Aerospace Semiconductor Market - By Type, By Technology, By Application, By End Use and Forecast, 2025 - 2034

Aerospace Semiconductor Market Size

The global aerospace semiconductor market was valued at USD 8.4 billion in 2024 and is anticipated to grow at a CAGR of 8.4% between 2025 and 2034.
 

Increased power efficiency is a critical growth driver in the aerospace semiconductor industry, as it enables longer operational life and reduces the overall weight and fuel consumption of aerospace systems. Power-efficient semiconductors minimize energy waste, which is essential for satellite, drone, and aircraft applications where battery life and energy resources are limited. As aerospace systems demand higher performance without increased power use, advancements in low-power semiconductors are helping manufacturers meet stringent regulatory standards and improve sustainability, driving demand in this sector.
 

For instance, in In March 2024, Hitachi Energy made a significant advancement in power semiconductor technology by introducing a new 300 mm semiconductor wafer. This development is poised to enhance production capacity for high-power applications, particularly benefiting aerospace systems and other industries that rely on robust power management solutions.
 

Aerospace Semiconductor Market Trends

Gallium nitride (GaN) and silicon carbide (SiC) semiconductors are transforming the aerospace sector due to their superior efficiency, thermal conductivity, and high breakdown voltage compared to traditional silicon. These materials enable power management and radiofrequency (RF) applications to operate at higher temperatures and voltages, making them ideal for harsh aerospace environments. As electric and hybrid aircraft gain traction, GaN and SiC are increasingly favored for their ability to reduce weight, improve energy efficiency, and enhance overall system performance.
 

The aerospace industry is moving toward electrification, with electric and hybrid aircraft being developed to reduce carbon emissions and fuel dependence. This shift requires advanced semiconductors to support high power conversion, energy storage, and efficient power distribution. Semiconductor devices in this context enable more compact, lightweight, and reliable systems, which are crucial for achieving the high efficiency and environmental sustainability goals of modern aircraft designs.
 

Aerospace Semiconductor Market Analysis

Long design cycles are a significant restraint in the aerospace semiconductor industry due to the stringent safety, performance, and reliability standards that aerospace components must meet. Developing and validating new semiconductor technologies for aerospace applications requires extensive testing, certification, and regulatory approval, which can span several years. This slow process often delays the introduction of innovative semiconductor solutions, causing aerospace companies to rely on older, well-established technologies instead of rapidly adopting newer advancements. Consequently, the pace of technological progress in the market lags other industries, limiting the competitiveness and efficiency improvements that cutting-edge semiconductors could bring to aerospace systems.

The growing demand for electric vertical takeoff and landing (eVTOL) aircraft presents a significant opportunity for the market. As urban air mobility solutions gain traction for short-haul, on-demand flights in densely populated areas, eVTOL technology is at the forefront of development. These aircraft rely heavily on advanced semiconductor components for efficient power management, motor control, battery systems, and autonomous navigation. With eVTOLs promising to reduce emissions and alleviate urban congestion, investments in high-performance, power-efficient semiconductors will be essential to meet energy and operational requirements. This rising sector thus creates demand for specialized semiconductors that enable reliable, safe, and efficient eVTOL operations, driving growth in the market.

Based on type, the market is divided into discrete devices, optical devices, microwave devices, sensors, ICs (integrated circuits), hybrid ICs. The discrete devices segment is expected to reach a value of over USD 32.5 billion by 2034.
 

• Discrete devices are the fastest-growing segment in the market due to their essential role in handling power regulation, signal processing, and circuit protection, which are critical in aerospace applications. These devices, including diodes, transistors, and thyristors, are widely used in various aerospace systems such as avionics, power management units, communication systems, and motor controls.
   
• The increasing demand for electric aircraft, advanced satellites, and high-performance electronics drives the need for discrete semiconductors that offer high efficiency, reliability, and the ability to operate in extreme conditions. Their ability to provide precise control over power delivery, manage heat dissipation, and ensure system stability in harsh environments makes them indispensable, fueling their growth in the market.
   

Based on technology, the aerospace semiconductor market is divided into surface-mount technology (SMT), through-hole technology (THT). The through-hole technology (THT) segment is the fastest growing segment with an anticipated CAGR of over 12.5% between 2025 and 2034.
 

• Through-hole technology (THT) is experiencing growth in the market primarily due to its reliability and durability in demanding environments. THT components are known for their robust mechanical strength, which is crucial in aerospace applications where equipment faces vibration, shock, and extreme temperatures.
   
• The technology also offers better performance for certain high-power and high-frequency components that are often used in critical systems like avionics, communication, and radar. Additionally, THT allows for more secure and stable connections, which are essential for maintaining the long-term functionality of aerospace systems. This makes THT increasingly favored for applications that prioritize long life cycles and reliability in harsh aerospace conditions, driving its growth.
   

North America accounted for a share of 43% of the global aerospace semiconductor market in 2023. The U.S. is a key player in the market due to its dominant aerospace industry, including major companies like Boeing, Lockheed Martin, and Northrop Grumman. The country's focus on advancing military and commercial aircraft, as well as space exploration, fuels the demand for advanced semiconductor technologies. Additionally, the U.S. is investing heavily in electric and autonomous aviation, driving the need for efficient power management semiconductors. The government's commitment to defense spending and the development of next-generation aviation technologies further accelerates growth in this market.
 

China is rapidly expanding its aerospace semiconductor industry due to the growing development of its domestic space programs and military modernization. The government's focus on self-reliance in technology, particularly in the aerospace and defense sectors, is driving demand for advanced semiconductors. As China invests in electric aviation and drone technologies, the need for high-performance semiconductors continues to rise. Furthermore, the country’s massive manufacturing capabilities and focus on innovation make it a significant player in the global market.
 

Germany’s strong position in the aerospace semiconductor market is driven by its leadership in the European aerospace industry, particularly in the manufacturing of aircraft and space exploration systems. The country's robust automotive sector also contributes, with increasing demand for electric vehicles (EVs) and air mobility solutions like eVTOLs. Germany’s focus on sustainability, digitalization, and innovation supports the adoption of advanced semiconductor solutions in avionics and power systems. Moreover, the country's strong research and development base in semiconductor technologies ensures continued growth in this sector.
 

Saudi Arabia’s growth is linked to its Vision 2030 initiative, which aims to diversify its economy and develop advanced industries, including aerospace and defense. As the country expands its investment in military aircraft, satellite systems, and aviation infrastructure, the demand for semiconductor solutions is increasing. Additionally, Saudi Arabia's push toward smart city projects and urban air mobility technologies, such as eVTOLs, drives further demand for semiconductors. The government's focus on defense modernization and space exploration creates significant opportunities for growth in this market.
 

Aerospace Semiconductor Market Share

Texas Instruments (TI) is a prominent player in the aerospace semiconductor industry, leveraging its extensive expertise in analog and embedded processing technologies. Known for its reliable and high-performance solutions, Texas Instruments integrates aerospace semiconductors into a wide range of applications, including avionics, communication systems, and radar technologies. The company’s semiconductors are renowned for their energy efficiency, durability, and ability to withstand the harsh conditions of aerospace environments. Texas Instruments' strong focus on research and development enables continuous innovation in analog and digital signal processing, ensuring it stays ahead in meeting the evolving demands of aerospace systems. With a global presence and extensive customer base, Texas Instruments maintains a competitive edge by offering scalable, robust solutions tailored to the aerospace sector's needs.
 

Analog Devices (ADI) is a key player in the aerospace semiconductor industry, recognized for its high-performance analog, mixed-signal, and digital signal processing solutions. Analog Devices integrates cutting-edge semiconductor technologies into aerospace applications such as avionics, satellite communication, radar systems, and power management. Known for their precision, reliability, and ability to operate in extreme conditions, ADI's semiconductors support mission-critical systems in aerospace. With a strong commitment to innovation and research, Analog Devices continuously enhances its product offerings to meet the growing demands of aerospace technologies, including next-generation communications and sensing systems. The company’s global footprint and strategic partnerships ensure it remains a leader in providing advanced, scalable solutions for the aerospace industry.
 

Aerospace Semiconductor Market Companies

Major players operating in the aerospace semiconductor industry are:

• Texas Instruments
• Analog Devices
• Microchip Technology
• STMicroelectronics
• Infineon Technologies
• ON Semiconductor
• Teledyne e2v
   

Aerospace Semiconductor Industry News

• In February 2024, Intel Corp. launched its Intel Foundry, a sustainable systems foundry aimed at supporting the AI era. This initiative seeks to address the increasing demand for AI-optimized semiconductors, which require cutting-edge, high-efficiency manufacturing processes that meet rigorous performance, energy, and environmental standards.
   
• 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.
   

The aerospace semiconductor market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD billion) from 2022 to 2034, 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 Technology

• Surface-mount technology (SMT)
• Through-hole technology (THT)

Market, By Application

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

Market, By End Us

• Commercial aircraft
• Military aircraft
• Satellite launch vehicle
• Others

The above information is provided for the following regions and countries:

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