Plasma Rocket Propulsion Market Report 2025

The plasma rocket propulsion market size has grown strongly in recent years. It will grow from $1.42 billion in 2024 to $1.55 billion in 2025 at a compound annual growth rate (CAGR) of 9%. The growth during the historic period can be attributed to the increasing demand for satellite launches, growing investments in space exploration, an increase in government-funded space programs, heightened interest in deep space missions, and the broader adoption of electric propulsion systems.

The plasma rocket propulsion market size is expected to see strong growth in the next few years. It will grow to $2.16 billion in 2029 at a compound annual growth rate (CAGR) of 8.6%. The projected growth in the forecast period can be attributed to rising demand for deep space exploration missions, increasing interest in cost-effective satellite launch options, expanding adoption of electric propulsion in satellites, growing need for station-keeping and attitude control, and a greater emphasis on long-duration space missions. Key trends during this period include advancements in high-efficiency plasma thrusters, the development of reusable propulsion systems, innovations in compact electric propulsion units, improvements in space mission scalability, and the integration of artificial intelligence in propulsion control systems.

The rise in satellite launches is expected to drive the growth of the plasma rocket propulsion market in the future. Satellite launches involve sending artificial satellites into orbit using rockets or launch vehicles. The increasing number of satellite launches is driven by the growing demand for global connectivity, as more areas seek dependable internet access through satellite broadband services. Plasma rocket propulsion supports satellite launches by providing highly efficient thrust systems that enable longer missions and precise orbital control. It lowers fuel consumption while boosting performance, promoting more advanced and sustainable space operations. For example, in September 2022, the Government Accountability Office, a US government agency, reported nearly 5,500 active satellites in orbit, with projections estimating an additional 58,000 launches by 2030. Therefore, the growing satellite launches are fueling the expansion 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 October 2022, Benchmark Space Systems Inc., a US aerospace and defense firm, acquired Alameda Applied Sciences Corporation for an undisclosed sum. This acquisition aims to strengthen Benchmark’s hybrid propulsion capabilities by incorporating AASC’s metal plasma thrusters, which provide efficient and precise satellite maneuvering. Alameda Applied Sciences Corporation is a US-based aerospace and defense company specializing in advanced plasma-based propulsion technologies.

Major players 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, and Orbion Space Technology Inc.

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

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 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.

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 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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