Radiation-Hardened Electronics Market Research Report and Outlook by 2028

The market for radiation-hardened electronics was valued at approximately US$ 1,520.86 million in 2021 and is anticipated to grow to around US$ 2,045.04 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.3% during the period from 2021 to 2028.

The increasing demand for radiation-hardened electronics globally is primarily driven by the necessity to safeguard medical devices, including wearables, from environmental stressors and degradation. Medical facilities, particularly radiation rooms, often subject these devices to extreme temperature variations, necessitating the use of radiation-hardened components for medical applications. Consequently, the market for radiation-hardened electronics is witnessing significant growth within the healthcare sector.

The anticipated expansion of the global radiation-hardened electronics market is closely linked to the rapid growth of the medical equipment manufacturing sector in both advanced and emerging economies. Substantial government investments in infrastructure development aimed at modernizing medical facilities with cutting-edge medical devices are propelling the global medical equipment manufacturing industry forward. For instance, countries like Peru and Chile have experienced a surge in demand for medical products due to supportive government initiatives. Additionally, established medical equipment manufacturers in nations such as the United States, France, Germany, and Switzerland are heavily investing in the creation of advanced and compact medical device designs. These developments are expected to further stimulate the demand for radiation-hardened electronics in medical applications, thereby enhancing the growth trajectory of the global radiation-hardened electronics market.

In response to geopolitical tensions, the German government has unveiled plans to modernize its military sectors, allocating a dedicated fund of $112 billion (100 billion euros) for military acquisitions and committing to increase defense spending to over 2% of the nation?s GDP following the conflict in Ukraine. This initiative is poised to benefit all companies within the aerospace and defense sectors, including vendors of radiation-hardened electronics, as these components are essential for the development of next-generation military technologies and weaponry. Such factors are likely to catalyze the growth of the radiation-hardened electronics market in Germany. Furthermore, German firms are enhancing their presence in the global radiation-hardened electronics landscape through strategic acquisitions and partnerships. A notable example is Infineon Technologies' acquisition of Cypress Semiconductor Corporation in April 2020, which bolstered its global footprint and research and development capabilities by integrating Cypress' specialized microcontrollers, networking components, and software ecosystems, along with its established presence in the US and Japan.

The Asia Pacific region stands out as the largest semiconductor market worldwide, accounting for 60% of global semiconductor sales, as reported by Deloitte. China alone represents over 30% of these sales, and with the region's advanced manufacturing capabilities and improving economic conditions in countries like India, China, and Japan, Asia Pacific emerges as a key player in the radiation-hardened electronics market. Numerous vendors in this sector are actively enhancing their product offerings to meet the growing demands of the aerospace industry. For instance, in July 2021, Renesas introduced four new products designed for satellites operating in medium and geosynchronous Earth orbits, as part of its high-reliability radiation-hardened plastic portfolio. These products include the ISL71001SLHM/SEHM point of load (POL) buck regulator, the ISL71610SLHM and ISL71710SLHM digital isolators, and the ISL73033SLHM 100V GaN FET with an integrated low-side driver. Given its robust semiconductor industry and strong research and development capabilities, Asia Pacific is poised to be a critical region for the growth of the radiation-hardened electronics market.

In Europe, the radiation-hardened electronics market is projected to witness substantial growth during the forecast period, fueled by increased spending from both governmental and non-governmental organizations aimed at enhancing aerospace initiatives. The region's advanced manufacturing capabilities and ongoing research and development efforts in high-level electronics are also significant contributors to market expansion. In Asia Pacific, the rising number of commercial space projects is a pivotal factor driving market growth. Additionally, there is a growing demand for radiation-hardened devices capable of withstanding extreme temperatures and radiation levels, particularly in nuclear reactor applications, further propelling sales. The expanding semiconductor industry in the region is another key driver of market growth.

The radiation-hardened electronics market report indicates that the COVID-19 pandemic adversely affected the industry's growth due to lockdown measures and restrictions on supply chains and manufacturing operations imposed by European governments. However, signs of economic recovery began to emerge approximately a year after the onset of the pandemic, leading to a stronger-than-expected global economic rebound and a crisis in chip supply. Manufacturing capacity became a significant concern, especially with natural disasters and renewed COVID-19 outbreaks in certain areas. Consequently, many organizations shifted their focus from addressing underutilization to managing severe allocation challenges.

In the latter half of fiscal 2021, the business environment improved as companies and individuals adapted to the new realities brought about by the COVID-19 pandemic. Nevertheless, the supply chain faced pressures as many suppliers had not anticipated the economic disruptions. Despite this, with the recovery of economic conditions, numerous businesses resumed their operations. In 2021, Microchip Technologies, a US-based semiconductor firm, reported record net sales, non-GAAP gross margins, operating income, net income, and earnings per share (EPS).

The global radiation-hardened electronics market size has been determined through both primary and secondary sources. Comprehensive secondary research has been conducted using a mix of internal and external sources to gather qualitative and quantitative data related to the market. This approach has facilitated an overview and forecast for all market segments. Additionally, several primary interviews have been conducted with industry experts, including VPs, business development managers, market intelligence managers specializing in radiation-hardened electronics, and national sales managers. The data collected has been validated, providing deeper analytical insights into the subject matter. External consultants, including valuation experts, research analysts, and key opinion leaders with expertise in the radiation-hardened electronics market, have also been consulted.