From staff reports The global semiconductor market in military and aerospace industry size is likely to grow by $3.02 billion from 2024-2028, according to the market research firm Technavio.
The market is expected to grow at a compound annual growth rate of 5.56% during the forecast period, Technavio said in a news release.
Aircraft upgrades are driving the expected growth, combined with a trend toward using unmanned aircraft vehicles, also known as UAVs, company said. However, high manufacturing costs create a challenge for the industry.
Countries like India and China are investing heavily in high-tech drones for military border security and logistics applications, which is driving demand for semiconductors in those industries. The company said. For instance, India ordered 31 MQ-9B drones from the U.S. in September 2023, while China showcased 300 UAVs with advanced technology in October that year.
“These developments are expected to continue fueling the growth of the semiconductor market in the military and aerospace industry,” the company said. Semiconductors The semiconductor market plays a key role in the military and the aerospace industry as microchips and circuits are essential for defense systems and avionics, the company said. Intercommunication systems and space-related technology need advanced semiconductors for communication, navigation and control systems.
The trend toward miniaturization and more functionality is driving demand for new technology as the world’s armed forces invest in semiconductors for radar systems, drones and other advanced equipment.
“The semiconductor industry continues to innovate, with companies developing new materials and manufacturing processes to meet the unique demands of military and aerospace applications,” Technavio said. “The use of semiconductors in these sectors is expected to grow, driven by the need for more efficient, reliable and secure technology solutions.”