Rocket Engine Market Demand Analysis and Insights, 2025-2032

The global rocket engine market was valued at USD 12.20 billion in 2024 and is expected to rise from USD 13.70 billion in 2025 to USD 21.63 billion by 2032, reflecting a CAGR of 6.74% during the forecast period. In 2024, North America led the market, accounting for a dominant 44.43% share.

In 2024, North America accounted for the largest share of the rocket engine market at 44.43%. The U.S. led the global landscape with 152 launches in 2024, primarily driven by SpaceX, which deployed nearly 2,000 Starlink satellites, supported by defense spending of around USD 73 billion. India advanced its propulsion capabilities through ISRO’s development of a lightweight C-C nozzle designed to improve thrust and specific impulse, while China’s CASC demonstrated significant progress by testing five engines in a single day in January 2025, including a new hydrogen-oxygen upper-stage engine. In Europe, innovation was supported by ESA, which awarded Pangea Aerospace a contract in 2024 to design a Very High Thrust engine, while Poland’s SpaceForest successfully test-fired its SF-1000 hybrid rocket engine in January 2025, co-funded by ESA with an investment of approximately USD 2.5 million.

Key Players in the Rocket Engine Market

• National Aeronautics and Space Administration (NASA)

• Aerojet Rocketdyne

• SpaceX

• ROSCOSMOS

• Mitsubishi Heavy Industries (MHI)

• Northrop Grumman Corporation

• SAFRAN

• China Aerospace Science and Technology Corporation (CASC)

• Blue Origin

• Lockheed Martin Inc.

• The Boeing Company

• Rocket Lab

Information Source:

https://www.fortunebusinessinsights.com/rocket-engine-market-108179

Market Segmentation

1. By Engine Type

   • Liquid Propellant Engines: High efficiency, commonly used for space missions.

   • Solid Propellant Engines: Simplified design, often used in military applications.

   • Hybrid Propellant Engines: Combining liquid and solid advantages for versatile use.

2. By Application

   • Space Exploration: Engines for deep space missions and interplanetary travel.

   • Satellite Launch: Propulsion for commercial and defense satellite deployment.

   • Military and Defense: Engines for strategic missile systems.

3. By Component

   • Combustion Chamber

   • Turbopumps

   • Nozzles

Driving Factors

The rocket engine market is being driven by several key factors. Rising space exploration missions, with both government and private organizations ramping up investments in lunar and Mars expeditions, are fueling demand for advanced propulsion systems. The surge in satellite deployment for communication, navigation, and surveillance is further accelerating market growth. Additionally, advancements in reusable engine technologies are transforming the industry by significantly reducing launch costs and enabling more frequent missions. Beyond commercial applications, defense remains a crucial driver, as enhanced rocket propulsion is vital for modern missile systems and strengthening national security.

Regional Analysis

1. North America
   Dominates the market with strong investments from NASA, SpaceX, and other aerospace giants.

2. Europe
   Led by the Ariane program, the region is focusing on collaboration and innovation.

3. Asia Pacific
   Rapidly growing with significant contributions from China, India, and Japan. These countries are expanding their space programs and developing indigenous engine technologies.

4. Rest of the World
   Emerging players in the Middle East and Africa are investing in satellite launch capabilities to support regional communication and defense needs.

Industry Trends

1. Reusable Rocket Technology
   SpaceX’s Falcon 9 and Blue Origin’s New Shepard are setting benchmarks in reusability.

2. Miniaturization of Satellites
   Demand for small satellite launches is driving innovations in cost-efficient propulsion systems.

3. Green Propulsion
   Development of eco-friendly fuels like hydrogen is gaining traction to reduce the environmental impact of launches.

4. Commercial Space Travel
   The advent of space tourism is creating a new avenue for propulsion systems tailored for human spaceflight.

Key Industry Developments

• January 2025: Blue Origin New Glenn rocket, powered by seven BE-4 engines, successfully reached orbit, after launching from Cape Canaveral35. The mission's second stage achieved its final orbit with two burns of its BE-3U engines, deploying the Blue Ring Pathfinder.

• September 2024: Ursa Major, a U.S. rocket engine maker, secured a USD 12.5 million contract from the Pentagon to enhance its production and testing capabilities for new solid fuel engines designed for rockets.