High-Reliability Semiconductors Market By Type, By Packaging Material, By Technology, By Quality Level, By End-use Industry - Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

23 Mar 2023 Format PDF icon PPT icon XLS icon Request Sample

The high-reliability semiconductors market is expected to grow at a CAGR of 5% during the forecast period of 2024 to 2032. In numerous industries, including aerospace, defense, space, and automotive, high-reliability semiconductor components are crucial. These components must undergo rigorous screening and quality conformance inspections (QCI) to ensure their dependability, top performance, and operability. As intelligence and functionality increase across numerous end-use industries' application domains, the cost of failure has become excessively high. To address these challenges, key market participants are emphasizing the design of systems with high-reliability semiconductor components that can operate in harsh environments. Companies in the global market are increasing their R&D capabilities in order to provide proprietary silicon isolation technology for the deployment of high-performance noise immunity in components used in military and space applications. In the last few years, the widespread adoption of new social infrastructure technologies, such as electric vehicles (EVs) and 5G, has created a strong demand for component safety and reliability in the automotive industry, which has had a positive effect on the growth of the global high-reliability semiconductor market.

High-Reliability Semiconductors Market

Increasing Global Investment in the Aerospace and Défense Sector

As a result of geopolitical concerns on a global scale, a number of nations are focusing on strengthening their military bases and increasing their expenditures to do so. The US Department of Defense, for instance, has requested a budget allocation of US$ 718 billion for 2020, a 5% increase over the 2019 budget. Additionally, the United States encourages NATO members to increase their military spending to 2% of their respective GDPs. In order to meet NATO's goal of spending 2% of GDP on defense, France has indicated that it will increase defense spending by approximately 40% over the next six years. Moreover, in 2019, the Indian government announced a defense budget of $44.6 billion for FY 2019-20, a 6.87% increase over the previous year. According to SIPRI, seven of the ten countries with the highest military spending as a percentage of GDP are located in the Middle East. Jordan, Saudi Arabia, Lebanon, Kuwait, Bahrain, Oman, and Israel are among them. A significant portion of a nation's defense budget must be allocated to systems that can operate in hostile environments. Consequently, increased defense budgets are anticipated to drive the global aerospace and defense market for high-reliability semiconductors over the forecast period.

Increasing Number of Commercial Aircraft Worldwide: The commercial aviation industry is expanding rapidly due to factors such as the increasing number of passengers and the need to replace obsolete equipment. According to the report, due to the order backlog of commercial aviation companies, a large number of aircraft are expected to be constructed. These aircraft are constructed using cutting-edge technologies for fuel efficiency. In addition, urbanization in emerging nations such as India, China, and South Korea is anticipated to increase the number of middle-class air travelers by approximately 50% to approximately 6 billion by 2030. In terms of air traffic, Asia-Pacific is anticipated to surpass Europe and North America. Increased air traffic is increasing the demand for aircraft parts and components, which is driving the growth of the high-reliability semiconductor market.

Increase in Automotive Sector Applications of High-reliability Semiconductors

In the automotive industry, reliability is gaining importance in order to enhance vehicle performance. In the automotive industry, components with zero failure rates over the life of the vehicle are required. Semiconductor components are used to enhance the safety, speed, and efficiency of a vehicle.

In the coming years, demand for high-reliability semiconductors is anticipated to increase as the popularity of autonomous vehicles with advanced features grows. Global demand for autonomous vehicles is consistently increasing. The National Association of Insurance Commissioners estimates that there will be 3.5 million autonomous vehicles on U.S. roads by 2025 and 4.5 million by 2030. This factor is likely to generate lucrative market opportunities for high-reliability semiconductors in the near future.

To include advanced features in automobiles, leading automakers rely on semiconductor manufacturers. High-reliability MOSFETs, ICs, optoelectronic sensors, and amplifiers are among the semiconductor components being developed by manufacturers for autonomous vehicles. In June of 2019, for instance, TDK Corporation introduced the HPL, BCL, and TFM-ALVA series of inductors used in electronic control units (ECUs) to meet the reliability requirements of advanced driver assistance systems (ADAS).

Increase in Demand for Semiconductor Components with High Reliability in the Aerospace Industry

Protecting satellites, launchers, military vehicles, and submarine operations require the dependability of components and systems. The aerospace industry requires long-term system dependability for mission success. High-reliability semiconductor components deliver dependable performance in extreme and harsh environments for a variety of applications, such as satellites, avionics systems, and combat vehicles. The demand for high-performance semiconductors is fueled by a number of factors, including a rise in government spending on the military and defense sector and an increase in aircraft modernization and upgrades. This contributes to the expansion of the market. Components of high-reliability semiconductors used in the aerospace and defense industries, such as data converters, R/F microwaves, amplifiers, and MEMS products, can operate for years without performance degradation. Therefore, they are preferred over general semiconductor components, which can compromise long-term system reliability and lead to premature system failure.

Surface Mount Technology Dominated the Technology Market in 2023

The High-Reliability Semiconductor Market is segmented on the basis of technology into Surface mount technology and Through Hole technology. In 2023, the Surface mount technology segment held the largest market share at 65%. Compared to conventional PCB manufacturing techniques, SMT permits the creation of boards with a greater number of very small and specialized components. Additionally, components can be stacked on both sides of the circuit board, resulting in a higher density of functionality per square inch. Due to equipment including fully automated pick and place systems, high-volume reflow ovens, conveyors, and stencil printing machines, SMT is ideal for the mass assembly of these delicate and complex PCBs that will be used in a variety of electronic devices.

In this technology, electrical components can be mounted directly on a printed circuit board's surface. It is more productive than through-hole technology. Due to the miniaturization of electronic components, the semiconductor manufacturing industry is experiencing a rapid increase in demand for this technology. Furthermore, surface mount technology is extremely cost-effective. During the forecast period, the use of this technology is anticipated to increase the high-reliability semiconductor market share. Multiple manufacturers are concentrating on the development of compact devices. ControlTek, for instance, invested in the Juki FX-3 high-speed surface mount system in order to expand its product line. ControlTek utilized this technology to obtain benefits including precision, dependability, flexibility, asset utilization, and process time enhancements.

Ceramic Packaging Materials Led the Market in 2023

According to the research report on the high-reliability semiconductor industry, the global packaging market is segmented into plastic and ceramic. In 2023, the ceramic segment dominated the global market, holding a 55% share. It is likely to maintain its dominance throughout the period of forecast.

Ceramics is the material of choice for non-hermetic and hermetic packages requiring high-temperature stability, thermal conductivity, smoothness, and good planarity. In addition, it is an excellent insulator. This material is used as a dielectric in semiconductor components to create inductors and capacitors within the package. Ceramic packaging for semiconductors is suitable for defense applications. Consequently, it is anticipated that the increase in demand for ceramic semiconductor packaging will fuel market statistics during the forecast period.

APAC Remains as the Global Leader

Asia-Pacific dominated the global market in 2023, holding a 55% share. As manufacturers invest in R&D in the field of high-reliability semiconductors, the Asia-Pacific high-reliability semiconductor market is expected to expand during the forecast period. In addition, an increase in demand for semiconductors with high reliability from the aerospace and defense industries is driving market growth in the region.

To ensure the robust performance of military systems such as avionics, satellites, and combat vehicles, Asia-Pacific developing nations are increasingly employing highly reliable semiconductor components. This is likely to enhance the growth of the high-reliability semiconductor industry over the forecast period. During the forecast period, North America is anticipated to grow significantly at a CAGR of 5.6%. The market for high-reliability semiconductors in North America is likely to expand over the forecast period as a result of the presence of major industry players, technological advancements, and the expanding use of these semiconductors in a variety of applications. Europe's market for high-reliability semiconductors is anticipated to grow at a favorable rate throughout the forecast period, owing to increased investments by regional manufacturers. In 2023, Europe held a 20% share of the global market. In the near future, the presence of profitable manufacturers in the region is anticipated to stimulate market expansion in Europe.

Competition to Intensify During the Forecast Period

In the fragmented global business, a large number of dominant players control the majority of the market share. Following market trends for high-reliability semiconductors, key players are creating innovative products for their customers. Additionally, high-reliability semiconductor companies engage in mergers and acquisitions for revenue gains. Digitron Semiconductors, Infineon Technologies AG, KCB Solutions, LLC, Microsemi Corporation, SEMICOA, Semtech Corporation, Skyworks Solutions Inc, Teledyne Technologies Incorporated, Texas Instruments Inc, Vishay Intertechnology Inc, and Testime Technology Ltd are among the market leaders in the high-reliability semiconductor industry. Some of the key market developments include the following:

  • In January 2023, Micross Components, Inc. acquired Infineon Technologies AG's high-reliability DC-DC converter business. This acquisition is intended to increase Micross Components, Inc.'s high-reliability power management solution offerings.
  • In December 2020, Texas Instruments Inc. announced that its high-reliability (HiRel) semiconductor products would be available online at TI.com to assist the aerospace &defense industry with their next-generation military-grade and space-grade designs.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of High-Reliability Semiconductors market are as follows:

  • Research and development budgets of manufacturers and government spending
  • Revenues of key companies in the market segment
  • Number of end users and consumption volume, price and value.
  • Geographical revenues generate by countries considered in the report
  • Micro and macro environment factors that are currently influencing the High-Reliability Semiconductors market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Research Period  2022-2032
Base Year 2023
Forecast Period  2024-2032
Historical Year  2022
Unit  USD Million
  • Discrete
  • Analog
  • Mixed

Packaging Material
  • Plastic
  • Ceramic

  • Surface Mount Technology (SMT)
  • Through Hole Technology (THT)

Quality Level
  • JAN
  • JANX
  • JANS
  • QMLQ
  • QMLV

End-use Industry
  • Aerospace
  • Defense
  • Space

 Region Segment (2022-2032; US$ Million)

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • UK and European Union
    • UK
    • Germany
    • Spain
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC
    • Africa
    • Rest of Middle East and Africa

Key questions answered in this report

  • What are the key micro and macro environmental factors that are impacting the growth of High-Reliability Semiconductors market?
  • What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
  • Estimated forecast and market projections up to 2032.
  • Which segment accounts for the fastest CAGR during the forecast period?
  • Which market segment holds a larger market share and why?
  • Are low and middle-income economies investing in the High-Reliability Semiconductors market?
  • Which is the largest regional market for High-Reliability Semiconductors market?
  • What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
  • Which are the key trends driving High-Reliability Semiconductors market growth?
  • Who are the key competitors and what are their key strategies to enhance their market presence in the High-Reliability Semiconductors market worldwide?
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