Aerospace Semiconductor Market Size, Share, and Industry Analysis, By Application (Communication, Navigation, and Surveillance, Imaging, Radar and Earth Observation, Munitions, and Others), By Technology (Surface-Mount Technology (SMT) and Through-Hole Technology (THT)), By End-User (Commercial Aircraft, Military Aircraft, Satellite Launch Vehicle, and Others), and Regional Forecast, 2024-2032

Aerospace semiconductors are specialized semiconductor devices crucial for aerospace applications, particularly in aircraft and spacecraft systems. These semiconductors are designed to withstand harsh environments, such as high altitudes, radiation, and temperature variations. This ensures reliable operation in aerospace settings where precision, safety, and high reliability. Aerospace semiconductors power critical functions, such as instrumentation, navigation systems, communication equipment, and guidance systems onboard aircraft and spacecraft. They contribute to advances in aerospace technology, space exploration, and satellite communication. They play an important role in aerospace engineering, regulating electrical current flow, controlling electronic circuits, and enabling the efficient operation of various aerospace systems, from launch vehicles to spacecraft propulsion systems.

The aerospace semiconductors market is driven by several key factors. Increasing demand for space exploration and satellite technology is a significant growth driver, fueling the need for advanced semiconductor solutions. The increasing demand for sophisticated avionics systems in the aerospace industry, comprising automation, communication, and navigation, necessitates the utilization of high-performance semiconductors. The increasing use of the Internet of Things (IoT) in aerospace applications has driven the demand for semiconductors capable of real-time data processing, enhancing connectivity and operational efficiency. The industry's emphasis on lightweight and fuel-efficient aircraft designs encourages semiconductor manufacturers to develop smaller, lighter, and more power-efficient chips in order to meet stringent requirements, driving innovation. Moreover, the rising demand for semiconductors that offer enhanced computation and visualization capabilities in applications such as digital twins, virtual reality, and augmented reality is propelling semiconductor manufacturers to innovate and cater to evolving industry requirements.

Key Insights

The report covers the following key insights:

• The report analyzes a detailed overview of the industry, including qualitative and quantitative information.


• It analyzes an overview and forecast of the aerospace semiconductor market at the platform level.


• The report also analyzes comprehensive supply chain analysis at a global level. The market will be further distributed at regional and country levels.

Segmentation

Analysis by Technology:

By technology, the aerospace semiconductor market is classified into Surface-Mount Technology (SMT) and Through-Hole Technology (THT). The Surface-Mount Technology (SMT) segment dominated the market due to the miniaturization and weight reduction of the SMT components as compared to the THT segment. It also allows for higher levels of integration and component density on the circuit board compared to THT. THT components are majorly preferred across ruggedized and high-reliability aerospace systems where solder joint strength and reparability are critical.

Regional Analysis

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The aerospace semiconductor market is geographically segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America leads the global market with a significant share, benefiting from its established aerospace industry leadership and the presence of key defense and aerospace players. This region is expected to experience further growth, especially in advanced automation and defense applications. The Asia Pacific region, however, is experiencing significant market expansion driven by rising demand for cutting-edge avionics and the aerospace industry's growth in countries, such as China and India. Europe stands out for its focus on sustainable semiconductor solutions, which leverage the presence of major aerospace companies. Other regions, such as the Middle East and Latin America, are also contributing to market growth, although at a slower rate, reflecting the diverse regional dynamics shaping the aerospace semiconductor market.

Key Players Covered

The report includes the profiles of key players, such as ON Semiconductor, Microchip (Microsemi), Aerospace Semiconductor, Infineon Technologies, Broadcom, NXP, Texas Instruments, Northrop Grumman Corporation, Raytheon Technologies Corporation, and BAE Systems.

Key Industry Developments

• In May 2024, ASAP Semiconductor, a California-based distributor of aerospace parts and electronics, reaffirmed its commitment to meeting the steadily increasing demands of the aerospace industry and its customer base with continuous efforts to expand the offerings and services available through its website, ASAP Aero Supplies.


• In February 2024, Rosen Aviation, an industry-leading semiconductor manufacturer, announced a partnership with Qualcomm Technologies, a leading IFE and cabin electronics supplier. Rosen Aviation will be able to use Qualcomm's QCS8550 processors in its cabin technology, bringing a higher level of performance and functionality to business, VIP, and commercial aviation cabins.


• In February 2024, Tower Semiconductor, an Israeli-based leading chip foundry, proposed to the Indian government to establish a USD 8 billion chip manufacturing facility in India.


• In October 2023, LeoLabs, an operator in the satellite operations sector, also intends to establish a center of excellence (CoE) for the study of space technology in Karnataka.


• In October 2023, The U.S. Department of Defense recently renewed its long-term contract with GlobalFoundries (GF) to procure U.S.-made semiconductors for vital defense and aerospace systems, extending the partnership another 10 years, worth USD 3.1 billion. As per the terms of the agreement, GF will manufacture chips of American origin for military systems utilized on land, air, sea, and space.