The space industry includes a collection of critical technologies such as communication, remote sensing, and global positioning satellites. The space propulsion system market, which was an exclusive domain of the U.S. and Russia, is now accessible to the other nations as well, in which companies from the U.S., Europe, China, India, Russia, and Japan, among others, compete. Space agencies are also focused on developing more efficient and less toxic space propulsion systems.
National Aeronautics and Space Administration (NASA), in alliance with private companies, is also developing advanced propulsion systems for deep space missions. Such developments are expected to provide impetus to the space propulsion system market over the coming years. The major driving force behind the growth of the space propulsion system market is the increase in the number of launch vehicles and satellite constellations. Recently, ThrustMe, a French startup, conducted its first on-orbit tests of an innovative iodine-fueled electric propulsion system, proving its ability to change a CubeSat’s orbit.
According to the recent market intelligence published by BIS Research, titled Global Space Propulsion System Market, the market was estimated at $8.3 million in 2019. The market is expected to reach $21.79 billion by 2025 in terms of revenue. In terms of volume, the global space propulsion market was estimated at 769 units in 2019.
The growth in the space propulsion system market is accredited majorly to advancements occurring in the new technologies. The space propulsion ecosystem consists of original device manufacturers, system manufacturers and end users. In the recent past, the launch of small satellite constellations has increased significantly, especially due to the low cost associated with development and launch of small satellites.
The space propulsion system can be used for satellites and launch vehicles. Among the two segments, satellites are expected to dominate the market during the forecast period from 2020 to 2025. In addition, among the different end-users, including commercial and government and military, the commercial segment is expected to grow owing to the increase in the development of small satellite constellations for applications such as communication, remote sensing, earth observation, and navigation.
Further, in terms of region, the space propulsion market has witnessed different market dynamics across various regions of the globe. Moreover, the space propulsion system companies are expected to witness rising demand from countries such as China, the U.K., and the U.S. The North America region is expected to grow at a CAGR of 12.12% during the forecast period 2020-2025. The growth of the region is mainly driven by constant developments in launch vehicle technologies by the government space organizations and private companies.
