Degaussing System Market

The Degaussing Systems Market size is projected to grow from USD 619 Million in 2022 to USD 740 Million by 2027, at a CAGR of 3.6% from 2022 to 2027.

A degaussing system enables neutralizing the ship's magnetic field and ensures that the magnetic field close to the ship is, as nearly as possible, just the same if the ship were not there. This, in turn, reduces the possibility of being targeted and increases the security of the ship and personnel.

Present day warships have built-in degaussing systems. The degaussing system aboard a naval vessel consists of interconnected coils of electrical cables in different locations within the hull, with a direct power source to energize the coils and a control system, via switchboards, to control the amount and polarity of current through the coils.

Degaussing System Market Forecast to 2027

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Degaussing systems Market Dynamics:

Driver: Increasing importance of degaussing systems in naval warfare

Naval tactics, distinct from naval strategies, are methods to engage and defeat enemy ships in sea battles. The central concept of naval warfare is the battlespace, a zone around the naval force within which the commander can confidently detect, track, engage, and destroy threats before they pose a danger.

Ships and warships are detected due to their easy visibility and magnetic signatures. Submarines play a strategic role in naval tactics and are more vulnerable to mines, as they operate underwater where mines are placed. This vulnerability has increased the demand for degaussing and deperming systems used to demagnetize the magnetic signatures of submarines. There has been an increase in submarine deliveries in developing countries, such as India, China, and South Korea, which, in turn, has led to the increased use of degaussing and deperming systems. In June 2021, the defense ministry of India intended to execute an old plan to procure six units of conventional submarines. This proposed plan will expect to create a competition among leading shipbuilders namely Larsen & Toubro Ltd (India) and Mazagon Dock Shipbuilders Limited (India).

Restraint: Use of composite materials in warships

Traditionally, warships were made of stainless steel. New carbon fiber composite superstructures imported from the Kockums shipyard (Sweden) assist in developing lightweight warships. However, the enemy easily detects such lightweight warships. Stealth is the most important feature of composite materials, as they are less susceptible to detection, unlike steel. Warships that are likely to use new nonmagnetic materials include offshore patrol vessels (OPVs), fast attack crafts (FACs), and corvettes.

The use of composite materials in building warships hinders the influence of the Earth’s magnetic field, thereby restricting the ability of sea mines to detect these vessels. Thus, using composite materials is likely to restrain the growth of the Degaussing System Industry.

Opportunity: Increase in maritime warfare exercises

A maritime war exercise trains naval forces to explore the warfare effects or test strategies without actual combat. It is a full-scale rehearsal of navy maneuvers as a warfare practice. A maritime war exercise is a joint or combined exercise practiced between or more nations. Over the last decade, the number of maritime warfare exercises has been increasing exponentially, owing to the need to strengthen the combat capabilities of naval forces. For instance, in June 2022, Rim of the Pacific (RIMPAC), the world’s largest international biennial maritime warfare exercise, witnessed participation from 27 countries, including India. Such exercises have increased the use of degaussing, ranging, and deperming systems to demagnetize or nullify the magnetic field of naval vessels and protect them from sea mines.

Challenge: High cost of retrofit, installation, and calibration services

Naval vessels are high-technology platforms. Degaussing systems in these vessels encompass high-technology components and subcomponents, including degaussing control units, magnetometers, bipolar amplifiers, DC generators, and sensors. These components and subcomponents contribute to the high cost of degaussing systems.

Rapid technological developments have led to the obsolescence of older technologies. The retrofitting of naval vessels involves extensive system checks and replacement of older components with newer ones. During its life cycle, a naval vessel undergoes various refits and upgrades. Additionally, retrofit, installation, and calibration services are done annually, contributing to increased expenditure. Countries allocate huge budgets for retrofit costs to maintain their technological lead and extend the life of their naval vessels.

Based on Solution, the ranging segment witness strong growth during 2022-2027

Based on solution, the degaussing systems market has been segmented into ranging, degaussing and deperming. Ranging segment further subdivided into fixed and onboard. The onboard offering subsegment of the ranging solution segment has been classified into aerial ranging devices, transmitted data buoys, sensors, magnetometers, coils, software, and monitors. Onboard ranging of naval vessels is performed away from onshore.

Based on End User, Aftermarket witness significant growth during forecast period

Based on end user, the degaussing systems market has been segmented into OEM, aftermarket and services. In the aftermarket, companies offer complete maintenance, repair, and overhaul services for degaussing systems. These companies specialize in both, metallic and composite repair techniques used in degaussing systems. For instance, damaged components of degaussing systems such as conductors and degaussing coils are sent to service centers for maintenance, repair, and overhaul. Aftermarket also offers over-the-counter products in cases, wherein components of degaussing systems are damaged beyond repair.

Based on end user, OEM segment registered largest share in base year

Based on end user, the degaussing systems market has been classified into OEM, aftermarket, and services. Original Equipment Manufacturers (OEMs) offer line-fit and retrofit options for naval vessels, thereby saving the time consumed in the installation of degaussing systems in ships post their delivery. They also eliminate the requirement to maintain a separate workforce for the installation of retrofit components in naval vessels.

The North America region is projected to Grow at highest CAGR during the forecast period

The growth of the North America degaussing system market can be attributed to increased investments in defense equipment and naval warfare capabilities and the implementation of network-centric infrastructure across this region. Among American countries, the US is projected to lead the degaussing system market in the North American region. The growth of the degaussing system market in the US can be attributed to increased military spending by the US government and the expansion of the shipbuilding industry. The US government is broadening its defense capabilities by funding new technologies, which include ship protection equipment, UAVs, and drone systems that safeguard the US naval fleet.

Degaussing System Market by Region

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The break-up of the profiles of primary participants in the Degaussing systems Market is as follows:

• By Company Type: Tier 1–35%; Tier 2–45%; and Tier 3–20%
• By Designation: C Level Executives–35%; Directors–25%; and Others–40%
• By Region: Asia Pacific–30%; North America–30%; Europe–20%; Middle East–10%; and Rest of the World–10%

Key Market Players

The major players in the Degaussing Systems Companies are Wartsila (Finland), Larsen & Turbo Limited (India), Ultra Electronics Holdings plc (UK), L3Harris Technologies, Inc. (US), and American Superconductor Corporation (US). These players have adopted various growth strategies such as contracts, acquisitions, agreements, expansions, investments, and new product launches to further expand their presence in the degaussing systems market.

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Scope of the Report

Degaussing System Market Highlights

This research report categorizes the degaussing system market based on vessel type, solution, end user, and region

Recent Developments

• In January 2022, Larsen & Turbo Limited announced the development of advanced defense technologies for Indian defense forces. The company degausses the hulls of cargo and oil tanker vessels and also provides repair and installation services.
• In November 2021, The Marine Electrical Systems, a division of Wartsila SAM Electronics GmbH, received a contract under the F126 project from Damen (Netherland) to deliver degaussing system, switchgear, lighting system, power distribution system, and special equipment for an energy supply

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