Space Electronics Market Report 2025

The space electronics market size has grown strongly in recent years. It will grow from $2.63 billion in 2024 to $2.81 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to space exploration initiatives, significant investment in satellite manufacturing, increase in demand for space electronics products, rising prevalence of space operations, rising satellite launch and deep space activities.

The space electronics market size is expected to see strong growth in the next few years. It will grow to $3.62 billion in 2029 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to radiation-hardened space electronics market growth, rise in launch activities, miniaturization and increased efficiency, rapid growth in investment in space ventures, adoption of new materials for better fabrication of space electronics. Major trends in the forecast period include advancements in radiation-tolerant semiconductor technologies, digitalization and software-defined systems, high-performance computing for space missions, photonics and optoelectronics in space communication, focus on cybersecurity in space systems, sustainable electronics for space.

The growing number of satellites is anticipated to drive the expansion of the space electronics market in the coming years. A satellite is any object that orbits a planet, star, or moon. The rise in satellite numbers is primarily due to the increasing demand for global communication and connectivity. Satellites are susceptible to charging and discharging, necessitating space components like space electronics that contain no floating metal. For example, in 2023, the Organisation for Economic Co-operation and Development, a France-based intergovernmental organization, reported that the population of operational satellites in orbit increased to over 6,700 by 2022. Thus, the rising number of satellites is propelling the growth of the space electronics market.

The escalating investment in space programs is expected to further boost the growth of the space electronics market in the future. Space programs involve organized and coordinated efforts by governments, space agencies, or private entities to explore, utilize, and comprehend outer space. Increased investment in space electronics supports the development of advanced technologies essential for satellite communication, exploration, and scientific research. For instance, in April 2024, the World Economic Forum projected that the space economy could reach $1.8 trillion by 2035, driven by space-enabled technologies. The Space Foundation reported that in 2023, the global space economy grew by 7.4% to $570 billion, with commercial revenues amounting to $445 billion, making up 78% of the total market. Therefore, the rising investment in space programs is a key driver of growth in the space electronics market.

Product innovation is a significant trend in the space electronics market. Leading companies in the space electronics sector are focusing on developing innovative product solutions to enhance their market presence. For example, in July 2022, VPT Inc., a US-based space electronics firm, launched the VSC Series of commercial off-the-shelf (COTS) products designed for new space applications as part of their product line. This series has been recognized for its Total Ionizing Dose (TID) performance, including Low Dose Rate (LDR) and Single Event Effects. It is tailored for smaller satellites operating in low Earth orbits (LEO) and NASA Class D missions, where balancing cost and guaranteed performance is essential. The product features radiation tested to 42 MeV/mg/cm² and guaranteed at 30 MeV/mg/cm² for Single Event Effects, in addition to being tested to 50 krad (Si). A comprehensive range of input EMI filters is also available to meet MIL-STD-461 or equivalent emission standards.

Key players in the space electronics market are pursuing strategic partnerships to establish innovative product centers. These collaborations enable space electronics companies to pool resources and expertise, enhance research and development capabilities, broaden market reach, and expedite commercialization, ultimately fostering innovation and growth in the space electronics sector. For instance, in October 2022, Michigan State University (MSU), a US-based research institution, formed a partnership with Texas Instruments Incorporated, a US-based semiconductor firm. This collaboration aims to develop robust space electronics capable of withstanding radiation, leveraging MSU's engineering expertise alongside TI's semiconductor knowledge to drive innovation and equip workers for the expanding space industry.

In July 2023, LightRidge Solutions, a US-based aerospace and defense firm, acquired Trident Systems for an undisclosed sum. This acquisition allows LightRidge Solutions to improve its capabilities in advanced space electronics and C4ISR solutions while efficiently scaling production to meet national security requirements. The merger is also expected to foster innovation and expand their portfolio, enabling the delivery of cost-effective, high-performance technologies. Trident Systems, a US-based commercial enterprise, combines advanced software solutions with durable space-grade hardware to enhance performance in aerospace and defense applications. This collaboration has the potential to generate innovative technologies for satellite communications and space exploration.

Major companies operating in the space electronics market are BAE Systems PLC, Texas Instruments, Inc., Cobham PLC, Honeywell International Inc., STMicroelectronics, Teledyne e2v (UK) Ltd., TT Electronics, Ruag Group, Infineon Technologies, Onsemi, Renesas Electronics Corporation, Analog Devices Inc., Microchip Technology Inc., NXP Semiconductors, Vishay Intertechnology Inc., Silicon Laboratories Inc., L3Harris Technologies Inc., Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, Thales Group, Airbus Defence and Space.

North America was the largest region in the space electronics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the space electronics market report during the forecast period. The regions covered in the space electronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the space electronics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Space electronics encompass specialized instruments and electronic components specifically designed for use in spacecraft, such as satellites, rockets, and deep space probes. These systems are engineered to function reliably in the harsh conditions of outer space, which involve extreme temperatures, radiation exposure, and vacuum environments.

The primary types of space electronics include radiation-hardened and radiation-tolerant components. Radiation hardening involves designing electronics and components resilient to significant levels of ionizing radiation found in environments like cosmic outer space, X-ray radiation in medical or security sectors, and high-energy radiation in nuclear power plants. These components comprise microprocessors, controllers, sensors, application-specific integrated circuits (ASICs), memory chips, power source cables, discrete semiconductors, and other related elements. These electronics are utilized in platforms such as satellites, launch vehicles, and deep space probes, catering to applications in communication, Earth observation, navigation, global positioning systems (GPS), technology development, education, and various other specialized uses.

The space electronics market research report is one of a series of new reports that provides space electronics market statistics, including space electronics industry global market size, regional shares, competitors with a space electronics market share, detailed space electronics market segments, market trends and opportunities, and any further data you may need to thrive in the space electronics industry. This space electronics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The space electronics market consists of sales of different types of sensors, such as accelerometers, air quality sensors, ambient light sensors, color sensors, and fan controllers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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