Hypersonic Technology Market Report 2025

The hypersonic technology market size has grown rapidly in recent years. It will grow from $7.56 billion in 2024 to $8.46 billion in 2025 at a compound annual growth rate (CAGR) of 11.9%. The growth during the historic period was driven by increasing defense budgets, escalating geopolitical tensions and regional conflicts, heightened demand for rapid-response weapons, greater adoption of hypersonic glide vehicles, and mounting worries about overcoming missile defense systems.

The hypersonic technology market size is expected to see rapid growth in the next few years. It will grow to $13.12 billion in 2029 at a compound annual growth rate (CAGR) of 11.6%. The growth projected for the forecast period is driven by expanding partnerships between defense contractors and space agencies, rising interest in dual-use technologies, a higher number of successful test flights and prototypes, increased ambitions in space exploration, and greater demand for sophisticated missile systems. Key trends during this period include improvements in propulsion technology, advancements in guidance and control systems, enhanced computational modeling and simulation, innovations in lightweight and durable composite materials, and progress in sensor and avionics technologies.

The growth of the hypersonic technology market is expected to be driven by rising geopolitical tensions. These tensions involve strained political, economic, or military relationships between countries or regions, which can lead to conflict or instability. Increasing competition over critical natural resources like rare earth elements and energy supplies is contributing to the rise in geopolitical tensions. Hypersonic technology intensifies these tensions by allowing nations to develop ultra-fast, difficult-to-intercept weapons that can alter the global balance of power and potentially trigger an arms race. For example, in January 2025, Euronews SA, a France-based television network, reported that global conflicts worsened in 2024, with political violence increasing by 25% compared to 2023, impacting one in eight people and causing approximately 223,000 deaths, alongside a 37% rise in total fatalities. Thus, growing geopolitical tensions are fueling the expansion of the hypersonic technology market.

Key players in the hypersonic technology market are focusing on innovative advancements such as detonation-based propulsion systems to improve the speed, efficiency, and maneuverability of next-generation aerospace vehicles. Detonation-based propulsion systems generate powerful thrust through controlled explosions, enabling hypersonic vehicles to reach higher speeds and greater efficiency than traditional engines. For instance, in June 2024, Venus Aerospace, a US-based aerospace company, introduced the VDR-2 Detonation Ramjet, an advanced propulsion engine designed for hypersonic aircraft. The VDR-2 utilizes a novel detonation-based combustion cycle to achieve speeds exceeding Mach 5, while offering reduced fuel consumption and compact integration for hypersonic vehicles. Built with lightweight composite materials and featuring an air-breathing design optimized for high-altitude performance, this engine has potential applications in defense strike platforms and next-generation high-speed flight.

In October 2024, Special Aerospace Services LLC, a US-based aerospace and defense firm, acquired Concordia Technologies for an undisclosed amount. This acquisition aims to strengthen Special Aerospace Services’ hypersonic and missile defense capabilities, broaden its technical expertise, and reinforce its role in supporting national security and space missions. Concordia Technologies Inc. is a US-based company specializing in the development and simulation of hypersonic weapons and missile defense systems.

Major players in the hypersonic technology market are Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leidos Holdings Inc., Hermeus Corporation, MBDA, ArianeGroup SAS, Rocket Lab USA Inc., Space Exploration Technologies Corp., Destinus SA, Defence Research and Development Organisation, Venus Aerospace Inc., Specter Aerospace Inc., Exquadrum Inc., Spectral Energies LLC, Hypersonix Launch Systems Ltd.

North America was the largest region in the hypersonic technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in hypersonic technology report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the hypersonic technology 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.

Hypersonic technology encompasses systems and innovations that enable vehicles or weapons to travel at speeds exceeding Mach 5 more than five times the speed of sound, or over 6,100 kilometers per hour (3,800 miles per hour). Primarily applied in defense and aerospace, this technology is used to develop missiles, aircraft, and spaceplanes that offer extreme speed, high maneuverability, and minimal reaction time for adversaries.

The primary categories of hypersonic technology include hypersonic missiles, hypersonic glide vehicles, and hypersonic spaceplanes. Hypersonic missiles are advanced weapons capable of speeds above Mach 5, with the ability to maneuver during flight to bypass conventional missile defense systems. Essential components of these technologies include engines, propulsion systems, specialized materials and structures, avionics and control systems, as well as fuel and storage solutions. Launch methods vary and include air-launched, surface-launched, and subsea-launched platforms. These technologies are utilized by a diverse range of end users, including government defense agencies, aerospace manufacturers, research organizations, commercial airlines, and space agencies.

The hypersonic technology market research report is one of a series of new reports that provides hypersonic technology market statistics, including hypersonic technology industry global market size, regional shares, competitors with a hypersonic technology market share, detailed hypersonic technology market segments, market trends and opportunities, and any further data you may need to thrive in the hypersonic technology industry. The hypersonic technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The hypersonic technology market consists of revenues earned by entities providing services such as research and development, prototype testing, system integration, simulation and modeling, and maintenance of hypersonic systems and components. The market value includes the value of related goods sold by the service provider or included within the service offering. The hypersonic technology market also includes sales of hypersonic vehicles, thermal protection materials, and guidance and control 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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