The global degaussing system market is witnessing steady growth, driven by rising naval security threats, fleet modernization programs, and increasing adoption of advanced stealth technologies. According to Fortune Business Insights™, the market 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, reflecting a CAGR of 5.7% during the forecast period.
Degaussing systems are increasingly seen as mission-critical solutions, ensuring that naval vessels remain stealthy and resilient against modern mine warfare.
What is a Degaussing System and Why It Matters?
Ships and submarines made from ferromagnetic materials generate a magnetic signature when they move through the Earth’s magnetic field. This signature can be detected by enemy mines, submarines, or surveillance systems, leaving vessels vulnerable.
A degaussing system reduces or eliminates this magnetic field by using coils, power supplies, and control units, making ships less detectable. This capability is crucial in naval warfare, where stealth is often the difference between mission success and failure.
The importance of these systems has grown due to:
- Increasing sophistication of naval mines with magnetic and hybrid triggers.
- Rising global maritime tensions in regions such as the South China Sea, Arctic, and Black Sea.
- The need for stealth technologies in modern naval fleets to protect both manned and unmanned vessels.
Key Market Drivers
- Increasing Naval Mine Threats
- Modern smart mines with multi-influence triggers (magnetic, pressure, acoustic).
- Growing stockpiles in regions of conflict.
- Rising Defense Budgets
- U.S. defense budget for FY2024 exceeds USD 800 billion, boosting naval shipbuilding.
- India and China expanding blue-water navies.
- Technological Advancements
- Shift toward HTS-based systems offering compact, energy-efficient solutions.
- Integration of AI and automation in monitoring systems.
- Fleet Modernization Programs
- Over 1,500 naval vessels worldwide expected to undergo upgrades by 2032.
- High retrofit demand in Asia Pacific and Europe.
Market Restraints
- High Installation Costs – Advanced systems require significant upfront investment.
- Technical Complexity – Integration challenges with legacy vessels.
- Budget Constraints in Developing Nations – Slows adoption despite need.