessels (USUV) are Prominent Trends in the Degaussing System Market
The deployment of unmanned surface and underwater vessels (USUVs) is revolutionizing maritime operations. These autonomous ships are increasingly used because of their ability and stealth. As naval technology advances, the use of surface ships and unmanned submarines is expected to increase during the forecast period. This will further enhance the surveillance, reconnaissance, and other defense capabilities. 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, has secured an initial contract worth over USD 20 million, with a USD 8 million allocation for AMSC. This U.S. Navy contract includes the design, development, and integration of the next-generation mine sweep system for the Common Unmanned Surface Vessel (CUSV) platform. 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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Rising Demand for Advanced Degaussing Systems is Expected to Drive Market Growth
Magnetic mines are a potential threat to military ships as they are designed to detect and attach to a ship's magnetic signature. Advanced demagnetization systems effectively reduce a ship's magnetic signature, which helps make it less susceptible to these deadly mines. This technology greatly improves the survivability of military ships and the success rate of missions. 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 increasingly important for modern navies around the world.
For instance, in January 2022, the U.S. Navy plans to add advanced demagnetizing systems to all destroyers by 2023. The National Defense Authorization Act for Fiscal Year 2022 requires the Navy to integrate advanced degaussing systems, which allows the ship's magnetic field to be canceled, for Flight III Arleigh Burke-class destroyers. Along with the production of new systems, the degaussing systems industry also benefits from providing maintenance and modernization services for existing military vessels. This aspect of the industry supports its sustainable growth.
Government Initiatives to Expand the Fleet of Naval Vessels Globally Will Catalyze the Market Growth
Naval forces are increasingly engaged in turning their attention to the expansion of their naval vessel fleets globally. As nations invest in the expansion and modernization of their naval fleets, they are equipping these vessels with the latest degaussing technology. Furthermore, the retrofitting of existing ships with updated systems adds to the market's growth.
In June 2023, India's primary focus for the Indian Navy shifted to enhancing maritime security and strategic influence in the Indian Ocean region, prompted by China's expanding naval presence. To address this, the Indian Navy initiated Project 75-I, aiming to build six advanced military submarines to replace its aging fleet.
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 will provide submarine design and consultancy, while MDL will handle construction and emphasize local content.
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.
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 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. These coils are typically made of insulated copper wire wound into a specific configuration. When an electrical current from the power supply passes through these coils, they generate a magnetic field. This segment dominates the market share and is estimated to be the fastest-growing segment during the forecast period due to increasing demand for service, maintenance, and retrofitting for naval vessels.
Power supplies in a demagnetizing system provide the electrical energy needed to generate the magnetic fields required for the degaussing process. These power supplies typically produce controlled electrical currents that flow through the degaussing coils to neutralize the residual magnetism in a ship's hull or electronic equipment. The increasing demand for compact amplifiers is anticipated to boost this segment’s growth.
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 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 increasing demand for prolonged systems' reliability and accuracy.
Offshore Patrol Vessel (OPV) Segment Dominates the Market Owing to the Growing Demand for Maritime Security and Border Control
The market by vessel type 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 more. 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 increasing demand for surface combatants with advanced capabilities.
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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.
In terms of geography, the market is divided into North America, Europe, Asia Pacific, and the Rest of the World.
Asia Pacific Degaussing System Market Size, 2022 (USD Million)
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Asia Pacific dominated the market and was valued at USD 412.8 million in 2022. 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 2022. 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.
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.
An Infographic Representation of Degaussing System Market
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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.
CAGR of 3.7% from 2023 to 2030
Value (USD Million)
Solution, Component, Vessel Type, End User and Geography
By Vessel Type
By End User
As per the Fortune Business Insights study, the market size was USD 881.7 Million in 2022.
The market is likely to grow at a CAGR of 3.7% over the forecast period (2023-2030).
The services segment is expected to lead the market.
The market size in Asia Pacific stood at USD 412.8 Million in 2022.
Rising demand for advanced degaussing systems and government initiatives to expand the fleet of naval vessels all across the globe are expected to drive the market.
Some of the top players in the market are Wärtsilä Corporation, Larsen & Turbo Limited, Ultra Electronics Holdings plc, L3 Harris Technologies, Inc., American Superconductor Corporation (AMSC), and others.
China dominated the market in 2022.
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