Aerospace Semiconductor Market Forecasts to 2030 - Global Analysis By Semiconductor Type, Component, Material, Form Factor, Application, End User and By Geography

According to Stratistics MRC, the Global Aerospace Semiconductor Market is accounted for $8.24 billion in 2024 and is expected to reach $12.52 billion by 2030 growing at a CAGR of 9.6% during the forecast period. Aerospace semiconductors are specialized semiconductor components designed to perform reliably in the extreme conditions of aerospace environments, including high temperatures, intense radiation, and strong vibrations. Aerospace semiconductors undergo rigorous testing for durability and precision, often using materials and designs that enhance their performance and longevity. They are essential for advancements in aerospace technology, contributing to safer, more efficient, and more resilient flight and space exploration systems.

According to Stockholm International Peace Research Institute (SIPRI), military spending by the U.S amounted to a total of $801 billion in 2021 and the U.S. military burden decreased from 3.7% of GDP in 2020 to 3.5% in 2021.

Market Dynamics:

Driver:

Growing demand for advanced avionics

As airlines and military operators adopt cutting-edge technologies like fly-by-wire systems, automated controls, and advanced navigation, the requirement for sophisticated semiconductors increases. These components enable enhanced data processing, real-time communication, and improved sensor integration in avionics systems. Additionally, regulatory pressures for safety and fuel efficiency are pushing manufacturers to innovate, further stimulating investment in semiconductor technology and expanding the overall market as new aircraft and upgrades require advanced semiconductor solutions.

Restraint:

Long development and approval cycles

Long development and approval cycles in aerospace semiconductors stem from stringent regulatory requirements, rigorous testing protocols, and the need for high reliability in critical systems. Each component must undergo extensive validation to ensure it can withstand extreme environmental conditions and perform reliably over long periods. Additionally, the high costs associated with these extended cycles can deter investment in new technologies, ultimately hampering the overall growth of the aerospace semiconductor market.

Opportunity:

Rising investments in space exploration

Increased funding from government agencies and private companies leads to the development of more sophisticated satellites equipped with cutting-edge communication, navigation, and imaging capabilities, all reliant on high-performance semiconductors. These investments facilitate research and development of radiation-hardened, miniaturized semiconductor components that can withstand the harsh conditions of space. Furthermore, the growing focus on missions to Mars, lunar exploration, and satellite constellations underscores the need for robust aerospace semiconductors, fostering innovation and market expansion.

Threat:

Technical challenges in harsh environments

Technical challenges in harsh environments, such as extreme temperatures, radiation, and vibration, significantly impact aerospace semiconductors. These conditions can lead to performance degradation, failure, or malfunction of semiconductor components, requiring extensive testing and validation to ensure reliability. Additionally, stringent regulatory standards for aerospace applications further complicate the design and approval processes. The need for specialized materials and designs increases development costs and time, hindering market growth.

Covid-19 Impact

The covid-19 pandemic significantly impacted the aerospace semiconductor market due to halted air travel, disrupted supply chains, and decreased demand for new aircraft. Aerospace manufacturing faced production delays and lower investments as commercial aviation slowed, delaying semiconductor demand. However, the sector saw growth in defense and satellite communication, sustaining some demand for aerospace semiconductors. Recovery efforts and renewed focus on digitalization, autonomous systems, and satellite technologies are driving a gradual rebound in the market post-pandemic.

The microprocessors segment is expected to be the largest during the forecast period

The microprocessors segment is predicted to secure the largest market share throughout the forecast period. Microprocessors are essential components in aerospace semiconductors, providing the computing power needed for avionics, navigation, and control systems. Designed to operate reliably in extreme conditions, these processors manage real-time data processing and support advanced functionalities, such as AI-driven diagnostics and automated controls. Their role is pivotal in enabling high-speed processing and efficient, precise operations in both civilian and military aerospace systems.

The satellite systems segment is expected to have the highest CAGR during the forecast period

The satellite systems segment is anticipated to witness the highest CAGR during the forecast period. Aerospace semiconductors are crucial in satellite systems, powering functions like communication, navigation, and data processing. These components are specifically engineered to withstand the intense radiation and temperature extremes of space, ensuring reliable long-term operation. High-performance, radiation-hardened semiconductors enhance the durability and precision of satellite systems, which in turn accelerates the segment growth.

Region with largest share:

Asia Pacific is expected to register the largest market share during the forecast period driven by increasing defense budgets, rising demand for commercial aircraft, and expanding space exploration initiatives. Countries like China, India, and Japan are heavily investing in aviation and satellite technology, boosting demand for high-reliability semiconductors. Government support for domestic aerospace advancements, coupled with partnerships with global semiconductor firms, is positioning the Asia Pacific as a significant player in the aerospace semiconductor industry.

Region with highest CAGR:

North America is projected to witness the highest CAGR over the forecast period due to its advanced aerospace and defense industries, high investment in R&D, and technological innovations. The U.S. leads with substantial demand from both commercial and military aviation, alongside growing needs in space exploration and satellite communications. Government initiatives, including defense spending and support for space exploration, further bolster growth.

Key players in the market

Some of the key players profiled in the Aerospace Semiconductor Market include Intel Corporation, Texas Instruments, Analog Devices, NXP Semiconductors, STMicroelectronics, Microchip Technology Inc., Maxim Integrated, Broadcom Inc., Infineon Technologies, Qualcomm, Hitachi Energy, Cypress Semiconductor, Renesas Electronics, ON Semiconductor, SiTime Corporation, Achronix Semiconductor, Semtech Corporation, Wolfson Microelectronics, Sivers Semiconductors AB and Skyworks Solutions.

Key Developments:

In March 2024, Hitachi Energy made a significant advancement in power semiconductor technology by introducing a new 300 mm semiconductor wafer. This development is poised to enhance production capacity for high-power applications, particularly benefiting aerospace systems and other industries that rely on robust power management solutions.

In February 2024, Intel Corp. launched its Intel Foundry, a sustainable systems foundry aimed at supporting the AI era. This initiative seeks to address the increasing demand for AI-optimized semiconductors, which require cutting-edge, high-efficiency manufacturing processes that meet rigorous performance, energy, and environmental standards.

Semiconductor Types Covered:

• Analog Semiconductors
• Digital Semiconductors
• Mixed-Signal Semiconductors
• Power Semiconductors
• Microcontrollers
• Memory Chips
• Other Semiconductor Types

Components Covered:

• Integrated Circuits (ICs)
• Discrete Semiconductors
• Sensors
• Microprocessors
• Field-Programmable Gate Arrays (FPGA)
• Other Components

Materials Covered:

• Silicon-Based Semiconductors
• Gallium Nitride (GaN) Semiconductors
• Silicon Carbide (SiC) Semiconductors
• Advanced Materials Semiconductors
• Other Materials

Form Factors Covered:

• Surface Mount Devices (SMD)
• Through-Hole Devices
• Chip-on-Board (CoB)
• Wafer-Level Packaging (WLP)
• Other Form Factors

Applications Covered:

• Space Exploration
• Unmanned Aerial Vehicles (UAVs)
• Ground Support Equipment
• Satellite Systems
• Other Applications

End Users Covered:

• Space Agencies
• Aerospace Component Manufacturers
• Airlines & Operators
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances