Global Aerospace Semiconductor Market Grows Steadily at a CAGR of 8.34%

Introduction

Aerospace semiconductors are specialized electronic components designed to operate in the demanding conditions of aircraft, spacecraft, and defense systems. The aerospace semiconductor market is propelled by the rising demand for next-generation avionics systems, including advanced radar, communication, and flight management technologies. Increased focus on defense modernization programs and unmanned aerial systems (UAS) is creating higher semiconductor requirements. Moreover, the push for lighter, more energy-efficient aircraft drives innovation in power electronics and thermal management components.

Market Dynamics

Expansion of commercial aviation fleets drives the global market

The growth of commercial aviation fleets is a key driver for the aerospace semiconductor market, as rising aircraft orders boost demand for advanced electronics, sensors, and power management systems. Airlines are modernizing fleets to enhance efficiency, safety, and passenger experience, increasing semiconductor usage in avionics, navigation, and communication systems.

• For example, in August 2025, Airbus delivered 61 jets, bringing cumulative year-to-date deliveries to 434—a 30% increase year-on-year. Likewise, Macquarie AirFinance ordered 30 Boeing 737-8 aircraft in September 2025 to upgrade with fuel-efficient models. These expansions sustain demand for aerospace-grade semiconductors, supporting reliable performance in sophisticated aircraft systems.

Growing investments in satellite constellations and space exploration programs create tremendous opportunities

The aerospace semiconductor market is seeing strong growth opportunities driven by the expansion of satellite constellations and space exploration initiatives. Rising demand for advanced communication, navigation, and Earth observation capabilities is boosting the adoption of high-performance semiconductors to improve satellite reliability and efficiency.

• For example, in September 2025, India’s space regulator IN-SPACe awarded a ₹12 billion (≈ $137 million) project to a Google-backed PixxelSpace-led consortium to develop a domestic Earth-observation satellite constellation. Likewise, the European Space Agency (ESA) announced new funding for satellite projects focused on climate monitoring.

These trends highlight growing investments, fostering innovation, and creating promising prospects for aerospace semiconductor manufacturers.

Regional Analysis

North America remains the leading region in the aerospace semiconductor market, fueled by high investments in space exploration, defense modernization, and advanced avionics. Mexico, for example, has emerged as a growing aerospace hub, attracting global manufacturers to set up facilities for semiconductor-based avionics and communication systems.

The region’s robust supply chain, R&D collaborations, and emphasis on satellite-based services ensure continuous demand. Moreover, partnerships with European aerospace firms are driving semiconductor adoption in navigation, radar, and power electronics, reinforcing North America’s dominance in the global market.

Key Highlights

• The global aerospace semiconductor market size was valued at USD 7.67 billion in 2024 and is estimated to grow from USD 8.27 billion in 2025 to reach USD 15.61 billion by 2033, growing at a CAGR of 8.34% during the forecast period (2025–2033).
• By Component Type, the market is segmented into Microprocessors (MPUs), Microcontrollers (MCUs), Memory Devices, Power Devices, MOSFETs, IGBTs, Power Management ICs, and others. The microprocessor segment dominated the market.
• By Functionality, the market is segmented into Radiation-Hardened (Rad-Hard), Radiation-Tolerant (Rad-Tol), Commercial-Off-The-Shelf (COTS) Aerospace-Grade, High-Temperature Semiconductors, and others. The radiation-hardened segment dominated the market.
• By Platform, the market is segmented into Commercial Aircraft, Military Aircraft, Unmanned Aerial Vehicles (UAVs), Satellites, and others. The satellites segment dominated the market.
• By Material Type, the market is segmented into Silicon (Si), Silicon Carbide (SiC), Gallium Nitride (GaN), and Gallium Arsenide (GaAs). The gallium nitride segment dominated the market.
• By Technology Node, the market is segmented into >65 nm, 45–65 nm, 28–45 nm, and <28 nm (Advanced Nodes). The <28 nm segment dominated the market.
• By Application, the market is segmented into Avionics Systems, Power Management & Distribution, Radar and Surveillance Systems, Inertial Navigation and Guidance Systems, Satellite Payloads, and others. The avionics systems segment dominated the market.
• By End User, the market is segmented into OEMs (Original Equipment Manufacturers), Tier 1 Suppliers, Space Agencies (e.g., NASA, ESA), and others. The space agencies segment dominated the market.
• North America is the highest shareholder in the global market

Competitive Players

1. Texas Instruments
2. Microchip Technology
3. Analog Devices
4. Infineon Technologies
5. NXP Semiconductors
6. STMicroelectronics
7. Renesas Electronics
8. ON Semiconductor (on semi)
9. Xilinx (AMD)
10. Intel Corporation
11. Teledyne Technologies
12. Qorvo Inc.
13. Cobham Advanced Electronic Solutions
14. BAE Systems (Semiconductor Division)
15. Northrop Grumman Microelectronics
16. Skyworks Solutions
17. Maxim Integrated (now Analog Devices)
18. VPT Inc. (a HEICO company)
19. Broadcom Inc.
20. Honeywell Aerospace (Semiconductors/ICs Division)

Recent Developments

• In August 2025, Axcelis Technologies announced a Joint Development Program (JDP) with GE Aerospace. Together, they will develop 6.5–10 kV superjunction silicon-carbide (SiC) power devices using Axcelis’s Purion XEmax high-energy implanter. These advanced SiC devices are aimed at critical applications, including AI, quantum computing, defense, and grid resilience.

Segmentation

1. By Component Type
   1. Microprocessors (MPUs)
   2. Microcontrollers (MCUs)
   3. Memory Devices
   4. Flash Memory
   5. SRAM
   6. DRAM
      1. Power Devices
      2. MOSFETs
      3. IGBTs
      4. Power Management ICs
      5. Analog & Mixed-Signal ICs
      6. Radio Frequency (RF) ICs
      7. Application-Specific Integrated Circuits (ASICs)
      8. Field-Programmable Gate Arrays (FPGAs)
      9. Sensors
   7. Temperature Sensors
   8. Pressure Sensors
   9. Motion/IMU Sensors
      1. Optoelectronics
2. By Functionality
   1. Radiation-Hardened (Rad-Hard)
   2. Radiation-Tolerant (Rad-Tol)
   3. Commercial-Off-The-Shelf (COTS) Aerospace-Grade
   4. High-Temperature Semiconductors
   5. Low-Power / Ultra-Low-Power Semiconductors
3. By Platform
   1. Commercial Aircraft
   2. Military Aircraft
   3. Unmanned Aerial Vehicles (UAVs)
   4. Satellites
   5. Space Launch Vehicles
   6. Rotary Wing Aircraft (Helicopters) 
4. By Material Type
   1. Silicon (Si)
   2. Silicon Carbide (SiC)
   3. Gallium Nitride (GaN)
   4. Gallium Arsenide (GaAs) 
5. By Technology Node
   1. >65 nm
   2. 45–65 nm
   3. 28–45 nm
   4. <28 nm (Advanced Nodes) 
6. By Application
   1. Avionics Systems
   2. Flight Control Computers
   3. Cockpit Displays
   4. Communication Systems
      1. Power Management & Distribution
      2. Radar and Surveillance Systems
      3. Inertial Navigation and Guidance Systems
      4. Satellite Payloads
      5. Spacecraft Power Systems
      6. Propulsion System Control
      7. UAV Control Systems 
7. By End User
   1. OEMs (Original Equipment Manufacturers)
   2. Tier 1 Suppliers
   3. Space Agencies (e.g., NASA, ESA)
   4. Defense Organizations
   5. Avionics Integrators