Plasma Rocket Propulsion Market Report 2026

The plasma rocket propulsion market size has grown strongly in recent years. It will grow from $1.55 billion in 2025 to $1.69 billion in 2026 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to growing adoption of electric and hall-effect thrusters for satellite station-keeping, increased government investment in plasma propulsion research and testing programs, early integration of ion thrusters into deep-space missions to improve fuel efficiency, rising demand for satellite propulsion module upgrades supporting extended mission life, expansion of maintenance and technical support services for electric propulsion systems.

The plasma rocket propulsion market size is expected to see strong growth in the next few years. It will grow to $2.34 billion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to growing deployment of plasma propulsion solutions for long-duration interplanetary missions, increasing demand for custom propulsion modules tailored to small satellites and mega-constellations, advancements in high-power plasma generators improving thrust efficiency and reliability, rising commercialization of plasma propulsion consulting and integration services, expansion of next-generation electric propulsion systems supporting faster transit times for deep-space exploration. Major trends in the forecast period include increasing adoption of plasma propulsion for deep-space exploration missions, rising demand for high-efficiency electric propulsion systems for satellite orbit raising, advancements in plasma generators enabling higher thrust-to-power ratios, growing integration of plasma thrusters in small satellites and cubesats, expansion of custom propulsion development services for commercial space operators.

The rising number of satellite launches is expected to drive the growth of the plasma rocket propulsion market in the coming years. Satellite launches involve sending artificial satellites into space using launch vehicles or rockets. The growth in satellite launches is fueled by increasing demand for global connectivity, as more regions seek reliable internet access through satellite-based broadband services. Plasma rocket propulsion supports satellite launches by providing high-efficiency thrust systems, enabling longer mission durations and precise orbital adjustments. It lowers fuel requirements while enhancing performance, promoting more sustainable and advanced space operations. For example, in January 2025, the Space Foundation, a US-based non-profit organization, reported that orbital launch attempts increased by 16% in 2024, with 259 launches occurring at an average interval of one every 34 hours, five hours more frequent than in 2023. Consequently, the rising satellite launches are driving the growth of the plasma rocket propulsion market.

Leading companies in the plasma rocket propulsion market are focusing on innovative technologies like magnetic plasma accelerator-based electric thrusters to improve propulsion efficiency and support extended space missions. These thrusters use magnetic fields to propel plasma, enhancing performance with high efficiency and long-duration capabilities. For instance, in February 2025, Russia’s State Atomic Energy Corporation Rosatom unveiled a laboratory prototype of a plasma electric rocket engine designed for deep-space missions, including potential Mars travel. This engine employs a magnetic plasma accelerator that can generate at least 6 Newtons of thrust with a specific impulse greater than 100 kilometers per second, operating at an average power of 300 kilowatts in a pulsed-periodic mode. This advanced propulsion technology enables spacecraft to reach much higher speeds than conventional engines while reducing fuel use by up to ten times, potentially shortening Mars travel time to 30-60 days.

In July 2023, L3Harris Technologies Inc., a US-based defense contractor, acquired Aerojet Rocketdyne for an undisclosed sum. Through this acquisition, L3Harris aims to reinforce the defense industrial base, boost competition, and accelerate innovation in propulsion and energetics systems to better support national security and space missions, while expanding its technological capabilities and long-term growth potential across missile defense, hypersonics, and advanced rocket engine programs. Aerojet Rocketdyne Holdings Inc. is a US-based manufacturing company specializing in plasma rocket propulsion.

Major companies operating in the plasma rocket propulsion market are Lockheed Martin Corporation, Northrop Grumman Corporation, Blue Origin LLC, Moog Inc., Thales Alenia Space SAS, Airbus Defence and Space GmbH, OHB System AG, Sitael SpA, Phase Four Inc., ExoTerra Resource LLC, Exotrail SAS, Morpheus Space GmbH, Busek Co. Inc., Magdrive Ltd, Ad Astra Rocket Company, CU Aerospace LLC, ENPULSION GmbH, Howe Industries LLC, Neutron Star Systems UG, Orbion Space Technology Inc.

North America was the largest region in the plasma rocket propulsion market in 2025. The regions covered in the plasma rocket propulsion 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 are affecting the plasma rocket propulsion market by increasing the cost of importing high-grade plasma generators, power processing units, rare materials, and precision electronics essential for propulsion manufacturing. These cost pressures primarily impact electromagnetic and electrostatic propulsion segments, with regions such as North America, Europe, and parts of Asia experiencing supply chain delays. Despite higher expenses, tariffs are driving localized R&D, domestic manufacturing expansion, and increased government-backed space technology investments, which could strengthen long-term regional competitiveness.

The plasma rocket propulsion market research report is one of a series of new reports that provides plasma rocket propulsion market statistics, including plasma rocket propulsion industry global market size, regional shares, competitors with plasma rocket propulsion market share, detailed space rocket steering systems market segments, market trends and opportunities, and any further data you may need to thrive in the plasma rocket propulsion industry. The plasma rocket propulsion market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Plasma rocket propulsion is a cutting-edge space propulsion method that uses electrically charged gases (plasma) accelerated through electric or magnetic fields to produce thrust. This technology achieves higher exhaust velocities compared to conventional chemical rockets, making it ideal for efficient, long-duration space missions. Its primary goal is to facilitate faster and more fuel-efficient travel, especially for deep-space exploration.

The main categories of plasma rocket propulsion include electrothermal, electromagnetic, and electrostatic types. This propulsion approach generates thrust by accelerating ionized gas (plasma) via electric or magnetic fields, allowing for efficient and sustained space travel. It is commonly applied in spacecraft, satellites, and space probes, serving a range of users including commercial companies, military operations, and scientific research institutions.

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

The plasma rocket propulsion market consists of revenues earned by entities by providing services such as development and testing services, satellite propulsion integration, research and consulting services, maintenance and technical support, and custom propulsion solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The plasma rocket propulsion market includes sales of electric propulsion systems, ion thrusters, hall-effect thrusters, plasma generators, and spacecraft propulsion modules. 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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