Aerospace Propellant Market Report 2026

The aerospace propellant market size has grown strongly in recent years. It will grow from $6.79 billion in 2025 to $7.15 billion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to development and use of solid and liquid propellants in early aerospace missions, advancements in cold gas propulsion technologies, production of sodium-potassium (nak) propellants for specialized applications, government funding for space and defense propulsion research, growth in commercial and military aerospace programs requiring high-performance propellants.

The aerospace propellant market size is expected to see strong growth in the next few years. It will grow to $8.79 billion in 2030 at a compound annual growth rate (CAGR) of 5.3%. The growth in the forecast period can be attributed to rising demand for advanced cold gas and hybrid propellants for next-generation aerospace vehicles, growth in satellite and spacecraft launches driving propellant consumption, advancements in environmentally friendly and safer propellant formulations, increasing investment in propulsion efficiency and performance optimization, integration of AI and simulation technologies for propellant performance prediction. Major trends in the forecast period include shift toward high-performance solid and hybrid propellants, increased use of environmentally safer propellant formulations, advancements in hypersonic and high-thrust applications, growth in satellite thrusters and deep-space propulsion programs, enhanced propellant efficiency for increased mission payload capacity.

The increasing number of satellite launches is expected to propel the growth of the aerospace propellant market going forward. Satellite launches involve sending satellites into space aboard rockets or launch vehicles to position them in orbit for purposes such as communication, observation, or research. The rise in satellite launches is driven by the growing demand for global communication, as businesses and governments increasingly rely on satellite networks for broadband and connectivity. Aerospace propellant is essential for launching satellites, providing the thrust required to propel rockets into orbit and enabling precise control of speed and trajectory to place satellites in their intended orbits. For instance, in January 2024, according to the Space Foundation, a US-based nonprofit organization, global launch activity reached record levels for the third straight year, with 223 attempts and 212 successful launches, marking a significant increase. Additionally, commercial launches grew by 50% compared to 2022, while the United States recorded a 33% rise in launch attempts. Therefore, the increasing satellite launches are driving the growth of the aerospace propellants market.

Major companies operating in the aerospace propellant market are focusing on developing advanced solutions such as electric propulsion systems to support the transition to more sustainable and cost-effective propulsion technologies. An electric propulsion system uses electrical energy to accelerate a propellant, generating thrust for spacecraft or aircraft. It offers higher efficiency, reduced fuel consumption, and longer operational lifespans, making it ideal for satellites and space exploration. For instance, in October 2024, Phase Four, a US-based provider of electric propulsion solutions, introduced its monopropellant multi-mode propulsion system for satellites. This system integrates the high thrust of chemical propulsion with the efficiency of electric propulsion using a single propellant (hydrazine or non-toxic ASCENT) through a proprietary radiofrequency (RF) thruster. The approach removes the need for separate propellant tanks, reducing satellite size, weight, and cost while improving maneuverability and mission versatility.

In May 2025, Karman Space & Defense, a US-based aerospace and defense company, acquired Industrial Solid Propulsion (ISP) for an undisclosed amount. The acquisition strengthens Karman’s energetics capabilities and expands its offerings for UAS, counter-UAS/intercept, one-way loitering munitions, rocket-assisted takeoff, and other tactical propulsion markets, enabling faster concept-to-production delivery for defense and space customers. Industrial Solid Propulsion (ISP) is a US-based company specializing in the design, testing, qualification, and manufacturing of small-diameter energetic and solid propulsion systems.

Major companies operating in the aerospace propellant market are Lockheed Martin Corporation, Raytheon Technologies Corporation, Northrop Grumman Corporation, Honeywell International Inc., Safran S.A., Thales Group, L3Harris Technologies Inc., IHI Corporation, SpaceX, Rheinmetall AG, MBDA, Blue Origin LLC, Rocket Lab USA Inc., Ursa Major Technologies, Avio S.p.A., Bellatrix Aerospace, Firehawk Aerospace, Virgin Galactic, Khrunichev State Research and Production Space Center, Nammo AS, NPO Energomash.

North America was the largest region in the aerospace propellant market in 2025. The regions covered in the aerospace propellant 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 raw materials such as aluminum powders, refined metals, oxidizers, and advanced chemical compounds have increased production costs in the aerospace propellant market, particularly affecting solid and liquid propellant segments that rely on global chemical supply chains. North America and Europe are most affected due to high import reliance, while defense-driven domestic production in some regions benefits from reduced external competition. Tariffs are also encouraging localization, technology innovation, and backward integration to strengthen national security in aerospace propulsion programs.

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

Aerospace propellant refers to a chemical substance used to generate thrust in aerospace propulsion systems, allowing the movement of aircraft, missiles, or spacecraft. It can be in solid, liquid, or hybrid forms and works by undergoing combustion or chemical reactions to produce high-pressure gases that are expelled through a nozzle. The performance of these propellants is crucial for meeting mission-specific requirements related to speed, altitude, and range.

The main types of aerospace propellants include solid propellants, liquid propellants, and hybrid propellants. Solid propellants combine fuel and oxidizer in a solid state to provide reliable and high-thrust performance in rocket propulsion systems. These propellants are used in various technologies such as conventional rocket engines, ion thrusters, nuclear thermal engines, electric propulsion systems, and hybrid propulsion systems. They find applications in launch vehicles, satellite propulsion, space exploration, missile systems, and spacecraft maneuvering, serving a wide range of end-users including government organizations, commercial enterprises, aerospace contractors, research institutions, and military sectors.

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

The aerospace propellant market consists of sales of cold gas propellants and sodium-potassium (NaK) propellants. 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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