Electric Propulsion Satellites Market

Electric Propulsion Satellites Market Size

The global electric propulsion satellites market was valued at USD 50.3 billion in 2025. The market is expected to grow from USD 55.2 billion in 2026 to USD 100 billion in 2031 & USD 179.7 billion in 2035, at a value CAGR of 14% during the forecast period according to the latest report published by Global Market Insights Inc.

The rising demand for global satellite constellations, progress in electric propulsion technology efficiency, increasing demand for affordable launch solutions, surge in space launches for defense, commercial, & increased investment in space infrastructure development propel market growth.

The development of global satellite constellations is driving demand for electric propulsion satellites. According to Satellite Industry Association, At the end of 2024, a total of 11,539 satellites were operating in Earth orbit compared with just 3,371 in 2020. Therefore, there is an urgent need to find an efficient and cost-effective means of propulsion. Electric propulsion is a preferred choice for large scale deployment due to its ability to provide long-term, high reliability and low maintenance, thus enabling the delivery of continuous connectivity throughout remote areas.

Improvements in electric propulsion technology are facilitating growth in the electric propulsion satellite market by improving the efficiency and mission capability of electric propulsion systems. According to NASA, with electric propulsion, up to 90% of the mass of the propellant can be eliminated, thereby resulting in lighter satellites, and potentially allowing the use of smaller, less expensive launch vehicles. An additional benefit of electric propulsion is the associated savings when raising satellites into orbits or keeping them in a stationary position.

Between 2022 and 2024, the market witnessed considerable growth, increasing from USD 39.9 billion in 2022 to USD 46.4 billion in 2024. The pattern advocating advanced propulsion systems is changing the face of space exploration for small spacecraft. In April of 2024, NASA announced the company's first new propulsion system for upcoming planetary missions. This propulsion system is small enough to allow small spacecraft to perform longer and more accurate operations in extreme environments while also improving satellite lifetimes and operational capabilities. NASA's innovations continue to demonstrate the importance of electric propulsion, further expanding the electric propulsion satellite market and solidifying the United States' dominance in space.

Electric Propulsion Satellites Market Trends

• The growth of green propellants in electric propulsion satellites accelerated since the 2010s, primarily due to environmental regulations and the need for sustainable space operations. NASA demonstrated that AF-M315E, a safe and much less toxic propellant, will provide 50% greater performance for the same volume as hydrazine and significantly reduced handling requirements and processing time. With the continuous growth of satellite fleets in the late 2020s, the demand for green propellants (such as AF-M315E) is expected to peak and improve satellite performance while lowering operational costs.
  
• The use of hybrid propulsion systems (electric and chemical propulsion systems) has gained popularity since the late 2010s, as these systems provide greater efficiency and thrust, enabling longer missions and accurate adjustments to orbital positions. The need for cost-effective solutions in the satellite marketplace has been the primary driver of growth in hybrid propulsion, which is expected to peak by 2026 as demand continues to increase. One example of hybrid propulsion technology development is NASA's Marshall space flight center and Utah state university; each organization has conducted over 30 static firings of 3D-printed models of hybrid rocket motors as part of their efforts to develop lunar landing systems for the Artemis program.
  
• As a result of an increasing need for greater connectivity, earth observation, and exploration within the cosmos, the demand for electric propulsion satellite systems has rapidly increased and is anticipated to continue growing because of the increased number of stakeholders (both public and private) within the commercial space sector. In 2024, NASA reported that global private sector investments toward technology development associated with satellite propulsion would increase by USD 7.4 billion or 6% compared to 2023. The accelerating pace of commercial investment will position satellites powered by propulsion systems as the most innovative and diverse solutions available to customers by establishing an ecosystem of infrastructure to support satellite launches and missile launches via multiple launch vehicles (MLVs).
  

Electric Propulsion Satellites Market Analysis

Learn more about the key segments shaping this market

Download Free PDF

 The global electric propulsion satellites industry was valued at USD 39.9 billion and USD 42.9 billion in 2022 and 2023, respectively. The market size reached USD 50.3 billion in 2025, growing from USD 46.4 billion in 2024.

Based on the satellite type, the global market is divided into full electric & hybrid.

• The hybrid segment accounted for 65.1% of the market in 2025. Combination drives between electrical and chemical satellites, hybrid models satellite hybrid models that combine electric and chemical drives are dependent on the long-term mission, but the need for these types of drives has led to increased capability and options in the use of satellites for commercial and international uses.
  
• Companies should be working to create hybrid drive solutions with greater reliability at a lower price while balancing the need for long-term scalable satellite missions.
  
• The full electric segment was valued at USD 17.6 billion in 2025 and is anticipated to grow at a CAGR of 17.6% over the forecast years. The electric space market is driving because of the need for more efficient, cost-effective methods to provide fuel for an extended satellite.
  
• Businesses should focus on increasing electric propulsion product performance, reduce electric propulsion system costs and improve sustainable electric propulsion product options in space.
  

Based on the orbit, the electric propulsion satellites market is segmented into low earth orbit (LEO), medium earth orbit (MEO), geostationary orbit (GEO). The low earth orbit (LEO) segment dominated the market in 2025 with a revenue of USD 21.7 billion.

• Low Earth Orbit (LEO) is seeing significant demand from satellite constellations that provide global communication capabilities, earth observation, and a multitude of different commercial and defense-related applications with an emphasis on the cost-effective delivery of those satellites.
  
• It is important that companies are developing LEO satellite solutions that are cost-effective and reliable, either by improving propulsion efficiency, lowering costs associated with launching satellites, or optimally integrating their satellite networks to offer global connectivity and/or service.
  
• On the other hand, the geostationary orbit segment is expected to witness growth at a CAGR of 14.5% during the forecasted period.
  
• The geostationary orbit (GEO), which is a primary driving force behind satellite communications, broadcasting, weather monitoring and observing the earth, provides a wide coverage area for a variety of applications that require continuous and reliable connectivity.
  
• Companies should concentrate on developing reliable satellites, increasing satellite payloads, and creating propulsion systems that maintain long-term stability and continuous coverage in GEO Applications.
  

Learn more about the key segments shaping this market

Download Free PDF

Based on the satellite mass, electric propulsion satellites market is classified as less than 100 kg, 100 -500 KG, 500 -1000 Kg, & Above 1000 Kg. 500 -1000 Kg dominated the market in 2025 with a market share of 29.9%.  

• The medium mass of 500 - 1,000 kg for a satellite is due to the growing need for cost effective and medium size satellites to provide commercial, scientific and communication solutions.
  
• Companies need to optimize satellite design, improve payload capacity, reduce launch costs, and create propulsion systems that can accommodate the growing demand for medium-sized satellites.
  
• The satellite mass of 100 - 500 kg has arisen from a growing need for small, cost-effective satellites supporting communications, earth observations and scientific missions with small payloads.
  
• Companies should develop compact, efficient satellite designs, decrease production and launch costs, and create propulsion systems.
  

Looking for region specific data?

Download Free PDF

North America Electric Propulsion Satellites Market

The North America market dominated the global market with a market share of 36.7% in 2025.

• Contracts for military defense, satellite broadband demand, 5G integration, technological advancements, and increased investment in satellite technology are driving the electric propulsion satellite market in North America.
  
• More satellite constellations, the awareness for sustainable propulsion systems, 5G technology, and Space programs all backed by the governments are driving the growth in the market.
  

The U.S. electric propulsion satellites industry was valued at USD 12.5 billion and USD 13.4 billion in 2022 and 2023, respectively. The market size reached USD 14.4 billion in 2025, growing from USD 15.6 billion in 2024.

• Defense contracts, satellite broadband, technology, and private investment in space are driving the market in the USA.
  
• Companies should focus on increasing propulsion systems for satellites and then drive in more broadband initiatives for the defense sectors to meet the growing demand for propulsion systems.
  

Europe Electric Propulsion Satellites Market

Europe market accounted for USD 14 billion in 2025 and is anticipated to show lucrative growth over the forecast period.

• Projects by the European Space Agency, the European Union, satellite broadcasting demand, and investments in sustainable propulsion tech are driving the electric propulsion satellites industry in Europe.
  
• In Europe, there are no boundaries for cross-border communication which increases demand for broadband in rural areas, collaboration with the European space agency for satellites.
  

Germany dominates the Europe market, showcasing strong growth potential.

• The electric propulsion satellite market in Germany is experiencing strong growth due to the growing demand for cost-effective, efficient means for moving satellites in space, climate change concerns, advances in space exploration technologies, and increased collaboration between governments and private industry to further develop these new technologies.
  
• To grow in this market, companies need to perform better in terms of exposure to new technologies, providing improved, low-cost electric propulsion systems, creating partnerships with key European customers, broadening the use of satellite technology by further developing their use within industries, improving the efficiency of electric propulsion systems and assisting customers in achieving their sustainability goals.
  

Asia Pacific Electric Propulsion Satellites Market

The Asia Pacific market is anticipated to grow at the highest CAGR of 15.4% during the analysis timeframe.

• The electric propulsion satellite market in the Asia-Pacific region is growing due to the increased demand for more environmentally friendly space travel and the increased number of international and private sector launches.
  
• To capitalize on this growth, companies need to develop their cost-efficient electric propulsion technology and further develop partnerships with regional space agencies; increase their investment in research and development of high-thrust, high-efficiency electric propulsion systems; continue to develop satellite miniaturization.
  

China market is estimated to grow with a significant CAGR, in the Asia Pacific market.

• China's electric propulsion satellite market is expanding rapidly due to the rapid growth of its space program; the continued commitment by the Chinese government to invest significantly in space technology, the rising demand for more environmentally friendly electric propulsion systems, and the growing commercial launch of satellites for telecommunications and earth observation.
  
• To fully capitalize on this growing market, companies should focus on developing new high-thrust electric propulsion systems, forming strategic alliances with Chinese space agencies, creating localized manufacturing plants for electric propulsion systems.
  

Latin American Electric Propulsion Satellites Market

Brazil leads the Latin American market, exhibiting remarkable growth during the analysis period.

• The electric propulsion satellite business in Brazil is propelled by investment in growing space programs, the need for regional communications, the support and involvement of the government, the increasing interest in Earth observation and broadband internet, and the quest for lower cost, more effective propulsion systems.
  
• To compete effectively in this burgeoning industry, companies need to invest in developing and building cost-effective propulsion systems, enter partnerships with Brazilian space agencies, increase their understanding of the manufacturing capabilities in Brazil, and invest in research and development on the various applications of earth observation and communications satellites.
  

Middle East and Africa Electric Propulsion Satellites Market

South Africa market to experience substantial growth in the Middle East and Africa electric propulsion satellites industry in 2025.

• The electric propulsion satellite industry in South Africa is driven by the need for greater connectivity across the region, government-sponsored space initiatives, the demand for affordable propulsion systems, and the growing interest in earth observation and telecommunications services.
  
• To become competitive in this growing sector, companies should develop low-cost propulsion systems, establish partnerships with South African space agencies, expand their understanding of the local manufacturing capabilities in South Africa, and invest in the research and development of applications for regional connectivity and earth observation projects.
  

Electric Propulsion Satellites Market Share

Boeing, Lockheed Martin, Northrop Grumman, Airbus, and Ariane Group are the five major players driving innovation and excellence within the electric propulsion satellite market. Together they hold over 55.1% of the global market by 2025. Each of these five companies contributes to advancements within the electric propulsion satellite market with their commitment to developing technologies related to electric propulsion technologies, integrated satellite solutions, and advanced R&D.

Smaller niche companies developing advanced electric propulsion components (thruster technologies) and new propulsion solutions are also making collaborative efforts to help the electric propulsion satellite market streamline and expedite the development of electric propulsion satellite systems.

Electric Propulsion Satellites Market Companies

Prominent players operating in the electric propulsion satellites industry are as mentioned below:

• Boeing
• Lockheed Martin
• Northrop Grumman
• Airbus
• ArianeGroup
• Aerojet Rocketdyne
• Busek
• L3Harris Technologies
• OHB System
• Safran Group
• Sitael
• Thales Alenia Space
• ThrustMe
• Bellatrix Aerospace
• Accion Systems
• Ad Astra Rocket
  
• Boeing

As a leader in the aerospace industry, Boeing is utilizing its vast experience to create next-generation electric propulsion systems that focus on the development of innovative, large-scale satellite projects to remain competitive within the aerospace market.

• Lockheed Martin

Lockheed Martin leads the electric propulsion industry for both government and commercial satellite technology with a strong commitment to developing innovative solutions and building strategic partnerships within the space industry.

• Northrop Grumman
  Northrop Grumman is also among the major players in innovation associated with satellites and propulsion. amongst other things, Northrop Grumman is involved in the development of advanced electric propulsion systems that will be used for defense, space exploration, and commercial missions, and therefore strengthens their position in the marketplace.
  
• Airbus
  Airbus competes in the electric propulsion satellite market through providing efficient electric propulsion solutions to the satellite marketplace, utilizing its global reach and technology, developing sustainable, cost-effective electric propulsion systems.
  
• ArianeGroup
  Ariane Group stays competitive by offering reliable satellite launch services combined with emerging electric propulsion technologies, focusing on cost-effectiveness and efficiency in satellite deployment.
  

Electric Propulsion Satellites Industry News

• In July 2025, Boeing launched two additional O3b mPOWER satellites. The two satellites are the ninth and tenth in a series of 20 O3b mPOWER satellites. The new satellites have been built with a significant focus on the use of xenon electric propulsion technology to perform the initial orbital-insertion maneuvers previously accomplished with other types of propulsion engines.
  
• In February 2023, Thales Alenia Space, a joint venture of Thales (67%) and Leonardo (33%), signed a contract with KARI to supply electric propulsion systems (EPS) for the GEO-KOMPSAT-3 satellite. This type of contract demonstrates a growing trend toward the development of advanced electric propulsion systems in satellite technology within geostationary orbital zones.
  

The electric propulsion satellites market research report includes in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2022 – 2035 for the following segments:

Click here to Buy Section of this Report

Market, By Orbit    

• Low earth orbit (LEO)
• Medium earth orbit (MEO)
• Geostationary orbit (GEO)

Market, By Satellite Type

• Full electric
• Hybrid

Market, By Satellite Mass

• Less than 100 kg
• 100 -500 KG
• 500 -1000 Kg
• Above 1000 Kg

Market, By Propulsion

• Electrothermal
• Electrostatic
• Electromagnetic
• Others

Market, By Application

• Earth observation
• Navigation
• Communication
• Weather monitoring
• Others

Market, By End Use

• Government
  • Military
  • Others
• Commercial

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE