Semiconductor In Military And Aerospace Market

By Technology;

Surface Mount Technology and Through-Hole Technology

By Component;

Sensors, Memory, Opto Electronics, Logic, Micro, Analog and Others

By Application;

Ruggedized Communications, Imaging & Radar, Smart Munitions and Space

By End-Use;

Aerospace and Defense

By Geography;

North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)
Report ID: Rn869852504 Published Date: August, 2025 Updated Date: September, 2025

Semiconductor In Military And Aerospace Market Overview

Semiconductor In Military And Aerospace Market (USD Million)

Semiconductor In Military And Aerospace Market was valued at USD 7,032.50 million in the year 2024. The size of this market is expected to increase to USD 10,230.03 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 5.5%.


Semiconductor In Military And Aerospace Market

*Market size in USD million

CAGR 5.5 %


Study Period2025 - 2031
Base Year2024
CAGR (%)5.5 %
Market Size (2024)USD 7,032.50 Million
Market Size (2031)USD 10,230.03 Million
Market ConcentrationMedium
Report Pages311
7,032.50
2024
10,230.03
2031

Major Players

  • BAE Systems
  • Airbus SAS
  • General Dynamics Corporation
  • Lockheed Martin Corporation
  • Northrop Grumman Corporation

Market Concentration

Consolidated - Market dominated by 1 - 5 major players

Semiconductor In Military And Aerospace Market

Fragmented - Highly competitive market without dominant players


The Semiconductor in Military and Aerospace Market is rapidly growing as the need for advanced electronic components in defense and aerospace systems increases. Approximately 60% of modern military and aerospace systems rely on semiconductors to power critical functions such as communication, navigation, and surveillance. These components are essential for ensuring the performance, reliability, and security of high-tech military and aerospace applications.

Rising Demand in Defense Technologies
Semiconductors play a vital role in the development of modern defense technologies. Around 55% of semiconductor demand in this market comes from defense applications, including radar systems, missile guidance, and electronic warfare systems. As military forces seek to enhance their technological capabilities, the need for semiconductors with higher processing power and reliability has surged.

Technological Advancements Enhancing Capabilities
Technological advancements in semiconductor materials and design are driving the growth of the market. Approximately 65% of semiconductor demand in aerospace and defense applications is focused on improving the power efficiency, speed, and durability of electronic components. Innovations such as radiation-hardened semiconductors are critical for ensuring the performance of devices used in extreme environments like space and military operations.

Growth in Space Exploration and Satellite Technologies
The increasing focus on space exploration and satellite technologies has significantly contributed to the growth of the semiconductor market in aerospace. Around 50% of the market growth is driven by the demand for semiconductors used in spacecraft, satellites, and ground stations. As space missions become more advanced, the need for sophisticated electronic systems powered by semiconductors has risen, making them an integral part of aerospace advancements.

  1. Introduction
    1. Research Objectives and Assumptions
    2. Research Methodology
    3. Abbreviations
  2. Market Definition & Study Scope
  3. Executive Summary
    1. Market Snapshot, By Technology
    2. Market Snapshot, By Component
    3. Market Snapshot, By Application
    4. Market Snapshot, By End-Use
    5. Market Snapshot, By Region
  4. Semiconductor In Military And Aerospace Market Dynamics
    1. Drivers, Restraints and Opportunities
      1. Drivers
        1. Rising Military Expenditure
        2. Growth in Space Exploration
      2. Restraints
        1. Scarcity of Semiconductors
        2. High Costs
      3. Opportunities
        1. Advancements in Semiconductor Technology
        2. Increased Focus on Cybersecurity
    2. PEST Analysis
      1. Political Analysis
      2. Economic Analysis
      3. Social Analysis
      4. Technological Analysis
    3. Porter's Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of Substitutes
      4. Threat of New Entrants
      5. Competitive Rivalry

  5. Market Segmentation
    1. Semiconductor In Military And Aerospace Market, By Technology, 2021 - 2031 (USD Million)
      1. Surface Mount Technology
      2. Through-Hole Technology
    2. Semiconductor In Military And Aerospace Market, By Component, 2021 - 2031 (USD Million)
      1. Sensors
      2. Memory
      3. Opto Electronics
      4. Logic, Micro
      5. Analog
      6. Others
    3. Semiconductor In Military And Aerospace Market, By Application, 2021 - 2031 (USD Million)

      1. Ruggedized Communications

      2. Imaging & Radar

      3. Smart Munitions

      4. Space

    4. Semiconductor In Military And Aerospace Market, By End-Use, 2021 - 2031 (USD Million)
      1. Aerospace
      2. Defense
    5. Semiconductor In Military And Aerospace Market, By Geography, 2021 - 2031 (USD Million)
      1. North America
        1. United States
        2. Canada
      2. Europe
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Nordic
        7. Benelux
        8. Rest of Europe
      3. Asia Pacific
        1. Japan
        2. China
        3. India
        4. Australia & New Zealand
        5. South Korea
        6. ASEAN (Association of South East Asian Countries)
        7. Rest of Asia Pacific
      4. Middle East & Africa
        1. GCC
        2. Israel
        3. South Africa
        4. Rest of Middle East & Africa
      5. Latin America
        1. Brazil
        2. Mexico
        3. Argentina
        4. Rest of Latin America
  6. Competitive Landscape
    1. Company Profiles
      1. BAE Systems (UK)
      2. Airbus SAS (France)
      3. General Dynamics Corporation (US)
      4. Lockheed Martin Corporation (US)
      5. Northrop Grumman Corporation (US)
  7. Analyst Views
  8. Future Outlook of the Market