Rocket Launch Failure Analysis Market Report 2026

The rocket launch failure analysis market size has grown rapidly in recent years. It will grow from $1.28 billion in 2025 to $1.41 billion in 2026 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to increasing complexity of launch vehicles driving early demand for structured failure analysis services, development of telemetry data analyzers enabling detailed post-launch diagnostics, adoption of fault tree analysis and fmea methods to systematically identify failure points, advancements in high-speed imaging systems improving real-time anomaly detection, expansion of government and commercial launch programs requiring rigorous root cause investigations.

The rocket launch failure analysis market size is expected to see strong growth in the next few years. It will grow to $2.06 billion in 2030 at a compound annual growth rate (CAGR) of 9.9%. The growth in the forecast period can be attributed to growing launch cadence increasing demand for rapid and automated failure analysis solutions, advancements in ai-driven simulation platforms enhancing predictive diagnostics capabilities, rising adoption of structural health monitoring tools improving anomaly detection accuracy, expansion of reusable rockets necessitating continuous assessment of component fatigue and failure modes, increasing regulatory scrutiny driving demand for comprehensive and standardized failure analysis services. Major trends in the forecast period include increasing use of advanced telemetry data processing frameworks, growth in high-fidelity failure modelling and simulation capabilities, rising adoption of multidisciplinary root cause investigation methodologies, expansion of dedicated launch failure diagnostic infrastructure, enhanced integration of structural health monitoring in launch operations.

The increase in rocket launches is set to drive expansion in the rocket launch failure analysis market. Rockets are launched intentionally to deploy satellites, carry out scientific experiments, or support defense objectives. This uptick is largely attributable to growing global demand for satellite-based internet, prompting both private companies and government agencies to deploy extensive satellite constellations. By investigating the causes of past launch failures, failure analysis helps improve the reliability of future missions, allowing engineers to correct technical faults and mitigate the risk of repeat incidents. For example, The Space Foundation reported that in 2023 there were 223 launch attempts worldwide - the third consecutive year of record-high activity with 212 successes. Commercial launches grew by 50% compared to 2022, and over 2,800 satellites were sent into orbit, marking a 23% year-over-year increase.

Leading companies operating in the rocket launch failure analysis market are concentrating on developing innovative solutions such as addressing attitude control failures to improve rocket stability, enhance flight trajectory accuracy, and prevent mission-critical losses. Attitude control failure refers to the loss or malfunction of a rocket’s ability to maintain its intended orientation or direction during flight, resulting in instability or deviation from its planned trajectory. For example, in October 2023, Galactic Energy, a China-based private rocket company, completed its internal investigation into a recent launch failure. The probe found that the issue stemmed from abnormal ablation in the first-stage rocket nozzle caused by improper manufacturing defects in the carbon fiber layer, which led to a loss of attitude control. This event marked the company’s first failure after nine successful orbital launches, and corrective measures have been implemented to improve reliability.

In March 2025, Siemens AG, a Germany-based technology company, acquired Altair Engineering Inc. for approximately $10 billion. With this acquisition, Siemens strengthened its leadership in simulation and industrial artificial intelligence (AI) by integrating Altair’s expertise in mechanical and electromagnetic simulation, high-performance computing (HPC), data science, and AI into the Siemens Xcelerator platform. Altair Engineering Inc. is a U.S.-based technology company that provides rocket launch failure analysis.

Major companies operating in the rocket launch failure analysis market are Lockheed Martin Corporation, Airbus, Northrop Grumman Corporation, The National Aeronautics and Space Administration, SpaceX, KBR Inc., Blue Origin LLC, United Launch Alliance (ULA), Sierra Space, Rocket Lab, Firefly Aerospace, Swedish Space Corporation, Roscosmos, Isar Aerospace, Seradata, Ulyssix Technologies, Teal Group Corporation, Qualtech Systems Inc., Collier Aerospace, European Space Agency.

North America was the largest region in the rocket launch failure analysis market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the rocket launch failure analysis 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 on electronic components, high-precision sensors, data processing hardware, and imaging systems have increased operational and procurement costs for rocket launch failure analysis tools, affecting diagnostics, telemetry units, and simulation hardware across regions dependent on imports, notably Asia-Pacific and Europe. These added costs slow upgrade cycles for commercial and government launch programs while heightening constraints on research organizations. However, tariffs also encourage localized manufacturing of analysis equipment, stimulate innovation in cost-efficient diagnostic technologies, and support the development of domestic supply chains for critical aerospace fault-analysis systems.

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

Rocket launch failure analysis is a systematic approach aimed at identifying the root causes of failed rocket launches. This process is essential for improving the design of launch vehicles, refining testing procedures, and enhancing operational methods. Its primary objective is to boost the safety and dependability of future missions by avoiding the recurrence of past issues.

The core components involved in rocket launch failure analysis include software, hardware, and services. Software facilitates both real-time and post-launch assessments by examining telemetry data, structural performance, and environmental conditions to detect faults and improve system architecture. Failure categories such as structural, propulsion, and guidance system malfunctions, among others, are examined by users across various sectors including governmental, commercial, defense, and research institutions.

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

The rocket launch failure analysis market consists of revenues earned by entities by providing services such as telemetry data analysis, fault tree analysis, failure mode and effects analysis (FMEA), root cause investigation, and simulation-based diagnostics. The market value includes the value of related goods sold by the service provider or included within the service offering. The rocket launch failure analysis market also includes sales of telemetry data analyzers, high-speed imaging systems, structural health monitoring tools, and failure simulation platforms. 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.

This product will be delivered within 1-3 business days.