Space Launch Market Size, Share & Growth

^{_{Update: 11/22/2024}}

The Global Space Launch Market Size was valued at USD 16.9 billion in 2022 and is estimated to reach USD 29.6 billion by 2027, growing at a CAGR of 15.1% during the forecast period.

The growth of Space Launch Services Industry can be attributed to the increasing demand for payload launches from various end users, including commercial and government sectors, military organizations, space agencies, defense organizations, satellite operators, and private companies.

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Covid-19 Impact on Space launch services Market

The COVID-19 pandemic has caused a large-scale impact on economies across the world. The global manufacturing of space launch vehicles, components, and assembly lines have been impacted. COVID-19 has led to several challenges for many industries. The Aerospace & defense industry is no exception to that. The budget allotted to the defense sector has been reduced by several countries due to the COVID-19 pandemic. This puts most research projects on hold. The export of space launch services to several countries in the Middle East, Africa, and Latin America has also been reduced. All these scenarios affect the development of space launch services.

Space launch services Market Segment Overview

Military and Government segment of the Space Launch Services Market by End user, to grow at highest CAGR during the forecast period

The Military and Government segment is projected to be USD 24,139 million by 2027, at a higher CAGR of 15.1% during the forecast period. The trend of miniaturization of technologies and increasing capabilities of small satellites propel the demand for space launch services.

Small lift launch segment to command the Space Launch Services Market by launch vehicle, during the forecast period

The small lift launch vehicles (<350,000 KG) segment is expected to reach USD 19,672 million by 2027 at a CAGR of 14.6% from 2022 to 2027. The small lift launch vehicles segment is witnessing high growth, owing to an increase in deployment of small satellites and cube satellites for commercial end users and increasing demand for small satellite constellations.

The North America market is projected to contribute the largest share from 2022 to 2027

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Launcher Recoverability

Launcher recoverability technology refers to the utilization of the partial recoverable lower stages of the launch vehicle and is developing further.

The technology is in the design, development, and testing stage, and after overcoming reliability issues, it is expected to increase launcher reliability and reduce launch costs in the long term. The recovered hardware parts of launch vehicles can be damaged while falling back into the sea and are required to be rectified before the launch vehicle can be used again. Also, the hardware to be reused needs to undergo stricter quality control measures compared to conventional disposable launcher systems.

Top 5 Key Players in Space launch services Companies

• Space X (US),
• Arianespace (France),
• Northrop Grumman Corp. (US),
• United Launch Alliance (US),
• Rocket Lab (US) and
• China Aerospace Science and Technology Corporation (China)

Space launch services Market Scope

Space launch services Market Dynamics

Driver: Increased deployment of small satellites

Over the past few years, space companies have started production of low-cost small/miniaturized satellites, which enable them to provide services equivalent to major companies that conventionally serve government agencies or public sector industries.

One of the factors responsible for the growth of the satellite industry is the increase in the adoption of small satellites for applications such as Earth observation, communication, and scientific research and the increasing focus on reducing total mission costs.

As launch service providers decide the cost of launch based on the weight of the spacecraft, spacecraft manufacturers are focused on miniaturizing the size of satellites. Small satellites tend to cost less, especially in cases where mission payloads have fewer demanding requirements, which enables a reduction in the size of the launch vehicle and thus the fuel need. In addition, technological advancements, such as reusable launch vehicles designed by SpaceX (US), are expected to further enhance the capabilities of satellites at a significantly lower cost. As satellite launch costs decline, the number of satellite launches is expected to increase.

Restraint : Lack of dedicated launch vehicles

Small satellites are carried as secondary payloads and do not have dedicated launch vehicles. Furthermore, as secondary payloads, small satellite missions are restricted by the lack of control of the launch schedule and destination orbit of the vehicle.

This is due to constraints on the volume and pressure of the stored propellant, primarily for the protection of the primary payload, and the requirement of antenna systems for primary payloads, which may restrict the launch of small satellite payloads in more suitable or favorable mission orbits. Moreover, the primary payload may need a pre-programmed orbital velocity and be placed in a specified orbit, limiting launch windows for small satellite missions. This also limits the fulfillment of the mission requirement for small satellites in some applications.

Therefore, the potential use of small satellites in various applications is dependent on the availability of reliable launch vehicles with a requisite range of performance capabilities. However, current launch vehicle performance capabilities do not effectively span the range of potential payloads.

Opportunity: Technological upgrades in space industry

The high development cost of satellites and other spacecraft has always been a major hindrance to the growth of the space industry. Due to technologies, such as the miniaturization of satellites and payloads, manufacturers seek to leverage cost reduction while performing key operations in the value chain.

Defense domains across the globe are also seeking less expensive multifunctional spacecraft. Recoverable launch vehicles are another technology that is a major opportunity for the space industry. Such technologies have made launches easier and cheaper, driving the growth of the space launch services market.

Challenges: Scarce intellectual assets 

The tremendous success of recent space exploration missions by space agencies in the Asia Pacific, such as the Indian Space and Research Organization (ISRO) and the China National Space Administration (CNSA), can be attributed to a large number of qualified scientists and personnel with relevant key skills in the region. Critical space operations rely heavily on intellectual assets, incorporating research & development, patents, software, human resources, and new organizational structures. These assets are strategic factors in value creation for firms.

However, the expansion of the services sector, globalization, deregulation, and the emergence of new information and communication technologies has resulted in the scarcity of intellectual assets across the globe. Countries such as Morocco, South Africa, Nigeria, Somalia, Kenya, Bangladesh, Nepal, and Bhutan, among others, have scarce intellectual assets in terms of qualified personnel for space exploration programs. This has resulted in a lack of space exploration programs in these countries, limiting the growth of the space launch services market.

Space launch services Market Segment Categorization

The study categorizes the space launch services market based on Application, Mobility, Size, Mode of Operation, System, and Region.

Based on Service Type, the space launch services market has been segmented as follows:

• Pre-launch
• Post launch

Based on Payloaad, the space launch services market has been segmented as follows:

• Satellite
• Stratolite
• Cargo
• Human Spaceflights
• Space Probes

Based on the Orbit, the space launch services market has been segmented as follows:

• LEO
• MEO
• GEO
• Beyond GEO

Based on the Launch Vehicle Type, space launch services market has been segmented as follows:

• Small-lift Launch Vehicle
• Medium to Heavy Launch Vehicle

Based on the Launch Type, space launch services market has been segmented as follows:

• Re-usable
• Single Use

Based on the End Use, space launch services market has been segmented as follows:

• Commercial
• Military

Based on the region, space launch services market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Rest of the World (RoW)

Rest of the World includes Latin America, and Africa

Recent Developments

• In March 2022, Rocket Lab (US) has successfully deployed a second Synthetic Aperture Radar (SAR) satellite to orbit for data and solutions provider Synspective, bringing the total number of satellites deployed by Rocket Lab to 110. In January 2018, Rocket Lab (USA) has launched Electron rocket into space under USD 5 million.
• NASA is working with the private sector on its Artemis program, which intends to land people on the moon by 2024. The human landers for the mission will be created by SpaceX, Blue Origin, and Dynetics (US), according to a NASA announcement made in April 2020.

Frequently Asked Questions (FAQ):

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