Rocket Stage Manufacturing Market Report 2025

The rocket stage manufacturing market size has grown strongly in recent years. It will grow from $3.1 billion in 2024 to $3.39 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth during the historic period can be attributed to the increasing use of 3D printing in engine and stage fabrication, expanding private-sector involvement and deregulation, rising international strategic partnerships, the growing trend toward small-lift and micro-launchers, and heightened demand from scientific and exploration missions.

The rocket stage manufacturing market size is expected to see strong growth in the next few years. It will grow to $4.81 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to rising government space budgets, increasing commercial satellite launches, expanding defense and missile programs, growing adoption of reusable rocket technology, and increased use of advanced composites and lightweight materials. Major trends expected during the forecast period include the adoption of technologies in reusable stage systems, automation driven by technology in manufacturing processes, integration of advanced propulsion systems, incorporation of avionics and telemetry systems, and advancements in lightweight composite materials.

The growing demand for satellite launches is expected to drive the growth of the rocket stage manufacturing market in the coming years. Satellite launches involve placing artificial satellites into space using launch vehicles for various purposes such as communication, navigation, Earth observation, and scientific research. The increase in satellite launches is due to the rising need for global internet connectivity, which accelerates the deployment of satellite constellations to improve coverage in remote and underserved regions. Rocket stage manufacturing supports these launches by producing critical multi-stage propulsion systems required to accurately and efficiently place satellites into their designated orbits. For example, in November 2023, the US International Trade Commission, a US federal government agency, reported that annual global space launches rose from 186 in 2022 to 197 in 2023. Therefore, the rising demand for satellite launches is fueling the growth of the rocket stage manufacturing market.

Leading companies in the rocket stage manufacturing market are focusing on innovative solutions such as fully 3D-printed rocket engines to address the rising demand for cost-effective and rapid satellite launches. Fully 3D-printed rocket engines are produced using additive manufacturing techniques that allow the entire engine to be printed as a single piece, significantly reducing the number of parts, complexity, and production time compared to traditional multi-component engines. For instance, in May 2024, Agnikul Cosmos, an India-based private aerospace company, launched Agnilet, the world’s first single-piece 3D-printed rocket engine designed for small-lift orbital launch vehicles. The Agnilet engine is made from a single alloy piece without assembled parts, enabling streamlined manufacturing and improved reliability. It is designed for vacuum operation and uses semi-cryogenic propellants, offering compactness, cost efficiency, and enhanced mission flexibility.

In July 2023, L3Harris Technologies Inc., a US-based defense contractor, acquired Aerojet Rocketdyne Holdings Inc. for $4.7 billion. Through this acquisition, L3Harris Technologies Inc. aims to significantly strengthen its capabilities and competitive position in rocket propulsion, missile defense, and space exploration. Aerojet Rocketdyne is a US-based aerospace company that provides propulsion systems which are essential components in rocket stage manufacturing.

Major players in the rocket stage manufacturing market are Mitsubishi Heavy Industries Ltd., IHI Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, China Aerospace Science and Industry Corporation, L3Harris Technologies Inc., Avio S.p.A, Space Exploration Technologies Corporation, Blue Origin LLC., ArianeGroup SAS, United Launch Alliance LLC, Relativity Space Inc., Rocket Lab USA Inc., Firefly Aerospace Inc., Orbital Express Launch Limited, Yuzhnoye Design Office, PLD Space, Indian Space Research Organization, China Academy of Launch Vehicle Technology, LandSpace Technology Corporation Ltd.

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

Rocket stage manufacturing involves the design, fabrication, and assembly of individual sections (stages) of a launch vehicle that function sequentially to propel payloads into space. Each stage generally includes propulsion systems, structural elements, and control mechanisms customized for specific flight phases. The manufacturing process employs advanced materials, precision engineering, and stringent testing to ensure performance and reliability.

The primary product types in rocket stage manufacturing include liquid propellant stages, solid propellant stages, and hybrid propellant stages. Liquid propellant stages utilize separate tanks for liquid fuel and oxidizer, which combine during combustion. Materials used in production comprise aluminum alloys, titanium alloys, composite materials, and others. These stages are applied across commercial, military, scientific, and other sectors, and are used by end users such as aerospace companies, defense organizations, research institutions, and more.

The rocket stage manufacturing market research report is one of a series of new reports that provides rocket stage manufacturing market statistics, including the rocket stage manufacturing industry's global market size, regional shares, competitors with the rocket stage manufacturing market share, detailed rocket stage manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the rocket stage manufacturing market. This rocket stage manufacturing 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 rocket stage manufacturing market consists of sales of first stage boosters, rocket engines, and thrust vector 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 and 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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