Spacecraft Market is Expected to Reach $10.4 Billion: Report
Allied Market Research Forecasts CAGR of 5.9 Percent
The global spacecraft industry generated $5.9 billion in 2022 and is anticipated to generate $10.4 billion by 2032, witnessing a CAGR of 5.9% from 2023 to 2032, according to a new report.
Allied Market Research has released "Spacecraft Market by Type (Manned Spacecraft and Unmanned Spacecraft), and End Use (Commercial and Civil, and Military): Global Opportunity Analysis and Industry Forecast, 2022-2032". The company found that factors such as increase in investment in space exploration missions by governments and private companies, surge in space exploration missions, and development of reusable spacecraft technology drive the growth of the spacecraft market. However, high development and manufacturing costs, and complex regulatory environment hinder the growth of the market. Furthermore, the increase in spacecraft infrastructure development projects and increase in the adoption of 3D printing for rapid manufacturing offer remarkable growth opportunities for the players operating in the spacecraft market.
The Russia-Ukraine conflict has created ripple effects for the space industry via sanctions limiting access to Russian space tech and rocket engines as well as economic impacts on customer budgets. This may affect procurement and manufacturing for some spacecraft companies. However, the conflict has made space resilience and self-sufficiency a national priority for many nations. This is expected to make it easier to allocate extra funds to boost domestic space technology capabilities and investments.
The manned spacecraft segment is expected to register the highest CAGR of 7.1% from 2023 to 2032. The unmanned spacecraft segment held the highest market share in 2022, accounting for more than half of the global revenue, and is estimated to maintain its leadership status during the forecast period.
The commercial and civil segment held the highest market share in 2022, accounting for more than three-fourths of the global spacecraft market revenue, and is estimated to maintain its leadership status during the forecast period. The segment is also projected to manifest the highest CAGR of 6.2% from 2023 to 2032. The commercial and civil spacecraft market is witnessing robust growth trends driven by satellites catering to applications such as broadband internet connectivity, IoT networks, real-time monitoring, and space tourism. Companies such as SpaceX, Planet Labs, and Rocket Lab, are deploying numerous small inexpensive satellites for global communications and observation services.
North America held the highest market share in terms of revenue in 2022, accounting for more than two-fifths of the spacecraft market revenue. North America is one the largest regions for spacecraft manufacturing driven extensively by large-scale NASA and Department of Defense space programs in the U.S. Asia-Pacific is expected to witness the fastest CAGR of 6.9% from 2023 to 2032. The rapid economic rise has permitted major investments into space tech in Asia-Pacific. China has undertaken revolutionary rover, space station, and lunar exploration missions. Chinese commercial space also continues maturing via companies such as Galaxy Space.