High-Thrust Upper Stage Engine Market Report 2026

The high-thrust upper stage engine market size has grown strongly in recent years. It will grow from $5.93 billion in 2025 to $6.44 billion in 2026 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to advancements in cryogenic and staged combustion engine technologies, increasing demand for precision orbital placement of satellites, growth in interplanetary and deep space missions, development of high-efficiency turbopumps and propulsion systems, rising investments in reliable upper-stage rocket components.

The high-thrust upper stage engine market size is expected to see strong growth in the next few years. It will grow to $8.83 billion in 2030 at a compound annual growth rate (CAGR) of 8.2%. The growth in the forecast period can be attributed to expansion of commercial satellite launch services requiring high-thrust upper stages, adoption of next-generation propulsion systems for deep space exploration, integration of reusable upper-stage engines to reduce mission costs, increasing demand for high-performance ignition and cooling systems, collaborations between aerospace manufacturers and space agencies for customized engine solutions. Major trends in the forecast period include development of cryogenic and staged combustion engines for deep-space missions, advancements in turbopump and nozzle technologies for high efficiency, integration of reusable upper stage engines for cost reduction, miniaturization and lightweight propellant tank systems, enhanced ignition and cooling systems for long-duration spaceflight.

The increasing demand for satellite launches is expected to propel the growth of the high-thrust upper stage engine market going forward. Satellite launches refer to the process of sending artificial satellites into space using launch vehicles or rockets. The rising demand for satellite launches is driven by the growing need for global connectivity as more regions seek reliable internet access through satellite-based broadband services. High-thrust upper stage engines support satellite launches by providing powerful and precise propulsion, making them well-suited for placing payloads into higher orbits and deep-space trajectories. They improve mission efficiency by delivering high thrust and specific impulse, ensuring accurate orbital insertion and reliable satellite deployment. For instance, in December 2023, according to the Space Foundation, a U.S.-based industry association, global launch attempts reached 223, with more than 2,800 satellites deployed - reflecting a year-over-year increase. Therefore, the increasing demand for satellite launches is driving the growth of the high-thrust upper stage engine market.

Leading companies are increasingly focusing on developing propulsion systems that use liquid oxygen and liquid hydrogen (LOX/LH2) propellants, a cryogenic fuel combination widely applied in high-performance rocket engines. In this setup, liquid hydrogen serves as the fuel and liquid oxygen as the oxidizer, delivering high specific impulse ideally suited for upper-stage propulsion. For example, in July 2023, Sierra Space Corporation, a U.S.-based aerospace company, announced the successful completion of the VR35K-A test campaign, marking a major milestone in upper-stage engine development. The VR35K-A is a high-performance LOX/LH2 engine that features a fuel-rich staged combustion cycle, an innovative turbopump design, and a VORTEX combustion chamber, producing 35,000 lbf of thrust at performance levels surpassing other engines in its class. The successful testing demonstrated its readiness for operational upper-stage missions and positioned it as a competitive solution for both government and commercial launch programs.

In July 2023, L3Harris Technologies Inc., a U.S.-based aerospace and defense technology company, acquired Aerojet Rocketdyne Inc. for \$4.7 billion, strengthening its presence in the space and missile propulsion market. The acquisition expanded L3Harris’s capabilities in high-thrust upper-stage engines while enhancing its ability to support national security and space exploration missions. Aerojet Rocketdyne, also based in the U.S., is a leading aerospace and defense propulsion company specializing in the design and manufacture of high-thrust upper-stage engines.

Major companies operating in the high-thrust upper stage engine market are China Aerospace Science and Technology Corporation, Northrop Grumman Corporation, Safran Aircraft Engines S.A., L3Harris Technologies Inc., Space Exploration Technologies Corp., Blue Origin LLC, RUAG Space AG, Sierra Space Corporation, Japan Aerospace Exploration Agency, Relativity Space Inc., Rocket Lab USA Inc., Indian Space Research Organisation, Gilmour Space Technologies Pty Ltd, Agnikul Cosmos Pvt. Ltd., Firefly Aerospace Inc., Ursa Major Technologies Inc., Stoke Space Technologies Inc., Virgin Orbit LLC, ABL Space Systems Inc., Venus Aerospace Inc.

North America was the largest region in the high-thrust upper stage engine market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the high-thrust upper stage engine 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 high-precision engine components, turbopumps, nozzles, and cryogenic systems have increased production costs and created supply chain disruptions, particularly affecting liquid propellant engine manufacturers in North America, Europe, and Asia-Pacific. Segments such as satellite launch vehicles and deep space probes are most impacted. Positively, tariffs are encouraging domestic manufacturing, fostering local supply chain development, and promoting innovation in cost-effective high-thrust upper stage engines.

The high-thrust upper stage engine market research report is one of a series of new reports that provides high-thrust upper stage engine market statistics, including high-thrust upper stage engine industry global market size, regional shares, competitors with a high-thrust upper stage engine market share, detailed high-thrust upper stage engine market segments, market trends and opportunities, and any further data you may need to thrive in the high-thrust upper stage engine industry. The high-thrust upper-stage engine 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.

A high-thrust upper stage engine is a robust rocket engine designed to function in the upper stages of a launch vehicle, usually beyond Earth’s atmosphere. It delivers the extra thrust needed to accurately place payloads into specific orbits or to propel spacecraft on missions beyond Earth. These engines are optimized for maximum efficiency in vacuum conditions, ensuring reliable, high-performance operation during space missions.

The main types of high-thrust upper stage engines include liquid propellant engines, solid propellant engines, and hybrid propellant engines. Liquid propellant engines generate thrust by burning fuel and oxidizer stored as liquids in separate tanks. Thrust classes vary from up to 100 kilonewtons, 100 to 200 kilonewtons, and above 200 kilonewtons. These engines are used in satellite launch vehicles, deep space probes, manned spacecraft, and more, serving end users such as government and defense agencies, commercial companies, and research institutions.

The countries covered in the high-thrust upper stage engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The high-thrust upper stage engine market consists of sales of cryogenic engines, staged combustion engines, propulsion systems, turbopumps, propellant tanks, nozzles, ignition systems, and cooling 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 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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