Space Propulsion System Market to reach $22 Billion by 2030; increasing investments in space exploration, commercialization from both governments and private companies and the deployment of large satellite constellations are fueling the Space Propuls

The Space Propulsion System Market size is estimated to reach $22 Billion by 2030, growing at a CAGR of 10.9% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Space Propulsion System Market – By Propulsion Type (Chemical Propulsion, Electric Propulsion, Nuclear Propulsion, Solar Propulsion and Others), By Component (Thrusters, Propellant Tanks, Feed Systems, Nozzles, Power Systems, Control Systems, Rocket Motors and Others), By Class of Orbit ( Low Earth Orbit (LEO), Medium Earth Orbit (MEO), Geosynchronous Orbit (GEO), Beyond GEO), By Application (Satellites, Launch Vehicles, Spacecraft, Rovers/ Landers, Capsules/Cargo and Others), By End-User (Government Agencies, Military /Défense, Commercial Companies and Research Institutions) and By Geography Analysis - Global Opportunity Analysis & Industry Forecast, 2024-2030.

The emergence of commercial lunar exploration and the entry of new players are driving the growth of the space tourism market, creating new opportunities for private companies to offer lunar trips. Advancements in propulsion technologies are further shaping the market by enabling more cost-effective and efficient space travel, paving the way for longer-duration missions and expanded space tourism offerings are fueling growth in the Space Propulsion System market during the forecast period.

In 2023, the North America held the largest share of 44% in the Space Propulsion System Market driven by a combination of factors. The demand for space launches has surged in recent years, fuelled by the growth of satellite constellations, ambitious space exploration missions, and burgeoning commercial space activities. This robust demand has created a favourable environment for the space propulsion market. The strategic focus of both government agencies and private companies in North America on space exploration and commercialization has ensured a steady stream of investments and development efforts in the space propulsion sector. Initiatives such as NASA's Mars missions and commercial ventures in space tourism have significantly contributed to the region's strong market presence. The region benefits from substantial financial support from both government and private sources, with NASA's funding for major space missions, like the Artemis program and the Space Launch System (SLS), playing a pivotal role in driving innovation and technological advancements in space propulsion. North America boasts a well-developed and extensive space launch infrastructure, including major facilities like Cape Canaveral, Kennedy Space Center, and Vandenberg Space Force Base. This infrastructure supports a high volume of launches, providing a solid foundation for the space propulsion market and facilitating frequent and reliable access to space. The private space sector in North America is highly active and competitive, with numerous companies engaged in a diverse range of space activities, from satellite deployment to space tourism. This vibrant private sector landscape further strengthens the region's position as a global leader in the space propulsion market.

The deployment of large satellite constellations, such as those planned by companies like SpaceX (Starlink), OneWeb, and Amazon (Project Kuiper), is revolutionizing global communications, Earth observation, and other space-based services. These constellations require advanced propulsion systems not only for the initial deployment but also for ongoing orbit maintenance, adjustments, and end-of-life deorbiting to manage space traffic and debris. The continuous growth in the number and complexity of these constellations ensures a sustained and escalating demand for sophisticated propulsion technologies, driving innovation and investment in the space propulsion sector, reinforcing the market's long-term growth trajectory. For instance, SpaceX's Starlink project aims to deploy thousands of satellites to provide global high-speed internet coverage. This ambitious constellation requires advanced propulsion systems for the initial deployment of satellites, as well as for their ongoing maintenance, orbital adjustments, and end-of-life deorbiting to manage space traffic and debris. The constant need for these sophisticated propulsion technologies to support the Starlink constellation—and similar projects by companies like OneWeb and Amazon's Project Kuiper—ensures a sustained and escalating demand in the market.  

Recent advancements in propulsion technologies are profoundly transforming space exploration and satellite operations. Electric propulsion systems have seen substantial improvements, with cutting-edge technologies like NASA’s NEXT-C ion thruster and Busek’s Hall effect thrusters delivering enhanced efficiency and thrust. These advancements are particularly beneficial for deep-space missions and satellite orbit adjustments, offering greater precision and reduced fuel consumption. In the field of chemical propulsion, innovations such as SpaceX's Raptor engine and Blue Origin’s BE-4 engine are setting new benchmarks. The Raptor engine's full-flow staged combustion cycle and the BE-4's use of liquid oxygen and methane are driving down costs and improving the performance and reusability of rockets, thereby increasing the frequency of space launches. Meanwhile, nuclear propulsion technologies are making strides, with NASA's Nuclear Thermal Propulsion and Kilopower Reactor providing high-efficiency power sources capable of supporting extended deep-space missions. These systems utilize nuclear reactions to generate thrust or electricity, promising significant advancements in mission capabilities. Additionally, hybrid propulsion systems, such as Virgin Galactic's SpaceShipTwo, are advancing the space tourism industry by integrating solid and liquid propulsion technologies to offer controlled suborbital flights. Collectively, these innovations are not only enhancing the capabilities and efficiency of space missions but also driving substantial growth in the space propulsion market, enabling more ambitious and economically viable space endeavours.

• In August 2024, Safran Electronics & Defense, a leading global supplier of defense and space equipment, announced the expansion of its U.S. manufacturing capabilities for small satellite propulsion systems. This move, revealed at the 2024 Small Satellite Conference in Logan, Utah, aims to address the growing demand in both the commercial and defense sectors and supports the anticipated growth of the North American small satellite market, which is projected to surpass $5 billion by 2030.

• In June 2024, Colorado-based ExoTerra Resources secured $8 million in funding to boost the production of microsatellite propulsion systems. The investment, provided by the Lago Innovation Fund, a part of Lago Asset Management, will be used to expand the company's staff and facilities, enabling further growth in its operations

• In May 2024, Agile Space Industries announced it would provide advanced propulsion technology for a variant of True Anomaly’s Jackal autonomous orbital vehicle (AOV). This new, highly propulsive Jackal configuration will enhance the company's platform options, tailored to meet specific mission requirements, including multi-orbit capabilities, high-acceleration, and high delta-V needs for the Jackal vehicle.

Key companies profiled in the Space Propulsion System Market are L3Harris Technologies Inc., SpaceX, Safran SA, Thales Group, Sierra Nevada Corporation, IHI Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, Ariane Group , Honeywell Aerospace, Volvo and others.

Small and Medium Satellite Market - Small and Medium Satellite Market size is estimated to reach US$20.0 billion by 2030, growing at a CAGR of 15.7% during the forecast period 2024-2030 owing to the growing need for earth observation imagery & analytics .

Satellite Communication Market - The Market for Satellite Communication is projected to reach $15.18 billion by 2030, progressing at a CAGR of 9.4% from 2024 to 2030. The rising demand for audio/voice applications, adoption of DTH, satellite telemetry and automatic identification systems will drive the market growth.

Space Tourism Market- The space tourism market is forecast to reach $1.3bn by 2025, growing at a CAGR 12.4% during forecast period, 2020-2025. The space tourism market is being driven by advancements in space technology, increasing investments from private companies, growing consumer interest in unique travel experiences, and the potential for commercial space exploration.