The global aerospace semiconductor market size accounted for USD 7.73 billion in 2025 and is forecasted to hit around USD 15.52 billion by 2034, representing a CAGR of 8.06% from 2025 to 2034. The North America market size was estimated at USD 2.86 billion in 2024 and is expanding at a CAGR of 8.20% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.\n\nThe global aerospace semiconductor market size was calculated at USD 7.15 billion in 2024 and is predicted to increase from USD 7.73 billion in 2025 to approximately USD 15.52 billion by 2034, expanding at a CAGR of 8.06% from 2025 to 2034. The market is expanding due to increasing air traffic, a rise in defense and military spending for its advancements, along with the unparalleled benefits of the semiconductor devices.\n\nIn terms of revenue, the global aerospace semiconductor market was valued at USD 7.15 billion in 2024. It is projected to reach USD 15.52 billion by 2034. The market is expected to grow at a CAGR of 8.06% from 2025 to 2034. North America dominated the aerospace semiconductor market with the largest market share of 40% in 2024. Asia Pacific is expected to witness the fastest CAGR during the forecasted years of 2025-2034. By component type, the microprocessors segment captured the biggest market share of 28% in 2024. By component type, the power devices segment is expected to witness the fastest CAGR during the forecasted years. By functionality, the radiation-hardened segment held the highest market share of 40% in 2024. By functionality, the radiation-tolerant segment is expected to witness the fastest CAGR during the forecasted years. By platform, the commercial aircraft segment generated the major market share of 38% in 2024. By platform, the satellites segment is expected to witness the fastest CAGR during the forecasted years. By material type, the silicon segment contributed the largest market share of 60% in 2024. By material type, the gallium nitride segment is expected to witness the fastest CAGR during the forecasted years of 2025-2034. By technology node, the 45-65 nm segment accounted for significant market share of 33% in 2024. By technology node, the <28 nm segment is expected to witness the fastest CAGR during the forecasted years of 2025-2034. By application, the avionics systems segment held the largest market share of nearly 35% in 2024. By application, the satellite payloads segment is expected to witness the fastest CAGR during the forecasted years. By end user, the OEMs segment contributed the highest market share of 50% in 2024. By end user, the space agencies segment is expected to witness the fastest CAGR during the forecasted years.\n\nArtificial intelligence is highly impacting the semiconductor industry in terms of chip designing, testing processes, along manufacturing. AI-based tools can enhance chip performance and optimize the manufacturing process, which offers highly efficient and reliable semiconductor chips that can be applicable to the aerospace sector. AI can further support the aerospace semiconductor market by machine learning algorithms, where ML algorithms use data like design history, materials, and performance criteria, and provide patterns for chip design with the help of the correlation between design variables and performance results. AI algorithms can generate various iterations under specific criteria, and rigorous evaluation is performed to test mechanical properties like aerodynamics performance and structural integrity. With the help of these refinery processes, AI algorithms offer optimal solutions. In a nutshell, AI is being used to revolutionize semiconductor chip design by accelerating the discovery of new materials and methods for efficient chip production that can be used for aerospace applications.\n\nThe U.S. aerospace semiconductor market size was exhibited at USD 2.43 billion in 2024 and is projected to be worth around USD 5.37 billion by 2034, growing at a CAGR of 8.25% from 2025 to 2034. North America held the largest market share of nearly 40% in 2024 due to substantial investment by the government to establish an aerospace industry with cutting-edge technologies and advanced systems. The region boasts a highly established aerospace sector due to space giants like NASA and SpaceX, with various space-tech startups further supporting the market growth in the region. The U.S. government invests substantially in military and defense by keeping the nation’s security as a priority. Moreover, North America has stringent aerospace safety and quality regulations that enable semiconductor manufacturers to follow these rules and offer highly reliable and well-performing semiconductor products. Collaborations between government agencies, and private sector, and academic institutes to establish and innovate products related to the aerospace sector are further boosting the market growth in the region.\n\nAsia Pacific is expected to witness the fastest CAGR during the forecasted years of 2025-2034. The region is experiencing a significant growth rate and holds potential to further expand globally due to a couple of leading factors, such as an increased rate of air travel, growing military modernization by emerging economies to stay safe and competitive on the global platform. This is creating huge demand for semiconductor components that can be used in avionics, communication systems, and other crucial systems of aircraft, also due to the increasing rate of digitalization. The integration of technologies like 5G, IoT, which are the foundation of industry 4.0, in major Asian countries like India, China, and Japan driving the demand for advanced semiconductor components. Additionally, countries like Taiwan, China, and India are forefront in the production of semiconductor chips with leading key players that are well established with robust infrastructure that supports highly reliable and high-quality semiconductor components.\n\nThe aerospace semiconductor market encompasses semiconductor devices specifically designed, manufactured, and tested for use in aerospace and defence systems. These components are critical for high-reliability, high-performance, and radiation-hardened applications in avionics, satellites, aircraft systems, UAVs, and space exploration. Aerospace semiconductors typically adhere to stringent environmental, durability, and safety standards (e.g., MIL-STD, RTCA DO-254, NASA standards) and include a wide range of analogue, digital, mixed-signal, and power devices.\n\nKey trends in the aerospace semiconductor market include the convergence of advanced materials technologies such as silicon carbide and gallium nitride, which are gaining traction due to their high breakdown voltage, high thermal conductivity, and ability to dissipate heat effectively—critical for aerospace safety and reliability. These materials enable miniaturization and weight reduction, leading to more compact, lighter, and efficient solutions. IoT integration is also increasing, as the aerospace industry recognizes the importance of high connectivity and real-time data processing for enhanced operational efficiency, emergency response, and communication.\n\nMarket dynamics show that key drivers include smart defense solutions driven by military modernization, with rising demand for semiconductors in radar systems, UAVs, and autonomous systems. Government initiatives such as the U.S. CHIPS Act, which provided USD 35 million to BAE Systems for F-15 and F-35 fighter jet production, are fueling semiconductor investment. Restraints include cyclical supply chain booms and busts every five years, leading to oversupply and shortages, which disrupt reliability and increase sourcing risks. Opportunities lie in increasing space exploration missions by governments and private companies, which require semiconductor components capable of withstanding extreme radiation, temperature, and vacuum conditions. These components are essential for reliable communication between spacecraft and Earth.\n\nMicroprocessors play a vital role in aircraft systems such as flight control, communication, and navigation. They process sensor data on altitude, speed, and direction and power radio and communication systems. The power devices segment is expected to grow fastest due to demand for lightweight, energy-efficient, high-frequency, and high-efficiency power converters. Radiation-hardened components dominate the market (40% share) due to their resistance to space radiation and are essential for satellites and defense systems. Radiation-tolerant components are growing rapidly due to their affordability and suitability for less extreme environments.\n\nThe commercial aircraft segment holds the largest market share (38%) due to rising air traffic, fleet expansion, modernization, and the need for advanced avionics and cargo systems. The satellites segment is expected to grow fastest due to increasing demand for satellite-based communication, earth observation, navigation, and disaster management. Silicon remains the dominant material (60% share) due to its cost-effectiveness, thermal stability, and established manufacturing. Gallium nitride is expected to grow fastest due to its wide band gap, high power efficiency, and superior electron mobility.\n\nThe 45-65 nm technology node is dominant due to its maturity and reliability in manufacturing, making it suitable for navigation and avionics. The <28 nm node is growing rapidly due to its compact size, low power consumption, and high transistor density. Avionics systems hold the largest market share (35%) due to their critical role in communication, navigation, and flight control, with increasing safety regulations driving demand for specialized semiconductor components. The satellite payloads segment is expected to grow fastest due to government investments in environmental monitoring, weather forecasting, and earth observation.\n\nThe OEMs segment holds the largest market share (50%) due to their ability to meet harsh environmental specifications and deliver high-quality, customized systems. The space agencies segment is expected to grow fastest due to their need for radiation-hardened, temperature-stable components in high-risk space missions.\n\nMajor players in the market include Texas Instruments, Microchip Technology, Analog Devices, Infineon Technologies, NXP Semiconductors, STMicroelectronics, Renesas Electronics, ON Semiconductor, Xilinx (AMD), Intel Corporation, Teledyne Technologies, Qorvo Inc., Cobham Advanced Electronic Solutions, BAE Systems (Semiconductor Division), Northrop Grumman Microelectronics, Skyworks Solutions, Maxim Integrated (now Analog Devices), VPT Inc. (a HEICO company), Broadcom Inc., and Honeywell Aerospace (Semiconductors/ICs Division).\n\nRecent developments include Samvardhana Motherson International Ltd (SAMIL) expanding into semiconductor equipment supply, becoming a Tier-1 supplier to Airbus. Microchip Technologies launched electromechanical power relays compliant with MIL-PRF-83536 and ISO-9001 standards for military use. Honeywell and NXP Semiconductors announced a collaboration to develop energy-efficient aviation systems, including the Honeywell Anthem cockpit powered by NXP’s i.MX 8 processors for eVTOL aircraft.\n\nThe report covers segments by component type, functionality, platform, material type, technology node, application, end user, and region. The market scope includes a forecast from 2024 to 2034 with a base year of 2024, and the market size is expected to grow at a CAGR of 8.06% from 2025 to 2034. North America leads the market, while Asia Pacific is expected to grow the fastest. The key factors driving the market are increasing air traffic, defense spending, and the benefits of semiconductor technology.

Aerospace Semiconductor Market Size to Hit USD 15.52 Billion by 2034

The global aerospace semiconductor market was valued at USD 7.15 billion in 2024 and is projected to reach USD 15.52 billion by 2034, growing at a CAGR of 8.06% from 2025 to 2034. North America holds the largest market share (40%) in 2024, with the U.S. market valued at USD 2.43 billion and expected to reach USD 5.37 billion by 2034. Asia Pacific is expected to witness the fastest CAGR due to rising air traffic, military modernization, and digitalization. Key segments include microprocessors (28% market share), radiation-hardened components (40% share), commercial aircraft (38% share), and silicon (60% material share). Growth drivers include AI integration in chip design, demand for radiation-tolerant and gallium nitride components, and government investments such as the U.S. CHIPS Act. Major players include Texas Instruments, Microchip Technology, Analog Devices, Infineon Technologies, NXP Semiconductors, STMicroelectronics, Renesas Electronics, ON Semiconductor, Xilinx (AMD), Intel Corporation, Teledyne Technologies, Qorvo Inc., Cobham Advanced Electronic Solutions, BAE Systems (Semiconductor Division), Northrop Grumman Microelectronics, Skyworks Solutions, Maxim Integrated (now Analog Devices), VPT Inc., Broadcom Inc., and Honeywell Aerospace (Semiconductors/ICs Division). Recent developments include SAMIL expanding into semiconductor equipment supply for Airbus, Microchip launching military-compliant power relays, and Honeywell and NXP collaborating on energy-efficient eVTOL systems using NXP’s i.MX 8 processors.