The global aerospace semiconductor market size reached around USD 8.82 Billion in 2024. The market is projected to grow at a CAGR of 8.90% between 2025 and 2034 to reach nearly USD 20.69 Billion by 2034. The market growth can be attributed to the growth of international trade volume and increasing cross-border activities. Moreover, technological advancements like machine learning and artificial intelligence are expected to drive the market development in the coming years.
Aerospace semiconductors are extensively used in numerous electronic devices, including navigation, communication, and control systems. They determine an aircraft’s speed, direction, and altitude to enable pilots to adjust their path as during air charter service and ensure a smooth and safe journey for passengers onboard. It also processes and amplifies radio signals in flight to facilitate pilot-to-pilot communication. In GPS receivers, they determine the position and direction of an aircraft’s travel at a given point, which is helpful in ensuring smooth navigation.
By 2043, Boeing aims to deliver 50,000 new commercial aircraft worldwide. Based on industry analysis, South Asian aircraft carriers are expected to add over 2,700 planes to their existing fleet over the next 20 years. India’s air traffic is estimated to grow by nearly 8% annually in the coming years. This is expected to promote the aerospace semiconductor market development over the forecast period.
Unlike conventional semiconductors, space-grade semiconductors can withstand 40 times more radiation, thereby preventing the malfunctioning of essential electronic devices in space. They reduce energy consumption by nearly 10% and can also facilitate the downsizing of equipment as they are just a quarter of the size of space equipment. This is one of the key aerospace semiconductor market trends.
Based on end use, the market can be segmented into communication, navigation, and surveillance; imaging, radar and earth observation, and munitions, among others. Over the forecast period of 2025-2034, imaging, radar and earth observation is expected to constitute a major end use of the aerospace semiconductor market share. It is also expected to grow at a CAGR of 10.2% in the upcoming years as it enables critical functions like radar detection, high-resolution imaging, signal processing, and real-time data transmission.
Other players included in the aerospace semiconductor market report are Semiconductor Components Industries, LLC, and Texas Instruments Incorporated, among others.
Global Aerospace Semiconductor Market Report Summary
Market Size 2024
- USD Billion 8.82
Market Size 2034
- USD Billion 20.69
- CAGR 2025-2034
- 8.90%
CAGR 2025-2034 - Market by Region
- Asia Pacific
- 10.1%
CAGR 2025-2034 - Market by Country
- India
- 10.3%
CAGR 2025-2034 - Market by Country
- China
- 10.0%
CAGR 2025-2034 - Market by End Use
Imaging, Radar and Earth Observation
- 10.2%
CAGR 2025-2034 - Market by Application
Satellite Launch Vehicle
- 11.5%
Market Share by Country 2024
- Brazil
- 3.4%
Global Aerospace Semiconductor Market Growth
As per industry estimates, the global fleet size is expected to double by 2043 due to the expansion of international trade and the growth of cross-border business travel between countries. The market analysis suggests that global air passenger traffic is expected to increase at a rate of 4.7% annually, thereby prompting aviation companies to introduce newer, fuel-efficient airplane models in the coming years. This is expected to propel the growth of aerospace semiconductor market value in the coming years.Aerospace semiconductors are extensively used in numerous electronic devices, including navigation, communication, and control systems. They determine an aircraft’s speed, direction, and altitude to enable pilots to adjust their path as during air charter service and ensure a smooth and safe journey for passengers onboard. It also processes and amplifies radio signals in flight to facilitate pilot-to-pilot communication. In GPS receivers, they determine the position and direction of an aircraft’s travel at a given point, which is helpful in ensuring smooth navigation.
By 2043, Boeing aims to deliver 50,000 new commercial aircraft worldwide. Based on industry analysis, South Asian aircraft carriers are expected to add over 2,700 planes to their existing fleet over the next 20 years. India’s air traffic is estimated to grow by nearly 8% annually in the coming years. This is expected to promote the aerospace semiconductor market development over the forecast period.
Key Trends and Developments
Increasing government support; technological advancements; development of carbon nanotube wiring; and emergence of neuromorphic chips are the major factors driving the aerospace semiconductor market growth.January 2025
ASAP Semiconductor, a California-based manufacturer of spare parts and semiconductors for the aerospace industry, decided to expand its existing range of product offerings on its purchasing platform, Aerospace Spare, to cater to the increasing demand for wide-ranging spare parts and accessories for the aerospace and defence industries. This is expected to complement the growth of the aerospace semiconductor market in the coming years.December 2024
Sam Engineering & Equipment announced the creation of a new semiconductor equipment manufacturing facility by December 2025 in Ban Bueng, Thailand, to increase its production and servicing capacity for the aerospace industry. It is further planning to invest USD 40 million by 2026 in Thailand to achieve its annual revenue targets of USD 450 million by 2030.November 2024
Diamond Edge Ventures, Inc., the investment arm of Mitsubishi Investment Group, injected USD 13.5 million in an American startup company, Boston Materials, which is engaged in developing next-generation materials for semiconductors and the aerospace industry.July 2023
The Boeing Company established a strategic partnership with Intel Corporation to develop the next generation of aerospace semiconductors that can power advanced edge computing solutions to deliver advanced flight capabilities for aerospace carriers.Increasing government support
The critical role of semiconductors in the space race has prompted countries like Japan to explore new ways of enabling advanced space exploration projects for a longer duration. This is expected to fuel the aerospace semiconductor market development in the coming years.Technological advancements
Aerospace semiconductor manufacturers are adopting AI tools for detection of anomalies in semiconductor production tests and analyse its causes to prevent their future occurrence. This is enabling companies to streamline operational inefficiencies and deliver high-quality output consistently.Development of carbon nanotube wiring
Carbon nanotube wiring can reduce aircrafts’ weight significantly and enhance their thermal and electrical conductivity, thereby enhancing their improving payload capacity and fuel efficiency. While this technology is in its infancy, some companies like Nanocomp Technologies are developing new carbon nanotube yarns and sheets that can potentially replace traditional copper wiring in aircraft while reducing its weight by 70%.Emergence of neuromorphic chips
Neuromorphic computing chips can easily mimic the architecture of human brains to analyse patterns and make decisions, which is crucial to the development of autonomous aircraft. They are highly efficient at information processing and can increase the market revenue in the coming years.Global Aerospace Semiconductor Market Trends
The government of Japan earmarked JPY 750 million in its FY 2023-24 fiscal budget for encouraging local startups to develop space-grade semiconductors in collaboration with the Japan Aerospace Exploration Agency. This is promoting the aerospace semiconductor market growth.Unlike conventional semiconductors, space-grade semiconductors can withstand 40 times more radiation, thereby preventing the malfunctioning of essential electronic devices in space. They reduce energy consumption by nearly 10% and can also facilitate the downsizing of equipment as they are just a quarter of the size of space equipment. This is one of the key aerospace semiconductor market trends.
Global Aerospace Semiconductor Industry Segmentation
The report titled “Global Aerospace Semiconductor Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:Breakup by Technology
- Surface-Mount Technology (SMT)
- Through-Hole Technology (THT)
Breakup by Application
- Communication, Navigation, and Surveillance
- Imaging, Radar and Earth Observation
- Munitions
- Others
Breakup by End Use
- Commercial Aircraft
- Military Aircraft
- Satellite Launch Vehicle
- Others
Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Global Aerospace Semiconductor Market Share
Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2025-2034, the market for aerospace semiconductors in the Asia Pacific is expected to grow at a CAGR of 10.1% due to the rising demand for commercial aircraft carriers. Based on aerospace semiconductor market analysis, India is expected to witness the highest CAGR of aerospace semiconductor demand (10.3%), followed by China (10.0%), and Australia (8.7%).Based on end use, the market can be segmented into communication, navigation, and surveillance; imaging, radar and earth observation, and munitions, among others. Over the forecast period of 2025-2034, imaging, radar and earth observation is expected to constitute a major end use of the aerospace semiconductor market share. It is also expected to grow at a CAGR of 10.2% in the upcoming years as it enables critical functions like radar detection, high-resolution imaging, signal processing, and real-time data transmission.
CAGR 2025-2034 - Market by
Imaging, Radar and Earth Observation
- 10.2%
Communication, Navigation, and Surveillance
- 9.9%
- Munitions
- Others
Leading Companies in the Global Aerospace Semiconductor Market
Major aerospace semiconductor companies are developing advanced semiconductors that use advanced materials like Silicon Carbide (SiC) and Gallium Nitride (GaN). These materials substantially improve the performance and energy efficiency of airplanes while reducing their weight. This is creating a favourable aerospace semiconductor market outlook.Broadcom Inc.
Broadcom Inc. was founded in 1961 and is headquartered in California, United States. It specialises in providing cable modems, network infrastructure, and knowledge-based processors, among other products and services.Infineon Technologies AG
Infineon Technologies AG was founded in 1999 and is headquartered in Neubiberg, Germany. It is primarily involved in designing, manufacturing, and selling semiconductors for a wide range of industries.Microchip Technology Inc.
Microchip Technology Inc. was founded in 1987 and is headquartered in Arizona, United States. It is engaged in manufacturing analog chips, microcontrollers, security products, and connectivity products for various industries.NXP Semiconductors NV
NXP Semiconductors NV was founded in 2006 and is headquartered in the Netherlands. It is engaged in manufacturing semiconductor solutions for the automotive, aerospace, and communication industries.Other players included in the aerospace semiconductor market report are Semiconductor Components Industries, LLC, and Texas Instruments Incorporated, among others.
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Aerospace Semiconductor Market Analysis
6 North America Aerospace Semiconductor Market Analysis
7 Europe Aerospace Semiconductor Market Analysis
8 Asia Pacific Aerospace Semiconductor Market Analysis
9 Latin America Aerospace Semiconductor Market Analysis
10 Middle East and Africa Aerospace Semiconductor Market Analysis
11 Market Dynamics
12 Competitive Landscape
Companies Mentioned
- Infineon Technologies AG
- Semiconductor Components Industries, LLC
- Texas Instruments Incorporated
- Microchip Technology Inc.
- Broadcom Inc.
- NXP Semiconductors NV
