Space Rocket Suborbital Launch Market Report 2026

The space rocket suborbital launch market size has grown strongly in recent years. It will grow from $2.46 billion in 2025 to $2.69 billion in 2026 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to early development and launch of sounding rockets for atmospheric and microgravity research, initial adoption of suborbital test vehicles for technology demonstration, growth of microgravity experimentation programs by academic and government institutions, emergence of hypersonic research vehicles for short-duration spaceflight, early commercial space tourism initiatives using suborbital rockets.

The space rocket suborbital launch market size is expected to see strong growth in the next few years. It will grow to $3.81 billion in 2030 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to expansion of commercial suborbital space tourism services, increasing deployment of suborbital launch vehicles for rapid scientific experimentation, development of advanced propulsion and avionics systems for improved reliability and safety, rising demand for microgravity research vehicles from pharmaceutical and materials industries, growth in integrated launch support equipment and turnkey services for suborbital payload delivery. Major trends in the forecast period include increasing demand for cost-effective suborbital research platforms, growth of space tourism and commercial suborbital flights, advancements in propulsion and avionics technologies, expansion of microgravity and atmospheric data research, government and academic collaboration on suborbital experiments,.

The increasing demand for small satellites is anticipated to drive the growth of the space rocket suborbital launch market in the coming years. Small satellites, typically weighing less than 500 kilograms, are compact and lightweight spacecraft used for applications such as Earth observation, communications, and technology testing. Their rising popularity stems from their cost-effectiveness and adaptability, allowing for quicker deployment and easier customization for various purposes. Space rocket suborbital launches enhance the utility of small satellites by offering affordable and rapid access to space, making them well-suited for testing and deploying lightweight payloads. These launches support short-duration missions that are valuable for advancing technology and conducting scientific research, ultimately improving satellite innovation and deployment efficiency. For example, in December 2024, Aerospace America, a US-based aerospace magazine, reported the deployment of 475 small satellites across 55 launches, with some missions carrying as many as 120 spacecraft in a single flight - setting a record deployment rate compared to previous years. As a result, the increasing demand for small satellites is a significant factor fueling the growth of the space rocket suborbital launch market.

Leading companies in the space rocket suborbital launch market are emphasizing the development of advanced technologies, such as suborbital rockets, to provide more cost-efficient solutions for space missions. A suborbital rocket reaches space but does not complete a full orbit around Earth, returning to the surface shortly after. For instance, in October 2023, PLD Space, a Spain-based aerospace firm, successfully launched the Miura 1 rocket. This suborbital, reusable launch vehicle is capable of transporting payloads of up to 100 kilograms to suborbital altitudes, offering brief periods of microgravity ideal for scientific research and technology testing. The rocket features an innovative propulsion system and a lightweight composite structure that enhance its performance while reducing environmental impact.

In October 2024, SUAS Aerospace, an aerospace company based in Ireland, partnered with T-Minus Engineering B.V. to conduct a commercial rocket launch. The collaboration aims to enhance suborbital launch capabilities, promote commercial access to space, and encourage innovation in low-cost and reliable launch services tailored for research and technology demonstration missions. T-Minus Engineering B.V. is a Netherlands-based aerospace company that specializes in the development and launch of suborbital rockets.

Major companies operating in the space rocket suborbital launch market are The Boeing Company, Israel Aerospace Industries, Blue Origin Enterprises L.P., Rocket Lab USA Inc., Indian Space Research Organisation, AgniKul Cosmos Private Limited, Interstellar Technologies Inc., Vaya Space, Astrobotic Technology Inc., Virgin Galactic Holdings Inc., HyImpulse Technologies GmbH, PLD Space, Skyrora Ltd, Copenhagen Suborbitals, LinkSpace, PD Aerospace, Elara Aerospace, SR Space, UP Aerospace Inc., XCOR Aerospace.

North America was the largest region in the space rocket suborbital launch market in 2025. The regions covered in the space rocket suborbital launch market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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.

Tariffs have influenced the space rocket suborbital launch market by raising costs on imported aerospace components and propulsion systems, which has disrupted supply chains primarily in manufacturing hubs such as North America, Europe, and Asia-Pacific regions. The segments most affected include propulsion systems, avionics, and launch support equipment. While tariffs have increased production expenses and slowed development in some sectors, they have also encouraged regional manufacturing investments and innovation aimed at reducing dependency on foreign components, creating opportunities for local aerospace suppliers.

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

Space rocket suborbital launches are missions where rockets travel beyond Earth's atmosphere but do not complete an orbit around the planet. These flights reach altitudes above the Kármán line (100 km) before descending back to Earth. They are primarily used for scientific research, technology demonstrations, and space tourism, offering brief exposure to microgravity. Suborbital missions provide a cost-effective and quick-access option for conducting short-duration space-based experiments.

The key vehicle categories in space rocket suborbital launches include reusable and expendable rockets. Reusable suborbital rockets are engineered for multiple flights, enabling launch, recovery, and reusability to minimize costs and reduce environmental impact. These systems are frequently employed for activities such as space tourism, research in microgravity, and the testing of new spaceflight technologies. Suborbital payloads range from satellites and cargo to human spaceflight and research and development initiatives, serving a wide array of users including commercial enterprises, government agencies, defense organizations, and academic institutions.

The countries covered in the space rocket suborbital launch market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The space rocket suborbital launch market consists of revenues earned by entities by providing services such as scientific experimentation, microgravity research, atmospheric data collection, technology demonstration, space tourism, and suborbital payload delivery for government, commercial, and academic clients. The market value includes the value of related goods sold by the service provider or included within the service offering. The space rocket suborbital launches market also includes sales of sounding rockets, hypersonic test vehicles, microgravity research vehicles, suborbital launch vehicles, propulsion systems, avionics, launch support equipment, and related aerospace 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.

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