Non-Chemical Space Propulsion System Market Report 2025

The non-chemical space propulsion system market size has grown rapidly in recent years. It will grow from $1.16 billion in 2024 to $1.32 billion in 2025 at a compound annual growth rate (CAGR) of 14%. The growth in the historic period can be attributed to increasing demand for satellite station-keeping efficiency, growing interest in long-duration space missions, rising awareness of propellant mass limitations in launch vehicles, increasing investment in deep space exploration missions, and growing use of small satellites and cubesats.

The non-chemical space propulsion system market size is expected to see rapid growth in the next few years. It will grow to $2.22 billion in 2029 at a compound annual growth rate (CAGR) of 13.8%. This projected growth will be driven by the expanding commercialization of space-based services, increasing focus on reusability and improved propulsion efficiency, growing requirements for in-space transportation frameworks, heightened emphasis on Mars and lunar colonization efforts, and stronger strategic interest in space defense technologies. Key trends expected in the forecast period include the maturation of ion thruster technology, progress in nuclear electric propulsion systems, integration of propulsion with onboard power solutions, advancements in plasma containment innovations, and the development of high-efficiency energy supply units.

The surge in space exploration missions is expected to propel the growth of the non-chemical space propulsion system market going forward. Space exploration missions are organized efforts by humans or robotic spacecraft to investigate and gather information about outer space beyond Earth's atmosphere. The surge in space exploration missions is due to scientific curiosity to understand the universe, discover new knowledge, and unlock the mysteries beyond Earth. The non-chemical space propulsion system revolutionizes space exploration missions by providing efficient, long-duration thrust without relying on traditional chemical fuels, enabling deeper and more sustainable journeys beyond Earth. For instance, in September 2022, according to the Government Accountability Office, a US-based government agency, as of spring 2022, there are nearly 5,500 active satellites in orbit, with projections suggesting the launch of an additional 58,000 satellites by 2030. Therefore, the surge in space exploration missions is driving the growth of the non-chemical space propulsion system market.

Leading companies involved in the non-chemical space propulsion system market are prioritizing the development of next-generation technologies such as electric propulsion to improve operational efficiency and environmental sustainability. Electric propulsion leverages electrical energy to produce thrust, allowing for more streamlined, efficient, and eco-friendly spacecraft movement without relying on conventional chemical propellants. For example, in May 2025, Austria-based aerospace and defense firm Enpulsion GmbH unveiled Nexus, an advanced propulsion solution. Designed for spacecraft weighing up to 500 kilograms, Nexus delivers enhanced thrust and optimized orbit-raising capabilities, tailored for high-demand, high-performance small satellite missions. The system boasts a modular and compact build, producing up to 7.1 mN of thrust and a specific impulse of 4,500 seconds using a non-toxic, safe indium propellant. Its plug-and-play configuration, absence of pressurized tanks, and scalable system design contribute to outstanding performance, adaptability, and safety for a wide variety of satellite applications.

In July 2023, L3Harris Technologies Inc., a US-based defense contractor, completed the acquisition of Aerojet Rocketdyne for an undisclosed amount. Through this acquisition, L3Harris aimed to fortify the defense industrial base, stimulate competitive advancements, and accelerate technological innovation in propulsion systems, particularly for civil space and national security programs. Aerojet Rocketdyne Holdings Inc. is a US-based company known for producing non-chemical space propulsion systems.

Major players in the non-chemical space propulsion system market are Airbus SE, Northrop Grumman Corporation, Safran SA, Thales Group, L3Harris Technologies Inc., IHI Corporation, Space Exploration Technologies Corp., Hanwha Aerospace Co. Ltd., Moog Inc., ArianeGroup, Sierra Space Corp., Benchmark Space Systems, Dawn Aerospace, Bradford Space, Busek Co. Inc., Comat Aerospace Corp., CU Aerospace LLC, Ad Astra Rocket Company, Enpulsion GmbH, LIA Aerospace Ltd., and ThrustMe.

North America was the largest region in the non-chemical space propulsion system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in non-chemical space propulsion system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the non-chemical space propulsion system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

A non-chemical space propulsion system refers to any method of propelling a spacecraft that does not depend on chemical reactions (like combustion) to produce thrust. Instead, these systems utilize physical, electrical, or nuclear principles to move spacecraft, often allowing for greater efficiency and enabling missions of longer durations.

The primary types of non-chemical space propulsion systems include nuclear propulsion and laser propulsion. Nuclear propulsion utilizes a nuclear reactor to generate energy that drives the movement of spacecraft or vessels. These systems are used by commercial satellite operators and owners, space launch service providers, government and defense organizations, national space agencies, and others, supporting a wide range of applications such as civil and earth observation, military and government missions, and commercial space endeavors.

The non-chemical space propulsion systems market research report is one of a series of new reports that cover non-chemical space propulsion systems market statistics, including the non-chemical space propulsion systems industry's global market size, regional shares, competitors with the non-chemical space propulsion systems market share, detailed non-chemical space propulsion systems market segments, market trends and opportunities, and any further data you may need to thrive in the non-chemical space propulsion systems market. This non-chemical 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 non-chemical space propulsion system market consists of sales of electric propulsion thrusters, power processing units, propellant feed systems, and thermal management systems. 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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