Home > Aerospace & Defense > Rocket Propulsion Market
Rocket Propulsion Market size exceeded USD 5 billion in 2020 and is anticipated to grow at a CAGR of over 8% from 2021 to 2027. The market growth can be attributed to the increasing investments in space launch activities and the growing number of rocket testing activities to launch satellites.
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Market leaders backed by government support are investing significantly in R&D for the development of advanced rocket propulsion systems. The U.S. government allocated a fund of USD 23.3 billion to NASA in 2021, a 3% increase compared to the previous year’s fund, supporting the industry growth. The development of reusable rockets to lower the cost of launch will reduce the access barrier to space and drive the market expansion during the forecast period.
Huge capital investments are key factors challenging the market progression. According to NASA, the average cost to launch a spacecraft is USD 450 million. High operational costs and risk of failure in spacecraft are limiting launching operations. SpaceX, Boeing, and other private companies are developing cost-saving rockets that can bring down the launch cost, thus supporting the industry expansion.
The COVID-19 pandemic had no significant impact on rocket propulsion activities. China has carried out 34 launches and the U.S has launched several crewed missions & spy satellites in 2020. Despite the COVID-19 crisis, both countries have been able to maintain a high number of launches. Small and medium-sized enterprises, which form the bulk in the commercial space sector struggled to cope with the COVID-19 crisis due to supply chain disruptions and lower market demand for components.
Report Coverage | Details |
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Base Year: | 2020 |
Market Size in 2020: | 5 Billion (USD) |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 8% |
2027 Value Projection: | 8 Billion (USD) |
Historical Data for: | 2016 to 2020 |
No. of Pages: | 200 |
Tables, Charts & Figures: | 197 |
Segments covered: | Type, Fuel Type, Orbit Type, Vehicle Type, End-use |
Growth Drivers: |
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Pitfalls & Challenges: |
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The rocket engine segment is expected to witness 8.5% growth rate by 2027 owing to the increased space launch activities by the U.S, China, and Russia. China has launched several rockets in recent years. According to the Center for Strategic and International Studies (CSIS), China led the world with 32 launches in 2019. Increasing orbital launch activities in China will spur the growth of rocket engines over the forecast period.
The liquid propellant segment dominated more than 70% of the rocket propulsion market share in 2020. The high usage of liquid propellant in rockets is credited to its high-density and high specific impulse. According to NASA, liquid hydrogen fuel is extensively used by American space programs and other countries for rocket propulsion activities. Active investments in R&D by prominent market players and rapid advancements in rocket propulsion are set to foster the industry progression.
LEO segment is poised to grow at a CAGR of around 8.5% through 2027 led by the increasing demand for the observation of climate change. A lower earth orbit requires the lowest amount of energy for satellite placement, provides high bandwidth, and allows frequent revisits to low altitude places on the Earth. Space stations and satellites are more accessible for crew & servicing. LEO is commonly used for communication applications since less energy is required to place a satellite in the Earth’s lower orbit.
The unmanned vehicle segment held 90% of revenue share in 2020. Unmanned spacecraft explore the solar system more effectively and cheaply than manned vehicles. Increasing initiatives by aerospace research centers and private companies to launch unmanned space shuttles will augment the segment expansion.
The commercial rocket propulsion segment is estimated to attain 9% gains by 2027 due to the increasing expenditure in R&D activities by governments and private players associated with space & moon exploration development. Growing advancements in the miniaturization of satellites, reusable rockets, and lowered per launch costs are opening many business opportunities beyond aerospace and defense.
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China rocket propulsion market size was valued at over USD 1.5 Billion in 2020 on account of the growing space launch programs by the government in the last decade. China has become one of the fastest-growing markets in rocket propulsion with an increase in space launch activities.
Prominent leaders in the market include Mitsubishi Heavy Industries, SpaceX, Virgin Galactic, Blue Origin, Lockheed Martin Corporation, Airbus Defense and Space, General Dynamics OTS, The Boeing Company, IHI Corporation, Northrop Grumman, China Great Wall Industry Corporation, National Aeronautics and Space Administration (NASA), Rocket Lab, Yuzhmash, Moog Inc., NPO Energomash, and L-3 Communications. Market participants are focusing on the development of cost-effective rocket propulsion systems for deep space mission activities and partnerships to support domestic companies.
Market, By Type
Market, By Fuel
Market, By Orbit
Market, By Vehicle