Methane-Based Rocket Propulsion Market Report 2026

The methane-based rocket propulsion market size has grown rapidly in recent years. It will grow from $2.66 billion in 2025 to $3.06 billion in 2026 at a compound annual growth rate (CAGR) of 15%. The growth in the historic period can be attributed to early adoption of methane as rocket fuel, development of main and upper-stage propulsion engines, implementation of cryogenic methane and liquid oxygen tanks, innovations in pressure and flow control valves, use of reusable booster engines in experimental missions.

The methane-based rocket propulsion market size is expected to see rapid growth in the next few years. It will grow to $5.31 billion in 2030 at a compound annual growth rate (CAGR) of 14.8%. The growth in the forecast period can be attributed to expansion of commercial space travel using methane propulsion, growth in satellite launch demand, development of interplanetary mission engines, advancements in turbopumps and ignition systems, adoption by research institutions for next-generation spacecraft. Major trends in the forecast period include development of reusable methane-based engines, enhanced cryogenic storage and insulation technologies, integration of advanced propellant feed systems, high-efficiency aerospike and bell nozzles, miniaturization and lightweight components for spacecraft.

The rising number of space exploration missions is expected to drive the growth of the methane-based rocket propulsion market going forward. Space exploration refers to government-led and private-sector activities conducted beyond Earth’s atmosphere, including satellite launches, lunar missions, and interplanetary expeditions that require advanced propulsion technologies. The increase in space exploration missions is driven by growing interest in scientific discovery, which continues to push the limits of knowledge and technological advancement. Methane-based rocket propulsion systems support space exploration missions by offering higher fuel efficiency, enabling engine reusability, lowering launch costs, and reducing environmental impact compared to conventional propellants. For example, in January 2025, according to the Space Foundation, a US-based nonprofit organization, global launch attempts reached a record level for the fourth consecutive year, with 259 launches conducted in 2024, averaging one launch every 34 hours, which was five hours faster than the pace recorded in 2023. Therefore, the increase in space exploration missions is driving the growth 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 companies operating in the methane-based rocket propulsion market report are Space Exploration Technologies Corporation, Blue Origin Limited Liability Company, Relativity Space Incorporated, 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., Bellatrix Aerospace Private Limited, Jiuzhou Yunjian (Beijing) Space Technology Co Ltd, iRocket Innovative Rocket Technologies, i‑Space (Beijing Interstellar Glory Space Technology Co Ltd), Rocket Lab USA Incorporated, Firefly Aerospace, Gilmour Space Technologies, PLD Space, MaiaSpace, Astra Space Incorporated, iAero Aerospace, HyImpulse Technologies, Space Epoch, Astrobase Space Technologies.

North America was the largest region in the methane-based rocket propulsion market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the methane-based rocket propulsion market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the methane-based rocket propulsion market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 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.

This product will be delivered within 1-3 business days.