Rocket Propulsion Systems (Defense) Market Global Report 2026

The rocket propulsion systems (defense) market size has grown strongly in recent years. It will grow from $4.71 billion in 2025 to $5.14 billion in 2026 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to Cold War-era missile development activities, rising defense expenditure, advancements in space race propulsion systems, dominance of solid rocket motor technologies, and trends in ballistic missile proliferation.

The rocket propulsion systems (defense) market size is expected to see strong growth in the next few years. It will grow to $7.31 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to rising demand for hypersonic weapon systems, expansion of reusable propulsion technologies, transition toward environmentally friendly propellants, AI-supported guidance and propulsion optimization, and growth of space-based defense and surveillance systems. Major trends in the forecast period include advancements in hypersonic propulsion systems for next-generation missile capabilities, adoption of green propellants to reduce toxic emissions in defense rocket systems, increasing use of additive manufacturing for rocket engine components and lightweight structures, integration of scramjet and ramjet technologies for extended-range high-speed missile propulsion, and development of modular and scalable propulsion architectures for multi-mission defense applications.

The increasing geopolitical tensions are expected to propel the growth of the rocket propulsion systems (defense) market going forward. Geopolitical tensions refer to strained relationships or conflicts between countries (or groups of countries) driven by political, economic, military, or territorial interests. Rising geopolitical tensions are driven by intensifying competition among major powers for economic, military, and technological dominance, leading to conflicting interests and increased global instability. Rocket propulsion systems (defense) support geopolitical tensions by strengthening a nation’s military capabilities, enabling advanced missile systems, long-range strike options, and strategic deterrence, which can heighten competition and security concerns among rival countries. For instance, in July 2024, according to The Armed Conflict Location & Event Data Project (ACLED), a US-based non-profit organization, over 165,273 political violence events were recorded worldwide, marking a 15% increase from July 2023 to June 2024. Therefore, the rising geopolitical tensions are driving the growth of the rocket propulsion systems (defense) market.

Key companies operating in the rocket propulsion systems (defense) market are focusing on developing advanced solutions, such as high-performance liquid rocket engines, to improve thrust efficiency, enable rapid testing capabilities, and support next-generation missile and hypersonic systems. High-performance liquid rocket engines refer to propulsion systems that use liquid propellants to generate controlled and efficient thrust, offering enhanced performance, scalability, and precision for defense applications. For example, in December 2024, RTX Corporation, a US-based Aerospace and defense company, partnered with Ursa Major Technologies Inc., a US-based rocket propulsion company, to conduct a successful flight test of the Hadley liquid rocket engine. The test demonstrated the engine’s capability to support defense applications by delivering reliable performance, rapid development cycles, and scalable propulsion solutions for advanced missile systems.

In January 2025, MBDA, a France-based provider of missile systems, guided weapons, and defense solutions, acquired Roxel for an undisclosed amount. With this acquisition, MBDA aims to strengthen its control over critical propulsion technologies, enhance its missile manufacturing capabilities, and secure its supply chain for solid rocket motors. Roxel is a France-based provider of solid rocket motors and propulsion systems used in tactical missiles and defense applications.

Major companies operating in the rocket propulsion systems (defense) market are RTX Corporation, Lockheed Martin Corporation, Boeing Company, Northrop Grumman Corporation, Thales Group, BAE Systems plc, China Aerospace Science and Industry Corporation, Safran S.A., Mitsubishi Heavy Industries Ltd., Israel Aerospace Industries (IAI), Hanwha Aerospace Co. Ltd., Rafael Advanced Defense Systems Ltd., IHI Corporation, Roketsan Roket Sanayii ve Ticaret A.Ş., Bharat Dynamics Limited (BDL), Kratos Defense & Security Solutions Inc., Nammo AS, Avio S.p.A., Karman Space & Defense, Ursa Major Technologies Inc., Venus Aerospace Corp., Engine Development and Production (EDePro), Spacefields.

North America was the dominant region in the rocket propulsion systems (defense) market in 2025. Asia-Pacific is expected to be the rapidly expanding regionin the forecast period. The regions covered in the rocket propulsion systems (defense) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the rocket propulsion systems (defense) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The rocket propulsion systems (defense) market consists of sales of solid rocket motor, turbo pump, thrust chamber, nozzle assembly, propellant tank, ignition system, and thrust vector control system. 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.

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

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