Semiconductor Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, India, Germany, France - Size and Forecast 2024-2028

Semiconductor Market in Military and Aerospace Market Size 2024-2028

The semiconductor market in military and aerospace market is estimated to grow by USD 3.02 billion. at a CAGR of 5.56% between 2023 and 2028.

he market's growth hinges on several factors, notably the ongoing upgrading and modernization of aircraft, which drive the need for advanced electronic systems. Additionally, the increasing incorporation of electronics in military applications, such as surveillance and communication systems, contributes to market expansion. Moreover, the rising military expenditure by various countries to enhance their defense capabilities plays a pivotal role in driving market growth. These factors collectively indicate a positive outlook for the market in the foreseeable future. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the During the Forecast Period?

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Market Insights

In our comprehensive market report, we provide critical insights equip stakeholders with strategic tools to navigate the dynamic gaming industry landscape effectively. Here's how our report empowers decision-makers,

• Understanding market dynamics, including historical trends, current market size, and future projections, is essential for effective navigation of the competitive landscape.
• Five Forces analysis provides insights into competitive forces within the industry, guiding strategic decision-making. Market segmentation facilitates targeted strategies tailored to specific consumer segments, maximizing market penetration and growth opportunities.
• Geographic variations underscore the importance of localized approaches to market expansion and consumer engagement.
• Identifying key drivers, challenges, and trends enables companies to adapt quickly to market shifts and capitalize on emerging opportunities.
• Evaluating the vendor landscape and positioning provides valuable insights for strategic partnerships and competitive advantage.

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Market Segmentation

This report extensively covers market segmentation by application (Aerospace and defense), product (memory, logic, MOS microcomponents, analog, and others), and geography (North America, Europe, APAC, MEA, and South America).

By Application

The market share growth by the memory segment will be significant during the forecast period.Semiconductor memory stores data. Memory is required in any equipment that uses a processor. Therefore, the increased use of processors in various devices has propelled the requirement for semiconductor memory. Moreover, software connected with processors and computers is increasingly becoming sophisticated and growing in size. This is increasing the need for semiconductor memory. There are primarily two types of memory, namely, Random Access Memory (RAM) and Read-Only Memory (ROM). 

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The memory segment was valued at USD 2.38 billion in 2017. RAM is a volatile memory of the computer that provides temporary storage for program codes and data that is actively used by the computer. On the other hand, computers and other electronic devices use ROM as a kind of non-volatile memory. Its contents cannot be readily changed or rewritten while it is operating normally, and it saves data forever. Many technologies, such as programmable read-only memory (PROM) and dynamic random-access memory (DRAM), are available under ROM and RAM. Global semiconductor manufacturers are introducing new processors in the military and aerospace industries. For instance, in July 2021, Teledyne e2v HiRel Electronics partnered with Integra Technologies Inc. to launch 100V GaN/SiC RF power technology for high-reliability aerospace and defense applications. The introduction of such products will further propel the demand for memory semiconductors from the military and aerospace industries. The use of technology in military weapons will further increase the demand for memory chips. For instance, Intelligun, a US-based company, provides a fingerprint-locking system that locks guns. Guns with the locking system can be unlocked immediately with authorized users. The growing use of technology in weapon systems will increase the demand for memory to be incorporated into these new systems. Furthermore, the growing use of the Internet of Things (IoT) in the aviation and military sectors will increase the demand for the memory chips segment and will propel the growth of the global semiconductor market in military and aerospace industry during the forecast period.

By Region

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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US military is expanding its horizon across advanced technologies, such as the Internet of Things (IoT), Industry 4.0, and artificial intelligence (AI) for manufacturing autonomous systems and robotics, which will also create more demand for semiconductors. The airborne segment of military robots is growing significantly in the region. Military operations undertaken by the US and allied forces have been deploying drones for intelligence, surveillance, and reconnaissance (ISR) missions. The integration of ammunition with unmanned combat aerial systems (UCAS) has provided the US Army with much-needed tactical superiority during its operations in hostile foreign environments. The demand for unmanned aerial vehicles (UAVs) is increasing across operations in the region. Military agencies are deploying UAVs to isolate and track targets continuously. The US government is investing extensively in developing such technologies to strengthen the defence capabilities of the country. Such developments will increase the need for semiconductors in military applications during the forecast period.

Market Dynamics and Customer Landscape

The market is driven by the demand for high-performance microchips and integrated circuits (ICs). These components are essential for a wide range of applications, including communications, defense modernization, and space exploration. European countries, through organizations like the European Space Agency (ESA), invest heavily in CAES and space-hardened microprocessors to ensure reliable operation in the harsh space environment. Additionally, advancements in UAV solutions and missile technology, such as the Rafale fleet and MBDA's Mica NG air-to-air missile, drive the need for cutting-edge semiconductor solutions to meet the sector's stringent requirements for reliability and performance in challenging environments.  Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increased upgrading and modernization of aircraft is the key factor driving the global market. Aircraft across the globe are undergoing modernization with the incorporation of advanced electronics and systems in the machines to better equip pilots for safe flying. Modern electronics are more accurate and also weigh less. For instance, under the new avionics display upgrade program, UPS upgraded its Boeing 757s and 767s with Boeing's 787-style cockpit avionics. According to the upgrade, large-screen displays were mostly expected to replace display and flight instruments with large 15.1-inch flat-panel display screens.

One of the factors driving the need to upgrade display screens in an aircraft is that cathode ray tube (CRT) displays are gradually becoming obsolete. This is supported by the government sector, industrial sector, consumer automotive sector, communications sector, electronic devices sector, military expenditure, defense modernization, space environment, radiation effects, and particle radiation.  Moreover, the new displays are lighter than the current CRTs. The new displays are further expected to reduce UPS's fuel use by 55,000 gallons per year while reducing emissions by 523 metric tons. Increasing upgrading and modernization of aircraft will augment the demand for semiconductors used in the electronics systems of the carriers. This will drive the growth of the global market during the forecast period.

Significant Market Trend

The growing use of UAVs is the primary trend in the global market growth. A UAV, also known as a drone, is an aircraft that is not operated manually by a pilot. Drone pilots can remotely control these UAVs. The applications of drones are growing beyond military use to other sectors, such as logistics. Moreover, these UAVs are being used to deliver aid packages to disaster-affected areas.

In November 2021, United Arab Emirates was testing drones for fighting fires and delivering drugs. Many countries are using drones for military purposes. For instance, in 2019, India announced its plan to induct 5,000 UAVs in the next ten years. The growing use of UAVs in many sectors, such as the military and logistics, is expected to drive the demand for semiconductors. Such factors are expected to drive the growth of the market in focus during the forecast period.

Major Market Challenge

Growing concern about security is a major challenge to global market growth. The security of information in the military and aerospace industry is a growing concern. This is due to the increasing use of devices connected to the Internet, especially the rise in the adoption of IoT. Military equipment is getting hacked. For instance, in December 2022, Global Ordnance, a legitimate U.S.-based military weapons and hardware supplier, witnessed an attack on its login page infrastructure.

The rising number of hacking incidents concerning military and aerospace is expected to impede the adoption of connected devices and other electronic devices. This would further hamper the growth of the global semiconductor market in the military and aerospace industries. In addition, semiconductor companies would need to invest in developing immensely secure chips for the global military and aerospace industry. Such factors may hinder the growth of the market in focus during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Semiconductor Market in Military and Aerospace Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AKHAN Semiconductor Inc. - The company offers semiconductors in the military and aerospace industries which are central to a wide range of applications including consumer electronics, power supplies, and radio-frequency (RF) applications. Also, the company is engaged in the design and development of diamond and nanocarbon semiconductor technologies for both optical and electronic applications.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• AMS Technologies AG
• Broadcom Inc.
• Digitron Semiconductors
• Infineon Technologies AG
• Intel Corp.
• KCB Solutions LLC
• Microchip Technology Inc.
• Micron Technology Inc.
• Northrop Grumman Corp.
• ON Semiconductor Corp.
• Raytheon Technologies Corp.
• SEMICOA
• Semtech Corp.
• Skyworks Solutions Inc.
• Teledyne Technologies Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.

• Application Outlook 
  • Aerospace
  • Defense

• Product Outlook 
  • Memory
  • Logic
  • MOS microcomponents
  • Analog
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentinae
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is crucial for advanced technology applications. It relies on pure elements like silicon and germanium as well as compounds such as gallium arsenide for semiconductor manufacturing. These semiconductors are used in UAVs (drones), defense systems, including space-hardened microprocessors and instruction set architectures (ISAs), enhancing border security and countering terrorism. To meet defense budget constraints, efficient procurement of components like AASM air-to-ground modular weapons and scalp missiles is essential. Radiation-tolerant components are critical for satellite launches and space activities in low earth orbit (LEO), ensuring information security and global security.

Market Scope
Report Coverage	Details
Page number	173
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.56 %
Market growth 2023-2027	USD 3.02 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	5.36%
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 40%
Key countries	US, China, Japan, France, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	AKHAN Semiconductor Inc., AMS Technologies AG, Broadcom Inc., Digitron Semiconductors, Infineon Technologies AG, Intel Corp., KCB Solutions LLC, Microchip Technology Inc., Micron Technology Inc., Northrop Grumman Corp., ON Semiconductor Corp., Raytheon Technologies Corp., SEMICOA, Semtech Corp., Skyworks Solutions Inc., Teledyne Technologies Inc., Texas Instruments Inc., Toshiba Corp., Vishay Intertechnology Inc., and Xilinx Inc.
Market dynamics	Parent market analysis, Market  Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market forecast has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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