PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1530831
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1530831
According to Stratistics MRC, the Global Space Launch Vehicle Market is accounted for $17.42 billion in 2024 and is expected to reach $43.78 billion by 2030 growing at a CAGR of 16.6% during the forecast period. Space Launch Vehicles (SLVs) are extremely strong and complex rockets that are used to launch payloads into space from Earth, including crewed spacecraft, scientific instruments, and satellites. In order to move the payload faster and higher, these vehicles must overcome Earth's gravitational pull in several stages. Each stage involves burning fuel. SLVs are essential for many uses, such as space exploration, environmental monitoring, telecommunications, and global positioning systems. Moreover, reusable rockets have been made possible by advances in SLV technology, greatly lowering the cost of space travel and opening the door for more regular and environmentally friendly space missions.
According to the International Astronautical Federation (IAF), advancements in space launch vehicle technology are critical for enabling more cost-effective and frequent access to space, which is essential for expanding human presence beyond Earth and fostering global cooperation in space exploration and utilization.
Expanding the use of satellites
The market for space launch vehicles is primarily driven by the increase in demand for satellite services such as internet connectivity, telecommunications, GPS, and Earth observation. Modern infrastructure cannot function without satellites, which are necessary for a variety of functions like environmental monitoring, disaster management, and weather forecasting. Additionally, the emergence of small and nano-satellites due to the shrinking of satellite technology has increased the demand for regular and reasonably priced launch services in order to effectively deploy these new satellite constellations.
Exorbitant development and launch costs
Significant financial resources are needed for the development and launch of space launch vehicles. Significant sums of money are needed for the development, production, testing, and introduction of these vehicles. Because space missions require such precision and complexity, cutting costs remains difficult, even with technological advancements. The high prices may discourage smaller businesses and new competitors, which would reduce market competition and innovation. Furthermore, financial limitations are further exacerbated by the frequent cost overruns and delays in the space industry.
Development of space travel
There are plenty of opportunities for the space launch vehicle market in the growing space tourism sector. Rich people and thrill-seekers are becoming more and more interested in visiting space, with organizations like SpaceX, Blue Origin, and Virgin Galactic leading the way in commercial space travel. More affordable and accessible space travel depends on the development of reusable and dependable launch vehicles. Moreover, this market can spur additional innovation in launch technology and safety regulations while providing a profitable revenue stream.
Rising space debris
The market for space launch vehicles is seriously threatened by the buildup of space debris. The risk of collisions with existing debris rises with the number of satellites and space missions launched, endangering both present and future space operations. Space debris has the potential to destroy or damage spacecraft, resulting in financial losses and mission failure. It is getting harder to navigate and keep safe operating environments in low Earth orbit (LEO) due to the increasing density of space debris. Additionally, to counter this threat, technology for mitigating debris must be developed and international cooperation in space traffic control and debris removal is needed.
Due to delays in launch schedules, disruptions in supply chains, and decreased investment in space projects, the COVID-19 pandemic had a major effect on the market for space launch vehicles. While economic uncertainties resulted in budget cuts and mission postponements by both governmental and private entities, travel restrictions and lockdown measures hindered the production and testing of launch vehicles. Despite these difficulties, the pandemic also highlighted how crucial satellite services are for communication and remote monitoring. Furthermore, this increased demand for space-based solutions sped up the adoption of novel ideas like reusable rockets to cut costs and boost launch frequency.
The Heavy-lift Launch Vehicle segment is expected to be the largest during the forecast period
In the space launch vehicle market, the heavy-lift launch vehicle segment has the largest market share. These strong rockets are necessary for large-scale satellite launches, interplanetary exploration, and major scientific missions because they can carry heavy payloads into a variety of orbits, including geostationary transfer orbits (GTO) and beyond. Moreover, heavy-lift launchers are essential for large-scale initiatives like Mars missions, lunar exploration, and the deployment of massive satellite constellations.
The Low Earth Orbit (LEO) segment is expected to have the highest CAGR during the forecast period
In the space launch vehicle market, the Low Earth Orbit (LEO) segment is growing at the highest CAGR. The accelerated expansion can be attributed to the growing implementation of tiny satellite constellations for uses like Internet of Things connectivity, Earth observation, and worldwide broadband internet. With their ambitious plans to launch thousands of satellites into low-Earth orbit (LEO), companies like SpaceX, OneWeb, and Amazon's Project Kuiper are leading the charge and will require regular and dependable launch services. Additionally, because of its closeness to Earth, low-Earth orbit (LEO) is a desirable orbit for governmental, commercial, and scientific missions due to its lower communication latency and launch costs.
The market for space launch vehicles is dominated by North America. The main reason for the region's dominance is the existence of important space agencies like NASA as well as cutting-edge private businesses like SpaceX and Blue Origin that are at the forefront of commercial spaceflight and space exploration. North America leads the industry in space research and development, owing to its strong network of launch facilities, sophisticated technological infrastructure, and significant investment in this field. Furthermore, the region's strategic emphasis on innovation, which includes the creation of reusable rockets and audacious exploration missions, also strengthens its hold on the world market for space launch vehicles.
The market for space launch vehicles is growing at the highest CAGR in the Asia-Pacific region. The reason for this quick expansion is that nations like China, India, and Japan are investing more money in space programs as they increase their capacity for space exploration and satellite deployment. This explosive growth is largely being driven by China's space missions, India's successful launches with the PSLV and Gaganyaan programs, and Japan's space technology advancements. Moreover, the region's market expansion is being accelerated by its developing private space companies, growing space infrastructure, and increasing interest in satellite constellations and space exploration.
Key players in the market
Some of the key players in Space Launch Vehicle market include Roscosmos, Indian Space Research Organisation (ISRO), Bigelow Aerospace, Northrop Grumman, SpaceX, Boeing, Armadillo Aerospace, Mitsubishi Heavy Industries, Lockheed Martin, Bellatrix Aerospace, China Aerospace Corporation (CASC), Space Exploration Technologies, Airbus, Blue Origin and Sierra Nevada Corporation (SNC).
In July 2024, Airbus SE has entered into a binding term sheet agreement with Spirit AeroSystems in relation to a potential acquisition of major activities related to Airbus, notably the production of A350 fuselage sections in Kinston, North Carolina, U.S., and St. Nazaire, France; of the A220's wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco; as well as of the A220 pylons in Wichita, Kansas, U.S.
In April 2024, Northrop Grumman Australia has signed a contract with L3Harris for the operation and maintenance of command-and-control systems aboard the MQ-4C Triton multi-intelligence unmanned aerial vehicle (UAV) fleet of the Royal Australian Air Force (RAAF), Northrop Grumman.
In December 2023, Russia's Roscosmos space agency and the National Aeronautics and Space Administration (NASA) have agreed to extend the agreement on cross-flights to the International Space Station (ISS) until 2025.