Methane-Based Rocket Propulsion Market Report 2025

The methane-based rocket propulsion market size has grown rapidly in recent years. It will grow from $2.3 billion in 2024 to $2.66 billion in 2025 at a compound annual growth rate (CAGR) of 15.3%. The growth during the historic period can be attributed to the rising demand for reusable rockets, increased investments in space exploration, the expansion of commercial satellite launches, the growth of government space initiatives, and a heightened focus on reducing the costs associated with launch services.

The methane-based rocket propulsion market size is expected to see rapid growth in the next few years. It will grow to $4.63 billion in 2029 at a compound annual growth rate (CAGR) of 14.9%. The growth in the forecast period can be attributed to the increasing adoption of methane propulsion for deep space missions, rising private sector investments in space technologies, growing demand for eco-friendly rocket fuels, the expansion of lunar and Mars exploration initiatives, and the continued commercialization of small and medium launch vehicles. Key trends expected during this period include technological advancements in methane engine design, innovations aimed at improving fuel efficiency and storage, the development of reusable methane rocket systems, ongoing research and development in green propulsion, and enhanced collaboration between government agencies and private enterprises.

The rising number of space exploration missions is anticipated to drive the growth of the methane-based rocket propulsion market in the coming years. Space exploration involves both government and private sector activities beyond Earth’s atmosphere, including satellite launches, lunar expeditions, and interplanetary missions that rely on advanced propulsion technologies. The increase in these missions is driven by a growing interest in scientific research that expands the frontiers of knowledge and innovation. Methane-based rocket propulsion systems support such missions by offering improved fuel efficiency, engine reusability, cost reduction, and lower environmental impact compared to conventional fuels. For example, in November 2023, the U.S. International Trade Commission, a U.S. federal agency, reported that the number of global space launches rose from 186 in 2022 to 197 in 2023. As a result, the increasing frequency of space exploration missions is contributing to the expansion of the methane-based rocket propulsion market.

Key players in the methane-based rocket propulsion market are focusing on the development of innovative technologies, such as methalox engines, to enhance launch vehicle performance, reduce environmental effects, and cut operational costs. A methalox engine is a liquid bipropellant rocket engine that utilizes liquid methane as fuel and liquid oxygen as an oxidizer, delivering efficient combustion, cleaner emissions, and greater reusability compared to conventional rocket propellants. For instance, in July 2023, LandSpace Technology Corporation, a private aerospace firm based in China, successfully launched the Zhuque-2 rocket, which is powered by methalox engines. This advanced rocket system is equipped with four TQ-12 methalox engines in the first stage and a second stage that includes one optimized TQ-12 engine and one TQ-11 vernier engine.

In November 2023, Graham Corporation, a U.S.-based company specializing in vacuum and heat transfer equipment, acquired P3 Technologies LLC for an undisclosed amount. This acquisition aims to strengthen Graham’s engineering expertise and expand its thermal management and environmental control system offerings, particularly in the defense and aerospace markets. P3 Technologies LLC is a U.S.-based turbomachinery firm engaged in the development of methane-based rocket propulsion technologies.

Major players in the methane-based rocket propulsion market are Space Exploration Technologies Corporation, Blue Origin Limited Liability Company, Relativity Space Incorporated, Beijing Interstellar Glory Space Technology Co. Ltd., Rocket Lab USA Incorporated, Avio S.p.A., Impulse Space Incorporated, Ursa Major Technologies Incorporated, Stoke Space Technologies Incorporated, Deep Blue Aerospace Technology Co. Ltd., The Exploration Company Gesellschaft mit beschränkter Haftung, Galactic Energy Aerospace Technology Co. Ltd., LandSpace Technology Corporation Ltd., Pangea Aerospace Sociedad Limitada, OneSpace Technology Co. Ltd., Sirius Space Services Private Limited, Bellatrix Aerospace Private Limited, Skyroot Aerospace Private Limited, Innovative Space Carrier Corporation, Jiuzhou Yunjian Power Technology Co. Ltd.

North America was the largest region in the methane-based rocket propulsion market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in methane-based rocket propulsion report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the methane-based rocket propulsion 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 steep increase in U.S. tariffs and the triggered trade tensions in spring 2025 are profoundly impacting the metal and minerals sector by disrupting supply chains for automakers, appliance manufacturers, and infrastructure projects. Domestic mills have raised prices in response to reduced import competition, but capacity constraints limit their ability to meet demand. Mining firms, meanwhile, grapple with retaliatory tariffs on mineral exports, particularly lithium and rare earths. Industry players are investing in scrap metal recycling, lobbying for exemptions, and forming joint ventures with overseas producers to secure stable supply.

Methane-based rocket propulsion refers to rocket engines that utilize methane (CH₄) as the primary fuel, typically paired with liquid oxygen (LOX) as the oxidizer, to produce thrust. This propulsion system is employed in launch vehicles and spacecraft to generate the power required to overcome Earth's gravity or to perform maneuvers in space.

The primary components of methane-based rocket propulsion include engines, tanks, valves, nozzles, and others. Engines are devices or systems that transform energy into mechanical power to carry out work. This technology is applied in various areas such as commercial space travel, satellite deployment, interplanetary missions, and more, serving a wide range of end-users including government and defense agencies, commercial aerospace firms, and research organizations.

The methane-based rocket propulsion market research report is one of a series of new reports that provides methane-based rocket propulsion market statistics, including the methane-based rocket propulsion industry global market size, regional shares, competitors with the methane-based rocket propulsion market share, detailed methane-based rocket propulsion market segments, market trends, and opportunities, and any further data you may need to thrive in the methane-based rocket propulsion industry. This methane-based rocket propulsion 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 methane-based rocket propulsion market consists of revenues earned by entities by providing services such as system integration services, maintenance and repair services, engineering and design consulting, and fuel handling and supply services. The market value includes the value of related goods sold by the service provider or included within the service offering. The methane-based rocket propulsion market includes sales of fuel lines and feed systems, ignition systems, control systems and actuators, and seals and gaskets. 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 and 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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