Space Fuel Production Market Report 2025

The space fuel production market size has grown rapidly in recent years. It will grow from $1.41 billion in 2024 to $1.55 billion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth during the historic period can be attributed to rising demand for deep space exploration, the emergence of reusable launch systems, expanding government space programs, growth in commercial spaceflight, increasing requirements for long-duration missions, and strategic focus on extraterrestrial resource independence.

The space fuel production market size is expected to see rapid growth in the next few years. It will grow to $2.3 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth during the forecast period can be attributed to increasing demand for in-orbit refueling, a rise in lunar and Mars missions, expansion of commercial space activities, government investments in sustainable space infrastructure, partnerships for space logistics hubs, and the drive for long-duration deep space exploration. Key trends in the forecast period include progress in in-situ resource utilization (ISRU), development of fuel production facilities on the Moon and Mars, integration of autonomous mining technologies, innovations in cryogenic storage, commercialization of orbital refueling stations, and adoption of environmentally friendly propellants.

The growth of the space fuel production market is expected to be driven by increasing investments in space activities. Space activities encompass human efforts to explore and utilize outer space, including satellite launches, missions, and space-related services. These investments are rising due to the growing demand for satellite-based communication and data services. Space fuel production plays a critical role by providing efficient spacecraft propulsion, enabling in-orbit refueling, and supporting long-duration missions. For example, in April 2024, the World Economic Forum, a Switzerland-based non-profit organization, projected the space economy to grow from $630 billion in 2023 to $1.8 trillion by 2035, with an average annual growth rate of 9%. Thus, the increasing investments in space activities are fueling the growth of the space fuel production market.

The increasing number of satellite launches is also expected to boost the space fuel production market. Satellite-based services deliver functions like communication, location tracking, weather monitoring, and remote sensing. The rise in satellite launches is driven by the growing demand for global connectivity and data access in remote regions. These launches increase the need for space fuel production by requiring efficient and sustainable propellants for propulsion, orbital adjustments, and extended mission durations. For instance, in September 2022, the Government Accountability Office, a US government agency, reported nearly 5,500 active satellites in orbit as of spring 2022, with projections indicating the launch of an additional 58,000 by 2030. Therefore, the growing number of satellite launches is propelling the space fuel production market forward.

Key players in the space fuel production market are forming strategic partnerships to improve technological capabilities, accelerate innovation, and co-develop efficient fuel systems for long-duration space missions. Strategic partnerships involve companies combining their strengths and resources for mutual benefit and success. For example, in March 2022, Tekniker technology center, a Spain-based research institution, partnered with the University of Cantabria, a Spain-based public university, to initiate the HISRU project. This project aims to develop a reactor that converts Mars' abundant CO₂ into methane fuel using solar energy and astronauts’ greywater. Intended to support ESA’s future Mars missions, this innovative system will reduce dependence on supplies from Earth by enabling fuel production directly on the Red Planet. Initial tests and prototype development will evaluate the reactor’s feasibility and effectiveness under Martian conditions.

Major players in the space fuel production market are The Boeing Company, Lockheed Martin Corporation, Northrop Grumman Corporation, Space Exploration Technologies Corp. (SpaceX), Blue Origin LLC, Aerojet Rocketdyne Holdings Inc., Sierra Nevada Corporation, United Launch Alliance LLC, Relativity Space Inc., Firefly Aerospace Inc., Firehawk Aerospace Inc., Vaya Space Inc., Astrobotic Technology Inc., Orbit Fab Inc., HyPrSpace SAS, HyImpulse Technologies GmbH, BluShift Aerospace Inc., Viridian Space Corporation, Virgin Galactic Holdings Inc., and Momentus Inc.

North America was the largest region in the space fuel production market in 2024. The regions covered in space fuel production report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the space fuel production 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.

Space fuel production involves the creation or extraction of propellants such as hydrogen, oxygen, or methane - from extraterrestrial sources like the Moon, Mars, or asteroids, intended for use in spacecraft propulsion, orbital operations, or refueling missions.

The primary fuel types in space fuel production include hydrogen, methane, nuclear, solar, and others. Hydrogen, available in both liquid and gaseous forms, is commonly used to power spacecraft. This process employs various technologies, including in-situ resource utilization, chemical propulsion, electric propulsion, and more, to support a wide range of applications such as spacecraft propulsion, satellite power systems, and space stations. These fuels are used by diverse end-users, including government and defense agencies, commercial companies, and others.

The space fuel production market research report is one of a series of new reports that provides space fuel production market statistics, including the space fuel production industry's global market size, regional shares, competitors with the space fuel production market share, detailed space fuel production market segments, market trends and opportunities, and any further data you may need to thrive in the space fuel production market. This space fuel production 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 space fuel production market consists of revenues earned by entities by providing services such as on-orbit refueling services, cryogenic fuel storage and management, and space tug and fuel depot operations. The market value includes the value of related goods sold by the service provider or included within the service offering. The space fuel production market also includes sales of ionic liquids and electric propulsion fuels, solid propellants, and liquid hydrogen. 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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