Liquid Rocket Engine Market Report 2025

The liquid rocket engine market size has grown strongly in recent years. It will grow from $3.11 billion in 2024 to $3.34 billion in 2025 at a compound annual growth rate (CAGR) of 7.5%. The growth during the historic period can be attributed to government-led space exploration initiatives, military defense investments, rising demand for satellite launches, increasing involvement of the private sector, and the emergence of commercial space tourism.

The liquid rocket engine market size is expected to see strong growth in the next few years. It will grow to $4.41 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to advancements in reusable rocket technologies, the increasing number of small satellite launches, the emergence of space agencies in developing nations, international collaborations in space missions, and the growing adoption of additive manufacturing. Key trends expected during this period include the development of hybrid propulsion systems, the use of environmentally friendly propellants, the miniaturization of propulsion components, progress in cryogenic technology, and the integration of smart diagnostic systems.

The rising demand for satellite launches is anticipated to drive the growth of the liquid rocket engine market. Satellite launches involve deploying artificial satellites into space using rocket vehicles. This demand is increasing mainly due to the growing need for Earth observation, as satellites offer essential data for climate monitoring, natural disaster response, agricultural management, and urban planning. Liquid rocket engines facilitate these satellite launches by providing the necessary high thrust and precise control to transport payloads into designated orbits beyond Earth's atmosphere, ensuring reliable satellite delivery for communication, Earth observation, navigation, and scientific research purposes. For example, in September 2022, the Government Accountability Office, a U.S.-based agency, reported that approximately 5,500 satellites were actively operating in orbit as of spring 2022, with forecasts indicating that nearly 58,000 additional satellites could be launched by 2030. As a result, the growing number of satellite launches is contributing to the expansion 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 players 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., Payload Aerospace S.L., Gilmour Space Technologies Pty Ltd, Reaction Engines Limited, Avio S.p.A., Skyrora Limited, Astra Space Inc., HyImpulse Technologies GmbH, Ursa Major Technologies Inc., Payload Aerospace S.L.

North America was the largest region in the liquid rocket engine market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in liquid rocket engine report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the liquid rocket engine 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 intensifying U.S. tariffs and escalating trade tensions in spring 2025 are expected to have a significant impact on the chemicals sector, which is bearing a disproportionate burden, particularly from tariffs on petrochemicals and intermediates, where affordable domestic substitutes are often unavailable. Producers of specialty chemicals, heavily dependent on Chinese raw materials, are experiencing production disruptions. At the same time, fertilizer manufacturers are seeing profit margins eroded due to tariffs on phosphate imports. In response, companies are ramping up R&D into bio-based alternatives, forming procurement alliances to consolidate buying power, and shifting production to tariff-neutral nations such as Saudi Arabia.

A liquid rocket engine is a type of rocket propulsion system that uses liquid propellants, typically a fuel and an oxidizer, stored in separate tanks and delivered into a combustion chamber. There, the propellants chemically react (combust) to produce high-pressure, high-velocity exhaust gases. These gases are expelled through a nozzle, creating thrust based on Newton’s third law of motion. Liquid rocket engines provide accurate thrust control, the ability to restart, and greater efficiency compared to solid rocket motors.

The primary types of liquid rocket engines include monopropellant engines, bipropellant engines, and hybrid engines. Monopropellant engines operate using a single chemical propellant, which is decomposed through a catalyst without the need for an additional oxidizer. These systems use various propellant types such as kerosene-based fuels, hydrogen-based fuels, Rocket Propellant 1 (RP-1), liquid oxygen, and hypergolic propellants. The propulsion systems can be either cryogenic or non-cryogenic. They are employed in diverse areas such as space exploration, satellite deployment, military and defense missions, space tourism, and research and development, serving a range of end-users like government space agencies, private aerospace firms, defense organizations, and academic bodies.

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