Rocket Propulsion Market Report 2026

Rocket Propulsion Market Overview

• Rocket Propulsion market size has reached to $8.02 billion in 2025 • Expected to grow to $13.28 billion in 2030 at a compound annual growth rate (CAGR) of 10.3% • Growth Driver: Rising Commercial Satellite Demand Fuels Growth In Rocket Propulsion Market • Market Trend: Strategic Partnerships Drive Rocket Propulsion Engine Development For Market Growth • Asia-Pacific was the largest region in 2025.

What Is Covered Under Rocket Propulsion Market?

Rocket propulsion refers to the act of pushing a rocket forward with force in order to launch it into the atmosphere. The rocket propulsion is used to produce thrust, the force which moves a rocket through the air and through space. Rockets require a solid or liquid propellant, which consists of a fuel source and an oxidizer which provides the oxygen required to burn the fuel. The main types of rocket propulsion markets are solid propulsion, liquid propulsion, and hybrid propulsion. Solid propulsion refers to a type of propulsion system in which, the fuel and oxidizer are mixed together into a solid propellant and used as boosters for launch. The orbits in rocket propulsion include LEO, MEO, GEO, and beyond GEO. The different launch vehicle types utilizing in rocket propulsion systems include manned and unmanned. The various end-users of rocket propulsion systems include civil and commercial, and military.

What Is The Rocket Propulsion Market Growth Forecast?

The rocket propulsion market size is expected to see rapid growth in the next few years. It will grow to $13.28 billion in 2030 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to rising demand for high-efficiency propulsion solutions to support long-duration space missions, increasing commercialization of low-earth-orbit operations requiring frequent launches, advancements in electric propulsion scalability for larger spacecraft platforms, development of next-generation cryogenic engines with improved fuel efficiency, expanding government and private-sector initiatives to accelerate nuclear thermal and nuclear electric propulsion maturation. Major trends in the forecast period include advanced cryogenic propulsion technologies, development of nuclear thermal propulsion, high-efficiency electric propulsion systems, multi-stage hybrid propellant optimization, thrust vectoring and propulsion control innovations.

Global Rocket Propulsion Market Segmentation

1) By Propulsion Type: Solid, Liquid, Hybrid 2) By Orbit Type: LEO, MEO, GEO, Beyond GEO 3) By Launch Vehicle Type: Manned, Unmanned 4) By End User Type: Civil and Commercial, Military Subsegments: 1) By Solid: Single-Stage Solid Propellant, Multi-Stage Solid Propellant 2) By Liquid: Bipropellant, Monopropellant 3) By Hybrid: Solid Fuel with Liquid Oxidizer, Liquid Fuel with Solid Oxidizer

What Is Driver Of The Rocket Propulsion Market?

Increasing commercial satellites are expected to propel the growth of the rocket propulsion market going forward. Commercial satellites are devices that are sent into space to travel around the Earth and are used for collecting information or communicating by radio. Commercial satellites are launched into space using rocket propulsion systems, which provide the necessary thrust to lift the satellite into orbit and keep it in its desired position. For instance, in June 2024, according to the SpaceNews, a US-based non-governmental organization, in 2023 U.S. manufacturers accounted for approximately 85% of commercially procured satellites, with satellite manufacturing revenue rising by 9% to $17.2 billion, fueled by flexible software-defined payloads and advanced small satellites. A record 190 commercially procured launches took place, marking an 18% increase from 2022. These launches deployed 2,781 commercial satellites, up 20% year-over-year, largely driven by SpaceX. Therefore, increasing commercial satellites are driving the growth of the rocket propulsion industry.

Key Players In The Global Rocket Propulsion Market

Major companies operating in the rocket propulsion market are Aerojet Rocketdyne Holdings Inc., Mitsubishi Heavy Industries Ltd., Space Exploration Technologies Corp., Safran S.A., Blue Origin LLC, Northrop Grumman Innovation Systems Inc., Virgin Galactic Holdings Inc., Rocket Lab USA Inc., United Launch Alliance LLC, Boeing Space Launch System, Lockheed Martin Space Systems Company, Reaction Engines Ltd., Firefly Aerospace Inc., Sierra Nevada Corporation, ExPace Technology Co. Ltd., Relativity Space Inc., Arianespace SA, IHI Corporation, Skyrora Ltd., Masten Space Systems Inc., Gilmour Space Technologies Pty Ltd., ArianeGroup GmbH, Terran Orbital Corporation, PLD Space S.L., Dauria Aerospace, Raptor Aerospace Inc., Axiom Space Inc., CubeCab Services Private Limited, Stratolaunch Systems Corporation

Global Rocket Propulsion Market Trends and Insights

Major companies operating in the rocket propulsion market are increasing their focus on adopting strategic partnerships for the development of rocket propulsion engines to maximize their revenues in the market. These partnerships aim to leverage the expertise and resources of different organizations to accelerate the development of rocket propulsion engines and reduce costs. For instance, in May 2023, Ursa Major, a US-based rocket propulsion company, announced a contract with the Air Force Research Laboratory (AFRL), a US-based aerospace and defense company, to advance U.S. hypersonics defense programs and space launch capabilities. As part of the agreement, Ursa Major will proceed to develop its 200,000-pound thrust Arroway engine for space launch and build and test a prototype of its new Draper engine for hypersonic travel. The Draper engine is a closed-cycle hydrogen peroxide engine with 4,000 pounds of thrust that is intended for use in hypersonic applications. For medium and heavy launch vehicles, Arroway is a reusable liquid oxygen and methane-staged combustion engine. As AFRL develops its hypersonic capabilities and eliminates America's reliance on foreign propulsion systems for launch, Ursa Major remains a crucial partner.

What Are Latest Mergers And Acquisitions In The Rocket Propulsion Market? L3Harris Technologies Acquires Aerojet Rocketdyne Holdings To Strengthen Missile And Propulsion Capabilities

In July 2023, L3Harris Technologies Inc., a U.S.-based aerospace and defense company, acquired Aerojet Rocketdyne Holdings Inc. for an undisclosed amount. With this acquisition, L3Harris aimed to enhance its capabilities in missile defense systems, hypersonic technologies, and advanced propulsion, accelerate the development of next-generation aerospace solutions, and expand its portfolio of high-performance defense systems. The company also sought to leverage Aerojet Rocketdyne’s expertise in rocket propulsion to drive innovation, improve operational efficiency, and deliver more integrated and reliable solutions to global defense and aerospace clients. Aerojet Rocketdyne Holdings, Inc. is a U.S.-based aerospace company that offers rocket propulsion.

Regional Insights

Asia-Pacific was the largest region in the rocket propulsion market in 2025, and it is also expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Rocket Propulsion Market?

The rocket propulsion market consists of sales of cryogenic propulsion, electric propulsion system and nuclear propulsion. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Rocket Propulsion Market Report 2026?

The rocket propulsion market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the rocket propulsion industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.