Space Propulsion Systems Market Report 2026

The space propulsion systems market size has grown rapidly in recent years. It will grow from $12.76 billion in 2025 to $14.61 billion in 2026 at a compound annual growth rate (CAGR) of 14.5%. The growth in the historic period can be attributed to increasing government investments in national space programs, rising deployment of commercial satellites for communication and broadcasting, reliance on chemical propulsion technologies for traditional launch systems, growth of defense-driven space missions requiring advanced propulsion, early development of electric propulsion for station-keeping in geostationary satellites.

The space propulsion systems market size is expected to see rapid growth in the next few years. It will grow to $24.74 billion in 2030 at a compound annual growth rate (CAGR) of 14.1%. The growth in the forecast period can be attributed to expansion of private spaceflight and mega-constellation satellite projects, increasing adoption of electric and solar electric propulsion systems for efficiency, rising demand for reusable launch vehicles requiring advanced propulsion designs, development of green propulsion technologies to reduce toxic propellants, growing focus on deep-space exploration missions driving high-performance propulsion innovations. Major trends in the forecast period include rising adoption of high-efficiency electric propulsion systems, growing development of reusable propulsion components, increasing use of advanced propellant formulations, expansion in small satellite and cubesat propulsion demand, innovation in high-temperature materials for extreme thrust operations.

The increasing number of space exploration missions is expected to drive the growth of the space propulsion systems market in the coming years. Space exploration involves the ongoing discovery and study of celestial bodies in outer space, enabled by continuously advancing space technologies. The expansion of space exploration missions fuels the space propulsion systems market, as these systems provide the necessary thrust for rockets and other spacecraft to reach space. For instance, in July 2024, the UK Space Agency, a UK-based government body overseeing the civil space program, reported that 175 new UK organizations were recognized for engaging in space-related activities in 2023, marking an 11% increase compared to 2022. Therefore, the growth of space exploration missions is driving the space propulsion systems market.

Companies in the space propulsion systems market are strategically focusing on establishing a strong presence in the United States by emphasizing the development of electric propulsion systems. One such example is Safran Electronics & Defense, a France-based company specializing in electrical systems, avionics, and optronics, which signed a Memorandum of Agreement with Terran Orbital, a US-based defense and aerospace company, in June 2023. This strategic partnership aims to conduct research and validate the requirements for manufacturing a new generation of satellite electric propulsion systems. The collaboration underscores Safran Electronics & Defense's confidence in Terran Orbital's cutting-edge products and innovative team, contributing to the creation of more flexible, automated, and vertically integrated manufacturing systems. The joint effort includes a comprehensive study evaluating technical, industrial, and economic considerations for establishing an innovative electric propulsion system manufacturing facility in the United States.

In July 2023, L3Harris, a US company specializing in communication and electronic systems, acquired Aerojet Rocketdyne for an undisclosed amount. This acquisition aimed to solidify L3Harris's position in the aerospace and defense sectors by focusing on the integration of advanced propulsion technologies to enhance its capabilities in space and missile systems. Aerojet Rocketdyne, also based in the US, is recognized for its propulsion systems and aerospace technologies that support various defense and space applications.

Major companies operating in the space propulsion systems market are IHI Corporation, Safran S.A., Aerojet Rocketdyne Holdings Inc., Space Exploration Technologies Corp., Northrop Grumman Corporation, Moog Inc., OHB SE, Sierra Nevada Corporation, Thales Alenia Space, Accion Systems Inc., ArianeGroup, Rafael Advanced Defense Systems Ltd., Mitsubishi Heavy Industries Ltd., Lockheed Martin Corporation, NanoAvionics Corp., L3Harris Technologies Inc., Blue Origin LLC, Avio SpA, Yuzhnoye State Design Office, Honeywell International Inc., The Boeing Company, Ball Aerospace & Technologies Corp., Antrix Corporation Limited, Exotrail SA, Terran Orbital Corporation, Rocket Lab USA Inc., Firefly Aerospace Inc., Relativity Space Inc., Momentus Inc.

North America was the largest region in the space propulsion systems market in 2025.Asia-Pacific is expected to be the fastest-growing region in the global space propulsion system market report during the forecast period. The regions covered in the space propulsion systems 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 are reshaping the space propulsion system market by increasing the cost of critical materials such as high-grade alloys, precision valves, and electronic components used in thrusters, rocket motors, and power processing units. These tariffs particularly affect manufacturing hubs in North America, Europe, and Asia-Pacific, slowing production for satellite propulsion, launch vehicle engines, and commercial spacecraft systems. The government and military segments face procurement delays, while commercial operators experience higher integration expenses. However, tariffs have also encouraged regional supply chain localization, promoting domestic manufacturing and fostering innovation in cost-optimized propulsion technologies.

The space propulsion systems market research report is one of a series of new reports that provides space propulsion systems market statistics, including the space propulsion systems industry global market size, regional shares, competitors with a space propulsion systems market share, detailed space propulsion systems market segments, market trends, and opportunities, and any further data you may need to thrive in the space propulsion systems industry. This space propulsion systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The space propulsion system serves as a crucial element in spacecraft, offering thrust through its various components such as rocket engines, tank pumps, propellants, nozzles, and power heads.

Key constituents of space propulsion systems encompass thrusters, rocket motors, propellant feed systems, thermal control for propulsion, nozzles, power processing units, and other associated elements. Thrusters, integral to spacecraft such as satellites, rovers, capsules, launch vehicles, interplanetary spacecraft, and probes, play a pivotal role in determining their direction and altitude. These systems find widespread application in diverse sectors such as space simulation, rocket launches, and more. Their utilization extends across civil and earth observation, government and military operations, as well as commercial ventures, highlighting their significance in various business domains.

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

The space propulsion system market consists of sales of chemical and nonchemical propellants, power heads, tank pumps, and rocket nozzles. 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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