Space Propulsion Market Report 2026

The space propulsion market size has grown rapidly in recent years. It will grow from $14.35 billion in 2025 to $16.84 billion in 2026 at a compound annual growth rate (CAGR) of 17.3%. The growth in the historic period can be attributed to growing deployment of electric propulsion systems for satellite station-keeping and orbit-raising, advancements in plasma and ion thruster technologies improving mission efficiency, expansion of global satellite constellations requiring reliable in-orbit propulsion, increased government and commercial investment in propulsion research for deep-space missions, early experimentation with propellant-less concepts to reduce spacecraft mass and complexity.

The space propulsion market size is expected to see rapid growth in the next few years. It will grow to $30.48 billion in 2030 at a compound annual growth rate (CAGR) of 16%. The growth in the forecast period can be attributed to rising demand for high-efficiency propulsion to support long-duration and interplanetary missions, scaling of electric propulsion for larger spacecraft platforms and higher power levels, increasing commercialization of leo operations driving need for frequent orbital adjustments, advancements in next-generation propellant-less propulsion concepts, expanding public-private partnerships to accelerate development of sustainable space-propulsion infrastructures. Major trends in the forecast period include development of high-efficiency electric propulsion systems, adoption of nuclear and solar propulsion for deep space missions, miniaturized propulsion units for small satellites and cubesats, integration of propulsion systems with advanced thermal and power management, propellant-less technologies for extended mission durations.

The increased government investments in space technology are expected to drive the growth of the space propulsion market going forward. Government investments in space technology refer to financial allocations made by national governments to support the development, research, and deployment of space-related programs, infrastructure, and capabilities. The rise in these investments is largely driven by intensifying geopolitical competition and national security concerns, as countries aim to establish strategic autonomy and strengthen their sovereign space capabilities to counter emerging threats and maintain technological advantages. Government investments in space technology support space propulsion by funding the research, development, and production of advanced rocket engines, ion thrusters, and next-generation propulsion systems needed for launching satellites, conducting interplanetary missions, maintaining space defense operations, and enabling both crewed and uncrewed spacecraft to reach orbit and beyond. For example, in April 2024, according to a report published by the Government of the United Kingdom, 79% of funding during the 2022-23 financial year was directed through ESA programs, while 20% supported national initiatives such as the National Space Innovation Programme. As a result of agency funding, projected revenues are expected to reach £1.2 billion, with private investment climbing to £733 million. Therefore, increasing investments in space technology are driving the space propulsion market.

Major companies in the space propulsion industry are adopting strategic partnerships to accelerate technological advancements and reduce development costs. Strategic partnerships involve companies combining strengths and resources to achieve shared benefits and goal alignment. For instance, in August 2023, Pulsar Fusion, a UK-based manufacturer of nuclear fusion rocket engines, partnered with the University of Michigan, a U.S.-based public institution. This partnership supports collaboration with the university’s plasma dynamics and electric propulsion laboratory, along with Hall thruster companies such as Pulsar Fusion (UK) and Starlight Engines (U.S.), as well as the University of Southampton. The partnership is funded through the first phase of the UK Space Agency’s £20 million international bilateral fund.

In March 2023, Voyager Space Holdings Inc., a U.S.-based space company focused on advancing exploration and technological innovation, acquired ZIN Technologies Inc. for an undisclosed amount. Through this acquisition, Voyager Space Holdings aims to strengthen its engineering capabilities and accelerate the development of the Starlab commercial space station, creating a strong platform for research and innovation in low Earth orbit. ZIN Technologies Inc., a U.S.-based aerospace and defense company, indirectly supports space propulsion efforts through aerospace system integration and research collaborations for spacecraft development.

Major companies operating in the space propulsion market are 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 2025. 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 report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on space propulsion components such as thrusters, nozzles, and power processing units have increased production costs and disrupted supply chains, particularly impacting Asia-Pacific and North American manufacturing hubs. Government and commercial space programs requiring chemical and non-chemical propulsion systems face delays and cost escalations. Positive impacts include encouraging local production, boosting domestic R&D for advanced propulsion technologies, and strengthening regional capabilities for strategic space missions.

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.

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 countries covered in the space propulsion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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