Global Space Semiconductor Market 2024-2031

Global Space Semiconductor Market 2024-2031

Space Semiconductor Market Size, Share & Trends Analysis Report by Type (Radiation Hardened Grade, and Radiation Tolerant Grade), by Component (Microprocessor, Integrated Circuits, Discrete Semiconductors Devices, Optical Devices, and Others), and by Application (Launch Vehicle, Deep Space Probe, and Rover and Lander) Forecast Period (2024-2031)

Space semiconductor market is anticipated to grow at a CAGR of 5.6% during the forecast period (2024-2031). The market growth is driven by the increasing investment in space semiconductor development, the growing commercial satellite market, advancement in semiconductor technology, and expansion of space exploration activities.

Market Dynamics

Growing Commercial Satellite Industry

The increasing investment and deployment of commercial satellites for navigation, communication & earth orbital services by public and private entities to strengthen domestic connectivity is the commercial satellite industry. The growing commercial sector is anticipated to drive the demand for the space semiconductor market. Further, the demand is also contributed by the commercial satellite export industry, which has also grown exponentially in recent years. According to the Space Foundation's 2023 Q4 report, global launch activity hit record highs for the third year in a row, with 223 launch attempts and 212 successful launches. Commercial launch activity rose by 50.0% in 2022. The US witnessed a 33.0% rise in launch attempts, while China, India, and Japan also saw increased activity, with more than 2,800 satellites sent into orbit, 23.0% more than in 2022.

Use of System on Chip (SoC), AI & ML are Expected to Create New Opportunities

The space semiconductor market has experienced various developments in recent years, among which SoCs AI and ML are likely to have a significant impact on market growth. The use of ML in the semiconductor industry is quite beneficial, especially in terms of predictive maintenance, defect discovery, and process control. Researchers in semiconductor materials analysis and production are developing and implementing numerous novel machine learning algorithms to effectively use huge amounts of data. AI can be used to address product quality issues caused by gaps in the current testing and visual evaluation procedures and skills. Current options rely on humans, such as extra gates for manual inspections, which not only extends the manufacturing cycle but also raises production costs. Furthermore, the development of SoCs has compressed the entire system into a single circuit, resulting in quicker processing, simpler design, and lower power consumption, all of which are expected to prove critical for space semiconductor growth.

In October 2023, Coherent Logix Inc. announced the release of HyperX: Midnight, a fourth-generation HyperX SoC for the space and defense sectors. HyperX: Midnight provides up to four times higher computation throughput at half the power and 40.0% less cost than leading radiation-hardened FPGAs. This powerful, low SWaP (size, weight, power) combination is crucial for Space 2.0 companies because it allows for far greater capacity to be accommodated with smaller satellite bus sizes, resulting in significant cost savings at launch. Furthermore, significant industry trends include quantum technology, Al and ML algorithms, private-public partnerships and collaborations, product breakthroughs, and government efforts.

Segmental Outlook

Based on type, the market is segmented into radiation-hardened grade and radiation-tolerant grade.

Based on components, the market is segmented into microprocessors, integrated circuits, discrete semiconductors devices, optical devices, and others (memory, and sensors).

Based on application, the market is segmented into launch vehicles, deep space probes, rovers and landers.

Radiation-Hardened Space Semiconductor is the Most Prominent Space Semiconductor Type



Radiation-hardened semiconductors dominate the space semiconductor segment owing to their high applicability in harsh space conditions, better reliability, and increasing demand for space missions. Moreover, this type is preferred over radiation-tolerant semiconductors, as it provides applicability in longer and more complex space missions and provides a comparatively better life span and resistance to external damages.



Integrated Circuits (ICs) are the Biggest Component Segment



ICs remain the most demanded component in the space semiconductor market owing to their critical functionality in space missions such as data processing, amplification, and control tasks. Further advancements, such as 3D ICs, have enhanced their applicability in space missions, creating increased demand. In May 2024, Apogee Semiconductor, Inc. announced the availability of its AF54RHC GEO family of radiation-hardened integrated circuits (ICs) for medium earth orbits (MEO), geostationary orbits (GEO), and deep space missions. Such market developments are further aiding the growth of this market segment.

Regional Outlook

The global space semiconductor market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

North America Holds the Highest Share in Space Semiconductor Market

North America holds the highest share of the space semiconductor market owing to the growing commercial satellite industry. The presence of major space semiconductor manufacturers such as Honeywell and Texas Instruments, among others, increasing investment in space component R&D, substantial government support for space exploration, and regional advantages in terms of technology, R&D, and space budgets are other contributors to the regional market growth. For instance, in April 2020, NASA awarded Made in Space a grant to support two new space-based manufacturing proposals: one to develop a glass alloy manufacturing machine (GAMMA) for the International Space Station (ISS), and the other to develop an autonomous, high-throughput manufacturing capability for high-quality, low-cost semiconductor chips. GAMMA, Made in Space, will investigate how glass alloys form in microgravity, where gravity-driven phenomena like sedimentation and convection are reduced. The team anticipates that in-orbit production will result in much higher-quality glass products with applications in optical fibers, lenses, and optical devices for the telecommunications, sensor, and laser technology industries.

Asia-Pacific is the Fastest Growing in Space Semiconductor Market

The region market is expected to grow owing to ample investment by state-run space organizations to strengthen space infrastructure capabilities, especially in India, China, and South Korea.

The region is also a space mission outsourcing market for satellite launches, low-cost space missions, and space exploration projects, paving the way for the development of the space semiconductor market.

Market Players Outlook

The major companies serving the global space semiconductor market include Advanced Micro Devices, Inc., BAE Systems plc, CAES Systems LLC, Honeywell International Inc., and STMicroelectronics N.V. among others. The market players are focusing on capitalizing on growth by adopting strategies such as collaboration, partnerships, and market expansion among others. For instance, in November 2022, Texas Instruments announced an expansion of their line of highly dependable plastic containers including space-grade analog semiconductor chips for a variety of missions. For radiation-hardened goods, TI created a new device screening standard called space high-grade in plastic (SHP) and unveiled new analog-to-digital converters (ADCs) that satisfy the SHP requirement. Additionally, TI expanded the radiation-tolerant Space Enhanced Plastic (Space EP) product line with additional product families.