Military & Defense Power Semiconductor Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034

The Global Military & Defense Power Semiconductor Market was valued at USD 5.6 billion in 2024 and is estimated to grow at a CAGR of 6.4% to reach USD 10.4 billion by 2034. The market growth is underpinned by rising investments in next-generation defense technologies, increasing deployment of electronic warfare systems, and the rising need for robust, energy-efficient components in advanced military platforms. Power semiconductors play a vital role in enabling efficient power conversion, thermal management, and electromagnetic compatibility across land, air, sea, and space-based defense systems.

As global defense strategies increasingly rely on digital warfare capabilities, including radar systems, secure communications, UAVs, and directed-energy weapons, the demand for high-reliability power semiconductors is accelerating. Governments are prioritizing technological superiority through the deployment of systems that demand compact, rugged, and radiation-hardened components. Additionally, with defense budgets expanding worldwide in response to evolving geopolitical threats, there is a heightened focus on electrification and energy optimization in combat infrastructure.

Based on type, the Discrete Power Semiconductors segment led the market in 2024, accounting for USD 2.6 billion in global revenues. These components—such as diodes, transistors (IGBTs, MOSFETs), and thyristors—are crucial for managing power in mission-critical defense electronics. The dominance of this segment is attributed to their widespread integration in power supply units, communication equipment, avionics, and radar systems. Their high thermal performance, durability, and ability to operate in extreme environments make them indispensable in field operations and high-reliability applications. Ongoing advancements in wide bandgap technologies are further enhancing discrete components’ switching speeds, voltage capacities, and power densities.

By material, Silicon-based semiconductors remained dominant in 2024, generating USD 2.7 billion in revenue. Despite the emergence of newer materials such as silicon carbide (SiC) and gallium nitride (GaN), silicon continues to be the material of choice due to its established manufacturing infrastructure, cost-effectiveness, and design maturity. Silicon-based power semiconductors are widely used in standard defense electronics, including base stations, transceivers, and radar amplifiers. However, the growing use of GaN and SiC in high-frequency and high-temperature applications—such as phased-array radar and missile guidance systems—is expected to drive material diversification through the forecast period.

By application, the Communications segment dominated the Military & Defense Power Semiconductor Market in 2024, contributing USD 2.1 billion in revenue. Advanced, secure, and high-speed communications are at the heart of modern defense operations. Power semiconductors are pivotal in enabling real-time data transmission, jamming resistance, and long-range interoperability across communication networks, including satellite links, tactical radios, and encrypted transmission systems. Rising adoption of network-centric warfare, space-based communication constellations, and 5G-enabled battlefield networks is expected to bolster semiconductor demand in this domain.

Geographically, North America held the largest share of the global military & defense power semiconductor market in 2024, generating USD 2.5 billion. The region’s growth is anchored by massive defense budgets, led by the U.S. Department of Defense (DoD), and the presence of prominent defense contractors like Lockheed Martin, Raytheon Technologies, Northrop Grumman, and Boeing. Strategic modernization initiatives—such as the U.S. Army’s Integrated Tactical Network (ITN), the Air Force’s Advanced Battle Management System (ABMS), and the Navy’s Next-Generation Jammer—are driving the demand for power-efficient semiconductors. Additionally, government-backed R&D efforts and public-private partnerships are accelerating the adoption of emerging semiconductor technologies to enhance military readiness and operational superiority.

Leading players in the market—including Infineon Technologies, STMicroelectronics, Microchip Technology, Texas Instruments, and Qorvo Inc.—are intensifying their focus on ruggedized, high-temperature, and high-frequency semiconductor solutions tailored for defense applications. These companies are expanding their manufacturing capabilities, forging alliances with defense OEMs, and investing in GaN and SiC technologies to meet the growing demand for performance-driven and energy-efficient components. Strategic initiatives such as DoD-funded semiconductor fabs, export control reforms, and the CHIPS and Science Act in the U.S. are expected to provide long-term momentum to domestic semiconductor production for defense.

As defense forces worldwide continue their transition to digital, connected, and energy-efficient warfare systems, the Military & Defense Power Semiconductor Market is poised to witness significant expansion through 2034.