Asia-Pacific Semiconductor Device Market in Aerospace & Defense Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

APAC Semiconductor Device Market Analysis

The APAC Semiconductor Device Market In Aerospace & Defense Industry is expected to grow from USD 36.90 billion in 2024 to USD 52.24 billion by 2029, at a CAGR of 7.20% during the forecast period (2024-2029).

• The increasing demand for semiconductor devices from the aerospace and defense industries owing to the increasing air passenger traffic, increasing defense budgets, increasing space exploration activities, etc., is expected to contribute significantly to revenue generation in the coming years; however, a shortage of skilled labor-intensive tasks may impede industry expansion in the coming years.
• The military and aerospace industry's semiconductor market is growing significantly due to the increased upgrading and modernization of aircraft. However, market expansion may be constrained by factors like the high manufacturing cost. The focus of aircraft manufacturers has been to improve and modernize their products to help pilots fly safely. In addition, there is a growing need to update aircraft display screens as cathode ray tubes become obsolete. Lighter and more sophisticated display screens are required to reduce emissions and enable significant fuel savings significantly. Resultantly, the market is likely to grow due to the rising demand for semiconductors used in aircraft electronics systems.
• Space is a massive industry with limitless prospects, and components for space electronics based on semiconductors are needed for all platform functions. Innovation and R&D has been the preferred approach for many companies to secure their positions in the semiconductor and aerospace markets. For instance, STMicroelectronics developed affordable radiation-hardened space satellites in March 2022. The new line of power, analog, and logic ICs in low-cost plastic packages are radiation-hardened and perform crucial tasks for the electronic circuitry of the satellites. A data converter, a voltage regulator, a low-voltage differential signaling transceiver, a line driver, and five logs are among the first nine components in the series that was launched.
• Additionally, semiconductors are used in the defense industry in various systems, including navigation systems, auxiliary power units, fire suppression systems, and communication devices. Military forces are investing in UAV solutions like drones for effective operating systems, which in turn is creating demand for improved semiconductor components. Furthermore, advancements in capability around the region have created the need for modernization and the installation of sophisticated by governments to be prepared for any unprecedented threats and offensive attacks. Consequently fueling the market's expansion during the anticipated time.
• On the flip side, the semiconductor industry is considered to be one of the most complex industries, not only due to more than 500 processing steps involved in the manufacturing and various products, but also the harsh environment it faces, e.g., the volatile electronic market and the unpredictable demand. Depending on the complexity of the manufacturing process, there can be up to 1,400 process steps in the overall manufacturing of semiconductor wafers alone. Transistors are formed on the lowest layer, but the process is repeated as numerous layers of circuits are formed to create the final product. The complexity of manufacturing semiconductor devices is likely to restrain the growth of the studied market.

APAC Semiconductor Device Market Trends

Increase in Defense Budgets Across the Globe are Expected to Drive the Market's Growth

APAC Semiconductor Device Industry Segmentation

Semiconductor devices are electronic components that utilize the electronic properties of semiconductor materials, like silicon, germanium, gallium arsenide, and organic semiconductors.

The Asia-Pacific semiconductor device market in aerospace & defense industry is segmented by device type (discrete semiconductors, optoelectronics, sensors, integrated circuits [analog, logic, memory, micro [microprocessors, microcontrollers, digital signal processors]]), by country (China, Japan, India, Korea, Taiwan). The report offers market forecasts and size in value (USD) for all the above segments.