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Owing to the ferromagnetism and stray fields of inertial navigation system, component compensation of magnetic field distortion is significant for geomagnetic field vector measurement system. However, traditional scalar compensation methods cannot be used for component compensation of magnetic field distortion, so some improvement works have been researched for component compensation in the study, the major of which is estimating compensation parameters using the Lagrange multiplier method. Experiment results show that the performance of the component compensation method is much better than traditional scalar compensation method. After compensation, the maximal measurement errors of north, vertical, east components and total intensity caused by magnetic field distortion are reduced to 10.4 nT (0.91% of the raw error), 32.5 nT (5.20%), 12.9 nT (1.27%), and 18.4 nT (2.02%), respectively. In addition, compared with previous component compensation method, the proposed method has three advantages: (i) simplified equipment, (ii) easier operation process, and (iii) better generality. [ABSTRACT FROM AUTHOR]