radiation-hardened electronics Market

The radiation-hardened electronics market size was valued at US$ 1,520.86 million in 2021 and is projected to reach US$ 2,045.04 million by 2028; it is expected to grow at a CAGR of 4.3% from 2021 to 2028.

The demand for radiation-hardened electronics in the global market is increasing due to the need to protect medical devices, including wearable devices, from wear and tear and harsh environments. Radiation rooms and other medical facilities often expose these devices to high-temperature fluctuations, making it necessary to use radiation-hardened electronics for medical applications. As a result, the market for radiation-hardened electronics is gaining traction in the medical industry.

The global market for radiation-hardened electronics is expected to grow due to the rapid expansion of the medical equipment manufacturing industry in both developed and developing countries. Governments are investing heavily in infrastructure development to equip medical facilities with the latest medical devices, which contributes to the growth of medical equipment manufacturing globally. For example, Peru and Chile have seen increased demand for medical equipment and products due to government initiatives. In addition, countries like the US, France, Germany, and Switzerland have renowned medical equipment manufacturers who invest in the development of technologically advanced and compact medical equipment designs. These factors are expected to drive the demand for radiation-hardened electronics in medical applications, thereby boosting the growth of the global radiation-hardened electronics market.

The German government has announced plans to modernize its military departments, allocating a special fund of $112 billion (100 billion euros) for military purchases and increasing defense spending to more than 2% of the country's GDP following Russia's strikes on Ukraine. This move is expected to benefit all firms in the aerospace and defense industry, including radiation-hardened electronics market vendors, as these devices will be crucial in developing next-generation military equipment and weapons. These factors are likely to boost the growth of the radiation-hardened electronics market in Germany. Additionally, German businesses are strengthening their position in the global radiation-hardened electronics market through acquisitions and collaborations. For instance, Infineon Technologies' acquisition of Cypress Semiconductor Corporation in April 2020 has strengthened its global reach and R&D capabilities by adding Cypress' unique set of microcontrollers, networking components, and software ecosystems and high-performance storage, as well as its presence in the US and Japan.

Asia Pacific holds the top spot as the largest semiconductor market globally, accounting for 60% of global semiconductor sales, according to a Deloitte report. China alone accounts for over 30% of sales, and with the region's advanced manufacturing technological capabilities and improved economic conditions in countries such as India, China, and Japan, Asia Pacific is a prominent region for the radiation-hardened electronics market. Multiple vendors in the radiation-hardened electronics market in the region are consistently upgrading their product lines to fulfill the aerospace sector's increasing demands. For instance, Renesas launched four new products for satellites in medium and geosynchronous Earth orbits in July 2021 as part of its high-reliability radiation-hardened plastic portfolio. These include the ISL71001SLHM/SEHM point of load (POL) buck regulator, the ISL71610SLHM and ISL71710SLHM digital isolators, and the ISL73033SLHM 100V GaN FET and integrated low-side driver. Due to its robust semiconductor industry and strong R&D capabilities, Asia Pacific will be a crucial region to watch for the radiation-hardened electronics market growth.

The radiation-hardened electronics market in Europe is expected to experience significant growth during the forecast period, driven by increased government and non-governmental bodies spending on improving aerospace activities. The region's advanced manufacturing capabilities and research and development efforts in creating high-level electronics also contribute to the market's growth. In Asia Pacific, the rising number of commercial space projects is a significant factor driving the market growth. Additionally, the demand for radiation-hardened devices that can withstand extreme temperatures and radiation levels in nuclear reactors is increasing, further boosting sales. The expanding semiconductor sector in the region is another driver of the market.

According to the radiation-hardened electronics market report, the COVID-19 pandemic led to negative effects on the industry's growth due to lockdown restrictions and supply chain and manufacturing operation limitations imposed by European governments. However, signs of economic recovery emerged about a year ago after the pandemic began, resulting in a stronger-than-expected global economic recovery and a chip shortage crisis. Manufacturing capacity became a major issue, particularly with the occurrence of natural disasters and the surge of COVID-19 cases in some regions. As a result, many organizations shifted their focus from addressing underutilization to managing severe allocation challenges.

In the second half of fiscal 2021, the business climate was strong as companies and individuals adapted to the new situation arising from the COVID-19 pandemic. However, the supply chain was under pressure as many suppliers had not anticipated the economic disruptions. Nevertheless, with the improvement in economic conditions, many businesses resumed their operations. In 2021, Microchip Technologies, a semiconductor company based in the US, achieved record-breaking net sales, non-GAAP gross margins, operating income, net income, and EPS.

Primary and secondary sources have determined the global radiation-hardened electronics market size. In-depth secondary research has been carried out using internal and external sources to collect qualitative and quantitative information related to the market. This process has also helped obtain an overview and forecast for all the market segments. Furthermore, several primary interviews have been conducted with industry experts such as VPs, business development managers, radiation-hardened electronics market intelligence managers, and national sales managers. The data has been validated, and more analytical insights have been obtained into the subject matter. External consultants such as valuation experts, research analysts, and key opinion leaders, who specialize in the radiation-hardened electronics market, have also been consulted.