Rocket Electrical Power Systems Market Report 2025

The rocket electrical power systems market size has grown strongly in recent years. It will grow from $1.45 billion in 2024 to $1.56 billion in 2025 at a compound annual growth rate (CAGR) of 7.8%. The growth during the historic period can be attributed to increased government funding for space initiatives, a rise in defense and surveillance missions, the development of small launch vehicles, and the expansion of global communication networks.

The rocket electrical power systems market size is expected to see strong growth in the next few years. It will grow to $2.09 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to the expansion of reusable launch systems, the rise of commercial space tourism, increasing private sector investments in space technology, and growing demand for deep space exploration missions. Key trends during this period include advancements in high-density lithium-ion and solid-state batteries, integration of solar array systems for longer missions, development of intelligent power management and distribution (PMAD) systems, use of radiation-hardened electrical components, and miniaturization of power electronics to support lightweight spacecraft design.

The increasing space exploration activities are expected to drive the growth of the rocket electrical power systems market in the future. Space exploration involves scientific discovery, technological progress, and commercial opportunities beyond Earth through missions, research, and space operations. The rise in these activities is fueled by the growing demand for advanced communication and Earth observation satellites, which support global connectivity, environmental monitoring, and enhanced security. Rocket electrical power systems play a crucial role by providing consistent power to vital systems like navigation, communication, and propulsion, ensuring mission reliability in harsh space environments. For example, in September 2023, Novaspace, a France-based space consulting firm, reported that government spending on space exploration reached $27 billion in 2024 and is expected to grow to nearly $31 billion by 2034. Therefore, the expanding space exploration efforts are fueling the growth of the rocket electrical power systems market.

Leading companies in the rocket electrical power systems market are focusing on developing advanced products such as power generation units to support longer missions and guarantee reliable performance in extreme space conditions. Power generation units in rockets include devices like solar panels, fuel cells, or thermoelectric generators that produce electrical energy to power onboard systems throughout missions. For instance, in April 2025, Rocket Lab USA Inc., a US-based aerospace and defense firm, introduced Standardized Array (STARRAY), a new line of customizable solar arrays for satellites. The STARRAY family offers mission-specific solar power solutions with outputs ranging from about 100 watts to over 2,000 watts, featuring modular panel configurations and Rocket Lab’s high-efficiency, radiation-hardened quadruple junction solar cells. This product line utilizes integrated manufacturing to provide fast, cost-effective, and reliable solar arrays tailored for diverse satellite missions.

In January 2022, Rocket Lab USA Inc. acquired SolAero Holdings Inc. for $80 million. This acquisition aims to strengthen Rocket Lab’s space systems portfolio by incorporating SolAero’s advanced solar technologies, allowing in-house production of high-performance solar cells and panels for satellites, spacecraft, and launch vehicles. SolAero Holdings Inc. is a US-based company specializing in space-grade solar power solutions for rocket electrical power systems.

Major players in the rocket electrical power systems market are RTX Corporation, Lockheed Martin Corporation, The Boeing Company, Airbus Group, Northrop Grumman Corporation, Honeywell International Inc., BAE Systems plc, Safran S.A., Leonardo S.p.A., Teledyne Technologies, Mitsubishi Electric Corporation, Moog Inc., Ball Aerospace & Technologies, Sierra Nevada Corporation, OHB SE, TERMA, Rocket Lab USA Inc., AAC Clyde Space, ZIN Technologies, and RUAG Space.

North America was the largest region in the rocket electrical power systems market in 2024. The regions covered in rocket electrical power systems report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the rocket electrical power systems 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 electrical power systems are onboard setups responsible for generating, storing, and distributing the electrical energy needed throughout all phases of a rocket’s mission. They supply power to vital components including avionics, telemetry, guidance, propulsion controls, and payload instruments. Their main function is to provide a dependable and continuous power supply for essential operations both during launch and in space.

The key components of rocket electrical power systems include power generation, power storage, power distribution, and power management. Power generation involves producing stable electrical energy to support critical onboard systems under harsh space conditions. These systems are used in launch vehicles, satellites, space probes, and space stations, serving a wide range of end users such as commercial enterprises, military, government agencies, and research institutions.

The rocket electrical power systems market research report is one of a series of new reports that provides rocket electrical power systems market statistics, including the rocket electrical power systems industry global market size, regional shares, competitors with the rocket electrical power systems market share, detailed rocket electrical power systems market segments, market trends, opportunities, and any further data you may need to thrive in the rocket electrical power systems industry. This rocket electrical power systems 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 electrical power systems market consists of sales of redundant power systems, converters and inverters, and control and monitoring units. 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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