Semiconductor Device Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 14.74 Billion |
| Market Size (2030) | USD 21.02 Billion |
| Growth Rate (2025 - 2030) | 7.36% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Semiconductor Device Market Analysis by Mordor Intelligence
The semiconductor device market size in aerospace and defense was valued at USD 14.74 billion in 2025 and is forecast to reach USD 21.02 billion by 2030, advancing at a 7.36% CAGR. Unit shipments were 39.79 billion in 2025 and are projected to climb to 63.57 billion by 2030, a volume CAGR of 9.82%. Growth stemmed from renewed defense budgets, accelerating space programs, and rising adoption of wide-bandgap materials that enhance power efficiency in radar, electronic warfare, and satellite platforms. Commercial-off-the-shelf (COTS) strategies trimmed procurement costs and shortened design cycles, while CHIPS-funded capacity expansions in the United States boosted domestic supply. India, propelled by “Make in India” mandates and ISRO’s higher launch cadence, became the fastest-growing geography. Strategic consolidation among niche suppliers and prime contractors reshaped the competitive field, with vertical integration securing access to radiation-tolerant processes and high-purity GaN and SiC substrates.
Key Report Takeaways
- By device type, integrated circuits led with 46% of the semiconductor device market share in 2024; discrete power devices are forecast to expand at an 8.2% CAGR to 2030.
- By material, silicon retained 83% share of the semiconductor device market in 2024, while gallium nitride is projected to grow fastest at a 12.4% CAGR through 2030.
- By application, flight control and avionics accounted for 28% share of the semiconductor device market size in 2024; electronic warfare and countermeasures are advancing at a 9.6% CAGR through 2030.
- By end-use platform, military aviation held 35% of the semiconductor device market share in 2024, whereas unmanned aerial vehicles are expected to post a 10.3% CAGR to 2030.
- By technology, radiation-hardened devices commanded 42% of the semiconductor device market size in 2024; radiation-tolerant solutions are rising at a 9.0% CAGR through 2030.
- By packaging, surface-mount technology dominated with 58% share in 2024; 3D/stacked modules are poised to grow at an 11.0% CAGR to 2030.
- By geography, North America led with 38% semiconductor device market share in 2024, while Asia-Pacific is forecast to register a 7.8% CAGR to 2030.
Global Semiconductor Device Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Surge in Wide-Bandgap (SiC and GaN) Adoption for Next-Gen Military and Space Power Systems | 1.8% | Global, with a concentration in the US, Europe, and Japan | Medium term (2-4 years) |
| LEO Satellite Mega-Constellations Driving Radiation-Tolerant RFIC Demand | 1.5% | Global, led by the US, Europe, and China | Short term (≤ 2 years) |
| Embedded AI Mission Computers in Multi-Domain Operations (US and NATO) | 1.1% | North America, Europe | Medium term (2-4 years) |
| Hypersonic/Directed-Energy Programs Requiring Ultra-High-Freq GaN RF PAs | 0.7% | US, China, Russia | Long term (≥ 4 years) |
| Open-Architecture Avionics Refresh Cycles (FACE, MOSA) Expanding COTS IC Spend | 0.7% | North America, Europe | Medium term (2-4 years) |
| Indigenous Fighter and UAV Platforms in Indo-Pacific Boosting Local Sourcing | 0.4% | India, Japan, South Korea, Australia | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Surge in Wide-Bandgap Adoption for Power Systems
Defense primes accelerated the shift from silicon to GaN and SiC, achieving 30–40% lower power losses in radar transmitters and satellite power units. Boeing and Intel’s 2023 pact targeted 18A-node devices for autonomous aircraft, while U.S. fighter programs trimmed converter size and weight by 15% using SiC power modules.[1]Lisa Daigle, “Boeing and Intel to Collaborate, Focus on Advancing Semiconductor Technology for Aerospace,” Military Embedded Systems, militaryembedded.com Although SiC wafers cost roughly three to four times more than silicon, rising volumes and 6-inch fabrication lowered the premium. The Joint SAE/JEDEC working group projected the GaN device market to grow at 59% CAGR to 2027, underlining the momentum behind wide-bandgap materials.
LEO Constellations Spur Radiation-Tolerant RFIC Demand
Hundreds of small satellites launched yearly in low Earth orbit prioritized cost over 15-year longevity, prompting a pivot to plastic-packaged, radiation-tolerant MOSFETs. Infineon’s 2025 release of P-channel devices complemented its N-channel line and cut procurement cost by 40% for operators adopting five-year mission profiles. Lead times for SiC-based space-grade parts nevertheless stretched up to 18 months, creating scheduling pressure on NewSpace entrants.
Embedded AI Mission Computers Expand Edge Processing
Honeywell and NXP integrated high-performance processors into the Anthem cockpit in 2025, delivering 20 TOPS at 15 watts for real-time threat analytics. European contractors followed suit, fielding NPUs that cut datalink dependence in contested environments. Competing with commercial buyers for sub-7 nm capacity lifted defense-grade AI chip costs by 25% in 18 months, nudging some programs toward mature-node architectures.
GaN RF Power Amplifiers for Hypersonics
BAE Systems and AFRL scaled GaN processes to 6-inch wafers in 2025, enabling RF amplifiers that withstand junction temperatures of 250 °C—vital for hypersonic vehicles. GaN-on-diamond substrates improved thermal conductivity, yet gallium scarcity lifted raw-material prices 35% since 2023, motivating defense primes to fund upstream suppliers.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Limited Rad-Hard Foundry Capacity Below 90 nm | -1.1% | Global, most severe in the US | Long term (≥ 4 years) |
| Export-Control Tightening on Advanced Nodes (US-China) | -0.7% | Global, affecting the US-China supply chains | Medium term (2-4 years) |
| High QML-V / JANS Qualification Cost Burden | -0.5% | Global, particularly the US and Europe | Medium term (2-4 years) |
| Thermal Management Limits in 3D-Packaged Space-Grade Chips | -0.3% | Global, critical for space applications | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Limited Rad-Hard Foundry Capacity
Space programs faced 18-month delays securing 65 nm radiation-hardened ASICs as domestic fabs supplied barely 10% of global output.[2]Sujai Shivakumar, “Semiconductors and National Defense: What Are the Stakes?” Center for Strategic and International Studies, csis.org One U.S. satellite project reverted to 90 nm masks, sacrificing performance to hold schedule. New designs can exceed USD 20 million, restraining entrants and slowing capacity upgrades as low production volumes undercut ROI.
Export-Control Tightening on Advanced Nodes
U.S. curbs on AI accelerators and EU equipment controls disrupted joint research and raised component qualification costs 15–20%. A European contractor withdrew from a Chinese memory study, fearing violations, while broader “friend-shoring” strategies lengthened redesign cycles to swap restricted parts.
Segment Analysis
By Device Type: Integrated Circuits Anchor System Complexity
Integrated circuits held 46% semiconductor device market share in 2024 and expanded at an 8.2% CAGR through 2030. Analog ICs dominated the signal chain in radar and sensor payloads, with suppliers offering more than 1,000 aerospace-qualified part numbers. The semiconductor device market size allocated to high-speed ADCs grew as missile makers adopted 16-bit, 1 GSPS converters that increased tracking accuracy in contested bands. Digital IC demand surged for space-grade FPGAs that allowed on-orbit reconfiguration; AMD’s radiation-tolerant series satisfied bandwidth-hungry payloads.
System architects accepted a 30% component-level price premium for these ICs in exchange for a 40% range extension and sharper threat discrimination. Consequently, the semiconductor device market continued shifting toward higher-value monolithic solutions rather than discrete logic.
Note: Segment shares of all individual segments available upon report purchase
By Material: GaN and SiC Disrupt Silicon Dominance
Silicon commanded 83% share of the semiconductor device market in 2024, yet gallium nitride posted the fastest 12.4% CAGR outlook as performance advantages outweighed its 2.5× material cost. A U.S. radar retrofit that swapped silicon amplifiers for GaN variants cut power draw by 40% and raised output by 25%, validating the return on investment. The semiconductor device market size attributed to SiC power modules rose in parallel, driven by lighter power conversion units aboard all-electric aircraft.
CSIS research flagged GaN supply-chain risks because China controlled much of the epitaxy capacity. U.S. firms responded by pre-purchasing wafers and funding domestic crystal growth facilities. These moves reduced exposure to commodity swings, enabling sustained penetration of wide-bandgap devices across next-generation systems.
By Application: Flight Control Systems Lead, Electronic Warfare Climbs
Flight control and avionics represented 28% of the semiconductor device market share in 2024, reflecting electronics-heavy fly-by-wire architectures. Honeywell–NXP collaborations inserted AI into cockpit mission computers that cut pilot workload and improved route efficiency. The semiconductor device market size allocated to redundant processors grew because envelope-protection features mandated triple modular redundancy.
Electronic warfare applications logged a 9.6% CAGR, the fastest among all segments, as naval airborne jammers countered sophisticated threats. Northrop Grumman leveraged advanced mixed-signal devices to integrate real-time spectrum analytics.[3]Northrop Grumman, “Electronic Warfare,” northropgrumman.com These systems demanded high-linearity RF front-ends, propelling the uptake of GaN PAs and high-speed data converters.
Note: Segment shares of all individual segments available upon report purchase
By End-Use Platform: Military Aviation Dominates, UAVs Accelerate
Military aviation absorbed 35% semiconductor device market share in 2024, anchored by fighter upgrades and transport fleet modernization. Investments centered on SiC power electronics and secure mission computers. The semiconductor device market size for unmanned aerial vehicles rose fastest at a 10.3% CAGR as endurance gains relied on SoCs integrating control, comms, and sensor fusion in 5-watt envelopes.
A leading contractor’s 12 nm FinFET SoC trimmed payload weight by 60% and extended flight time by 45 minutes, trading 35% higher chip cost for operational advantage. Regulators embraced NFC-based drone registration, leveraging NXP microcontrollers, underscoring semiconductor ubiquity even in compliance workflows.
By Technology: Radiation-Tolerant Devices Bridge Cost Gap
Radiation-hardened products maintained a 42% share of the semiconductor device market in 2024, but radiation-tolerant COTS-plus solutions rose at a 9.0% CAGR as small-sat operators accepted shorter lifetimes. Microchip’s 32-bit SAMD21RT MCU typified this trend, providing 50 krad tolerance in a compact footprint.
A satellite operator slashed semiconductor procurement costs by 50% by adopting radiation-tolerant parts and implementing system-level fault mitigation. The trade-off raised design complexity 15% yet enabled an aggressive launch cadence critical to constellations.
Note: Segment shares of all individual segments available upon report purchase
By Packaging: 3D Integration Boosts Density
Surface-mount technology accounted for 58% semiconductor device market share in 2024, favored for mature supply chains and simplified rework. The semiconductor device market size devoted to 3D/stacked modules grew at an 11.0% CAGR as radar designers adopted silicon interposers with TSVs. Mercury Systems delivered stacked analog-digital hybrids that shrank volume by 70% and eased thermal routing.
Micross achieved ±0.5 µm die placement accuracy with PADS bonding, allowing dense heterogeneous integration for edge-compute payloads. Though initial costs were 45% higher than 2D assemblies, lifecycle benefits justified adoption.
Geography Analysis
North America captured 38% of the semiconductor device market share in 2024, reflecting the region’s unrivaled scale in defense spending and aerospace production. The U.S. Department of Defense’s FY 2025 request for USD 849.8 billion prioritized unmanned systems and advanced air mobility, sustaining demand for high-reliability chips. The CHIPS Act added USD 39 billion in grants and tax incentives to anchor domestic wafer fabrication for secure defense supply chains. Canada’s satellite-communications and Earth-observation missions funded by the Canadian Space Agency spurred orders for radiation-hardened components, while Mexico’s expanding commercial-aviation assembly plants opened niche opportunities for board-level test devices despite modest defense budgets.
The Asia-Pacific region is projected to grow its semiconductor device market size at a 7.8% CAGR to 2030. China’s modernization of hypersonic weapons and phased-array radars lifted demand for GaN and SiC devices even as export-control rules tightened access to the most advanced nodes.[4]U.S. Department of Defense, “Military and Security Developments Involving the People’s Republic of China 2024,” defense.gov India’s semiconductor market was forecast to rise from USD 52 billion in 2024 to USD 103.4 billion by 2030, underpinned by indigenous defense production and an ambitious space agenda. Japan, South Korea, and several Southeast Asian nations accelerated next-generation fighter, missile-defense, and electronic-warfare projects, broadening demand for mission processors and power modules across the region.
Europe maintained a strong position through Germany, the United Kingdom, and France, supported by the proposed EUR 1.5 billion European Defence Industry Programme that encourages cross-border semiconductor collaboration. German leadership in automotive chips flowed into ground-based electronic-warfare platforms, the UK advanced processors for future combat air and naval systems, and France’s aerospace primes continued to specify mixed-signal ASICs for dual-use aircraft. Italy and Spain added volume via multinational defense programs, while Russia’s requirements shifted toward domestic fabs under sanctions. In the Middle East, Saudi Arabia’s Vision 2030 and the UAE’s space ambitions drove early demand for localized assembly and test, and Turkey’s UAV and fighter initiatives spurred interest in both commercial and military-grade semiconductors despite license headwinds. Sub-Saharan Africa’s uptake remained limited, centering on South Africa’s aerospace clusters and Nigeria’s emerging defense-electronics activities, where budget and infrastructure constraints still cap growth.
Competitive Landscape
The semiconductor device market in aerospace and defense exhibited moderate concentration; the five largest suppliers controlled the majority market share in 2024. BAE Systems deepened vertical integration by acquiring Ball Aerospace, broadening its radiation-hardened portfolio and complementing its existing foundry. Wolfspeed committed over USD 1 billion to build a 200 mm SiC fab in New York, reinforcing domestic access to wide-bandgap substrates crucial for power and RF applications.
Infineon and ON Semiconductor targeted niche GaN devices for directed-energy systems, each scaling 6-inch wafer lines to lower unit costs. Collaboration with primes remained critical: Boeing teamed with Intel on 18A-node secure computing to push AI workloads onboard future aircraft.
Geopolitical dynamics also shaped strategies. U.S. and European policies that linked fab incentives to defense readiness rewarded firms with local manufacturing, while Chinese capacity expansions in GaN epitaxy intensified supply-chain diversification efforts among Western contractors.
Semiconductor Device Industry Leaders
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Texas Instruments Inc.
-
Microchip Technology Inc.
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Infineon Technologies AG
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Analog Devices Inc.
-
onsemi (ON Semiconductor)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2025: Infineon launched the first radiation-tolerant P-channel MOSFET for LEO satellites, expanding its NewSpace portfolio.
- February 2025: BAE Systems and AFRL advanced GaN technology to 6-inch wafers for radar and EW circuits.
- January 2025: Honeywell and NXP integrated edge-AI processors into the Anthem cockpit for safer autonomous operations.
- November 2024: MACOM won a USD 3.4 million CHIPS Act grant to develop GaN-on-SiC RF technologies for military radar.
Global Semiconductor Device Market In Aerospace & Defense Industry Report Scope
The semiconductor device is an electronic component that relies on the physical properties of semiconductor materials, mainly silicon, germanium, gallium arsenides, and oxide semiconductors, to function. Its conductivity lies between conductors and insulators. In the aerospace and defense industry, semiconductor devices are widely used in manufacturing numerous devices and systems, such as communication & navigation systems, safety equipment, engine & flight control systems, missiles, avionics, and many more.
The semiconductor device market in the aerospace and defense industry is segmented by device type (discrete semiconductors, optoelectronics, sensors, and integrated circuits (analog, logic, memory, and micro (microprocessors and microcontrollers))), and geography (United States, Europe, Japan, China, Korea, Taiwan and Rest of the World).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| Discrete Semiconductors | Power | |
| RF | ||
| Protection | ||
| Optoelectronics | Image Sensors | |
| Laser Diodes | ||
| LEDs | ||
| Photovoltaics | ||
| Sensors | Position | |
| Pressure | ||
| Temperature | ||
| Inertial | ||
| Radiation | ||
| Others | ||
| Integrated Circuits | Analog | |
| Logic | ||
| Memory | ||
| Micro | Microprocessors (MPU) | |
| Microcontrollers (MCU) | ||
| Digital Signal Processors | ||
| Silicon |
| Silicon Carbide (SiC) |
| Gallium Nitride (GaN) |
| Others (GaAs, SiGe, InP, Diamond) |
| Communication and Data Handling |
| Radar and ISR Payloads |
| Navigation and Guidance |
| Power Management and Propulsion Control |
| Flight Control and Avionics |
| Electronic Warfare and Counter-Measures |
| Sensors and Scientific Payloads |
| Commercial Aviation |
| Military Aviation |
| Spacecraft and Satellites |
| Unmanned Aerial Vehicles (UAVs) |
| Ground and Naval Defense Systems |
| Missiles and Precision Munitions |
| Radiation Hardened |
| Radiation Tolerant |
| COTS |
| Surface-Mount |
| Through-Hole |
| Multi-Chip Module |
| 3D/Stacked |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| South-East Asia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Device Type | Discrete Semiconductors | Power | |
| RF | |||
| Protection | |||
| Optoelectronics | Image Sensors | ||
| Laser Diodes | |||
| LEDs | |||
| Photovoltaics | |||
| Sensors | Position | ||
| Pressure | |||
| Temperature | |||
| Inertial | |||
| Radiation | |||
| Others | |||
| Integrated Circuits | Analog | ||
| Logic | |||
| Memory | |||
| Micro | Microprocessors (MPU) | ||
| Microcontrollers (MCU) | |||
| Digital Signal Processors | |||
| By Material | Silicon | ||
| Silicon Carbide (SiC) | |||
| Gallium Nitride (GaN) | |||
| Others (GaAs, SiGe, InP, Diamond) | |||
| By Application | Communication and Data Handling | ||
| Radar and ISR Payloads | |||
| Navigation and Guidance | |||
| Power Management and Propulsion Control | |||
| Flight Control and Avionics | |||
| Electronic Warfare and Counter-Measures | |||
| Sensors and Scientific Payloads | |||
| By End-Use Platform | Commercial Aviation | ||
| Military Aviation | |||
| Spacecraft and Satellites | |||
| Unmanned Aerial Vehicles (UAVs) | |||
| Ground and Naval Defense Systems | |||
| Missiles and Precision Munitions | |||
| By Technology | Radiation Hardened | ||
| Radiation Tolerant | |||
| COTS | |||
| By Packaging | Surface-Mount | ||
| Through-Hole | |||
| Multi-Chip Module | |||
| 3D/Stacked | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| South-East Asia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current size of the semiconductor device market in aerospace and defense?
The market was valued at USD 14.74 billion in 2025 and is projected to reach USD 21.02 billion by 2030 at a 7.36% CAGR.
Which application area uses the most semiconductor content today?
Flight control and avionics systems accounted for 28% of 2024 revenue, reflecting widespread fly-by-wire and autonomous capabilities.
Why are gallium nitride and silicon carbide gaining traction?
GaN and SiC deliver higher power density and superior thermal performance, enabling 30–40% lower power losses in radar and satellite power units despite higher material costs.
How are NewSpace constellations influencing component demand?
Operators favor radiation-tolerant, plastic-packaged devices that cut procurement cost up to 40% and suit missions lasting 2–5 years.
Which geography is the fastest-growing market?
Asia-Pacific is forecast to expand at a 7.8% CAGR through 2030, driven by indigenous defense production and an expanding space program.
What packaging technology is advancing quickest?
3D/stacked multi-chip modules are projected to grow at an 11.0% CAGR, delivering 70% volume reductions and better thermal management for high-density payloads.
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