Published by TMR Research Insights
Posted on September 29, 2021
5 min readLast updated: February 1, 2026
The high-reliability semiconductors market for aerospace and defense is set to reach $8.6 billion by 2027, driven by increased defense budgets and technological advancements.
Transparency Market Research delivers key insights on the global high-reliability semiconductors for aerospace & defense market. In terms of revenue, the global high-reliability semiconductors for aerospace & defense market is estimated to expand at a CAGR of ~5% during the forecast period, owing to several factors, regarding which, TMR offers thorough insights and forecasts in its report on the global high-reliability semiconductors for aerospace & defense market.
Semiconductor components can affect long-term reliability of the system in which they are used, causing its premature failure. Factors that affect long-term reliability include elevated temperatures, metal migration, and ionizing radiation. High-reliability semiconductor components include DC–DC converters, voltage regulators, power transistors, diodes, and integrated circuits (ICs). Aerospace & defense is the largest end-user industry of such components, as products and systems used in this industry need to be free from all kinds of vulnerabilities.
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Global High-reliability Semiconductors for Aerospace & Defense Market: Dynamics
Owing to geopolitical tensions across the globe, various countries are focusing on strengthening their military bases, and are increasing their budgets accordingly. For example, the U.S. Department of Defense has requested for allocation of US$ 718 Bn in the 2020 budget, an increase of 5% over the 2019 budget. The U.S. is also encouraging member countries of NATO to increase their military spending to 2% of their respective GDPs. France has announced that it would be increasing its defense spending by around 40% over the next six years, as it targets meeting the NATO objective of ‘2% of the GDP’ spent on the defense sector. Furthermore, in 2019, the Government of India announced a defense budget of US$ 44.6 Bn for FY 2019–20, which represented an increase of 6.87% over that for the previous year. According to SIPRI, seven out of the top 10 countries with the maximum military spending as a percentage of GDP are located in the Middle East. These are Jordan, Saudi Arabia, Lebanon, Kuwait, Bahrain, Oman, and Israel.
A significant portion of the defense spending of a country needs to be used for systems to be operated in extreme environment conditions. Thus, rise in defense budgets is indirectly expected to drive the global high-reliability semiconductors for aerospace & defense market during the forecast period.
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Global High-reliability Semiconductors for Aerospace & Defense Market: Prominent Regions
Asia Pacific is a dominant market for high-reliability semiconductors for aerospace and defense. Growth of the high-reliability semiconductors for aerospace and defense market in the region can be attributed to considerably high investments in research & development activities by manufacturers operating in the region. Moreover, the rising adoption of high-reliability semiconductor components in developing economies in Asia Pacific, led by technological advancements and cost efficiency, is projected to drive the high-reliability semiconductors for aerospace and defense market in the region during the forecast period. Developing economies in the region are witnessing increased utilization of high-reliability semiconductor components in order to achieve robust performance of defense systems, including avionics, satellites, and combat vehicles. China is a major contributor to the high-reliability semiconductors for aerospace and defense market in Asia Pacific. The high-reliability semiconductors for aerospace and defense market in Europe is estimated to expand significantly during the forecast period, owing to increase in defense budgets in several countries in the region. Collectively, North America and Europe constituted more than 75% share of the global high-reliability semiconductors for aerospace & defense market in 2018. Furthermore, the high-reliability semiconductors for aerospace and defense markets in the Middle East and South America are expected to expand at a steady pace in the near future.
Global High-reliability Semiconductors for Aerospace & Defense Market: Key Players
Key players operating in the global high-reliability semiconductors for aerospace & defense market are Digitron Semiconductors, Infineon Technologies AG, Microsemi Corp, SEMICOA, Semtech Corporation, Skyworks Inc., Teledyne Technologies Inc., KCB Solutions LLC, Texas Instruments Incorporated, and Vishay Intertechnology Inc.
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The article discusses the growth of the high-reliability semiconductors market for aerospace and defense, projected to reach $8.6 billion by 2027.
Increased defense budgets and technological advancements in semiconductor components are key drivers of market growth.
Asia Pacific is leading due to high R&D investments, with significant contributions from China.
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