Liquid Rocket Engine Market Report 2026

The liquid rocket engine market size has grown strongly in recent years. It will grow from $3.34 billion in 2025 to $3.59 billion in 2026 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to government space programs, cold war era propulsion development, satellite launch demand, military missile programs, investment in aerospace research.

The liquid rocket engine market size is expected to see strong growth in the next few years. It will grow to $4.83 billion in 2030 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to growth of commercial spaceflight, expansion of space tourism, increasing satellite constellations, reusable launch vehicle adoption, defense modernization. Major trends in the forecast period include growing demand for reusable rocket engines, expansion of private space launch programs, increased use of cryogenic propulsion, rising adoption of green propellants, focus on high thrust efficiency.

The rising demand for satellite launches is expected to drive the growth of the liquid rocket engine market in the coming years. Satellite launches involve the deployment of artificial satellites into space using launch vehicles. The demand for satellite launches is increasing mainly due to the expanding need for earth observation, as satellites deliver essential data for climate monitoring, natural disaster management, agriculture, and urban planning. Liquid rocket engines support satellite launches by providing the high thrust and precise control necessary to place payloads into designated orbits beyond Earth’s atmosphere, ensuring dependable satellite deployment for applications such as communication, earth observation, navigation, and scientific research. For instance, in May 2025, according to a report released by the Satellite Industry Association (SIA), a US-based trade association, the number of satellites operating in Earth orbit reached approximately 11,539 in 2024, representing a notable increase over previous years and highlighting the growing global demand for satellite launches. Therefore, the increasing demand for satellite launches is fueling the growth of the liquid rocket engine market.

Leading companies in the liquid rocket engine market are concentrating on developing advanced products such as storable liquid rocket engines to support rapid deployment and improve mission adaptability. These propulsion systems utilize liquid propellants that can be stored at room temperature for extended durations without deteriorating. Storable engines offer quick launch readiness, making them well-suited for defense and emergency space missions. For instance, in May 2023, Ursa Major Technologies, Inc., a U.S.-based aerospace firm, introduced Draper, a storable liquid rocket engine with 4,000 pounds of thrust designed for hypersonic defense purposes. Draper operates on a closed catalyst cycle using hydrogen peroxide and kerosene, allowing for long-term storage at ambient temperatures and immediate launch capability. This engine provides the maneuverability and adjustable throttle control required to address emerging hypersonic threats, combining the fast response of solid rocket motors with the accuracy of liquid propulsion.

In July 2023, L3Harris Technologies, Inc., a U.S.-based aerospace and defense technology company, completed the acquisition of Aerojet Rocketdyne Holdings, Inc. for an undisclosed sum. This acquisition is intended to reinforce the defense industrial base, increase competitive capacity, and speed up innovation by utilizing Aerojet Rocketdyne’s specialized knowledge in propulsion and energetics. The deal supports the delivery of advanced missile defense technologies, hypersonic systems, and space launch capabilities to fulfill the mission-critical requirements of the U.S. Department of Defense and civil space agencies. Aerojet Rocketdyne Holdings, Inc. is a U.S.-based aerospace and defense company known for its development and manufacturing of liquid rocket engines.

Major companies operating in the liquid rocket engine market are Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., Safran S.A., IHI Corporation, Space Exploration Technologies Corp., Blue Origin LLC, ArianeGroup SAS, United Launch Alliance LLC, Rocket Lab USA Inc., Relativity Space Inc., Beijing Landspace Technology Corporation Ltd., Firefly Aerospace Inc., Ursa Major Technologies Inc., Avio S.p.A., Astra Space Inc., Skyrora Limited, Reaction Engines Limited, Gilmour Space Technologies Pty Ltd., China Aerospace Science and Technology Corporation (CASC), China Aerospace Science and Industry Corporation (CASIC), Indian Space Research Organisation (ISRO), Korea Aerospace Industries Ltd.

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

The liquid rocket engine market consists of sales of liquid propulsion systems, propellant tanks, combustion chambers, turbopumps, nozzles, and related components. 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.