Rocket Engines Market Report 2026

The rocket engines market size has grown steadily in recent years. It will grow from $3.91 billion in 2025 to $4.03 billion in 2026 at a compound annual growth rate (CAGR) of 3.1%. The growth in the historic period can be attributed to growth in government-funded space exploration programs increasing rocket engine procurement, rising demand for launch services to deploy commercial and defense satellites, advancements in liquid and solid propulsion technologies improving engine performance, historical expansion of private space companies contributing to engine development contracts, increased reliance on mro and refurbishment services for reusable rocket engines.

The rocket engines market size is expected to see steady growth in the next few years. It will grow to $4.64 billion in 2030 at a compound annual growth rate (CAGR) of 3.6%. The growth in the forecast period can be attributed to expanding commercial spaceflight and tourism driving new rocket engine production, increasing adoption of reusable propulsion systems to reduce launch costs, rising investments in high-thrust and high-efficiency engines for deep space missions, growing demand for small satellite launchers supporting development of compact rocket engines, expected surge in hybrid and green propellant technologies shaping next-generation engine designs. Major trends in the forecast period include advancement in reusable rocket engines, miniaturization of propulsion systems for small satellites, development of hybrid propulsion technologies, focus on high-efficiency fuel and combustion systems, expansion of commercial space launch services.

The increasing investment in the space industry is expected to drive the growth of the rocket engine market in the coming years. Investment in the space sector involves allocating funds and resources to support space exploration, satellite technology, commercial space ventures, and other aerospace projects with the goal of achieving financial returns or advancing scientific and technological objectives. Such investments are critical for developing more capable, cost-efficient, and sustainable rocket propulsion systems for satellite deployment and space exploration. For example, in 2023, The Space Report by Space Foundation, a US-based organization, stated that the global space economy reached $570 billion, marking a 7.4% increase from the revised 2022 figure of $531 billion. Consequently, growing investment in the space industry is propelling the rocket engine market.

Leading companies in the rocket engine market are emphasizing innovative technologies, such as hypersonic propulsion demonstrations, to advance high-speed flight capabilities, enhance engine efficiency, and accelerate next-generation aerospace solutions. Hypersonic propulsion demonstrations involve testing engines designed to achieve and sustain speeds greater than Mach 5, validating their performance in high-speed flight, thermal management, and efficient thrust generation under extreme aerodynamic conditions. For instance, in October 2025, Lockheed Martin Ventures, a US-based aerospace company, strategically invested in Venus Aerospace, a Houston-based rocket propulsion startup specializing in next-generation rotating detonation rocket engine (RDRE) technology. The investment aims to help Venus scale production and deploy its reusable, throttleable RDRE, reducing launch costs and providing mission flexibility for defense, space, and commercial high-speed aviation applications.

In July 2023, L3Harris Technologies Inc., a US-based aerospace and defense technology innovator, acquired Aerojet Rocketdyne for an undisclosed amount. This acquisition expanded L3Harris’s propulsion expertise, integrating Aerojet Rocketdyne’s advanced rocket engine and missile technologies, which were key components in Lockheed Martin’s supply chain. Aerojet Rocketdyne is a US-based manufacturer specializing in rocket engines and missile propulsion systems.

Major companies operating in the rocket engines market are Aerojet Rocketdyne Holdings, Inc., Space Exploration Technologies Corp., Northrop Grumman Corporation, Mitsubishi Heavy Industries, Ltd., Blue Origin, LLC, IHI Corporation, National Aeronautics and Space Administration (NASA), Lockheed Martin Corporation, China Aerospace Science and Technology Corporation (CASC), Roscosmos, Skyroot Aerospace, Gilmour Space Technologies, Deep Blue Aerospace, Reaction Engines, Roll- Royce Limited, Skyrora, Safran Aircraft Engines, Roxel, Pangea Aerospace, AVIO, ARCA space, ISAR Aerospace, EDePro, GKN Aerospace, Boeing Defence, Space & Security, Raytheon, Maxar Space, SpaceX, Orbital ATK, Virgin Galactic, Rocket Lab, Avibras Indústria Aeroespacial S/A, Israel Aerospace Industries, The Boeing Company.

North America was the largest region in the rocket engines market in 2025. North America is expected to be the fastest-growing region in the global rocket engines market share during the forecast period. The regions covered in the rocket engines 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 have impacted the rocket engine market by increasing the cost of imported raw materials, high-precision components, and propulsion system technologies, leading to higher production costs and potential delays in manufacturing. Segments such as liquid and solid rocket engines and regions like North America and Asia-Pacific, which are major manufacturing hubs, are most affected. However, tariffs have also encouraged local manufacturing initiatives and investments in domestic propulsion technologies, potentially boosting innovation and reducing dependency on imports.

The rocket engines market research report is one of a series of new reports that provides rocket engines market statistics, including rocket engines industry global market size, regional shares, competitors with a rocket engines market share, detailed rocket engines market segments, market trends and opportunities, and any further data you may need to thrive in the rocket engines industry. This rocket engines 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.

The rocket engine plays a crucial role in a propulsion system, utilizing the combustion of reactive chemicals to generate the necessary energy for propelling the rocket. Through the utilization of fuel and a source of oxygen, the rocket engine produces hot exhaust, accelerates the flow, and ultimately generates thrust.

Rocket engines are categorized into various types, including physically powered, chemically powered, electrically powered, thermal, and nuclear variations. Electrically powered rocket engines harness electricity to propel a propellant, utilizing a range of electrical and/or magnetic techniques for acceleration. These products include both liquid rocket engines and solid rocket engines, which find applications in spacecraft, ballistic missiles, and various other scenarios.

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

The rocket engine market consists of sales of rocket engines of various types to run the rockets. 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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