Global Space Propulsion System Market Assessment, By Propulsion Type [Chemical Propulsion, Electric Propulsion, Nuclear Propulsion, Hybrid Propulsion], By Platform [Satellites, Launch Vehicles, Space Probes, Spacecraft], By Orbit [LEO, MEO, GEO, Beyond GEO], By Region, Opportunities and Forecast, 2018-2032F

Global space propulsion system market is projected to witness a CAGR of 10.12% during the forecast period 2025-2032, growing from USD 12.09 billion in 2024 to USD 26.14 billion in 2032. The global space propulsion system market is driven by the rise in satellite deployments, increases in deep-space exploration missions, and advancements of reusable launch vehicles. Most propulsion technologies fall into chemical propulsion (solid/liquid rockets) for high-thrust applications in launch vehicles and electric propulsion (ion, plasma) for fuel-efficient operations on long-duration missions.

Report Attribute	Details
Base Year	2024
Forecast Period	2025-2032F
Historical Period	2018-2023
Projected Growth Rate	CAGR of 10.12% between 2024 and 2032
Revenue Forecast in 2032	USD 26.14 billion

Developmental advancement is occurring mostly due to the support of government space agencies and private sector investments and commitments, while simultaneously pushing innovation with sustainability and lower costs front-burner objectives. Emerging technologies in space propulsion include green-propellants applications, nuclear propulsion research, and in-space manufacturing. Excessive costs of development and the need for domestic and international regulatory considerations pose additional challenges for developers. The growth of the space propulsion system market and industry is driven by a growing need for satellite-dependent internet, lunar exploration, and missions to Mars.

For instance, in February 2025, Russian scientists developed a prototype plasma electric rocket engine that can reach Mars from Earth within 1-2 months. This engine utilizes a magnetic plasma accelerator as its propulsion system, as opposed to the fuel combustion engines that are usually used.

Expansion of Deep Space Missions Fuels Market Growth

The accelerating demand for deep space exploration missions, with increased missions to the Moon, and Mars has fueled the need for increasingly advanced space propulsion systems. Governments and private actors alike continue to invest in propulsion technologies that operate at increasingly high efficiencies to enable mission durations and payload capacities that were unheard of just a few years ago. The desire to make interplanetary travel sustainable while enhancing the possibility of reusable systems (e.g., innovative technologies in electron (ion, Hall-effect) and nuclear thermal propulsion) hastens the innovation through challenges such as thermal management and propulsion fuel efficiency. The trend of innovation is leading to the expansion of the global space propulsion market for deep space missions.

For instance, in August 2024, Safran Group (Safran Electronics & Defense), a global equipment supplier for defense and space, built its U.S. manufacturing capabilities for small satellite propulsion systems to meet the increasing demand in both the commercial and defense sectors. 

Strategic Industry Collaborations Accelerate Global Space Propulsion System Market Growth

The space propulsion market is showing rapid development through partnerships between aerospace start-ups and research organizations. This collaboration is combining capabilities to address urgent challenges associated with high-efficiency propulsion systems, materials science, and architecture for new missions. Joint ventures are particularly examining next-generation technologies such as nuclear propulsion and reusable orbit transfer vehicles, while being able to lower costs based on collaborative and shared R&D. With increasing frequency, government space agencies are acting as partners, providing consortia with funding to catalyze innovation. Collaboration will be a critical requirement to accomplish the increasing demand for lunar infrastructure construction and delivery, and manned missions to Mars, leading to a more agile, competitive marketplace.

For instance, in June 2025, Velo3D, Inc., announced a strategic partnership with Vaya Space, Inc., a breakthrough hybrid rocket company focused on space propulsion systems. The two companies signed a USD 4 million, two-year Master Services Agreement (MSA) to collaborate on production and innovation efforts in high-performance additive manufacturing.

Dominance Of Electric Propulsion Fuels Market Growth

Electric propulsion is significantly dominating the global space propulsion system owing to its high efficiency, lower fuel consumption, and extended mission capabilities. Unlike traditional chemical propulsion, electric propulsion systems, such as ion and Hall-effect thrusters, use electrical energy to accelerate propellants such as xenon, achieving significantly higher specific impulse. This makes them ideal for long-duration missions, satellite station-keeping, and deep-space exploration.

The significant rise in demand for small satellites, cost-effective space operations, and sustainable solutions have surged in adoption. Companies are efficiently integrating electric propulsion into the next-generation spacecraft. While chemical propulsion remains essential for high-thrust applications, electric propulsion’s fuel efficiency and scalability ensures its dominance in modern space missions, shaping the future of space exploration and satellite technology.

For instance, in May 2025, Enpulsion GmbH introduced Nexus, its latest and most capable propulsion system to date. It is designed for spacecrafts of up to 500 kilograms and will offer much more thrust and an improved ability to raise orbits, responding to the demand for responsive, high-performance electric propulsion in smallsat missions.

North America Dominates the Space Propulsion System Market

North America leads the global space propulsion system market, due to large-scale investments from both public and private sector projects in support of space exploration, satellite deployments, and advancing space technology. The region also has a wealth of infrastructure and technologies, with companies such as NASA and the U.S. Department of Defense developing several major initiatives, such as the Artemis program, next generation launch systems, and many more. In addition, private sector companies are developing new electric and reusable space propulsion systems, which address demand for small satellites as well as support deep-space projects. North America has an established aerospace sector, which includes large and small companies. In North America, there are unique sub-markets, access to well-structured business development and R&D, which enable growth. Additionally, the pressure on military resources to develop solutions for increasing space security creates opportunities for increased spending in the propulsion sector.

For instance, in May 2025, the U.S. Space Force tested new thrusters designed for satellites that keep track of spacecraft and other objects near the moon. The United States Space Force (USSF) Space Systems Command (SSC) and the Air Force Research Laboratory (AFRL) conduct a fire test of the Hall effect thrusters designed for the Oracle-M (Oracle-Mobility) spacecraft at Edwards Air Force Base.

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Impact of U.S. Tariffs on Global Space Propulsion System Market

• Increased Production Costs: Tariffs on aerospace-grade materials increase production costs, which decreases affordability.
• Supply Chain Delays: Restrictions on imports will impact timelines for obtaining critical propulsion pieces.
• Market Uncertainty: Changes in trade policies result in uncertain outcomes for procurement and investment activities.
• Technology Development: Companies are pursuing technology development by diversifying potential resource materials and/or pursuing domestic manufacturing options to lessen tariff implications.

Report Scope

“Global Aircraft Space Propulsion System Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global space propulsion system market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Segments Covered	Propulsion Type, Platform, Orbit
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profiled	ArianeGroup SAS, Northrop Grumman Corporation, Aerojet Rocketdyne Holdings, Inc., Safran S.A., SpaceX (Space Exploration Technologies Corp.), Blue Origin Federation LLC, Mitsubishi Heavy Industries, Ltd., OHB System AG, Thales Alenia Space S.A., Rocket Lab USA, Inc.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, the global Space Propulsion System market has been segmented into the following categories: 

• By Propulsion Type
  • Chemical Propulsion
  • Electric Propulsion
  • Nuclear Propulsion
  • Hybrid Propulsion
• By Platform
  • Satellites
  • Launch Vehicles
  • Space Probes
  • Spacecraft
• By Orbit
  • LEO
  • MEO
  • GEO
  • Beyond GEO
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

The space propulsion system market is evolving with advancements in chemical, electric, solar, and nuclear propulsion technologies. Industry players are focusing on efficiency, sustainability, and cost reduction, driving innovation in satellite and spacecraft propulsion. The market outlook remains strong, supported by rising satellite launches, interplanetary missions, and commercial space activities. Emerging trends include miniaturized propulsion systems for small satellites, reusable launch vehicle technologies, and deep-space exploration initiatives. As global space agencies and private enterprises expand their capabilities, strategic collaborations and technological breakthroughs will continue shaping the future of space propulsion.

For instance, in July 2024, Aerojet Rocketdyne Holdings, Inc., innovated the four flight-proven RS-25 engines that help power NASA’s Space Launch System (SLS) rocket on the Artemis IV mission. Artemis IV, the first flight of the enhanced Block 1B configuration of the super-heavy-lift rocket and the last to use engines remaining in inventory from the space shuttle program.

Key Players Operating in Global Space Propulsion System Market are:

• ArianeGroup SAS
• Northrop Grumman Corporation
• Aerojet Rocketdyne Holdings, Inc.
• Safran S.A.
• SpaceX (Space Exploration Technologies Corp.)
• Blue Origin Federation LLC
• Mitsubishi Heavy Industries, Ltd.
• OHB System AG
• Thales Alenia Space S.A.
• Rocket Lab USA, Inc.

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