Global Degaussing System Market Size, Share Analysis Report By Component (Power Supplies, Degaussing Coils, Control Units, Intelligent Terminal, Others), By Solution (Degaussing, Deperming, Ranging), By Vessel Type (Small Vessels (MCMV, OPV, FAC), Medium Vessels (Submarines, Corvettes, Destroyers), Large Vessels (Aircraft Carriers, Frigates, Amphibious)), By End Use (OEM, Aftermarket, Services), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

Global Degaussing System Market is expected to be worth around USD 1.3 billion by 2034, up from USD 0.8 billion in 2024, and grow at a CAGR of 5.3% from 2025 to 2034. With a 43.50% market share, North America’s degaussing system market was valued at USD 0.3 Bn in 2024.

A degaussing system is a setup used on ships to counteract the magnetic field of the steel hull, which can disrupt compass readings and make the vessel vulnerable to magnetic mines. The system involves running electrical cables throughout the ship, which generate a magnetic field opposite to the one produced by the ship itself, effectively reducing its magnetic signature and enhancing navigational accuracy and safety.

The degaussing system market is focused on the production, innovation, and distribution of these crucial systems, primarily driven by the demand from military and commercial shipping sectors. As naval fleets worldwide strive for increased stealth and safety, the market sees substantial growth opportunities.

One of the main growth factors for the degaussing system market is the increasing emphasis on naval defense. As countries modernize their naval capabilities, they seek advanced technologies like degaussing systems to safeguard their fleets against magnetic mines and ensure operational efficiency.

Demand for degaussing systems is particularly strong in regions with significant naval activities and in countries investing in maritime security. This demand is further bolstered by the growth of international maritime trade, which requires commercial vessels to minimize magnetic interference for safe passage through waters that may have magnetic mines.

Opportunities in the degaussing system market are expanding with technological advancements. Innovations in magnetic materials and electronic control systems allow for more effective and compact degaussing solutions, opening up new applications in smaller naval vessels and potentially even in other areas such as underwater exploration and research.

Key Takeaways

• Global Degaussing System Market is expected to be worth around USD 1.3 billion by 2034, up from USD 0.8 billion in 2024, and grow at a CAGR of 5.3% from 2025 to 2034.
• Power supplies hold a significant 31.10% share in the Degaussing System Market by component.
• Degaussing solutions dominate the market, comprising 53.40% of the sector by solution type.
• Medium vessels represent 37.80% of the market by vessel type, highlighting their substantial deployment.
• Original Equipment Manufacturers (OEMs) account for 42.40% of the market in end-use, leading demand growth.
• The North American degaussing system market reached USD 0.3 Bn in 2024, capturing a dominant 43.50% share.

By Component Analysis

Power supplies contribute 31.10% to the degaussing system market’s overall revenue growth.

In 2024, Power Supplies held a dominant market position in the By Component segment of the Degaussing System Market, with a 31.10% share. The segment’s growth is driven by increasing demand for efficient power management solutions in naval and commercial shipping applications. Power supplies play a crucial role in maintaining the operational stability of degaussing systems, ensuring continuous magnetic field cancellation, and enhancing vessel security against magnetic threats.

Control Units accounted for a significant portion of the market, supported by advancements in automation and precision-based magnetic field regulation. The integration of digital control systems enhances real-time adjustments, reducing energy consumption and improving overall system efficiency. The segment continues to expand as naval forces prioritize sophisticated control mechanisms for optimized stealth and mine countermeasure operations.

Degaussing Coils remain a vital component, witnessing steady adoption due to their effectiveness in reducing residual magnetism in ship hulls. Continuous research in high-performance magnetic materials further strengthens this segment, enabling lighter and more efficient coil designs for modern vessels.

By Solution Analysis

Degaussing solutions dominate the market, accounting for 53.40% of the total demand share.

In 2024, Degaussing held a dominant market position in the By Solution segment of the Degaussing System Market, with a 53.40% share. The segment’s growth is primarily driven by rising investments in naval defense, where reducing a vessel’s magnetic signature is critical for protection against magnetic mines and stealth operations. Modern warships and submarines increasingly integrate advanced degaussing solutions to enhance survivability in high-risk maritime zones.

Deperming solutions accounted for a smaller yet significant share, particularly in naval maintenance programs. Periodic deperming procedures are essential for ensuring that a ship’s residual magnetism remains within operational limits. This process is widely adopted in shipyards and naval bases, where vessels undergo magnetic signature management to maintain combat readiness.

Magnetic Signature Control Systems are also gaining traction as naval forces focus on real-time monitoring and adaptive degaussing techniques. These systems provide automated adjustments based on a ship’s magnetic field variations, offering enhanced efficiency in countering magnetic threats.

The By Solution segment in the Degaussing System Market is shaped by defense modernization initiatives and technological advancements, with Degaussing leading due to its essential role in naval security and growing adoption across commercial and military vessels.

By Vessel Type Analysis

Medium vessels lead with 37.80% adoption of degaussing system installations worldwide.

In 2024, Medium Vessels held a dominant market position in the By Vessel Type segment of the Degaussing System Market, with a 37.80% share. The segment’s leadership is attributed to the increasing deployment of medium-sized naval ships, including frigates, corvettes, and patrol vessels, which require advanced degaussing systems for operational security. These vessels play a crucial role in maritime defense, conducting surveillance, escort missions, and anti-submarine warfare, where reducing their magnetic signature is essential for mine countermeasures.

Large Vessels, including aircraft carriers and destroyers, accounted for a substantial portion of the market, as these high-value assets integrate sophisticated degaussing systems to minimize magnetic detection risks. The demand for advanced degaussing solutions in large vessels is driven by rising global defense budgets and fleet modernization programs.

Small Vessels, such as mine countermeasure vessels and patrol boats, also contribute to market growth, primarily due to their specialized roles in detecting and neutralizing magnetic mines. The adoption of lightweight and efficient degaussing solutions in this segment is increasing as naval forces emphasize agility and rapid response capabilities.

By End-Use Analysis

OEMs hold a 42.40% market share, driving innovation in degaussing systems.

In 2024, OEM held a dominant market position in the By End Use segment of the Degaussing System Market, with a 42.40% share. The segment’s leadership is driven by increasing procurement of new naval vessels integrated with advanced degaussing systems.

Original Equipment Manufacturers (OEMs) play a critical role in supplying cutting-edge degaussing solutions tailored to modern naval requirements, ensuring compliance with stringent defense regulations and enhancing fleet capabilities.

The Aftermarket segment follows closely, fueled by the demand for maintenance, upgrades, and retrofitting of existing degaussing systems on operational vessels. As global naval forces extend the service life of their fleets, investments in replacing outdated components and enhancing system efficiency continue to grow. Rising geopolitical tensions and the need for enhanced maritime security further support the demand for aftermarket degaussing solutions.

The Commercial Sector is also contributing to market growth as commercial shipping companies increasingly adopt degaussing systems to comply with international maritime safety regulations. The focus on reducing magnetic interference for navigational accuracy and mine avoidance in high-risk zones is driving adoption in cargo ships and oil tankers.

Key Market Segments

By Component

• Power Supplies
• Degaussing Coils
• Control Units
• Intelligent Terminal
• Others

By Solution

• Degaussing
• Deperming
• Ranging

By Vessel Type

• Small Vessels
  • MCMV
  • OPV
  • FAC
• Medium Vessels
  • Submarines
  • Corvettes
  • Destroyers
• Large Vessels
  • Aircraft Carriers
  • Frigates
  • Amphibious

By End Use

• OEM
• Aftermarket
• Services

Driving Factors

Rising Naval Defense Investments Boost Market Growth

Increasing global defense budgets are a key factor driving the demand for degaussing systems. Governments worldwide are investing heavily in modernizing their naval fleets, ensuring that warships, submarines, and patrol vessels are equipped with advanced degaussing technologies.

These systems help reduce a ship’s magnetic signature, making them less vulnerable to magnetic mines and enemy detection. Countries with significant maritime activities, such as the U.S., China, and India, are focusing on fleet expansion and upgrades, further boosting market demand.

Additionally, rising geopolitical tensions and the need for stealth capabilities in modern naval warfare are pushing defense agencies to integrate next-generation degaussing solutions. As defense spending continues to rise, the market is expected to see steady growth in the coming years.

Restraining Factors

High Installation Costs Limit Market Expansion

The high cost of installing degaussing systems is a major challenge for market growth. These systems require complex wiring, power supplies, and advanced control units, leading to significant upfront investment.

Naval defense budgets prioritize multiple technologies, making cost-intensive systems like degaussing less of a priority for some nations. Additionally, retrofitting older ships with modern degaussing solutions is expensive and requires extensive modifications, further limiting adoption.

Commercial vessel operators, who primarily focus on cost efficiency, may hesitate to invest in such high-cost systems unless mandated by regulations. While technological advancements are helping reduce costs, financial constraints remain a key barrier, particularly for emerging economies with limited naval modernization budgets, slowing down overall market expansion.

Growth Opportunity

Advancements in Automation Enhance System Efficiency

The integration of automation and digital control technologies in degaussing systems presents a significant growth opportunity. Modern naval fleets are increasingly adopting automated degaussing systems that adjust magnetic field compensation in real time, improving efficiency and reducing manual intervention.

These advanced systems offer better accuracy, lower energy consumption, and enhanced stealth capabilities, making them attractive for both military and commercial applications. The demand for AI-driven monitoring and adaptive degaussing technologies is rising as defense forces prioritize next-generation solutions.

Additionally, automated degaussing systems are becoming more compact and lightweight, allowing for easier installation on a wider range of vessels. As automation continues to evolve, companies investing in smart degaussing solutions can gain a competitive edge in the expanding market.

Latest Trends

AI-Powered Degaussing Systems Improve Naval Stealth

Artificial Intelligence (AI) is transforming degaussing systems by enabling real-time adjustments and smarter magnetic signature management. Modern naval fleets are adopting AI-driven degaussing systems that continuously monitor a ship’s magnetic field and automatically fine-tune settings for optimal stealth.

This reduces human intervention, enhances accuracy, and improves energy efficiency. AI-powered solutions also allow for predictive maintenance, helping fleets detect potential system failures before they occur, reducing downtime and operational risks.

As defense forces prioritize next-generation stealth technologies, AI-integrated degaussing systems are becoming a key focus. Additionally, advancements in machine learning algorithms are enabling adaptive degaussing, ensuring better protection against evolving magnetic mine threats. The trend toward AI-driven automation is expected to shape the future of the degaussing system market.

Regional Analysis

In 2024, North America led the degaussing system market, holding a 43.50% share, valued at USD 0.3 Bn.

In 2024, North America dominated the degaussing system market, holding a 43.50% share and reaching a market value of USD 0.3 Bn. The region’s leadership is driven by extensive naval modernization programs, high defense budgets, and the presence of key industry players. The United States and Canada are investing in advanced degaussing systems to enhance naval fleet security and counter evolving magnetic mine threats.

Europe follows closely, supported by increased defense spending across major naval forces such as the United Kingdom, France, and Germany. The region focuses on fleet upgrades and mine countermeasure vessels, fueling demand for technologically advanced degaussing solutions.

The Asia Pacific market is experiencing significant growth, led by China, India, and Japan, which are strengthening their naval capabilities amid rising geopolitical tensions. Increasing procurement of submarines and warships is accelerating the adoption of advanced degaussing systems.

The Middle East & Africa market is expanding at a steady pace, driven by naval security concerns and fleet expansion in Saudi Arabia and the UAE.

Latin America holds a smaller market share but is witnessing gradual adoption, particularly in Brazil and Argentina, where naval modernization programs are gaining traction.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

In 2024, American Superconductor Corporation remains a significant player in the degaussing system market, leveraging its expertise in advanced power and magnetic field management technologies. The company’s innovative solutions, particularly in ship protection systems, continue to gain traction among naval forces globally. Its strong foothold in North America supports market dominance, benefiting from the region’s 43.50% share and USD 0.3 Bn valuation.

DA Group maintains its competitive edge through specialized degaussing solutions designed for modern naval vessels. The company’s emphasis on high-performance magnetic signature management has positioned it as a preferred supplier for defense organizations, particularly in Europe and Asia Pacific, where naval modernization initiatives are on the rise.

ECA Group continues to strengthen its market presence by integrating degaussing systems with autonomous and remote-controlled maritime solutions. Its focus on countermeasure technologies aligns well with increasing defense spending across Europe, enabling the company to expand its portfolio in regions prioritizing naval stealth and security.

Hensoldt AG, a key defense technology company, enhances its market position through its expertise in electronic warfare and sensor-driven degaussing systems. Its European market presence and strategic defense collaborations drive the adoption of advanced degaussing technologies in Germany, France, and the UK, contributing to regional growth.

IFEN SPA, an emerging player, is expanding its footprint with cost-effective degaussing solutions tailored for smaller and medium-sized vessels. Its growth potential is strong in Latin America and the Middle East, where cost-efficient and scalable degaussing systems are in demand.

Top Key Players in the Market

• American Superconductor Corporation
• DA Group
• ECA Group
• Hensoldt AG
• IFEN SPA
• L3Harris Technologies, Inc.
• Ultra Electronics Holdings plc
• Wärtsilä Corporation
• Polyamp AB
• DA-Group
• L3Harris Technologies, Inc
• Ultra Electronics
• IFEN SPA

Recent Developments

• In May 2023, Marinette Marine, a Fincantieri subsidiary in the U.S., received a $526 million contract from the U.S. Department of Defense to build the fourth Constellation-class destroyer for the Navy. This contract, part of a larger $5.5 billion deal initiated in 2020 for a lead destroyer and potential for nine additional vessels, also includes provisions for post-delivery services and crew training.
• In December 2022, Huntington Ingalls Industries’ Ingalls Shipbuilding division agreed to procure high-temperature superconductor (HTS) ship protection systems from American Superconductor Corporation (AMSC). These systems are intended for use on the LPD-32, a San Antonio-class amphibious transport dock.
• In November 2022, the U.K. Ministry of Defense awarded BAE Systems a contract worth $5 billion to provide five anti-submarine warfare frigates for the Royal Navy.

Report Scope