Space Propulsion Market Worth $22.5 Billion by 2026
The Space Propulsion Market is projected to grow from $8.3 billion in 2021 to $22.5 billion by 2026, at a CAGR of 22.1% from 2021 to 2026, according to a new report from MarketsandMarkets.
Developed economies of North America and Europe are currently the leaders in the market, considering the strong presence of OEMs in these regions, while emerging economies, especially those from the Asia Pacific region, are projected to be the upcoming major markets for space propulsion systems. Conventionally, access to space has been extremely costly. But prices continue to fall with each passing decade as new technologies are created and the sector becomes more commercialized. SpaceX, for instance, has demonstrated the capability of reusable rockets. Other advances in the future may involve lighter materials, the use of inflatable modules, new fuel types, space planes, and/or more efficient engines.
Long-term market drivers for space propulsion remain strong, and, before the COVID-19 pandemic, the market had started to show signs of recovery from the major market price reset. Governments and businesses involved with space are reacting differently to the new situation. Some launches are moving forward, while some are not; some tests continue, and some are delayed; some companies still operate, and others have shuttered. Rockets continue to be launched; however, many launch providers are pushing future launches back. Rocket Lab, for example, has suspended launches for the time being. Consumer broadband saw growth in North America following the pandemic, with existing subscribers shifting to higher-value plans and overall growth in the subscriber base. Nonetheless, temporary supply chain issues have caused delays in new project rollouts in most market segments. Despite the short-term headwinds caused by the pandemic, underlying market drivers are expected to prevail, enabling long-term growth.
By system component, the thrusters segment is projected to lead the space propulsion market during the forecast period. Thrusters are extensively used for maneuvering and orbit control of satellites.
The non-chemical propulsion segment is projected to lead the space propulsion market during the forecast period. The demand for low-cost and reusable space propulsion systems is fueling the growth of the non-chemical propulsion segment.
The LEO segment is projected to lead the space propulsion market during the forecast period. The rising demand for communications and earth observation satellites fueling the growth of the Low Earth Orbit (LEO) segment.
North America is projected to hold the largest share of the space propulsion market during the forecast period. This is owing to the ever-rising small satellite launches and the entry of private players like SpaceX, which have boosted the space industry in recent times.
(Source: MarketsandMarkets news release. Image from file)