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

The semiconductor device market in the aerospace and defense industry is poised for growth, driven by increased defense spending and the demand for advanced technology in aircraft modernization and radiation-resistant components. This market's expansion is supported by the rising need for durable technology in military and space exploration, alongside significant investments in modern defense systems and navigational tools. However, challenges such as semiconductor shortages and trade restrictions in North America and Europe, which have led to production delays and financial losses, may hinder the market's growth trajectory.

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Market Size of Semiconductor Device Industry In Aerospace & Defense Industry

Semiconductor Device Market In Aerospace & Defense Industry Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 6.41 %
Fastest Growing Market Europe
Largest Market Asia Pacific
Market Concentration Low

Major Players

Semiconductor Device Market In Aerospace & Defense Industry Major Players

*Disclaimer: Major Players sorted in no particular order

Semiconductor Device In Aerospace & Defense Market Analysis

The Semiconductor Device Market In Aerospace & Defense Industry is expected to register a CAGR of 6.41% during the forecast 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.
  • 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.

Device Type
Discrete Semiconductors
Optoelectronics
Sensors
Integrated Circuits
Analog
Logic
Memory
Micro
Microprocessor
Microcontroller
Geography
United States
Europe
Japan
China
Korea
Taiwan
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Semiconductor Device Market In Aerospace & Defense Industry Size Summary

The semiconductor device market within the aerospace and defense industry is poised for significant growth, driven by increased defense spending and the need for aircraft modernization and upgrades. Semiconductors play a crucial role in various applications, including power management, RF systems, avionics, and defense systems, with their development further propelled by the demand for radiation-resistant components. The market is also influenced by the rising investments in space exploration and the advancement of technology-enabled communication systems. However, challenges such as semiconductor shortages and trade restrictions in regions like North America and Europe have impacted production cycles, potentially limiting market expansion.

In Europe, the semiconductor market is experiencing growth due to heightened military expenditure and initiatives to enhance space capabilities. Countries like the Netherlands and France are investing significantly in defense and space technology, creating opportunities for semiconductor development. The market is characterized by intense competition, with major players like NXP Semiconductors and STMicroelectronics introducing innovative products tailored for aerospace and defense applications. Strategic collaborations and acquisitions, such as National Instruments' acquisition of SET GmbH, are aimed at integrating semiconductor and transportation supply chains, further driving market advancement.

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Semiconductor Device Market In Aerospace & Defense Industry Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitutes

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Industry Value Chain/Supply Chain Analysis

    4. 1.4 Impact of Macro Trends on the Market

    5. 1.5 Technological Trends

  2. 2. MARKET SEGMENTATION

    1. 2.1 Device Type

      1. 2.1.1 Discrete Semiconductors

      2. 2.1.2 Optoelectronics

      3. 2.1.3 Sensors

      4. 2.1.4 Integrated Circuits

        1. 2.1.4.1 Analog

        2. 2.1.4.2 Logic

        3. 2.1.4.3 Memory

        4. 2.1.4.4 Micro

          1. 2.1.4.4.1 Microprocessor

          2. 2.1.4.4.2 Microcontroller

    2. 2.2 Geography

      1. 2.2.1 United States

      2. 2.2.2 Europe

      3. 2.2.3 Japan

      4. 2.2.4 China

      5. 2.2.5 Korea

      6. 2.2.6 Taiwan

Semiconductor Device Market In Aerospace & Defense Industry Market Size FAQs

The Semiconductor Device Market In Aerospace & Defense Industry is projected to register a CAGR of 6.41% during the forecast period (2024-2029)

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.

Semiconductor Device Market In Aerospace & Defense Industry Report Snapshots

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