Degaussing System Market Share, Size, Trends, Industry Analysis Report, By Vessel Type (Small Vessel, Medium Vessel, and Large Vessel); By Solution; By End User; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 114
- Format: PDF
- Report ID: PM3133
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global degaussing system market was valued at USD 605.1 million in 2023 and is expected to grow at a CAGR of 3.70% during the forecast period. Market is influenced by the significant investments, ongoing geo-political tensions, and disputes among neighboring countries. According to new information on global military spending released by the Stockholm International Peace Research Institute, the global budget on military spending is increasing by 0.7% in real terms to reach USD 2,113 billion. The United States, China, India, the United Kingdom, and Russia jointly accounted for 62% of expenditure, in 2021. In 2021, global spending on military related operations has been risen by around USD 2.1 trillion, registering all time high value. Spending climbed for the sixth year in a row in this period. This will create a wide range of opportunities for the degaussing products in the world market in upcoming years.
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The cost of naval defense is rising as a result of international border disputes and security. Developing nations are investing more on naval defense; as an example, India boosted its budget for naval defense as part of Atmanirbhar Bharath. In comparison to 2021–2022, the Indian budget for defense research and development (R&D) increased by 17.57 percent. Businesses, start-ups, and academic institutions each receive a quarter of the R&D budget. It is also a good thing that this financing, which is meant to encourage innovation and localization. Due to security concerns, this will increase demand for Degaussing solutions.
A maritime war exercise prepares naval forces to investigate the outcomes of conflict or test tactics without engaging in actual 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 largest multinational biannual maritime combat exercise in the world, which took place in June 2022. The employment of degaussing, ranging, equipment to neutralize or demagnetize the magnetic field of navy warships and shield them from sea mines has expanded as a result of these exercises.
Naval tactics, as opposed to naval strategies, are techniques used to engage and destroy adversarial ships in maritime conflicts. The battlespace, a region around the naval force in which the commander may confidently detect, monitor, engage, and eliminate threats before they pose a threat, is the key idea in naval combat. 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 as a result of this vulnerability. This will create a wide range of competition among key market players.
Industry Dynamics
Growth Drivers
The primary factors driving the growth of the market globally include rising military budgets of both developed and developing economies, increasing importance of the system in naval warfare, and technological advancement in the degaussing system. A degausser device is used to perform degaussing, which involves applying a powerful magnetic field to change the polarity (orientation) of the magnetized domains on the storage device. This will further fuel the growth of the market owing to the rising importance of data security.
The expansion of marine combat drills and other related testing procedures is the most significant factor driving the growth of the market. Additionally, it is anticipated throughout the forecast period. increasing defense expenditures and investments would create sizable potential prospects for the global degaussing system market. In addition, improvements in degaussing equipment technology and the growing significance of degaussing systems in naval warfare are expected to drive the global market in the years to come.
One of the key factors propelling the expansion of the degaussing system market is the increase in defense budgets across the board. Degaussing systems' importance in naval combat is growing, and more old and new warships are being equipped with them to reduce or eliminate their magnetic fields, which spurs market expansion.
The market is further influenced by the high adoption due to the logical and technical support, including demagnetization treatment, system calibration, magnetic ranging, magnetic signature management, integrations assistance, and integrated logistics, as well as the increase in defense spending to modernize the naval fleets. Magnetic media cannot be entirely erased by simple overwriting. Only a degausser can totally wipe data and guarantee that sensitive information is securely destroyed. This advantage creates a wide range of possibilities to adopt degaussing products among the industrials.
Report Segmentation
The market is primarily segmented based on vessel type, solution, end user, and region.
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By Vessel Type |
By Solution |
By End User |
By Region |
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Medium Vessel Type is Expected to Witness Fastest Growth over the Forecast Period
Medium vessel segment is anticipated to dominate the market in upcoming years. One of the main reasons for the dominance of the medium vessel category is the growing necessity to defend submarines from hostile underwater mines by engaging in degaussing operations. Segment’s growth prospects is projected to rise, owing to significant investments in the medium size vessels, particularly in the emerging nations, where defense budgets are typically less.
Degaussing Accounted for the Largest Market Share in 2022
Degaussing segment is projected to witness significant growth owing to the increasing demand for electric vehicles, government registration and initiatives and increasing adoption of Information technology. Favorable government initiatives in terms of providing production linked incentives, public private partnerships, and collaborations with industry peer groups projected to prosper the segment’s growth in the coming future.
OEM Sector is Expected to Hold the Significant Revenue Share During Projected Timeline
The Original Equipment Manufacturers (OEM) segment would experience the fastest growth during the projected period owing to an increase in the delivery of new ships around the world. OEMs provide line-fit and retrofit solutions for military ships, reducing the amount of time needed to install degaussing equipment once a ship is delivered. Additionally, they do away with the need to keep specialized personnel on hand to install retrofit parts in navy vessels.
The Demand in North America is Expected to Witness Significant Growth
The development of network-centric infrastructure throughout this area and growing investments in naval combat capabilities and military technology are both responsible for the expansion of the degaussing system market in North America. Increased military spending by the US government and the rise of the shipbuilding industry are both responsible for the US degaussing system market's expansion. The US government is expanding its defense capabilities by supporting new technology, such as ship defense gear, unmanned aerial vehicles, and drone systems that protect the US navy fleet.
Competitive Insight
Some of the major players operating in the global market include Wartsila, Larsen & Turbo Limited, Ultra Electronics Holdings, L3Harris Technologies, and American Superconductor Corp.
Recent Developments
- In January 2023, KONGSBERG had signed a contract with Commonwealth of Australia for Naval strike missile and supporting equipment This is a crucial step in providing the Royal Australian Navy with a contemporary, reliable, and durable precision strike missile capability. Commonwealth, Australian business, & Kongsberg Defense will work closely together to complete this contract.
- In December 2022, Larsen & Toubro International has entered into an agreement pursuant to regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Degaussing System Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 625.61 million |
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Revenue forecast in 2032 |
USD 836.95 million |
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CAGR |
3.70% from 2024 - 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 - 2032 |
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Quantitative units |
Revenue in USD million and CAGR from 2024 to 2032 |
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Segments covered |
By Vessel Type, By Solution, By End User, |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key companies |
Wartsila, Larsen & Turbo Limited, Ultra Electronics Holdings plc, L3Harris Technologies, and American Superconductor Corporation. |
FAQ's
The degaussing system market report covering key segments are vessel type, solution, end user and region.
Degaussing System Market Size Worth $836.95 million By 2032.
The global degaussing system market expected to grow at a CAGR of 3.7% during the forecast period.
North America is leading the global market.
Key driving factors in degaussing system market are increasing importance of the system in naval warfare and technological advancement.
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