Semiconductor Device In Aerospace & Defense Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.41 % |
| Fastest Growing Market | Europe |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Semiconductor Device In Aerospace & Defense Market Analysis
The semiconductor device market in the aerospace and defense industry was valued at USD 49.14 billion in the previous year and is anticipated to register a CAGR of 6.41% to reach USD 72.17 billion at the end of the projected period.
- The global semiconductor market for the aerospace and defense sectors is supported by increased defense expenditure and the growth of aircraft upgrade and modernization programs. The development of semiconductors in the aerospace and defense market is also stimulated by their use as radiation-resistant components.
- This industry has a wide range of applications in the aerospace and defense sectors. For instance, among other essential applications, semiconductors are utilized in power management, RF systems, avionics, integrated vehicle systems, and defense systems. Additionally, government and space organizations' consistently rising spending fueled the desire for more durable and practical technology for enhanced military and space exploration.
- The number of current space exploration projects and the advancement of cutting-edge technology-enabled networking and communication capabilities are two factors that have a significant impact on market growth.
- Additionally, significant funding for developing modern defense systems and navigational tools has been made possible across the major developed regions due to the rising danger from terrorism and the need for increased security. Therefore, the industry is anticipated to offer significant rewarding economic prospects for market participants in the future years.
- Increased aircraft modernization and upgrade programs and the usage of radiation-tolerant components drive the semiconductor industry in aerospace and defense. The market's expansion, however, needs to be improved by the shortage of semiconductors.
- The COVID-19 pandemic had a detrimental effect on semiconductor production in both the military and aerospace sectors, as well as the general manufacturing of electronic components. Prior to the pandemic, a worldwide shortage of semiconductors was already underway due to a significant surge in demand for consumer devices. The chip shortages within industrial production were already critical and were further exacerbated by the pandemic's global geopolitical crisis and international trade restrictions.
- However, due to trade limitations, North America and Europe were most negatively affected. Due to the supply chain disruption, production cycles were noticeably delayed, prompting businesses to suffer losses. Such factors are likely to limit the market growth.
Semiconductor Device In Aerospace & Defense Market Trends
Sensors Segment to Grow Significantly in Aerospace & Defense Sector
- The Industrial Internet of Things (IIoT) is now having an impact on the aerospace and defense industries. Sensors embedded into the IIoT provide improved device and application connection. Data collected from all the cutting-edge sensor technologies are integrated to create fresh advancements in the aerospace and defense industry. The aerospace and defense industries can benefit from enhanced procedures, remote, real-time sensing and monitoring, and more accurate information detection.
- The effectiveness and extent to which sensors are used in aerospace and defense will be heavily influenced by safety. Additionally, the growing need for sensors that demonstrate dependability and durability in harsh environmental circumstances will majorly affect the development of rugged sensors in the aerospace and defense industries.
- Micro-electromechanical systems (MEMS), nano-electromechanical systems (NEMS), biosensors, drones, robotics, and 3D sensing are essential areas of study in sensors for aerospace and defense. A few significant developments in the sensors field that will help create effective systems, such as safety systems, are stress, proximity, radar, ultrasonic, and imaging sensors.
- Furthermore, Boeing, Airbus, Raytheon, Northrop Grumman, and General Dynamics are ranked among the leading aerospace and defense technology companies worldwide. The companies are into producing commercial and military aircraft, rockets, satellites, communications equipment, and missiles, where the sensors are widely used. Additionally, the companies are highly investing in their R&D, which might drive market growth during the projected period.
Europe Region is Expected to Grow Significantly
- Europe comprises countries like the United Kingdom, Germany, France, Italy, and the rest of the continent. Spain, the Netherlands, Sweden, Poland, and other countries comprise the rest of Europe. The market is expanding across Europe, and various initiatives are underway to build new semiconductor-based space electronics with improved capability to protect space disturbances cheaply.
- The European defense and aerospace markets provide numerous potential for semiconductor expansion due to increased military spending on defense industry development. For instance, the Netherlands government declared a defense budget of USD 14.26 billion for the fiscal year 2022, an increase of 5.4% from the budget for the fiscal year 2021.
- Furthermore, Europe is putting much effort into expanding its space capabilities. For instance, in September 2022, CAES, a leader in advanced mission-critical electronics for aerospace and defense, announced that it had won multiple contracts with the European Space Agency (ESA) for the development of the GR765 System-on-Chip (SOC), the first user-selectable CPU for space. The subsequent generation radiation-hardened device enables users to choose between a LEON5 SPARCV8 or NOEL-V RISC-V RV64 processor cores.
- France is a significant European nation and a key player in the space industry. The market for space is enormous and offers countless prospects, and all platforms require semiconductor-based space electronics components to operate. This trend will propel the market growth during the projected period.
Semiconductor Device In Aerospace & Defense Industry Overview
The semiconductor device market in the aerospace and defense industry is characterized by its high fragmentation and intense competitiveness. Numerous global players are actively involved in this sector, continually striving to gain a competitive edge through innovative product development, strategic collaborations, and mergers with industry leaders.
In January 2023, NXP Semiconductors NV made a significant announcement with the release of their latest innovation, a wideband RF GaN Transistor designed specifically for aerospace and defense communications. They introduced the MMRF5018HS, a wideband 125 W continuous wave (CW) GaN on SiC RF Power Transistor. The MMRF5018HS is compactly housed within an Rth NI-400HS air cavity ceramics package, making it an ideal choice for a wide range of applications, including CW, pulse, and wideband RF, thanks to its remarkable attributes such as high gain and ruggedness.
In March 2022, STMicroelectronics demonstrated its commitment to the aerospace and defense industry by unveiling a line of affordable radiation-hardened ICs engineered for utilization in space satellites. This innovative series features low-cost plastic packaging while offering radiation-hardened power, analog, and logic ICs that play critical roles in the electrical circuitry of space satellites. This development signifies a significant step in improving the reliability and performance of satellite technology.
Semiconductor Device In Aerospace & Defense Market Leaders
Microchip Technology Inc.
NXP Semiconductors NV
ON Semiconductor Corporation
STMicroelectronics
Teledyne Technologies Inc.
*Disclaimer: Major Players sorted in no particular order
Semiconductor Device In Aerospace & Defense Market News
- April 2023: National Instruments (NI) completed the acquisition of SET GmbH (SET), a prominent player in the development of test systems for the aerospace and defense industries and a leading expert in reliability testing for power semiconductors. This strategic move aims to expedite the convergence of semiconductor and transportation supply chains. The collaboration between NI and SET is poised to harness power electronics components like silicon carbide and gallium nitride, facilitating the swift introduction of essential and highly innovative products to the market.
- September 2022: Collins Aerospace was awarded a substantial multimillion-pound contract to create a navigation-grade inertial measurement unit (IMU). This IMU is intended for deployment in cutting-edge weapon platforms as part of the United Kingdom's Weapons Sector Research Framework (WSRF). Collins Aerospace will partner with the UK's Ministry of Defence (MOD) to enhance their projects by leveraging their industry-leading expertise to develop a tactical-grade or "Class A" IMU employing micro-electro-mechanical systems (MEMS) technology.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain/Supply Chain Analysis
4.4 Impact of Macro Trends on the Market
4.5 Technological Trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Aircraft Modernization and Upgrade Programs
5.1.2 Growing Investments by Governments and Space Agencies
5.2 Market Restraints
5.2.1 The Shortage of Semiconductors would Limit Market Expansion
6. MARKET SEGMENTATION
6.1 Device Type
6.1.1 Discrete Semiconductors
6.1.2 Optoelectronics
6.1.3 Sensors
6.1.4 Integrated Circuits
6.1.4.1 Analog
6.1.4.2 Logic
6.1.4.3 Memory
6.1.4.4 Micro
6.1.4.4.1 Microprocessor
6.1.4.4.2 Microcontroller
6.2 Geography
6.2.1 United States
6.2.2 Europe
6.2.3 Japan
6.2.4 China
6.2.5 Korea
6.2.6 Taiwan
6.2.7 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Analog Devices Inc.
7.1.2 Microchip Technology Inc.
7.1.3 NXP Semiconductors NV
7.1.4 ON Semiconductor Corporation
7.1.5 Raytheon Technologies Corporation
7.1.6 Teledyne Technologies Inc.
7.1.7 Texas Instruments Incorporated
7.1.8 Advanced Micro Devices Inc. (Xilinx Inc.)
7.1.9 AMS Technologies AG
7.1.10 Digitron Semiconductors
7.1.11 STMicroelectronics
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Semiconductor Device In Aerospace & Defense Industry Segmentation
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.
| Device Type | |||||||||
| Discrete Semiconductors | |||||||||
| Optoelectronics | |||||||||
| Sensors | |||||||||
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| Geography | |
| United States | |
| Europe | |
| Japan | |
| China | |
| Korea | |
| Taiwan | |
| Rest of the World |
Frequently Asked Questions
What is the current Semiconductor Device Market In Aerospace & Defense Industry size?
The Semiconductor Device Market In Aerospace & Defense Industry is projected to register a CAGR of 6.41% during the forecast period (2024-2029)
Who are the key players in Semiconductor Device Market In Aerospace & Defense Industry?
Microchip Technology Inc., NXP Semiconductors NV, ON Semiconductor Corporation, STMicroelectronics and Teledyne Technologies Inc. are the major companies operating in the Semiconductor Device Market In Aerospace & Defense Industry.
Which is the fastest growing region in Semiconductor Device Market In Aerospace & Defense Industry?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Semiconductor Device Market In Aerospace & Defense Industry?
In 2024, the Asia Pacific accounts for the largest market share in Semiconductor Device Market In Aerospace & Defense Industry.
What years does this Semiconductor Device Market In Aerospace & Defense Industry cover?
The report covers the Semiconductor Device Market In Aerospace & Defense Industry historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Semiconductor Device Market In Aerospace & Defense Industry size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Semiconductor Device Market In Aerospace & Defense Industry Report
Statistics for the 2024 Semiconductor Device In Aerospace & Defense Industry market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Semiconductor Device In Aerospace & Defense Industry analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
