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The global space semiconductor market size was USD 2.01 billion in 2020. The global impact of COVID-19 has been unmatched and staggering, with space semiconductor devices witnessing a low demand across all the regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 14.5% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 2.10 billion in 2021 to USD 3.34 billion in 2028 at a CAGR of 6.89% during the 2021-2028 period.
Space semiconductor devices are electronic devices that enhance system performance and efficiency by providing various advantages over standard electronics components. The radiation-hardened semiconductor solution has high stability and efficiency at a very high temperature, making it ideal for space application.
The semiconductor industry is expected to rise rapidly due to the commercialization of various electronics devices during the pandemic, which has led to the global chip shortage. At the same time, the space industry is also adopting space semiconductor solutions to support the development of small satellites for various end-use industry applications. Additionally, the emergence of commercial space organizations and the implementation of phased regional space programmers and consortiums are supporting the market expansion during the forecast period.
Delayed Space Launch Programs and Supply Chain Disruption to Decline Market Growth
The pandemic situation has resulted in restrictions on import and export activities. Supply chains disruption during the COVID-19 outbreak has created a large impact on market growth. The limited availability of raw materials due to the global 2020-2021 semiconductor shortage has declined the production capacity of satellite OEMs. As a result, space components production has come to a halt. Therefore, the space industry's market players have postponed a few new launches. For instance,
The postponed launch has affected small and medium-sized companies in the United States as these companies provide space systems and components to OEMs. It is anticipated that the business has declined to 70-80% and will progressively improve by the end of 2021. In addition, low revenue generation amid COVID-19 has resulted in limited investment in large volume production and research and development activities.
Therefore, to overcome the impact of COVID-19, market players adopt automation and industry 4.0 technologies.
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Rising Acceptance of Wideband Gap Semiconductor Material for Space Application to Magnify Industry Growth
In recent years, there has been an enormous growth in space research and development activities. For instance, researchers developed wide bandgap semiconductor material that allows end-user to design space product solutions with smaller size, high power efficiency, lightweight, and overall low cost. This factor increases the adoption of Gallium Nitride (GaN) and Silicon Carbide (SiC) wide bandgap semiconductor material technologies. In addition, GaN and SiC materials are insensitive to radiation and operate at very high temperatures. Therefore, these materials are ideal for developing advanced space system components such as HEMTs and FETs. Moreover, the rising investment in space R&D by government and private players is expected to drive the space semiconductor devices market growth.
Rising Investment and Focus on Space Exploration Programs to Boost Space Semiconductors’ Demand
In recent years, there has been extensive growth in space research and development activities in developed and emerging economies. Rising investments in space exploration programs by key players is expected to boost the demand for advanced space systems and component solutions.
Currently, companies such as Teledyne Technologies Incorporated, Texas Instruments Incorporated, Infineon Technologies AG, Microchip Technology Inc. (Microsemi Corporation), and TE Connectivity have increased their investment and focus on the development of radiation-hardened grade and radiation tolerant grade semiconductor solutions for space application such as radiation-tolerant processor, memory, data conversion solutions, and power semiconductors devices among others.
Development of Reusable Space Vehicles Due to Increase in Satellite Launch Programs to Boost Market Growth
Nowadays, satellite services and networks demand has increased due to its vast commercial, civil, and military applications. The various applications include surveillance and security, commercial and military communication, geospatial data acquisition and mapping, situational awareness, and weather forecasting. This increased adoption of satellite technology is expected to boost the number of satellites in space. The satellite consists of different electronics, power systems, and components, increasing the demand for space semiconductor solutions.
However, high investment is needed to carry out the satellite launch mission successfully. Thus, key players focus on developing reusable space vehicles to reduce overall satellite launch mission costs.
Moreover, companies such as Blue Origin LLC, United Launch Alliance (ULA), and Rocket Labs are also involved in adopting reusable spacecraft to minimize the overall cost of space missions. The space semiconductor devices further lower overall cost by improving system robustness and efficiency. Therefore, the growing demand for new satellites and the development of reusable space vehicles are likely to drive the space semiconductor market growth.
Stringent Design Constraints and High Cost of Raw Materials to Impede Market Growth
The space industry is very stringent about product weight, size, efficiency, and overall operating cost. Therefore, designing lightweight, miniaturized, and low-cost space solutions is the major concern for the manufacturers. In addition to this, the GaN and SiC semiconductor material have a higher cost than silicon and Gallium Arsenide. Moreover, the COVID-19 situation has resulted in the limited availability of raw materials due to the global semiconductor chip shortage and reduced R&D investment by medium-sized and small-sized companies. These factors are expected to impede the market growth during the forecast period.
Radiation Hardened Grade Segment Dominated Market Due to Increased Radiation-Hardened Space Semiconductor Production
Based on the type, the market is divided into radiation-hardened grade, radiation-tolerant grade, and others
The radiation-hardened grade segment held the largest market share in the base year and is anticipated to remain dominant. This large share is attributed to the increased adoption of radiation-hardened grade space semiconductor solutions such as memory, integrated circuits, transistor, resistor, diode, and power circuits for longer stability and efficiency. Radiation hardened electronics and semiconductor solutions have low failure rates in harsh radioactive and similarly dangerous environments. Therefore, these are largely adopted by space agencies, research scientists, and private spaceflight to assure consistently reliable performance and longer service life.
Integrated Circuits Segment to Grow at Faster Pace Due to Focus on Radiation-Hardened Grade FGPA
Based on component type, the market is classified into integrated circuits, discrete semiconductors devices, optical devices, microprocessors, memory, sensors, and others.
The integrated circuits display is expected to grow at the highest compound annual growth rate during the forecast period. This growth is attributed to the growing focus on developing radiation-hardened grade FPGA and power circuits.
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Satellite Application to Hold Large Market Share in 2020 Because of Growing Small Satellites Launch
Based on application, the market is divided into satellite, launch vehicles, deep-space probes, and rovers and landers.
The satellite segment is expected to dominate the market during the forecast period. The growing small satellites launch for commercial and defense applications to expand segment size during the forecast period.
The launch vehicles application segment is anticipated to grow at a high CAGR throughout the forecast period. Growing focus on reusable space vehicles’ development may reduce overall space launch programs cost, which, in turn, can boost segment growth.
North America Space Semiconductor Market Size, 2020 (USD Billion)
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The global market is segmented into regions, namely, North America, Europe, Asia Pacific, and the rest of the world.
North America stood at USD 0.86 billion in 2020 and is expected to dominate the market. Many satellite systems and associated components manufacturers in the U.S. are expected to maintain a major market share. The involvement of NASA in numerous space-related operations in the U.S. and the market entry of commercial space organizations such as SpaceX have fueled industry growth for the space semiconductors. The market has also been encouraged by market players and aerospace and defense organizations in the region.
The market in Asia Pacific is projected to grow at the highest CAGR during the forecast period. It has witnessed an increase in the adoption of cutting-edge manufacturing technology to develop a large volume of electronics component and the economic improvement in India, Japan, and China. This factor supports the space semiconductor market size in the Asia Pacific. Moreover, the advent of ISRO as a global satellite launch service provider has helped satellite manufacturing and space exploration.
The market in Europe registered the second-highest share in the base year due to the tremendous opportunities to produce future-generation space-borne materials and components. The European Space Agency has been active in the study and development of next-generation space materials and components.
The rest of the world is expected to witness sluggish growth during the projection period due to the limited investment in the space industry. However, the rising investment in space research activities by Saudi Arabia is anticipated to create lucrative growth opportunities in the upcoming future.
Continuous Miniaturized Space Solution Innovation and Technological Partnership Strategies by key Players to Boost Market Position
Prominent market players such as Teledyne Technologies Incorporated and Infineon Technologies AG, and Microchip Technology Inc., are pioneers in developing miniaturized semiconductor solutions for space application. Constant investment in R&D activities, technological partnership, a large focus on product innovation, and long-term contracts with government and authorized bodies will support the companies to boost their market position.
An Infographic Representation of Space Semiconductor Market
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The space semiconductor market report provides a detailed analysis and focuses on key aspects, such as renowned manufacturers, products, demanding technologies, and applications. Moreover, it offers insights into the space semiconductor device trends and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the market's growth over recent years.
Value (USD Billion)
Type; Component; Application and Geography
Fortune Business Insights says that the global market size was USD 2.01 billion in 2020 and is projected to reach USD 3.34 billion by 2028.
Registering a CAGR of 6.89%, the market will exhibit steady growth in the forecast period (2021-2028).
The satellite application segment is the leading segment in the market.
Teledyne Technologies Incorporated, Texas Instruments Incorporated, Infineon Technologies AG, Microchip Technology Inc. are the leading players in the global market.
North America dominated the market in terms of share in 2020.
The wideband gap material such as Gallium Nitride (GaN) and Silicon Carbide is largely used to manufacture space semiconductor devices.
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