APAC Semiconductor Device Market In Aerospace & Defense Industry Market Size (2024 - 2029)

The Asia-Pacific semiconductor device market in the aerospace and defense industry is poised for significant growth, driven by increasing demand from aerospace and defense sectors due to factors such as rising air passenger traffic, defense budgets, and space exploration activities. The market's expansion is supported by the need for advanced semiconductor components in aircraft electronics and space systems, although challenges like high manufacturing costs and a shortage of skilled labor may hinder progress. The complexity of semiconductor manufacturing, with its numerous processing steps, adds to the industry's challenges, potentially impacting the market's growth trajectory.

Market Size of APAC Semiconductor Device Industry In Aerospace & Defense Industry

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APAC Semiconductor Device Market In Aerospace & Defense Industry Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 36.90 Billion
Market Size (2029) USD 52.24 Billion
CAGR (2024 - 2029) 7.20 %
Market Concentration Low

Major Players

APAC Semiconductor Device Market In Aerospace & Defense Industry Major Players

*Disclaimer: Major Players sorted in no particular order

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APAC Semiconductor Device Market Analysis

The APAC Semiconductor Device Market In Aerospace & Defense Industry is expected to grow from USD 36.90 billion in 2024 to USD 52.24 billion by 2029, at a CAGR of 7.20% during the forecast period (2024-2029).

  • The increasing demand for semiconductor devices from the aerospace and defense industries owing to the increasing air passenger traffic, increasing defense budgets, increasing space exploration activities, etc., is expected to contribute significantly to revenue generation in the coming years; however, a shortage of skilled labor-intensive tasks may impede industry expansion in the coming years.
  • The military and aerospace industry's semiconductor market is growing significantly due to the increased upgrading and modernization of aircraft. However, market expansion may be constrained by factors like the high manufacturing cost. The focus of aircraft manufacturers has been to improve and modernize their products to help pilots fly safely. In addition, there is a growing need to update aircraft display screens as cathode ray tubes become obsolete. Lighter and more sophisticated display screens are required to reduce emissions and enable significant fuel savings significantly. Resultantly, the market is likely to grow due to the rising demand for semiconductors used in aircraft electronics systems.
  • Space is a massive industry with limitless prospects, and components for space electronics based on semiconductors are needed for all platform functions. Innovation and R&D has been the preferred approach for many companies to secure their positions in the semiconductor and aerospace markets. For instance, STMicroelectronics developed affordable radiation-hardened space satellites in March 2022. The new line of power, analog, and logic ICs in low-cost plastic packages are radiation-hardened and perform crucial tasks for the electronic circuitry of the satellites. A data converter, a voltage regulator, a low-voltage differential signaling transceiver, a line driver, and five logs are among the first nine components in the series that was launched.
  • Additionally, semiconductors are used in the defense industry in various systems, including navigation systems, auxiliary power units, fire suppression systems, and communication devices. Military forces are investing in UAV solutions like drones for effective operating systems, which in turn is creating demand for improved semiconductor components. Furthermore, advancements in capability around the region have created the need for modernization and the installation of sophisticated by governments to be prepared for any unprecedented threats and offensive attacks. Consequently fueling the market's expansion during the anticipated time.
  • On the flip side, the semiconductor industry is considered to be one of the most complex industries, not only due to more than 500 processing steps involved in the manufacturing and various products, but also the harsh environment it faces, e.g., the volatile electronic market and the unpredictable demand. Depending on the complexity of the manufacturing process, there can be up to 1,400 process steps in the overall manufacturing of semiconductor wafers alone. Transistors are formed on the lowest layer, but the process is repeated as numerous layers of circuits are formed to create the final product. The complexity of manufacturing semiconductor devices is likely to restrain the growth of the studied market.

APAC Semiconductor Device Industry Segmentation

Semiconductor devices are electronic components that utilize the electronic properties of semiconductor materials, like silicon, germanium, gallium arsenide, and organic semiconductors.

The Asia-Pacific semiconductor device market in aerospace & defense industry is segmented by device type (discrete semiconductors, optoelectronics, sensors, integrated circuits [analog, logic, memory, micro [microprocessors, microcontrollers, digital signal processors]]), by country (China, Japan, India, Korea, Taiwan). The report offers market forecasts and size in value (USD) for all the above segments.

By Device Type
Discrete Semiconductors
Optoelectronics
Sensors
Integrated Circuits
Analog
Logic
Memory
Micro
Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors
By Geography
Japan
China
India
South Korea
Taiwan
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APAC Semiconductor Device Market In Aerospace & Defense Industry Size Summary

The Asia-Pacific semiconductor device market within the aerospace and defense industry is poised for significant growth, driven by increasing demand for advanced electronic systems in these sectors. The market's expansion is fueled by rising air passenger traffic, increased defense budgets, and heightened space exploration activities. The aerospace sector is witnessing a surge in the modernization and upgrading of aircraft, necessitating the integration of sophisticated semiconductor devices, particularly in aircraft electronics systems. The transition from outdated cathode ray tubes to more advanced display technologies is a key driver, as manufacturers seek to enhance safety, reduce emissions, and achieve fuel efficiency. In the defense sector, the demand for semiconductors is bolstered by investments in unmanned aerial vehicles (UAVs) and the need for advanced navigation, communication, and power systems. However, challenges such as high manufacturing costs and a shortage of skilled labor may impede market growth.

The market landscape is characterized by a fragmented industry with major players like Intel Corporation, Kyocera Corporation, STMicroelectronics, and NXP Semiconductors actively engaging in research and development, partnerships, and strategic alliances to innovate and meet evolving consumer needs. The Chinese government’s focus on self-sufficiency in semiconductors, alongside significant defense spending, presents lucrative opportunities for market expansion. Initiatives such as the establishment of the National Integrated Circuit Committee and the implementation of policies to support the domestic integrated circuit industry are pivotal in driving growth. Additionally, collaborations like the one between General Atomics and 3rdiTech aim to bolster local manufacturing capabilities. The market's trajectory is further supported by advancements in semiconductor technology, such as STMicroelectronics' expansion of its STM32 family of microcontrollers, which enhance performance and energy efficiency for a range of applications.

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APAC Semiconductor Device Market In Aerospace & Defense Industry Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Intensity of Competitive Rivalry

      5. 1.2.5 Threat of Substitutes

    3. 1.3 Technological trends

    4. 1.4 Value Chain Analysis

    5. 1.5 Assessment of Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Device Type

      1. 2.1.1 Discrete Semiconductors

      2. 2.1.2 Optoelectronics

      3. 2.1.3 Sensors

      4. 2.1.4 Integrated Circuits

        1. 2.1.4.1 Analog

        2. 2.1.4.2 Logic

        3. 2.1.4.3 Memory

        4. 2.1.4.4 Micro

          1. 2.1.4.4.1 Microprocessors (MPU)

          2. 2.1.4.4.2 Microcontrollers (MCU)

          3. 2.1.4.4.3 Digital Signal Processors

    2. 2.2 By Geography

      1. 2.2.1 Japan

      2. 2.2.2 China

      3. 2.2.3 India

      4. 2.2.4 South Korea

      5. 2.2.5 Taiwan

APAC Semiconductor Device Market In Aerospace & Defense Industry Market Size FAQs

The APAC Semiconductor Device Market In Aerospace & Defense Industry size is expected to reach USD 36.90 billion in 2024 and grow at a CAGR of 7.20% to reach USD 52.24 billion by 2029.

In 2024, the APAC Semiconductor Device Market In Aerospace & Defense Industry size is expected to reach USD 36.90 billion.

Asia-Pacific Semiconductor Device Market in Aerospace & Defense Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)