Reusable Launch Vehicle Market to Reach $3.56 Billion Globally by 2035
The reusable launch vehicle market, estimated at $1.38 billion in 2025, is set to reach $3.56 billion by 2035, growing at a CAGR of 10.3% from 2026 to 2035. A new report from Allied Market Research offers a detailed analysis of changing market trends, top segments, key investment pockets, value chains, regional landscapes, and competitive scenarios.
The rise in space exploration activities witnessed in the private sector and a surge in government funding for space exploration missions drive the growth of the global reusable launch vehicle industry. However, the huge costs of manufacturing reusable rockets and high fuel emissions due to the rise in the number of space missions can curtail the growth of the global market. Nevertheless, the surge in space tourism and massive demand for satellite data is slated to generate new growth opportunities for the global industry in the foreseeable future.
The partially reusable launch vehicle segment is set to contribute the highest market share in 2025, accounting for more than 90% of the global reusable launch vehicle market share. Reportedly, this segment is predicted to contribute majorly toward overall market share by 2035. The growth of the segment over the forecast period can be attributed to an increase in the development of the fully reusable launch vehicle to achieve cost-effective, reliable, and on-demand space access. However, the fully reusable segment is predicted to register the fastest CAGR of nearly 25.4% from 2025 to 2035. The segmental growth over the next ten years can be credited to the surge in the use of a partially reusable launch vehicle to significantly reduce launching costs.
Multi Stage Reusable Launch Vehicle Segment Will See a nearly 22 Percent CAGR
The multi stage segment is expected to contribute the highest market share in 2025, accounting for more than 90% of the global reusable launch vehicle market share. Reportedly, this segment is predicted to contribute majorly toward overall market share by 2035. The growth of the segment over the forecast period can be attributed to the surge in the advancement of multi-stage launch vehicles by various aerospace companies. However, the single stage segment is predicted to register the fastest CAGR of nearly 21.8% from 2025 to 2035. The segmental growth over the next ten years can be credited to an increase in demand for single stage launch vehicles due to its advantages such as reduced complexity.
The commercial segment is predicted to contribute the highest market share in 2025, accounting for more than half of the global reusable launch vehicle market share. Reportedly, this segment is predicted to contribute majorly toward overall market share by 2035. The growth of the segment over the forecast period can be attributed to the rise in the use of orbital reusable launch vehicles to transport a spacecraft beyond Earth's atmosphere, either into orbit around Earth. However, the defense segment is predicted to register the fastest CAGR of nearly 11.0% from 2025 to 2035. The segmental growth over the next ten years can be credited to an increase in the use of suborbital reusable launch vehicles for applications such as space tourism, commercial imaging, film & television.
The Asia-Pacific region is predicted to contribute notably in 2035. The region is slated to account for nearly two-fifths of the global reusable launch vehicle market in 2025. The growth of the market in the region over the forecast timespan can be attributed to the evolution of rocket manufacturing technologies which led to the development of cost and time-efficient reusable rockets. In addition, the Asia-Pacific region is anticipated to record the fastest CAGR of 12.5% from 2026 to 2035. The report analyzes other segments such as Europe, LAMEA, and North America.
(Source: Allied Market Research news release. Images from file)