The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The degaussing systems market is anticipated to witness a CAGR of more than 2.5%, during the forecast period (2020 - 2025).
- There is a need for effective measures for magnetic signature control of the naval vessels for protection against the sea mines and torpedo, which can be triggered by ships’ magnetic signature. This requirement for suppressing a magnetic signature, fueled by a growing naval vessel fleet across the world, is generating demand for new degaussing systems onboard naval vessels.
- The development of advanced degaussing systems with new materials, like superconductors, which reduce the weight of the vessel and energy consumption of the degaussing equipment, is anticipated to propel the growth of degaussing systems market in the future.
Key Market Trends
The Frigates Segment Recorded the Highest Market Share in 2019
The high lethality and low detection capabilities of the frigates are the major reasons for navies around the world to increasingly procure frigates. The replacement programs in various countries to replace the current aging fleet of combat ships with modern detection and weapon systems equipped frigates that have anti-ship, anti-submarine, and air-defense capabilities are propelling the demand for frigates. As of September 2019, there were 457 frigates in operations and about 107 frigates were on orders. In the coming years, orders for more than 100 frigates are anticipated to be placed to replace their aging fleet in various navies. During the forecast period, the majority of frigate procurement is planned in Europe, followed by the Asia-Pacific region. Additionally, the future frigate program of the United States will see deliveries of new frigates over the next decade. Due to the aforementioned reasons, the frigates segment of the market studied is anticipated to witness steady growth during the forecast period.
The Asia-Pacific Region is Expected to Generate the Highest Demand During the Forecast Period
The escalated maritime border tensions between the countries of the region have led to an increase in their military spending. Countries, like Australia, India, China, and Indonesia, are investing in the modernization of their fleet with advanced capabilities. As a part of these plans, the countries are expected to develop, build, and procure new naval vessels during the forecast period. For instance, as a part of Horizon Two of the Philippines Modernisation Program, the government has allocated USD 2.46 billion for the period 2018-2022. The country plans to procure at least 25 vessels over the next five years. The navy will receive two frigates by the end of 2020 and six offshore patrol vessels (OPV) by 2022. It is also in plans to procure submarines, multi-purpose attack craft, fast attack and interdiction craft – a missile capable, and corvettes in the coming years, which are expected to enter service in the coming decade. This modernization of the naval fleet is to strengthen the country’s capabilities amid the South China Sea tensions. Similarly, the other Southeast Asian countries are also currently enhancing their naval capabilities, which is expected to propel the growth of the degaussing equipment market.
The prominent players in the degaussing systems market are L3Harris Technologies Inc., ECA SA, Ultra Electronics Holdings PLC, Polyamp AB, and American Superconductor Corporation. L3Harris Technologies Inc. provided various designs and configurations of degaussing systems to the German Navy, Thai Navy, Korean Navy, Spanish Navy, Turkish Navy, Portuguese Navy, and Indian Navy, among others. With a highly competitive market scenario, companies are investing in the development of new degaussing methods that will replace the existing and conventional degaussing systems. For instance, to capture new market opportunities, American Superconductor Corporation was the first to introduce high-temperature superconductor (HTS) degaussing cable. These HTS cables are proved to reduce 20% of the weight of cables, 40% of installation costs, and utilize lower operating voltages. With the introduction of such products into the market, the companies can strengthen their expansion plans with strong cash flows in the future.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support