Military & Defense Semiconductor Market - By Mounting Technology (Surface Mount Technology, Through Hole Technology [THT] Mounting), By Application (Communications, Weapons, Vehicles, Soldiers), Forecast 2024 - 2032

Military & Defense Semiconductor Market - By Mounting Technology (Surface Mount Technology, Through Hole Technology [THT] Mounting), By Application (Communications, Weapons, Vehicles, Soldiers), Forecast 2024 - 2032

The military & defense semiconductor market is predicted to record more than 8% CAGR from 2024 to 2032, primarily propelled by the relentless pace of technological advancements and the escalating defense expenditures worldwide. The modernization efforts of armed forces globally, as nations increasingly recognize the critical role played by advanced semiconductor solutions in shaping the capabilities of contemporary military applications.

According to the reports, in December 2023, the U.S. Army partnered with USC Institute for Creative Technologies to develop a new app for soldiers to teach them how to use AI tools. Game-If-AI, the app, will help personnel deployed in non-technical and technical areas. As defense agencies invest heavily in the integration of AI, ML, and edge computing into their systems, the demand for cutting-edge semiconductor solutions continues to soar.

The military & defense semiconductor market is classified based on mounting technology, application, and region.

The weapons application segment is anticipated to generate massive revenues in the market by 2032 due to the integration of semiconductors in precision-guided munitions. Electronic warfare systems, and smart weapons have become indispensable for modern military capabilities. The relentless pursuit of accuracy, range, and efficiency in weaponry is driving investments in semiconductor technologies that enhance the performance and reliability of defense systems.

The through hole technology mounting segment will grow significantly through 2032 owing to its role in ensuring robust connectivity and durability in harsh operational environments. Through hole technology, with its ability to provide mechanical strength and stability to components, is crucial for applications where reliability is paramount. This segment is experiencing a surge in demand as military and defense systems require semiconductors that can withstand extreme conditions while maintaining optimal performance.

Europe Military & Defense Semiconductor Market size is expected to expand significantly through 2032. The nations in the region are actively investing in R&D to enhance their defense capabilities, leading to a surge in demand for advanced semiconductor solutions. The commitment to fostering collaboration between government agencies, research institutions, and private sector companies is further propelling the development of cutting-edge semiconductor technologies for defense applications, pushing the regional market growth.