Aerospace Semiconductor Market Size - By Type, By Technology, By Application, By End-Use - Global Forecast, 2026 - 2035

Aerospace Semiconductor Market Size

The global aerospace semiconductor market was estimated at USD 9.1 billion in 2025. The market is expected to grow from USD 9.8 billion in 2026 to USD 20.3 billion by 2035, at a CAGR of 8.4% during the forecast period of 2026–2035, according to latest report published by Global Market Insights Inc.

The growth of the aviation and aerospace sector has been bolstered by the continual increase in adoption and use of next-generation aircraft avionics technology and flight control system technologies, as well as next-generation aircraft navigation and communication technologies. In addition, increasing demand for lightweight, high-performance and dependable electronic components required to operate advanced cockpit technologies, fly-by-wire aircraft controls, and support autonomous flight operations is driving rapid growth in the market. The rising use of semiconductor-based technologies, such as satellite systems, unmanned aerial vehicles and space exploration systems, has also been a major driver of demand.
 

Technology advancements in avionics including advanced flight deck displays, integrated avionics systems, flight management systems and navigation systems have increased demand for semiconductor products. Semiconductor manufacturers must produce robust and radiation-hardened products to support the operational requirements of commercial aircraft and military aircraft with regard to safety, accuracy, reliability, timely processing of data and operational performance.
 

Globally, defense spending has continued to rise along with the need to modernize the military with new aircraft programs that require the use of aerospace-grade semiconductors as an integral part of the programs. Many military platform types use semiconductors in various functions, including radar, electronic warfare equipment, secure communications, mission critical computing and so forth and as these programs are implemented, they will continue to drive growth for aerospace semiconductors. For instance, in January 2025, Honeywell partnered with NXP to expand next-generation aviation technologies, focusing on AI, enhanced cockpit displays, improved cybersecurity, and autonomous flight.
 

Growing demand for aerospace semiconductors continues to increase due to the continued increase in the number of satellites being launched into space, continued space exploration missions, and continued growth of low-earth orbital constellations. To operate within these environments, semiconductor components must be able to withstand radiation exposure, be highly reliable and very operationally efficient, and have the capability to perform power management, data processing and communication functions, making space applications a very important growth engine for aerospace semiconductor manufacturers. For instance, in December 2025, STMicroelectronics partnered with SpaceX to design and next-generation satellites and user terminals, leveraging ST's advanced BiCMOS chip technology for high-performance phased-array antennas.
 

Between 2022 and 2024, the aerospace semiconductor market experienced significant growth, rising from USD 7.3 billion in 2022 to USD 8.4 billion in 2024. A major trend during this period was increased use of artificial intelligence (AI), machine learning (ML) and advanced data analytic technologies. The increased use of these technologies in aerospace is likely to create a significant demand for new high-performance chipsets, memory chips and specialty semiconductors that provide the performance essential to support real-time analytics, predictive maintenance and autonomous decision-making capabilities for aerospace applications. For instance, in December 2025, NVIDIA partnered with Synopsys to provide a suite of innovative engineering and semiconductor design toolsets for accelerated computing (hardware) and AI based workflows in order to enhance design efficiency, reduce overall development time, and accommodate the ever-increasing complexity associated with future generation silicon products and systems.
With the advent of electric powered airframe development, the semiconductor content of all aircraft systems (i.e., Power Electronics, Energy Management, & Control) will continue to increase with the use of Semiconductors.
 

The Electric Power Propulsion and Efficient Power Distribution & Use of Power will be major contributors to achieving the Sustainable Development Goals (SDG’s) as well as reducing greenhouse gas emissions. For instance, in December 2025, Syensqo partnered with Vertical Aerospace to to create the VX4 Electric Aircraft. Syensqo is providing the advanced materials and technologies that will support lightweight structures, impact performance, and enhance durability, allowing for an accelerated approach toward developing and commercialising Electric Vertical Take-Off and Landing (eVTOL) Air Vehicle Platforms.
 

Demand for Semiconductor Components to Support the Increase of Autonomous Unmanned Aerial Vehicles (UAVs) is Growing Rapidly. Popularization of UAVs for Military, Law Enforcement, & Private Sector Applications through the increase in general size/weight, miniaturization, & weight reduction of Semiconductor Components will create a significant increase in demand for Semiconductor components to support all aspects of Autonomous Flight Control & Communications, as well as all related electronics (i.e., Sensors, Satellites). For instance, in December 2025, Tata Elxsi partnered with Garuda Aerospace to set up a dedicated UAV design, engineering and certification centre to develop Indigenous Drone Technologies for use in the Indian defence, agricultural and Smart City sectors while supporting the Make-In-India Initiative. As part of this partnership, both companies will jointly showcase iUAV prototypes, designs, operational platforms and demonstrations of iUAV components, which collectively highlight India’s progress in autonomous drone capabilities.
 

Aerospace Semiconductor Market Trends

• The growing trend in aerospace semiconductors is highlighted by the growing demand for branded, limited-edition and interactive products. Wearables, collectibles, accessories and lifestyle items increase fan engagement, loyalty and community participation, which provide a substantial source of revenue opportunities for gaming, esports and entertainment ecosystems around the world.
   
• The aerospace semiconductor market is also characterized by an increasing demand for high-reliability/high-performance components to enable the development of advanced avionics, radar, navigation and communication systems through the increased electrification/digitalization of aircraft, therefore, higher numbers of analog, mixed-signal, RF power and other types of semiconductors will be adopted within the aerospace industrial base used on Commercial/Defense platforms.
   
• For instance, in January 2026, Aegis Aerospace Inc. is a space and defense technology company partnered with United Semiconductors LLC to create an innovative approach to semiconductor manufacturing. This agreement builds upon Aegis Aerospace's recent grant agreement with the Texas Space Commission to establish an in-space manufacturing platform for advanced materials in lower earth orbit, thereby enabling innovation and creating the manufacturing capabilities necessary for next-generation semiconductor products.
   
• In addition to the increased integration of semiconductors in the modern aircraft industry (e.g., Next Generation Narrowbody/Widebody Aircraft) driving demand for more advanced electronics to improve flight safety and operational efficiency, the modern aircraft industry is experiencing a dramatic increase in the amount of Real-Time Data Processing Capability required.
   
• With the rising complexity of Systems, Aerospace Semiconductors are increasingly being engineered for higher "Integration Density," Improved Thermal Management, and Lower Power Consumption which enables The Design of Lightweight Aircrafts and Improved Fuel Economy.
   

Aerospace Semiconductor Market Analysis

The global market for aerospace semiconductor was valued at USD 7.3 billion and USD 7.8 billion in 2022 and 2023, respectively. The market size reached USD 9.1 billion in 2025, growing from USD 8.4 billion in 2024.
 

Based on type, the market is segmented into discrete devices, optical devices, microwave devices, sensor, ICs, and Hybrid ICs. The discrete devices segment held around 32.1% of the market share in 2025.
 

• The discrete devices segment holds the largest share in the aerospace semiconductor market, driven by growing consumer demand for branded clothing, esports team jerseys, as one of the most important components of avionics, radar and flight control, discrete semiconductor devices have an important role to play in power management, signal control and protection of these systems. The high reliability, thermal stability and long product lifecycle of these devices make them critical in the commercial, military and space aerospace markets.
   
• Manufacturers should focus on High-performance/high-reliability discrete semiconductor devices that offer thermal performance, radiation resistance, and long-life support capabilities, are now being developed to support this growing market. The focus on designing for compliance with aerospace standards, lightweight designs and energy-efficient solutions will support further adoption across avionics, defense and space programs while providing support for the aircraft modernization and next-generation aerospace efforts.
   

• The optical device segment in the aerospace semiconductor market is projected to expand at a CAGR of 9.9% during the forecast period, With the increasing use of optical sensors, laser systems and photonic components in avionics, navigation and communication systems, there is also a corresponding increase in the demand for high-speed data transmission, higher levels of surveillance and precision sensing for commercial, military, and space applications, and this is driving an increase in the adoption of optical devices in aerospace platforms. In addition, the expansion of satellite communications, space exploration programs and next-generation aircraft technology will continue to support the growth of optical devices in aerospace platforms.
   
• Manufacturers should focus on the advances in the development of high-performance optical semiconductor devices with greater sensitivity, durability and radiation tolerance, and an ongoing emphasis on energy savings, miniaturization and seamless integration with existing avionics and satellite communications, will create a positive environment for the continued adoption of these devices. The development of strong R&D partnerships with new aerospace OEMs and the development of greater R&D investments will provide for long-term growth and greater industry leadership.
   

Based on technology, the market is segmented into Surface-Mount Technology (SMT) and Through-Hole Technology. The surface-mount technology (SMT) segment dominated the market in 2025 with a revenue of USD 5.2 billion.
 

• The surface-mount technology segment holds the largest share of the aerospace semiconductor market, driven by its smaller, lighter weight, and densely packaged circuit layouts. In addition to increasing reliability, decreasing assembly time, and enabling more advanced avionics, radar, and communications systems, SMT has become one of the most important technologies for modern commercial, military, and space applications.
   
• Manufacturers should focus on tariff's advanced thru-hole technology component design focuses on maximizing long-term performance and reliability while meeting the demands of commercial, military and space applications by developing a superior level of compatibility between THT and existing designs in harsh aerospace environments.
   
• The through-hole technology (THT) segment in the aerospace semiconductor market is anticipated to witness significant growth, projected to expand at a CAGR of 42.5% and reach USD 9.4 billion by 2035. This growth is driven by
  
  developing Thru-hole Technology Components for use in Commercial, Military, and Space Applications. Increased demand for high-reliability components in the harsh environments of aerospace applications (military, commercial, and space) has led to the development of THT through-hole technology components with greater mechanical strength, thermal stability, and longer-term durability than traditional through-hole technology components, making THT ideal for use in avionics, power management, and defense electronics.
   
• Manufacturers should focus on Increasingly sophisticated designs and assembly processes are presented with opportunities to support the growth of the aerospace market through THT due to THT's unique ability to provide enhanced durability in the harsh environments of aerospace applications. THT components will be compatible with existing aerospace technologies providing the ability to support existing systems as well as support and integrate into more advanced technologies.
   

Based on application, the aerospace semiconductor market is segmented into avionics system & flight control, communication & connectivity solution, power distribution & management, navigation & sensing technologies, safety & emergency systems, & aircraft entertainment systems. The avionics system & flight control segment dominated the market in 2025 with a revenue of USD 2.9 billion.
 

• The avionics system and flight control segment hold the largest share of the aerospace semiconductor market, driven by the need for electronic devices that need to be able to operate consistently and perform at a high level are creating an environment that makes an opportunity for semiconductor companies. As the demand for new technology continues to grow in both military and commercial aviation (in the form of increasingly sophisticated and capable navigation systems, communication systems, and flight control systems), semiconductor use in aviation applications will increase accordingly.
   
• Manufacturers should focus on improving operational safety, operational efficiency, and performance levels of aviation operations. Semiconductor manufacturers need to concentrate on developing semiconductor solutions for the areas of navigation, communication, and control systems for military and commercial aviation applications.
   
• The communication and connectivity solution segment in the aerospace semiconductor market is expected to witness significant growth, driven by rising demand for transmitting information at a high rate and in real-time continues to grow in both the commercial and military aviation sectors. Semiconductor manufacturers will need to develop high-performance semiconductor solutions to accommodate these requirements. Similarly, as aviation continues to embrace cutting-edge technologies like advanced avionics, satellite communications, and connectivity solutions to aircraft, these trends create new opportunities for semiconductor
   
• Manufacturers should focus on providing high-speed semiconductor solutions. As companies continue to incorporate these new technologies into their aviation systems and use them for networked systems, manufacturers will have to develop innovative, energy-efficient, and compact semiconductor solutions that will support enhanced connectivity to these aircraft systems.
   

Based on the end use, the market is segmented into commercial aircraft, military aircraft, and satellite launch vehicle. The commercial aircraft segment dominated the market in 2025 with a revenue of USD 4.1 billion.
 

• The commercial aircraft segment holds the largest share of the aerospace semiconductor market, driven by increase in air travel, demand for advanced avionics, entertainment systems and connectivity in-flight will increase. Demand for fuel-efficient and technologically advanced aircraft and for reliable high-performance semiconductor parts continue to drive growth of commercial aviation applications.
   
• Manufacturers should focus on developing reliable, High-performance, reliable and energy-efficient semiconductors developed to support technologically advanced fuel-efficient aircraft, will help ensure the safety, efficiency and comfort of passengers in commercial aviation applications.
   
• The military aircraft segment in the aerospace semiconductor market is projected to expand at a CAGR of 8.2% to reach USD 6.3 billion by 2035. Growth is driven by rise in demand for advanced military defense systems, radar technology, navigation and communication systems. Demand for modernizing the existing military fleet, adoption of UAV's and the need for reliable high-performance semiconductors in mission-critical systems, are driving the growth of this market.
   
• Manufacturers should focus on developing high-performance, reliable and energy-efficient semiconductors to support modernizing the fleet, the use of UAV's, electronic warfare, real-time data processing and secure communications for mission critical military aircraft applications, expected to drive the growth of the market.
   

The North America aerospace semiconductor market dominated with a revenue share of 43% in 2025.
 

• The North American industry is rapidly expanding due to the continual advancement of aerospace and defense technologies and increased demand for commercial and military aircraft
   
• Manufacturers should focus on developing high-performance, dependable semiconductor products that support avionic, communication and navigation systems, as well as use their innovative thinking and rely on government support to assist in developing their market share.
   

The U.S. aerospace semiconductor market was valued at USD 2.9 billion in 2022 and USD 3.1 billion in 2023, reaching USD 3.5 billion in 2025, up from USD 3.3 billion in 2024.
 

• The U.S. continues to dominate the aerospace semiconductor industry, fueled by aerospace and defense technologies since many companies continue to invest heavily into research and development, massive commercial and military aircraft program production, and significant amounts of government funding for research and development of aerospace technologies. These advancements in technologies combined with government support ensures the U.S. maintains its position as an industry leader in the global market.
   
• Manufacturers should focus on research and development of semiconductors used in sophisticated avionics, communication and navigation technologies if they are to remain technologically superior and competitive within the Aerospace Sector, and the focus must be supported by governments through tax incentives and direct investments into R&D and developing these technologies.
   

The Europe market accounted for USD 2.4 billion in 2025 and is anticipated to witness strong growth over the forecast period.
 

• Europe holds a significant share of the aerospace semiconductor market, driven by strong aerospace and defense industries, adoption of advanced avionics, and increasing investments in research and development. Rising demand for commercial and military aircraft, coupled with government support and technological innovation, further fuels growth and market expansion in the region.
   
• Manufacturers should focus on developing advanced, reliable semiconductors for avionics, navigation, and communication systems, leveraging technological innovation, R&D investments, and government support to capture market opportunities.
   

Germany dominates the Europe aerospace semiconductor market, showcasing strong growth potential.
 

• Germany holds a substantial share in the market, driven by strong aerospace and defense industries, high demand for advanced avionics, navigation, and communication systems, and investments in research and development. The country’s focus on technologically advanced aircraft and industrial automation further strengthens its contribution to Europe’s market growth.
   
• Manufacturers should focus on developing high-performance, reliable aerospace semiconductors for Germany, targeting avionics, communication, and navigation applications. Leveraging collaborations with local aerospace firms, research institutions, and technology providers can enhance innovation, ensure regulatory compliance, and strengthen market presence across both commercial and military aerospace sectors.
   

The Asia-Pacific aerospace semiconductor market is anticipated to grow at the highest CAGR of 10.4% during the analysis period.
 

• The Asia-Pacific market is witnessing rapid growth, driven by increasing demand for advanced avionics, navigation, and communication systems in commercial and military aircraft. Rising industrial automation, growing aerospace manufacturing capabilities, and investments in research and development are accelerating market expansion across the region.
   
• Manufacturers should focus on developing high-performance, reliable aerospace semiconductors for the Asia-Pacific market. Leveraging partnerships with local aerospace firms, technology providers, and research institutions can enhance innovation, ensure regulatory compliance, and strengthen adoption across commercial aviation, defense, and industrial automation applications.
   

The China aerospace semiconductor market is estimated to grow at a significant CAGR of 10.8% from 2026 to 2035.
 

• China leads the market, driven by rapid growth in commercial and military aviation, increasing investments in advanced avionics, navigation, and communication systems, and expansion of domestic aerospace manufacturing. Government support, technological innovation, and rising adoption of automation and high-performance semiconductor solutions further strengthen China’s market leadership in the region.
   
• Manufacturers should focus on developing high-performance, reliable semiconductors for avionics, navigation, and communication systems, leveraging government support, technological innovation, and automation to strengthen market presence and meet growing regional demand.
   

The Latin America aerospace semiconductor market was valued at USD 517 million in 2025, is driven by growing commercial and defense aviation activities, increasing adoption of advanced avionics, navigation, and communication systems, along with rising investments in aerospace manufacturing and industrial automation.
 

The Middle East and Africa market is projected to reach USD 590.8 million by 2035, is driven by rising defense and commercial aviation investments, adoption of advanced avionics and communication systems, and increasing aerospace manufacturing and industrial automation across the region.
 

In Saudi Arabia, the aerospace semiconductor market is set to experience substantial growth in 2025.
 

• Saudi Arabia is emerging as a key growth hub for the aerospace semiconductor industry, driven by increasing investments in defense and commercial aviation, adoption of advanced avionics, navigation, and communication systems, and the expansion of domestic aerospace manufacturing and industrial automation.
   
• Manufacturers should focus on developing high-performance, reliable aerospace semiconductors for Saudi Arabia. Leveraging partnerships with local aerospace firms, technology providers, and research institutions, while expanding commercial and defense applications, will strengthen market presence, enhance adoption, and drive growth in this rapidly expanding regional market.
   

Aerospace Semiconductor Market Share

The competitive landscape of the aerospace semiconductor industry is witnessing significant growth, fuelled by rising demand for advanced avionics, communication, and navigation systems across commercial and military aircraft. Major players, including Texas Instruments Incorporated, Analog Devices, Inc., Microchip Technology, Inc., Infineon Technologies AG, and STMicroelectronics N.V., collectively hold a 38.5% market share, driving innovation through collaborations with aerospace firms, technology providers, and research institutions. These partnerships enhance system performance, reliability, and application versatility.
 

Emerging startups and niche providers are introducing high-performance, compact, and energy-efficient semiconductor solutions for mission-critical aerospace applications. Leveraging technological advancements, R&D, and strategic collaborations, these innovations improve operational efficiency, safety, and adoption of advanced aerospace systems globally.
 

Aerospace Semiconductor Market Companies

Some of the prominent participants operating in the aerospace semiconductor industry include:

• Analog Devices, Inc.
• BAE Systems plc
• Broadcom Inc.
• Cobham Advanced Electronic Solutions
• Infineon Technologies AG
• Intel Corporation
• Maxim Integrated Products, Inc.
• Microchip Technology, Inc.
• Northrop Grumman Microelectronics
• NXP Semiconductors N.V.
• ON Semiconductor Corporation
• Orbit Semiconductor, Inc.
• Qorvo, Inc.
• Skyworks Solutions, Inc.
• STMicroelectronics N.V.
• Teledyne e2v
• Teledyne Technologies Incorporated
• Texas Instruments Incorporated
• VPT, Inc.
   
• Texas Instruments Incorporated

Texas Instruments Incorporated is a leading player in the aerospace semiconductor market, holding an estimated market share of ~11.3%. The company provides high reliability analog, embedded processing, and mission critical semiconductor components widely used in avionics, defense, and aerospace systems, supported by strong R&D and a broad product portfolio that enhances its competitive position.
 

• Analog Devices, Inc.

 Analog Devices, Inc. holds a significant share of ~8.8% share in the aerospace semiconductor industry, offering high-performance analog, mixed-signal, and digital signal processing solutions for avionics, defense, and aerospace applications, supported by innovation and strong R&D.
 

• Microchip Technology, Inc.

Microchip Technology, Inc. plays a crucial role in the aerospace semiconductor market by providing reliable microcontrollers, analog, and mixed-signal solutions for avionics, defense, and industrial aerospace applications, supported by robust R&D and global presence.
 

Aerospace Semiconductor Industry News

• In January 2025, NXP expanded its partnership with Honeywell Aerospace at CES 2025 to accelerate development of aviation technology, including integrating NXP’s high performance processors with Honeywell’s Anthem avionics to improve cockpit displays, operational efficiency, and support future autonomous flight systems.
   
• In January 2026, Microchip Technology, Inc. launched military-qualified plastic transient voltage suppressors designed for aerospace and defense applications. These components protect sensitive electronic systems from voltage spikes, ensuring reliable operation in harsh environments. The launch strengthens Microchip’s portfolio for high-performance, mission-critical avionics, defense electronics, and aerospace systems.
   
• In June 2025, Texas Instruments Incorporated invested $60 billion across seven U.S. semiconductor fabrication facilities. This investment aims to expand production capacity, enhance advanced semiconductor manufacturing, and strengthen the company’s supply of high-performance components for aerospace, defense, and industrial applications.
   
• In January 2025, Honeywell partnered with NXP Semiconductors to advance next-generation aviation technology. The collaboration focuses on integrating NXP’s high-performance processors with Honeywell’s avionics systems to enhance cockpit displays, operational efficiency, and support the development of autonomous and connected aircraft solutions.
   

The aerospace semiconductor market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD billion) from 2022 to 2035, 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
  • 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 Use

• 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
  • Netherlands
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia-Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA