Degaussing System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vessel Type (Small Vessel, Medium Vessel, Large Vessel), By Solution (Degaussing, Ranging, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.04 Billion
CAGR (2026-2031)	6.18%
Fastest Growing Segment	Small Vessel
Largest Market	North America
Market Size (2031)	USD 1.49 Billion

Market Overview

The Global Degaussing System Market will grow from USD 1.04 Billion in 2025 to USD 1.49 Billion by 2031 at a 6.18% CAGR. The Global Degaussing System Market comprises the manufacturing and deployment of specialized electromagnetic equipment designed to reduce the magnetic signature of naval vessels, known as shipboard degaussing, as well as land-based solutions for the secure sanitization of magnetic media. The market is primarily supported by two main drivers: the escalating need for stealth capabilities in modern naval warfare to counter advanced magnetic mines, and the rigorous enforcement of data protection regulations requiring the secure and permanent disposal of classified or private information.

A significant challenge impeding market expansion is the ineffectiveness of degaussing technology on solid-state drives (SSDs), as the process relies on magnetic fields that do not affect flash memory, forcing users to adopt alternative physical destruction methods. Highlighting the strong industrial environment facilitating this demand, according to the Aerospace, Security and Defence Industries Association of Europe (ASD), in 2024, the defense industry turnover reached €183.4 billion. This robust economic activity in the defense sector underpins the continued investment in essential auxiliary systems, including naval protection and data security infrastructure.

Key Market Drivers

Escalating global naval modernization and fleet expansion programs function as a critical engine for market growth. Navies worldwide are prioritizing the replacement of aging vessels with advanced surface combatants that require integrated magnetic signature management systems to ensure survivability against intelligent mines and torpedoes. This recapitalization effort drives direct procurement of onboard degaussing coils and automated control units to reduce the magnetic susceptibility of steel hulls. According to the U.S. Navy Office of Information, March 2024, in the 'Department of the Navy Releases Fiscal Year 2025 Budget Proposal', the service requested $32.4 billion specifically for Shipbuilding and Conversion to procure new battle force ships. Such significant capital allocation for vessel construction ensures a steady stream of contracts for original equipment manufacturers integrating signature reduction technologies during the build phase.

Rising geopolitical tensions and maritime territorial disputes further accelerate the adoption of these protection systems by necessitating higher readiness levels. Governments are increasing defense appropriations to counter perceived threats in contested regions, prioritizing technologies that enhance stealth and minimize detection probabilities. According to the Stockholm International Peace Research Institute (SIPRI), April 2024, in the 'Trends in World Military Expenditure, 2023', global military spending increased for the ninth consecutive year to reach an all-time high of $2443 billion. While naval defense remains the primary revenue source, financial risks in the commercial sector also sustain demand for land-based degaussing solutions; according to IBM Security, in 2024, the global average cost of a data breach reached $4.88 million. This liability compels organizations to invest in NSA-evaluated degaussers to guarantee the permanent erasure of magnetic media.

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Key Market Challenges

The fundamental challenge restricting the growth of the Global Degaussing System Market is the technical ineffectiveness of electromagnetic sanitization on solid-state drives. Degaussing equipment functions by generating powerful magnetic fields to scramble data patterns on magnetic media, such as traditional hard disk drives and tapes. However, this process has no effect on solid-state drives, which utilize flash memory chips rather than magnetic platters to store information. As a result, security-conscious organizations are forced to bypass degaussing entirely for these modern assets, shifting instead toward physical destruction methods like crushing or shredding, which directly reduces demand for degaussing hardware.

This technological displacement is intensifying as the global storage landscape transitions rapidly toward non-magnetic media. The dominance of the technology rendering degaussing systems obsolete is evident in recent industrial output figures. According to the Semiconductor Industry Association, in 2024, global semiconductor sales reached $56.9 billion during the month of October. This robust performance in the semiconductor sector indicates a sustained proliferation of flash-based technologies. As the ratio of solid-state drives to magnetic hard drives increases in enterprise environments, the functional application of degaussing systems becomes increasingly confined to legacy asset management.

Key Market Trends

The adoption of High-Temperature Superconducting (HTS) technology represents a critical technical shift in the market, replacing traditional heavy copper cabling with lightweight, energy-efficient superconducting coils. This innovation allows naval architects to integrate powerful magnetic signature reduction systems into high-density combatant designs without exceeding weight displacement limits or straining onboard power generation capabilities. The commercial acceleration of these advanced ship protection technologies is evident in the financial performance of key industry players. According to AMSC, May 2025, in the 'Fourth Quarter and Fiscal Year 2024 Financial Results', the company reported total revenues of $222.8 million, a substantial increase driven significantly by the delivery of diversified energy and ship protection hardware. This growth trajectory underscores the transition from experimental HTS prototypes to standard, serial-production degaussing configurations for allied fleets.

Concurrently, the rapid proliferation of unmanned naval platforms is creating a new application segment for modular and automated degaussing solutions. As navies increasingly rely on Medium and Large Unmanned Surface Vehicles (MUSVs and LUSVs) for mine countermeasure missions, these autonomous assets require sophisticated signature management to ensure survivability in contested waters, necessitating compact systems compatible with smaller hull forms. Highlighting the robust investment in this sector, according to the Congressional Research Service, March 2025, in the 'Navy Large Unmanned Surface and Undersea Vehicles: Background and Issues for Congress' report, the U.S. Navy requested $101.8 million in research and development funding specifically for the Medium Unmanned Surface Vehicle (MUSV) program for the fiscal year 2025. This significant capital allocation for unmanned systems signals a sustained commitment to fielding autonomous vessels, which will directly drive demand for specialized, lightweight onboard degaussing units.

Segmental Insights

The Small Vessel segment constitutes the fastest-growing category in the Global Degaussing System Market, driven by the intensifying focus on coastal defense and mine countermeasure capabilities. As nations expand their fleets to secure littoral zones, the procurement of patrol boats, mine hunters, and fast attack crafts has surged. These smaller platforms operate in shallow waters where magnetic mines present a severe risk, making signature reduction critical for survivability. This operational necessity has catalyzed the demand for compact, lightweight degaussing solutions specifically engineered to protect these constrained hulls without hindering performance, thereby fueling the segment’s rapid expansion.

Regional Insights

North America maintains a dominant position in the global degaussing system market, largely due to significant defense allocations by the United States. The region prioritizes naval fleet modernization, driven by U.S. Department of Defense requirements to reduce the magnetic signatures of military vessels. This strategic focus aims to protect warships from magnetic mines and enhance operational safety. Consequently, the high concentration of naval bases and continuous upgrades to existing maritime defense capabilities foster a strong regional market. The established presence of major system manufacturers further consolidates North America as the primary revenue generator in this sector.

Recent Developments

• In July 2024, ESCO Technologies Inc. announced a definitive agreement to acquire the Signature Management & Power business of Ultra Maritime for a purchase price of $550 million. This strategic acquisition is intended to bolster the company’s position in the global naval defense market by adding a suite of mission-critical technologies, including advanced degaussing and electric field signature management systems. The transaction brings together complementary engineering capabilities that will support the United States and United Kingdom navies in modernizing their fleets. The integration of these product lines is expected to enhance protection for submarines and surface ships against increasingly sophisticated underwater detection and mine threats.
• In June 2024, American Superconductor Corporation (AMSC) announced that it had secured a multi-year delivery contract valued at approximately $75 million with Irving Shipbuilding Inc. Under this agreement, the company will supply its advanced high-temperature superconductor-based Ship Protection Systems for the Royal Canadian Navy’s new fleet of Canadian Surface Combatant ships. This landmark deal represents the first delivery of AMSC’s proprietary degaussing technology to an allied navy, expanding its reach beyond the United States. The system is engineered to reduce the magnetic signature of combat vessels, providing critical protection against underwater mines and enhancing the survivability of the fleet.
• In April 2024, Garner Products, Inc. launched the DiskMantler, an innovative automated system designed to revolutionize hard drive decommissioning and recycling. This new solution integrates the company’s patent-pending DeMAG super degausser, which generates an intense magnetic field to completely erase data from hard drive platters while simultaneously neutralizing the strong magnetic fields of internal rare-earth magnets. By rendering the data forensically unrecoverable and separating the magnets from other components, the system allows for the efficient, safe recovery of valuable materials, thereby supporting environmental sustainability and creating a clean stream of recyclable electronic waste.
• In February 2024, Babcock International Group was awarded a significant five-year contract by the United Kingdom's Ministry of Defence to provide comprehensive in-service support for the Royal Navy's Ships Protective System equipment. This agreement entails the delivery of critical services including degaussing, cathodic protection, and active shaft grounding, which are essential for reducing the magnetic signature of naval vessels and protecting them against modern magnetic mines. The contract ensures the continued operational availability of the fleet's surface ships and submarines by maintaining these sophisticated signature management systems and managing the supply chain for essential spare parts.

Key Market Players

• Wartsila Corporation
• Larsen & Turbo Limited
• Ultra Electronics Holdings plc
• L3Harris Technologies Inc
• American Superconductor Corporation
• Polyamp AB
• ECA Group
• STL Systems AG
• DA Group
• IFEN S.p.a.

By Vessel Type	By Solution	By Region
Small Vessel Medium Vessel Large Vessel	Degaussing Ranging Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Degaussing System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Degaussing System Market, By Vessel Type:

• Small Vessel
• Medium Vessel
• Large Vessel

• Degaussing System Market, By Solution:

• Degaussing
• Ranging
• Others

• Degaussing System Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE