Aerospace semiconductor market to touch $15B by 2034
In 2024, North America held over 38% of the aerospace semiconductor market, with revenues around USD 2.6 billion. The US market is expected to grow at a CAGR of 6.2%.
The global aerospace semiconductor market size is expected to be worth around USD 15 Billion by 2034, from USD 7.1 billion in 2024, growing at a CAGR of 8% during the forecast period from 2025 to 2034, according to a report by Market.US, a firm specializing in-depth market research and analysis.
In 2024, North America held over 38% of the aerospace semiconductor market, with revenues around USD 2.6 billion. The US market is expected to grow at a CAGR of 6.2%, the media release said.
“The aerospace semiconductor market is primarily driven by the increasing demand for advanced aerospace technologies, such as satellite systems, autonomous aircraft, and high-performance communication networks,” Market.US said in a media release. “The growing need for lightweight, energy-efficient components in space and aviation applications is a critical factor boosting the market’s expansion."
The growth of the aerospace semiconductor market is driven by several key factors, such as the increasing complexity and capability of modern aircraft and spacecraft, which require more advanced semiconductor solutions. There is a growing emphasis on enhancing the safety and efficiency of aerospace operations, which drives demand for sophisticated electronics that semiconductors enable.
The expansion of satellite networks for global communication and observation is further propelling the market. Ongoing technological advancements in semiconductor manufacturing, which improve performance and reduce costs, also contribute significantly to the expansion of this market.
“Emerging trends in the aerospace semiconductor market include the integration of IoT technologies, improving connectivity and functionality for smarter, more connected fleets,” the media release said. “This enhances aviation safety and efficiency. Additionally, there’s a focus on miniaturization and weight reduction, driving the production of smaller, lighter, and more powerful chip solutions.”
Technological innovations in the aerospace sector focus on improving semiconductor capability and reliability. Materials like silicon carbide (SiC) and gallium nitride (GaN) are used for their ability to handle extreme temperatures and voltages. Additionally, advancements in 3D packaging allow for more components in smaller spaces, vital for aerospace applications.
The aerospace semiconductor market is expanding due to the adoption of electric and hybrid propulsion systems in aircraft, which require advanced semiconductors for efficient power management. Additionally, the growth of aerospace industries in regions like Asia-Pacific presents significant opportunities for semiconductor manufacturers.
The aerospace semiconductor landscape in 2025 is being shaped by several key trends that leverage advanced technologies to meet the growing demands of the industry. One notable trend is the adoption of 3D stacking in memory technologies, such as DRAM and NAND flash, which is crucial for AI-driven applications requiring increased computational power and storage capabilities.
