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This is about the ship component. Main article: Cloaking.
The Cloaking Device allows to reduce the sensor cross section of a ship. The maximum ship size for a Cloaking Device is given by
Efficiency * Base Size
The ship will be detected at the same range as a smaller ship.
Cloaking Devices are very useful for scout ships and survey craft to stay undetected. A cloak only protects against Active Sensors, so reduced thermal engines and low EM emissions are needed to make a true stealth craft.
Cloaking Devices need a significant amount of research, and thus are later game technology.
Cloaking Device Size
Cloaking Devices have a minimum size.
Cloak Sensor Reduction