Semiconductor Device Market In Aerospace & Defense Industry Market Size (2024 - 2029)

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 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.