Space Propulsion Market Report 2025

This Space Propulsion report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The space propulsion market size has grown rapidly in recent years. It will grow from $12.15 billion in 2024 to $14.42 billion in 2025 at a compound annual growth rate (CAGR) of 18.7%. The growth in the historic period can be attributed to high demand for leo satellites and satellite constellations, advent of space tourism, realization of benefits from leo satellites, increased demand for low-cost and efficient propulsion systems, government investments and space programs.

The space propulsion market size is expected to see rapid growth in the next few years. It will grow to $27.12 billion in 2029 at a compound annual growth rate (CAGR) of 17.1%. The growth in the forecast period can be attributed to rising demand for miniaturization in space systems, increasing space exploration programs, growing preference for electric propulsion, growing demand for satellite-based services, rising demand for space-based communication. Major trends in the forecast period include increasing number of space launches, additive manufacturing (am) and advanced materials, artificial intelligence (ai) and machine learning (ml), autonomous spacecraft, reusable launch vehicles.

Increased government investments in space technology are propelling the growth of the space propulsion market. For example, a report released by the UK government in April 2024 indicates that during the 2022-23 financial year, 79% of funding was allocated to ESA programs, while 20% was aimed at national initiatives, including the National Space Innovation Programme, which will continue until 2027/28. Thanks to this agency funding, projected revenues are anticipated to rise to £1.2 billion, with private investment reaching £733 million. Therefore, the growing investments in space technology are expected to drive the space propulsion market in the future.

The space propulsion market is set to grow with the surge in space exploration missions. These missions involve deploying spacecraft to study celestial bodies, space phenomena, and the universe, with goals ranging from scientific research to technology development and human exploration. Space propulsion plays a crucial role in overcoming gravitational forces and covering vast distances, enabling spacecraft to explore planets, moons, and asteroids. For instance, according to the Space Foundation, spacecraft operators deployed 2,354 spacecraft in 2022, marking a 36% annual increase. Thus, the rise in space exploration missions is poised to contribute to the growth of the space propulsion market.

Research and development are emerging as a significant trend in the space propulsion market. For example, a report published in July 2023 by the UK government highlighted the National Space Strategy in Action, which demonstrated robust collaboration with the European Space Agency (ESA). This partnership is backed by a record investment of £1.84 billion ($2.41 billion) committed over the next five years.

Major companies in the space propulsion industry are adopting a strategic partnerships approach to advance technology and reduce development costs. This involves leveraging each other's strengths and resources for mutual benefits. For instance, in August 2023, Pulsar Fusion, a UK-based nuclear fusion rocket engine manufacturer, partnered with the University of Michigan, a U.S.-based public institution, to collaborate with the plasma dynamics and electric propulsion lab at the University of Michigan, Hall thruster companies like Pulsar Fusion (UK), Starlight Engines (US), and the University of Southampton. This partnership will be funded from the first phase of the UK Space Agency’s £20 million international bilateral fund.

In March 2023, Voyager Space Holdings, Inc., a leading US-based space company focused on advancing humanity's future through innovative exploration and technologies, acquired ZIN Technologies, Inc. for an undisclosed sum. This acquisition is intended to bolster Voyager Space Holdings' engineering capabilities and expedite the development of the Starlab commercial space station, establishing a strong platform for scientific research and innovation in low Earth orbit. ZIN Technologies, Inc., also a US-based aerospace and defense firm, indirectly supports space propulsion initiatives through its work in aerospace system integration and research partnerships for spacecraft development.

Major companies operating in the space propulsion market include OHB SE, Accion Systems Inc., The Boeing Company, Northrop Grumman Corporation, Maxar Technologies Inc., Thales Alenia Space, Airbus SE, VACCO Industries Inc., Moog Inc., Cobham Mission Systems Wimborne Limited., Safran S.A., NPO Splav, BAE Systems plc, Hanwha Group, Avibras Indústria Aeroespacial S.A., Blue Origin LLC, The Aerospace Corporation, Aerojet Rocketdyne Holdings Inc., Astrobotic Technology Inc., ArianeGroup, IHI Corporation, Mitsubishi Heavy Industries Ltd., Honeybee Robotics Ltd., Bluestaq LLC, Aurora Flight Sciences Corporation., Planet Labs Inc., Sierra Nevada Corporation, Avio SpA, Beta Technologies Inc.

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

Space propulsion refers to the methods employed to accelerate spacecraft and artificial satellites. Primarily, spacecraft are propelled using rocket engines. These systems operate by expelling mass - typically in the form of gas or plasma - at high velocities, generating a reactive force that pushes the spacecraft in the opposite direction, in accordance with Newton's Third Law of Motion.

The primary types of space propulsion are chemical propulsion and non-chemical propulsion. Chemical propulsion involves generating thrust through the product of a chemical reaction, typically by burning or oxidizing a fuel. Platforms for space propulsion include satellites, capsules/cargos, interplanetary spacecraft and probes, rovers/spacecraft landers, and launch vehicles. Major end users of space propulsion systems encompass commercial, government, and defense entities. The components utilized in space propulsion systems comprise chemical propulsion thrusters, electric propulsion thrusters, propellant feed systems, rocket motors, nozzles, and propulsion thermal control and power processing units. The orbits associated with space propulsion include low earth orbit (LEO), medium earth orbit (MEO), geostationary earth orbit (GEO), and beyond geosynchronous orbit.

The space propulsion market research report is one of a series of new reports that provides space propulsion market statistics, including space propulsion industry global market size, regional shares, competitors with a space propulsion market share, detailed space propulsion market segments, market trends and opportunities, and any further data you may need to thrive in the space propulsion industry. This space propulsion 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 propulsion market consists of sales of electric, and propellant-less space propulsions. 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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