Aerospace Semiconductor Market - By Type, By Application (Avionics Systems & Flight Control, Communication & Connectivity Solutions, Power Distribution & Management, Navigation & Sensing Technologies, Safety & Emergency Systems, Aircraft Entertainment Systems) & Forecast, 2024 – 2032

Aerospace Semiconductor Market Size

Aerospace Semiconductor Market was valued at over USD 35 billion in 2023 and is anticipated to grow at a CAGR of over 8% between 2024 and 2032. The demand from space exploration and satellite technology serves as a growth driver for the industry due to the increasing reliance on advanced electronics in spacecraft & satellite systems. Semiconductors play a crucial role in providing robust communication, navigation, and processing capabilities, contributing to the development of more sophisticated & efficient space technologies. As space exploration and satellite deployments expand, the semiconductor industry experiences heightened demand for high-performance components to meet the evolving needs of space missions and satellite functionalities.

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For instance, in May 2022, STMicroelectronics introduced economical radiation-hardened ICs for space satellites. The new line of radiation-hardened power, analog, and logic integrated circuits from ST, housed in inexpensive plastic packages, serves critical roles in the satellites' electrical systems. A data converter, a voltage regulator, an LVDS transceiver, a line driver, and five logic gates are among the first nine devices in this series, which were released. These devices are utilized in systems such as power generation & distribution, on-board computers, telemetry star trackers, and transceivers.

Aerospace semiconductors refer to electronic components made of materials with intermediate conductivity, essential for spacecraft and aircraft systems. These components including microprocessors & integrated circuits enable crucial functions such as communication, navigation, and data processing, playing a vital role in the advanced technology utilized in aerospace applications.

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The design of semiconductors for aerospace applications is limited by radiation hardening and space compatibility due to the higher complexity & expenses involved in creating components that can endure the extreme conditions of space environments. These specifications impose restrictions on the market due to the demand for specialized materials and manufacturing techniques, reducing the flexibility and economic viability of semiconductor production for the aircraft industry.

COVID-19 Impact

The COVID-19 pandemic significantly impacted the aerospace semiconductor industry. Supply chain disruptions, factory closures, and increased demand for consumer electronics strained semiconductor production. As a result, aerospace manufacturers faced delays, increased costs, and challenges in securing vital components. The pandemic underscored the industry's vulnerability to global disruptions, emphasizing the need for resilient supply chain strategies and increased collaboration to navigate future uncertainties.

Aerospace Semiconductor Market Trends

Growing demand for advanced avionics propels the aerospace industry to seek high-performance semiconductors, crucial for automation, communication & navigation. Simultaneously, the integration of IoT in aerospace drives semiconductor demand for real-time data processing. The industry's focus on lightweight, fuel-efficient designs spurs semiconductor manufacturers to create smaller, lighter & more power-efficient chips to meet stringent aerospace requirements.

The need for high-performance semiconductors capable of handling complicated computations is being driven by the application of machine learning in autonomous decision-making and predictive maintenance. Concerns about supply chain resilience in the aerospace semiconductor industry led to an emphasis on creating strong supply chains and looking into alternate sources to reduce risks. Sustainability is emphasized by green aviation programs, which spurs the development of energy-efficient chips for environmentally friendly aviation systems. The demand for semiconductors that provide enhanced computation & visualization capabilities in digital twins, virtual reality, and augmented reality applications is fueled by the growing digital transformation of the aerospace sector.

Aerospace Semiconductor Market Analysis

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Based on application, the market is segmented into avionics systems & flight control, communication & connectivity solutions, power distribution & management, navigation & sensing technologies, safety & emergency systems, aircraft entertainment systems. The communication and connectivity solutions segment dominated the market in 2023 with a market share of over 25%.

• Communication and connectivity solutions in semiconductors are poised for growth in the aerospace market due to increasing demand for advanced avionics and connectivity features. The aviation industry is rapidly adopting technologies like in-flight connectivity, satellite communication, and wireless systems for real-time data exchange.
• These solutions enhance aircraft communication, navigation, and surveillance capabilities, improving overall safety and operational efficiency. As the aerospace sector continues to prioritize digitalization, the demand for semiconductor solutions supporting robust communication and connectivity applications is expected to rise significantly.

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Based on type, the market is segmented into discrete devices, optical devices, microwave devices, sensors, ICs (Integrated Circuits), and hybrid ICs. The sensors segment is anticipated to register a CAGR of over 10% through 2032.

• Sensors are pivotal in aerospace safety, monitoring crucial parameters for reliability. With the industry's increasing automation, sensors provide real-time data for decision-making and support autonomous features such as autopilot, reinforcing the safety & efficiency of aircraft systems.
• The aerospace sector's escalating need for remote sensing, encompassing surveillance, reconnaissance, and monitoring, propels the integration of diverse sensors. Crucial for security, sensors play a pivotal role in safeguarding aircraft and passengers, underlining their indispensable contribution to overall safety in aerospace applications.

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North America dominated the global aerospace semiconductor market with a share of over 35% in 2023. North America's proven leadership in the aerospace industry is expected to fuel the regional market expansion. The strong presence of leading defense contractors and aerospace manufacturers fuels the market for state-of-the-art semiconductor technologies. The expansion is also facilitated by government efforts that foster technological innovation and rising research & development expenditures. Due to its focus on sophisticated automation, defense applications & aviation safety, North America is positioned to become a major hub for semiconductor growth in the rapidly expanding aircraft business.

Aerospace Semiconductor Market Share

Players operating in the aerospace semiconductor industry focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product developments & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. These players also heavily invest in research & development to introduce innovative and technologically advanced solutions in the market.

Aerospace Semiconductor Market Companies

Major players operating in the aerospace semiconductor industry are

• Analog Devices, Inc.
• Infineon Technologies AG
• Microchip Technology Inc.
• NXP Semiconductors NV
• ON Semiconductor Corporation
• Raytheon Technologies Corporation
• Texas Instruments Incorporated

Aerospace Semiconductor Industry News

• In June 2023, Texas Instruments announced that it will build two manufacturing plants in Malaysia with two new assembly & test factories in Kuala Lumpur and Melaka. The USD 3 billion investment will support TI's plan to bring 90% of its assembly & test operations internal by 2030 and have greater control of supply.

Aerospace semiconductor market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Type

• Discrete devices
  • Diodes
  • Transistors
  • Thyristors
  • Modules
• Optical devices
  • LEDs
  • Photodetectors
  • Lasers
• Microwave devices
• Sensors
• ICs (Integrated Circuits)
  • Memories
  • MPUs
  • Logic ICs
  • Analog ICs
• Hybrid ICs

Market, By Application

• Avionics systems & flight control
• Communication & connectivity solutions
• Power distribution & management
• Navigation & sensing technologies
• Safety & emergency systems
• Aircraft entertainment systems

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Singapore
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA

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