Market Trends of Americas Semiconductor Device In Aerospace & Defense Industry
Rising Military Expenditure to Drive the Market's Growth
- Traditionally, the United States has been among the leading countries in terms of military expenditure in the American region. However, in recent years, other countries' expenditures, including Canada, Brazil, and Mexico, have also increased significantly. For instance, according to a report by SIPRI, the United States contributed to 39% of world military spending in 2022, remaining the largest military spender in the American region and globally.
- In addition to their own specific developments, military organizations in the Americas are also using more and more electronic components to enhance their battlefield preparedness. This is significantly expanding the use cases for semiconductor devices. For instance, the adoption of optoelectronic devices in recent years has increased significantly in aerospace and defense applications, including laser radar, infrared sensors, optical sonar systems, other night-vision equipment, weapons-grade laser systems, etc.
- Military modernization is becoming a common trend across major American countries, including Canada, Brazil, Mexico, etc. To advance the capabilities of soldiers, advanced electronic devices such as night vision cameras, advanced sensors, and navigation systems are increasingly being adopted by the military across these countries, which drives the demand for semiconductor devices in the region.
- Considering such trends, the demand for lighter semiconductor components has been increasing, which is leading to the development of new manufacturing techniques and the exploration of new material types. For instance, SiC promises lighter-weight components that facilitate higher power density and switching for a given current and voltage rating in a smaller, lighter device. Hence, such trends are expected to influence the studied market's growth in the region.
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The United States to Hold a Significant Market Share
- The United States is among the largest aerospace & defense markets in the Americas; hence is expected to hold the largest share of the studied market during the forecast period. Major factors driving the studied market's growth in the country include a large aerospace & defense expenditure, the presence of some of the biggest aerospace and defense equipment manufacturing companies, along a strong research and development sector continuously engaged in the development of advanced semiconductor and electronic devices for the aerospace and defense applications.
- The United States is one of the largest aviation markets and boasts a fleet of thousands of commercial and well as military aircraft. For instance, according to the Federal Aviation Administration (FAA), in 2022, the country had a general aviation fleet of about 204,590 aircraft and a fleet of 6,870 for-hire carriers. As aircraft contain a wide range of electronic systems, such trends support the demand for semiconductor devices in the country.
- The United States is also among the leading aircraft manufacturers (both commercial & defense). For instance, Boeing is among the leading aircraft manufacturer in the country. In 2022, the company delivered about 480 airplanes and won 774 net new orders. Such trends also work in favor of the studied market.
- Furthermore, in recent years, the aerospace sector, which was long limited to national agencies, is now shifting part of its business to private companies. For instance, in the United States, the aerospace industry has witnessed the rise of private companies like Virgin Galactic, SpaceX, Blue Origin, and Rocket Lab, which have numerous activities and ambitions. As these companies are highly focused on developing innovative solutions, such trends create a favorable outlook for the growth of the studied market in the country.
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