The global space launch services market size was USD 12.42 billion in 2021 and touched USD 31.90 billion in 2022. The market is expected to touch USD 38.34 billion in 2029, exhibiting a CAGR of 12.25% during the forecast period. Rising adoption of 3D printing in the space sector and rapid modernization of 3D printed rocket engines foster the market growth. Fortune Business Insights™ presents this information in its report titled “Space Launch Services Market, 2022-2029.”
Manufacturing Constraints to Hinder Market Progress
This market is expected to be negatively affected during the COVID-19 pandemic due to manufacturing constraints. The sudden spike in COVID-19 infections led to the imposition of stringent lockdown norms. This factor led to severe supply chain disruptions. Further, the restrictions on transport and travel created raw material shortages, thereby hindering space rocket production. Further, shortage of semiconductors is expected to disrupt spacecraft production, thereby affecting the overall industry. However, lockdown relaxations may allow companies to resume production and enhance their market position.
By payload, the market is segmented into satellite, stratollite, cargo, human spacecraft, and testing probes. As per orbit type, it is classified into GEO, beyond GEO, LEO, and MEO. Based on launch platform, it is categorized into land, air, and sea. As per vehicle type, it is bifurcated into medium-to-heavy lift launch vehicle and small lift launch vehicle. By end-user, it is divided into commercial and military & government. Geographically, it is clubbed into North America, Europe, Asia Pacific, and the Rest of the World.
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Growing Space Programs to Enhance Industry Progress
Space launch services comprise a range of services designed to launch rockets that form satellites into space. Growing space programs are likely to enhance the demand for the product. Further, increasing research and development costs will foster the demand for such services. Moreover, rising partnerships and joint ventures are expected to enhance the demand for the services. In addition, strong demand for re-usable vehicles is expected to drive the space launch services market growth.
However, rising space debris is expected to hinder the market progress in the coming years.
Allocation of Budgets by Governments to Foster Market Progress in North America
North America is projected to dominate the space launch services market share due to the allocation of budgets by governments. The market size in 2021 stood at USD 4.84 billion in 2021 and is expected to grow considerably in the coming years. Further, the presence of major players such as SpaceX, Lockheed Martin, Blue Origin, and United Launch Alliance is expected to propel the industry growth.
In Asia Pacific, robust demand for surveillance, satellites, communication, and telecommunication may boost space launch services adoption. These factors may propel the industry progress in the coming years.
In Europe, the rising demand for advanced technology is expected to boost space launch services adoption. Moreover, the rising contracts by the European space agency are expected to enhance the industry progress.
Prominent Players Participate in Space Launches to Enhance Brand Image
The prominent companies operating in the market participate in space launches to enhance their brand image. For example, Lockheed developed the Advanced Extremely High Frequency (AEHF-6) satellite and launched it from Cape Canaveral Air Force Station, Florida, U.S. The satellite detached from the United Launch Alliance Atlas V 551 in June 2020. This development may enable the company to enhance its sales and bolster its brand image. Further, the adoption of partnerships, mergers, acquisitions, and expansions is expected to enhance the market position.
Key Industry Development
- July 2020- China Great Wall Industry Corporation launched APSTAR-6D Communications that uses LM-3B launch vehicles. It is the 12th communications satellite delivered by China Great Wall Industry Corporation (CGWIC).
List of Key Players Profiled in the Report
- Antrix Corporation Limited (India)
- ArianeGroup SAS (France)
- Lockheed Martin Corporation (U.S.)
- China Great Wall Industry Corporation (China)
- United Launch Alliance (ULA) (U.S.)
- Space International Services (U.S.)
- Space Exploration Technologies Corp. (Space X) (U.S.)
- Mitsubishi Heavy Industries, LTD. (Japan)
- Northrop Grumman Systems Corporation (U.S.)
- Eurockot Launch Service Provider (Germany)
- Blue Origin Enterprises, L.P. (U.S.)
- Spaceflight Industries (U.S.)