Space Propulsion Market Growth, Share, Trends, Key Insights and Forecast, 2021–2028

According to Fortune Business Insights™, the global space propulsion market size was valued at USD 6.23 billion in 2020. The market is projected to grow from USD 7.31 billion in 2021 to USD 19.74 billion by 2028, exhibiting a CAGR of 15.24% during the forecast period. North America led the global market in 2020 with a dominant market share of 37.72%, owing to significant space budgets, advanced technological capabilities, and the presence of key players such as SpaceX and Northrop Grumman.

Key Companies in the Global Space Propulsion Market:

• Safran S.A. (France)

• SpaceX – Space Exploration Technologies Corp. (U.S.)

• Northrop Grumman Corporation (U.S.)

• Blue Origin LLC (U.S.)

• Moog Inc. (U.S.)

• Lockheed Martin Corporation (U.S.)

• OHB SE (Germany)

• Sierra Nevada Corporation (U.S.)

• Thales Group (France)

• Honeywell International Inc. (U.S.)

• Ariane Group GmbH (France)

• Airbus S.E. (France)

• Cobham Ltd. (U.K.)

• L3Harris Technologies Inc. (U.S.)

• The Boeing Company (U.S.)

These companies are focusing on R&D investments, strategic collaborations, and next-generation propulsion system development to maintain their competitive edge.

Source:

https://www.fortunebusinessinsights.com/space-propulsion-systems-market-105870

Market Dynamics

Drivers:

1. Commercialization of the Space Industry:The 21st century has ushered in a new era of space commercialization, transforming it from a government-led domain into a thriving commercial sector. This shift is characterized by the entrance of new private companies, demand for small satellite constellations, and lower launch costs.

2. Increasing Demand for Satellite-Based Services:Applications such as earth observation, satellite-based internet, remote sensing, and military surveillance are fueling the need for advanced space propulsion systems.

3. Rising Demand for LEO Satellites:LEO satellite constellations are gaining traction due to their lower cost, reduced launch mass, and critical data applications. Their proximity to Earth makes them ideal for real-time imaging, communications, and environmental monitoring.

Market Segmentation

By Platform

• Satellite (Dominant Segment):Rising demand for earth observation, interplanetary missions, and LEO satellite constellations across commercial and government sectors.

• Launch Vehicles:Essential for transporting satellites, rovers, and probes into space, with growing innovation in reusable systems.

• Rovers/Landers:Used for planetary exploration missions, especially by space agencies like NASA, ESA, and CNSA.

• Capsules/Cargo:Increasing use in space station resupply missions and crew transportation.

• Interplanetary Spacecraft and Probes:Critical for deep space missions and scientific exploration beyond Earth's orbit.

By Propulsion Type

• Electric Propulsion (Fastest Growing):Preferred for its cost-efficiency, extended mission life, and compliance with global environmental standards.

• Chemical Propulsion:Traditional and powerful, used for quick acceleration and heavy-lift applications.

• Solar Propulsion:Utilizes solar energy for thrust; suitable for long-duration, low-thrust missions.

• Nuclear Propulsion:Emerging technology for high-efficiency deep space missions.

• Others:Includes experimental and hybrid propulsion systems under development.

By Component

• Electric Propulsion Thrusters (Largest Segment):Widely used due to efficiency in satellite station-keeping, orbit adjustment, and interplanetary maneuvers.

• Rocket Motors:Deliver high-thrust needed for lift-off and escape velocity in launch vehicles.

• Nozzles:Key component in directing exhaust flow for propulsion efficiency.

• Thrusters:Provide precise control for spacecraft attitude and minor orbital corrections.

• Others:Includes valves, tanks, and other auxiliary systems supporting propulsion units.

By End User

• Government & Defense (Largest Segment):Major contributor to market demand, driven by increasing space exploration missions, national security needs, and growing investments by space agencies like NASA, ISRO, and CNSA.

• Commercial:Growing segment led by private players investing in satellite broadband, imaging, navigation, and Earth observation services.

Regional Insights

North America (USD 2.35 Billion in 2020):

North America dominates the market due to high space expenditure, robust government initiatives, and a strong presence of major companies like SpaceX, Boeing, and Lockheed Martin. Partnerships with NASA and the U.S. Space Force further drive innovation and adoption of advanced propulsion technologies.

Asia Pacific:

Expected to witness the fastest growth, led by increasing satellite launches and space investments in China, India, Japan, and South Korea. Growing demand for communication, defense, and imaging satellites is boosting market potential.

Europe:

Home to key market players such as Ariane Group, Safran, and Thales Alenia Space, the region continues to support the development of next-generation propulsion systems. Government-funded programs and ESA projects contribute to steady growth.

Rest of the World:

Countries in the Middle East (UAE, Israel) and Latin America are increasing their space budgets, promoting moderate growth. Emerging launch programs and defense applications are key growth factors.

Market Restraints

Environmental Concerns from Space Launch Emissions:

The environmental impact of rocket emissions poses a significant challenge. Propellants like Unsymmetrical Dimethylhydrazine (UDMH) and solid fuels used in heavy-lift launch vehicles release harmful chemicals such as alumina and hydrochloric acid, which can damage the ozone layer, soil, and water resources.

Key Market Trends

Commercial Space Programs Fueling Market Expansion:

Private players like SpaceX, OneWeb, and Blue Origin are revolutionizing space access by developing reusable launch systems, offering low-cost satellite deployment, and accelerating the deployment of global broadband internet networks.

Rising Adoption in Military Applications:

Defense agencies are increasingly utilizing satellite constellations for secure communication, surveillance, navigation, and cyber defense strategies. Small satellite constellations are also being developed as countermeasures to anti-satellite systems.

Key Industry Developments

• July 2021 – NASA, the U.S. Department of Energy, and leading market players including Lockheed Martin, Blue Origin, and Aerojet Rocketdyne entered a 12-month contract worth USD 5 million each to develop next-generation nuclear thermal propulsion systems aimed at enabling faster deep space exploration.