Report Details:
15 Companies Covered
111 Pages
Market Research Future (MRFR) has published a cooked research report on the “Global Military and Defense Semiconductors Market” that contains the information from 2019 to 2035.
The Military and Defense Semiconductor Market is estimated to register a CAGR of 7.6 % during the forecast period of 2025 to 2035.
MRFR recognizes the following companies as the key players in the Military and Defense Semiconductor Market— Analog Devices, Texas Instruments, Qorvo Inc., Microchip, Qorvo and the Intel Corporation that dominate with wide portfolios in RF, power management, data converters, rad-hard components and secure microcontrollers, and Others
Military and Defense Semiconductor Market Highlights
The Military and Defense Semiconductor Market is estimated to register a CAGR of 7.6% during the forecast period and is estimated to reach USD 16,004.2 Million by 2035.
The Military and Defense Semiconductor Market is worth US$6,828.4 million in 2024. The industry has displayed a healthy trend CAGR of 8.5% in 20192024 due to the development of radar, electronic warfare and aerospace platforms, and is expected to experience a healthy 7.6% CAGR in 20252035, as the industry passes into a more advanced technology, application-focused phase.
The market is projected to grow by 12.4% YoY between 2024 and 2025, which is in line with the revenue projections of the key suppliers of semiconductors and broadly in line with the growth trend of the global semiconductor market indicating that defense demand is resistant to cyclical declines in commercial electronics.
According to the Semiconductor Industry Association (SIA), in 2024 the semiconductor market size in the world was more than US 600 billion and the defense-specific market segment was only about 1-1.5 per cent of the total industry. Although this renders defense semiconductors a comparatively small market in absolute terms, the market characteristics of specialized high-reliability needs, as well as an increase in demands of advanced mission systems, place it in a position to grow at a much faster rate than the industry as a whole.
Segment Analysis
The Global House Wraps Market has been segmented based by material, by application, by type, and by end-use.
Based on Application, the Military and Defense Semiconductor Market has been segmented into Communication, Surveillance, Radar, Navigation, Electronic Warfare. Radar segment dominated the market in 2024. The radar segment includes semiconductors in the state-of-the-art radar systems in detection, tracking, and targeting. These are used in ground-based air defense, naval surveillance, missile guidance and airborne early-warning systems.
Based on Type, the Military and Defense Semiconductor Market has been segmented into Microprocessors, Analog Semiconductors, Digital Signal Processors, Field Programmable Gate Arrays, and Application Specific Integrated Circuits. In 2024, Analog Semiconductors segment accounted for the largest market share. In defense systems, the interface between the physical and the digital is played by analog semiconductors.
Based on End Use, the Military and Defense Semiconductor Market has been segmented into Aerospace, Land, Naval, Cybersecurity, Intelligence. The Aerospace segment accounted for the largest share in Military and Defense Semiconductor Market in 2024. Aerospace segment involves semiconductors used in military aircrafts, satellites, unmanned aerial vehicles (UAVs) and space defense systems. Such chips are also vital in avionics, navigation, radar, communication and propulsion systems, where reliability, low power consumption, resistance to extreme temperatures and radiation is important.
Regional Analysis
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. Europe accounted for second largest market share holder in the year 2024.
The military and defense semiconductor market in Europe is influenced by the rising defense budgets, regional security threats, and the joint defense initiatives. The region is also experiencing the growing demand of dependable and high performance semiconductors to facilitate modernization of land, naval, and airborne systems. The high emphasis on electronic warfare, surveillance, and secure communication systems is also enhancing market growth. Also the focus in Europe towards less reliance on foreign suppliers and the reinforcement of local semiconductor ecosystems is stimulating investments in defense-grade chip development. The existence of cross-border collaboration and joint military activities keeps boosting the demand in the region.
The overall market of military and defense semiconductor is dominated by North America, which has been experiencing high defense expenditure, constant upgrading of military platforms and the need to have advanced electronic systems. The region pays major attention to secure, high performance, and radiation-hardened semiconductors that are utilized in radar, communication, electronic warfare, and missile guidance systems. Increased spending on next-generation defense systems, such as autonomous systems, space-based capabilities, and cyber defense, is also accelerating the adoption of semiconductors. As well, the government efforts to reinforce domestic semiconductor production and supply chain resilience are contributing to the long-term growth of the market, which solidifies the leading role of North America.
The Asian Pacific is the most evolving region in military and defense semiconductor market as a result of increasing geopolitical tensions, growing defense spending and accelerated military modernization initiatives. The region is spending a lot of money on sophisticated radar, missile systems, and secure communication networks, which demand high-performance semiconductors. Also increasing focus on native defense production and self sufficiency is hastening internal semiconductor creation. Growth of space and cyber defense capabilities will also add to the growth of the market making Asia Pacific a major growth engine.
South American military and defense semiconductor market is steadily increasing as a result of slow modernization of military infrastructure and rising emphasis on border security and surveillance. Although total defense spending is moderate, communication system, radar, and command-and-control platform investments are driving demand of defense-grade semiconductors. Governments in the regions are focusing on upgrading the current military equipment to enhance efficiency and reliability in their operation. Furthermore, involvement in international defense cooperation programs is facilitating the adoption of technology and long-term market creation.
The Middle East and Africa market is experiencing an increase in the demand of military and defense semiconductors because of the increase in security issues, regional disputes and the augmentation of defense spending. The need to allocate substantial investments in air defense systems, surveillance systems, and electronic warfare platforms is the driving force behind high-reliability semiconductors. The national security and the critical infrastructure that are being strengthened in the region also foster the market expansion. Moreover, modernization of the military is also underway and the use of sophisticated defense electronics is on the rise and this is likely to continue to drive demand in the region.
Key Findings of the Study
- The global house wraps market is projected to witness significant growth during the review period, exhibiting a CAGR of 7.6%. The market was estimated to be USD 6,828.4 Million in 2024 and is expected to reach a value of USD 16,004.2 Million by the end of the forecast period (2025-2035).
- The Asia Pacific region accounted for the fastest-growing global market.
- Based on Application, the Radar segment was attributed to holding the largest market in 2024. The Radar is expected to witness the CAGR of 8.3%
- Qorvo, and Analog Devices specialize in high-performance markets, such as gallium nitride (GaN) RF power devices, silicon carbide (SiC) power electronics, and radiation-hardened memory used in space, and other are some of the players in the market.