Semiconductor in Military Aerospace Market Trends

Global Semiconductor in Military and Aerospace Market Overview:

Semiconductor in Military and Aerospace Market Size was valued at USD 5,812.0 million in 2022. The Semiconductor in Military and Aerospace market is projected to grow from USD 6,032.8  Million in 2023 to USD 12,016.8 million by 2030, exhibiting a compound annual growth rate (CAGR) of 9.5% during the forecast period (2023 - 2030). The rise of unmanned systems, such as drones and autonomous vehicles, which require advanced semiconductor technologies and growing focus on electronic warfare and cybersecurity, driving the need for advanced semiconductor-based solutions. These are few of the market drivers that are driving the market.

FIGURE 1: SEMICONDUCTOR IN MILITARY AND AEROSPACE MARKET, 2018- 2030 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Semiconductor in Military and Aerospace Market Trends

• GROWING ADOPTION OF UNMANNED AERIAL VEHICLES (UAVS) AND OTHER AUTONOMOUS SYSTEMS

The Semiconductor in Military and Aerospace Market is experiencing significant growth due to various factors. One of the primary trends of this market is the increasing demand for advanced electronics systems in military and aerospace applications. The need for enhanced electronics systems is driven by the growing complexity of modern warfare, where electronic systems play a crucial role in communications, reconnaissance, and targeting. Another major driver of this market is the significant investment in research and development by governments, research institutions, and private companies. Such investments have led to the development of advanced semiconductor technologies, which are being used to create more intelligent and robust electronics systems for military and aerospace applications. One of the critical trends in this market is the use of high-performance computing technologies for military and aerospace applications. The use of such technologies allows for the creation of more advanced electronics systems capable of processing vast amounts of data quickly and accurately. This is critical in modern warfare, where real-time data processing is essential for effective decision-making. Another key development in this market is the use of artificial intelligence and machine learning technologies. These technologies enable the creation of intelligent electronics systems capable of autonomously identifying and responding to threats. This is especially important in aerospace applications, where autonomous systems can reduce the risk of human error and improve safety. Recently, the Military and Aerospace industry indicates that the demand for semiconductor technologies in these sectors is expected to continue to grow significantly in the coming years. This growth is driven by the increasing importance of electronics systems in modern warfare, as well as the growing adoption of unmanned aerial vehicles (UAVs) and other autonomous systems. Thus, this factor is driving the market CAGR.

The government plays a crucial role in the growth of the semiconductor in military and aerospace market. Governments worldwide are investing heavily in the development of advanced semiconductor technologies for military and aerospace applications. Additionally, favorable government policies and regulations aimed at increasing the growth of the defense industry are driving the market. One of the critical trends in semiconductor technology development for military and aerospace applications is the use of miniaturization and integration technologies. These technologies enable the creation of more compact and lightweight electronics systems, which are critical in aerospace applications, where weight and space are at a premium. Another significant trend in semiconductor technology development for military and aerospace applications is the use of high-reliability materials and components. The use of such materials and components is critical in aerospace applications, where the systems must operate reliably in harsh environments, such as high temperatures, radiation, and extreme vibration. In summary, the Semiconductor in Military and Aerospace Market is experiencing significant growth due to the increasing demand for advanced electronics systems in modern warfare and aerospace applications. The use of high-performance computing technologies, artificial intelligence and machine learning technologies, miniaturization and integration technologies, and high-reliability materials and components are some of the critical trends in semiconductor technology development for military and aerospace applications. The government plays a crucial role in the growth of this market through investments in research and development and favorable policies and regulations. Thus, it is anticipated that this aspect will accelerate Semiconductor in Military and Aerospace market revenue globally.

Semiconductor in Military and Aerospace Market Segment Insights:

Semiconductor in Military and Aerospace Components Insights

The Semiconductor in Military and Aerospace Market segmentation, based on components, sensors & actuators, optical, memory, microcontrollers, logic & discrete power devices and others. The memory segment held the majority share in 2022 in the Semiconductor in Military and Aerospace Market data. Memory components are a critical part of the Semiconductor in Military and Aerospace Market. These components are used to store and retrieve data in various systems, such as navigation, communication, and sensor systems. Military and aerospace applications require high-reliability memory components that can withstand extreme environmental conditions, including temperature, radiation, and shock. Semiconductor manufacturers develop specialized memory solutions to meet these requirements, including non-volatile memories such as flash memory, EEPROM, and MRAM. As the demand for data storage and processing continues to grow in the military and aerospace sectors, memory components will continue to be a key area of focus for semiconductor manufacturers.

FIGURE 2: SEMICONDUCTOR IN MILITARY AND AEROSPACE MARKET, BY COMPONENT, 2022 & 2030 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Semiconductor in Military and Aerospace Packaging Type Insights

The Semiconductor in Military and Aerospace Market segmentation, based on packaging type, plastics, and ceramics. The ceramics segment held the majority share in 2022 in the Semiconductor in Military and Aerospace Market data. Ceramics packaging is a type of packaging used in the global semiconductor market in military and aerospace. This packaging segment comprises various types of ceramic materials, such as aluminum oxide, beryllium oxide, and silicon carbide. Ceramic packaging offers several advantages over other packaging types, including high thermal conductivity, excellent electrical insulation, and superior mechanical strength. These characteristics make ceramics packaging ideal for high-temperature and high-power applications, making it a popular choice for military and aerospace systems. The ceramics packaging segment is driven by the increasing demand for miniaturization, higher levels of integration, and the need for reliable and robust packaging solutions. The market for ceramics packaging is expected to continue growing in the coming years due to the increasing adoption of advanced electronics in military and aerospace applications.

FIGURE 2: SEMICONDUCTOR IN MILITARY AND AEROSPACE MARKET, BY PACKAGING TYPE, 2022 & 2030 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Semiconductor in Military and Aerospace Technology Insights

The Semiconductor in Military and Aerospace Market data, based on Technology, Surface-Mount Technology (SMT) and Through-Hole Technology (THT). The Surface-Mount Technology (SMT) segment held the majority share in 2022 in the Semiconductor in Military and Aerospace Market data. Surface mount technology (SMT) is a type of technology used in the global semiconductor market in military and aerospace. This technology segment comprises various types of components, including resistors, capacitors, diodes, and transistors, which are mounted directly onto the surface of a printed circuit board (PCB). SMT technology offers several advantages over traditional through-hole technology, including higher component density, better electrical performance, and lower manufacturing costs. These characteristics make SMT technology an ideal choice for military and aerospace applications, where space and weight are critical considerations. The SMT technology segment is driven by the increasing demand for smaller and lighter electronic devices, and the need for improved performance and reliability in harsh environments. The market for SMT technology is expected to continue growing in the coming years due to the increasing adoption of advanced electronics in military and aerospace technology.

Semiconductor in Military and Aerospace Application Insights

The Semiconductor in Military and Aerospace Market data, based on application, Ruggedized Communications, Imaging and Radar, Smart Munitions, Space and Others. The Imaging and Radar segment dominated in the Semiconductor in Military and Aerospace market revenue in 2023 and is projected to be the faster-growing segment during the forecast period, 2023-2030. Imaging and radar are critical applications in the global semiconductor market for military and aerospace. These applications involve the use of sensors and other electronic components to capture and process images and radar signals for use in a wide range of military and aerospace systems, including surveillance, target acquisition, and navigation. Imaging and radar systems must be able to operate reliably in harsh environments, including low-light and high-temperature conditions, and be resistant to electromagnetic interference. These systems are essential for providing real-time situational awareness and enhancing the effectiveness of military and aerospace operations. As imaging and radar technology continues to advance, the demand for high-performance and reliable semiconductor components will continue to grow.

Semiconductor in Military and Aerospace End Users Insights

The Semiconductor in Military and Aerospace Market data, based on end users, aerospace and defense. The defense segment dominated in the Semiconductor in Military and Aerospace market revenue in 2022 and is projected to be the faster-growing segment during the forecast period, 2023-2030. The defense end-user is a critical part of the global semiconductor market for military and aerospace applications. Defense end-users include government agencies, military organizations, and defense contractors who purchase and use semiconductor components in a wide range of military and aerospace systems. These end-users have stringent requirements for the performance, reliability, and safety of semiconductor components, and they often work closely with semiconductor manufacturers to ensure that these requirements are met. As the demand for advanced military and aerospace systems continues to grow, defense end-users will continue to be a driving force in the semiconductor market, pushing for the development of new and innovative semiconductor technologies to meet their needs.

FIGURE 2: SEMICONDUCTOR IN MILITARY AND AEROSPACE MARKET, BY END USERS, 2023 & 2030 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Semiconductor in Military and Aerospace Defense End Users Insights

The Semiconductor in Military and Aerospace Market data, based on defense end user, communication and navigation systems, integrated vehicle systems, high precision systems, military vehicles and others. The Military Vehicles defense segments dominated in the Semiconductor in Military and Aerospace market revenue in 2022 and is projected to be the faster-growing segment during the forecast period, 2023-2030. Military vehicles are critical components used in defense applications, including transport, logistics, and combat operations. These vehicles require advanced electronics, communication, and navigation systems to operate effectively in challenging environments. Defense end-users, including government agencies and military organizations, rely on military vehicles to achieve their missions effectively. Semiconductor components play a critical role in enabling these systems, providing the performance and reliability needed for military operations. As the demand for advanced military vehicles continues to grow, defense end-users will continue to be a driving force in the semiconductor market, pushing for the development of new and innovative semiconductor technologies to meet their needs.

Semiconductor in Military and Aerospace, Aerospace End Users Insights

The Semiconductor in Military and Aerospace Market data, based on aerospace end user, power payload, power management, RF systems, avionics, aircraft, and others. The RF systems aerospace segments dominated in the Semiconductor in Military and Aerospace market revenue in 2023 and is projected to be the faster-growing segment during the forecast period, 2023-2030. RF systems are an essential for military and aerospace systems, enabling secure communication, radar detection, and tracking of targets. The Semiconductor in Military and Aerospace Market caters to end user segments in the aerospace and defense industries, including defense contractors, government agencies, and commercial aerospace companies. The demand for RF systems in aerospace applications is driven by the need for reliable and secure communication, advanced navigation and guidance systems, and sophisticated radar systems that can detect and track potential threats. The market for RF systems in military and aerospace is expected to grow in the coming years, driven by the increasing demand for unmanned aerial vehicles (UAVs), advanced missile defense systems, and other critical military and aerospace applications that rely on high-performance semiconductor technologies.

Semiconductor in Military and Aerospace Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Middle East & Africa and South America. During the study period, the North America Semiconductor in Military and Aerospace market is expected to exhibit significant growth, with the region accounting for a major share of the global market. In 2022, the North American Semiconductor in Military and Aerospace industry had a value of USD 2718.2 million, and its market share was approximately 46.32%. The North American market for semiconductors in military and aerospace is well-established due to the presence of a strong defense sector, high defense spending, and advanced technological infrastructure. The region's emphasis on research and development efforts, combined with favorable regulatory conditions, is expected to drive the growth of the North American Semiconductor in Military and Aerospace market. Furthermore, the region's high disposable income and population awareness are expected to increase demand for advanced semiconductor technologies in North America. Companies in the North American Semiconductor in Military and Aerospace market mainly employ strategies such as new product development, partnerships, expansions, mergers, and acquisitions. The increasing demand for advanced semiconductor technologies in military and aerospace applications, as well as the need for effective countermeasures against emerging threats, are expected to drive the North American Semiconductor in Military and Aerospace market's growth in the years to come.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: SEMICONDUCTOR IN MILITARY AND AEROSPACE MARKET SHARE BY REGION 2022 & 2030 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe is a significant market for Semiconductor in Military and Aerospace applications, accounting for a substantial portion of the global market. The European market for semiconductors in military and aerospace is growing due to the region's strong defense industry, advanced technological infrastructure, and well-established healthcare systems. The availability of innovative products, as well as increased consumer awareness, are also contributing to the region's market expansion. The United Kingdom is Europe's most dominant market for semiconductors in military and aerospace applications, accounting for a significant share of the regional industry. The presence of a large defense sector, advanced research and development capabilities, and favorable regulatory conditions are driving the growth of the country's Semiconductor in Military and Aerospace market. Germany is the region's fastest-growing market, driven by an increased focus on defense modernization and rising demand for advanced semiconductor technologies. Partnerships, collaborations, and product launches by leading players to expand their product portfolio and market presence are key industry developments in the Europe Semiconductor in Military and Aerospace market. Furthermore, the growing use of advanced technologies such as artificial intelligence, machine learning, and blockchain in the development of semiconductor technologies is expected to drive regional market growth.

During the forecast period, the Asia-Pacific Semiconductor in Military and Aerospace market is expected to exhibit the fastest growth, driven by the region's increasing military spending, emphasis on defense modernization, and rising demand for advanced semiconductor technologies. Favorable government initiatives to expand the defense industry, improve weaponry, and strengthen regional security are also contributing to the market growth in the Asia-Pacific region. Additionally, the increasing use of advanced technologies such as artificial intelligence, machine learning, and cyber security in the development of semiconductor technologies is expected to fuel market expansion. China holds the largest market share in the region, accounting for a significant portion of the global market, while the Indian market for semiconductors in military and aerospace applications is the fastest growing, driven by an increased focus on indigenous defense manufacturing and the need for advanced semiconductor technologies. Partnerships, collaborations, and product launches by leading players to expand their product range and market presence are key industry developments in the Asia-Pacific Semiconductor in Military and Aerospace market. For instance, in September 2021, the Japan Aerospace Exploration Agency (JAXA) and Toshiba collaborated to develop a radiation-hardened semiconductor for use in space. Such initiatives are expected to contribute to the region's Semiconductor in Military and Aerospace market expansion.

Semiconductor in Military and Aerospace Key Market Players & Competitive Insights

The Semiconductor in Military and Aerospace Market is a highly competitive industry, with numerous global, regional, and local vendors offering a diverse range of products and services. To stay competitive, market players are focusing on strategic initiatives such as new product launches, mergers and acquisitions, contractual agreements, increased investments, and collaborations with other organizations to expand their worldwide footprint. Some of the major players in the Semiconductor in Military and Aerospace Market include Intel Corporation, NVIDIA Corporation, Analog Devices Inc., Texas Instruments Inc., Broadcom Inc., Xilinx Inc., Renesas Electronics Corporation, Maxim Integrated Products Inc., Microsemi Corporation, and Infineon Technologies AG. These companies have a broad product portfolio that includes commercialized products such as military-grade microprocessors, radiofrequency (RF) components, and sensors, as well as pipeline programs centered on advanced semiconductor technologies such as Artificial Intelligence (AI), machine learning, and quantum computing. Market competitors must offer cost-effective products and solutions to stay competitive in this expanding market. For instance, Intel Corporation provides a range of high-performance microprocessors and field-programmable gate arrays (FPGAs) for military and aerospace applications. The company is also investing in AI and machine learning technologies to enhance the effectiveness of its products and to address customer needs. Similarly, NVIDIA Corporation offers advanced graphics processing units (GPUs) and AI-enabled technologies for military and aerospace applications, including autonomous vehicles and drones. In summary, the Semiconductor in Military and Aerospace Market is highly competitive and growing, with major players investing heavily in research and development to expand their product lines and grow their market share. These companies are committed to developing innovative semiconductor solutions to address unmet customer needs and enhance national security.

Key Companies in the Semiconductor in Military and Aerospace market include.

• Intel Corporation


• NVIDIA Corporation


• Analog Devices Inc.


• Texas Instruments Inc.


• Broadcom Inc.


• Xilinx Inc.


• Renesas Electronics Corporation


• Maxim Integrated Products Inc.


• Microsemi Corporation


• Infineon Technologies AG


• STMicroelectronics


• NXP Semiconductors


• ON Semiconductor


• ROHM Semiconductor


• Lattice Semiconductor

Semiconductor in Military and Aerospace Industry Developments

For Instance, April 2023 TSMC is partnering with Bosch and other European manufacturers to build a 28nm fab in Saxony, Germany, for the automotive industry, despite concerns about national security. The new plant will help address the automotive chip shortage but won't meet the advanced chip needs of the defense industry. Germany lacks a clear semiconductor strategy, and there could be pushback on changing the fab to produce more advanced nodes. However, the global supply chain allows defense contractors in Germany to purchase advanced components from a diversified supplier with a large e-commerce platform.

For Instance, April 2023 Brazil began to establish a relationship with China's technology industry, despite efforts from the United States to discourage Brazil from partnering with China. During a meeting between Chinese Premier Xi Jinping and Brazilian President Luiz Inácio Lula da Silva, they agreed to form a working group to pursue semiconductor production in South America. They also signed 15 agreements to promote joint research and development in various technologies, including satellite rainforest monitoring, 5G communication, internet, and security services.

For Instance, In March 2023 Infineon Technologies, a global technology company that designs and manufactures semiconductors and system solutions, has announced that it has reached a definitive agreement to acquire GaN Systems, a company that specializes in the production of gallium nitride (GaN) power semiconductors. The acquisition will be executed through a cash payment of $830 million.

For Instance, December 2022 L3Harris, a company that works in defense and aerospace, has purchased Aerojet Rocketdyne, a manufacturer that produces propulsion systems and rocket engines for military weapons, ballistic missiles, and space vehicles. This acquisition involves the merging of two companies that operate in related but distinct industries, which is known as a horizontal integration.

For Instance, In October 2022 The American Semiconductor Innovation Coalition (ASIC) plans to present its proposal for the $11 billion investment in semiconductor manufacturing. The plan involves utilizing existing resources, such as the Albany NanoTech Complex and SUNY Poly’s College of Nanoscale Science and Engineering, with the involvement of semiconductor partners, including IBM and Samsung. U.S. military researchers are also seeking radiation-tolerant high-voltage transistors for the space industry. The Space Power Conversion Electronics (SPCE) project has been announced by the U.S. Defense Advanced Research Projects Agency (DARPA) to investigate alternatives like gallium nitride (GaN) and silicon carbide (SiC).

For Instance, August 2022 The Defense Advanced Research Projects Agency (DARPA) had awarded BAE Systems' FAST Labs research and development organization a $17.5 million contract for the Generating RF with Photonic Oscillators for Low Noise (GRYPHON) program. The breakthrough technology developed through the program could enable an unprecedented combination of low noise, compact size, and frequency agility for next-generation airborne sensing and communications capabilities.

For Instance, June 2022 Infineon Technologies AG launched the fully programmable motor controllers MOTIX IMD700A and IMD701A. They come in 9 x 9 mm 2 64-pin VQFN packaging, offering the desired integration and higher power density needed in cordless power tools, gardening products, drones, e-bikes, and automated guided vehicles.

For Instance, January 2022 China will form a committee of chipmakers and universities to boost its chipmaking capabilities and cultivate its digital sovereignty, with the involvement of SMIC and Xiaomi. The committee aims to cooperate with companies such as Intel, AMD, Infineon Technologies, and ASML. Meanwhile, Bosch will spend €205 million ($283 million) to expand the production capacity of its Reutlingen fab in Germany to address the global chip shortage and meet growing demand for SiC microelectronics related to vehicle electrification.

For Instance, In September 2021 Intel launched a new range of 11th Gen Intel Core processors, specifically designed for use in military and aerospace applications, with improved performance and power efficiency.

For Instance, In August 2021 Analog Devices completed its acquisition of Maxim Integrated, creating a combined company with a comprehensive portfolio of high-performance analog and mixed-signal products for use in the military, aerospace, and other industries.

For Instance, In July 2021 STMicroelectronics announced that it had launched a new range of radiation-hardened power MOSFETs designed for use in space and other high-reliability applications.

For Instance, In May 2021 Marvell Technology announced that it had acquired Innovium, a provider of high-performance switch silicon solutions for cloud and edge data centers, including military and aerospace applications. The acquisition will enhance Marvell's capabilities in providing high-speed networking solutions for these markets.

Semiconductor in Military and Aerospace Market Segmentation

Semiconductor in Military and Aerospace Component Outlook (USD Million, 2018-2030)

• Sensors & Actuators


• Optical


• Memory


• Microcontrollers


• Logic & Discrete Power Devices


• Others

Semiconductor in Military and Aerospace Packaging Type Outlook (USD Million, 2018-2030)

• Plastics


• Ceramics

Semiconductor in Military and Aerospace Technology Outlook (USD Million, 2018-2030)

• Surface-Mount Technology (SMT)


• Through-Hole Technology (THT)

Semiconductor in Military and Aerospace Application Outlook (USD Million, 2018-2030)

• Ruggedized Communications


• Imaging and Radar


• Smart Munitions


• Space


• Others

Semiconductor in Military and Aerospace End User Outlook (USD Million, 2018-2030)

• 
  Defense
  
  
  
  • Communication and Navigation Systems
  
  
  • Integrated Vehicle Systems
  
  
  • High Precision Systems
  
  
  • Military Vehicles
  
  
  • Others
  
  
  
  


• 
  Aerospace
  
  
  
  • Power Payload
  
  
  • Power Management
  
  
  • RF Systems
  
  
  • Avionics
  
  
  • Aircraft
  
  
  • Others
  
  
  
  

Semiconductor in Military and Aerospace Regional Outlook (USD Million, 2018-2030)

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • South America