Missile Propulsion Systems Market Global Report 2026

The missile propulsion systems market size has grown strongly in recent years. It will grow from $5.31 billion in 2025 to $5.83 billion in 2026 at a compound annual growth rate (CAGR) of 9.8%. The growth in the historic period can be attributed to rising defense spending, increasing demand for precision strike capabilities, growing missile modernization programs, increasing deployment of air defense systems, and expanding demand for long-range missiles.

The missile propulsion systems market size is expected to see strong growth in the next few years. It will grow to $8.34 billion in 2030 at a compound annual growth rate (CAGR) of 9.4%. The growth during the forecast period is expected to be driven by rising demand for hypersonic missile systems, increasing requirements for extended-range propulsion, growing adoption of advanced solid propellants, rising demand for lightweight propulsion architectures, and expanding development of next-generation missile defense systems. Major trends during the forecast period include increasing development of high-performance solid propulsion systems, rising demand for advanced liquid and hybrid propulsion systems, greater focus on extended missile range and higher thrust, increasing demand for lightweight propulsion components, and wider adoption of modular propulsion system designs.

The rising geopolitical tensions and regional conflicts are expected to propel the growth of the missile propulsion systems market going forward. Geopolitical tensions and regional conflicts refer to disputes, rivalries, and armed confrontations between countries or within regions that threaten political stability, security, and international relations. The increase in geopolitical tensions and regional conflicts is driven by growing territorial disputes, as competing claims over borders and strategically important regions intensify military confrontations and international instability. Rising geopolitical tensions and regional conflicts are increasing demand for missile propulsion systems by encouraging higher defense spending and accelerating the procurement and development of advanced missile capabilities. For instance, in June 2024, according to the Institute for Economics & Peace (IEP), an Australia-based international think tank, there were 56 active conflicts worldwide, the highest number since World War II, while 92 countries were involved in conflicts beyond their own borders, reflecting the elevated level of global geopolitical tensions and regional conflicts. Therefore, rising geopolitical tensions and regional conflicts are driving the growth of the missile propulsion systems market.

Major companies operating in the missile propulsion systems market are focusing on advanced propulsion technologies, including large solid rocket motors, to improve missile performance, increase propulsion efficiency, and strengthen next-generation defense capabilities. These propulsion systems deliver high thrust, dependable ignition, and enhanced operational performance, allowing defense organizations to support long-range missile applications while improving mission readiness and system reliability. For instance, in March 2025, L3Harris Technologies Inc., a US-based aerospace and defense company, announced the successful testing of its new advanced large solid rocket motors designed to propel next-generation missile systems. The rocket motors incorporate advanced propulsion technologies intended to provide improved performance, reliability, and manufacturing scalability across a broad range of strategic and tactical defense applications. The company provides high-performance solid rocket propulsion systems that help defense organizations enhance missile capabilities, improve operational effectiveness, and support the modernization of advanced missile platforms.

In June 2025, Kongsberg Defence & Aerospace AS, a Norway-based defense technology company, partnered with Safran Power Units to continue the development and production of propulsion systems for the Naval Strike Missile (NSM) program and future missile variants. Through the renewed partnership, Kongsberg Defence & Aerospace AS aimed to secure a long-term supply of TR40 turbojet engines, increase production capacity, and support the expanding deployment of NSM systems among NATO and allied countries. Safran Power Units is a France-based aerospace company specializing in turbojet engines, auxiliary power units, and propulsion solutions for military and aerospace applications.

Major companies operating in the missile propulsion systems market are RTX Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, General Dynamics Ordnance and Tactical Systems Inc, MBDA SAS, Safran SA, Mitsubishi Heavy Industries Ltd, Rolls-Royce Holdings plc, L3Harris Technologies Inc, Hanwha Aerospace Co Ltd, IHI Corporation, China Aerospace Science and Industry Corporation Limited, Kongsberg Gruppen ASA, Moog Inc, RAFAEL Advanced Defense Systems Ltd, Roketsan Roket Sanayii ve Ticaret AS, Kratos Defense & Security Solutions Inc, LIG Nex1 Co Ltd, Solar Industries India Limited, Nammo AS, Bharat Dynamics Limited, BrahMos Aerospace Private Limited, Avio S p A, Roxel SAS, EDePro doo Beograd.

North America was the dominant region in the missile propulsion systems market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the missile propulsion systems market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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

This product will be delivered within 3-5 business days.