Satellite Propulsion System Market Size, Share & Trends Analysis Report By Platform, By Propulsion (Chemical, Non-Chemical), By Component, By End User, By Region, And Segment Forecasts, 2024 - 2030

Satellite Propulsion System Market Trends

The global satellite propulsion system market size was estimated at USD 9.27 billion in 2023 and is expected to grow at a CAGR of 13.2% from 2024 to 2030. The increasing number of space missions for commercial, government, and scientific purposes is primarily driving the demand for satellite propulsion systems, fueling the market growth.  Moreover, growing interest in space exploration and the development of satellite constellations is further contributing to market expansion. In addition, rising demand for in-orbit servicing and debris mitigation missions, which necessitate advanced satellite propulsion systems, is positively influencing the market scenario.

Advancements in propulsion technologies, such as electric propulsion, are enabling more efficient and cost-effective satellite operations. For instance, in April 2024, NASA launched an electric propulsion system designed for small spacecraft to support planetary missions and extend the operational life of existing satellites. This solution forms part of the agency's initiative of commercializing technology, allowing it to procure this critical technology from industry partners for future missions. Such developments are expected to create significant growth opportunities for the satellite propulsion system market.

Technological advancements, including breakthroughs in materials science, electronics, and propulsion physics, are further accelerating the market growth, facilitating the development of more efficient, reliable, and versatile propulsion systems. Moreover, the advent of 3D printing and additive manufacturing is transforming the production of propulsion components, resulting in lighter, more complex, and cost-effective designs. These developments are expanding the possibilities for satellite missions, stimulating the demand for advanced satellite propulsion systems.

The growth of the satellite propulsion system market is further driven by the increasing public-private partnerships for space exploration initiatives. For instance, in June 2023, NASA announced to partner with seven U.S. companies to cater to future government and commercial needs, favoring human spaceflight and commercialization of low Earth orbit to support the U.S. economy. This development comes as a part of the second Collaborations for Commercial Space Capabilities-2 (CCSC-2) initiative, aimed at advancing commercial space exploration activities through NASA's technical expertise, assessments, data, and technologies.

Market Concentration & Characteristics

The satellite propulsion system market is characterized by high growth with an accelerating pace of market growth. The growing inclination of businesses toward satellite communication and increased investments to expand space infrastructure is favoring market growth.

The market is majorly influenced by the high degree of innovation, which is driving the demand for satellites and the required infrastructure, attracting significant investments from the government as well as private players.

The number of mergers and acquisitions is increasing in the satellite propulsion system market, especially among the public and private players. They are forming strategic alliances that have proven pivotal in fostering innovation and enhancing the industry outlook.  

The competition from product substitutes in the market is expected to be low as there is no direct replacement for satellite propulsion systems at present. Electric and solar technologies are still in experimental stages and face challenges in terms of efficiency, thrust, and reliability. At present, chemical propulsion remains the dominant technology for most satellite missions.     

With the rising demand for satellites driven by increasing space exploration activities and growing need for reliable communication, regulatory compliance and standards play a key role. Regulatory frameworks promote standards and best practices in the field of satellite design, operations, and end-of-life disposal.

End-user concentration in satellite propulsion system market is high as several industries, including mining, construction, oil & gas, energy & utilities, agriculture, transportation, etc., are increasingly relying on satellite communication to remotely monitor on-site activities, while increasing safety and enhancing maintenance procedures.

Platform Insights

The medium-sized satellites segment accounted for the largest revenue share of over 69.0% in 2023 on account of high demand driven by the benefits, such as short production cycles and low cost as compared to conventional satellites. In addition, these satellites require relatively less time for construction and launch, allowing faster implementation of space related projects. Moreover, they can easily maneuver and alter their positions in orbit, which eases their deployment anywhere in space, offering more flexibility to the mission planners during examination of a specific area. These factors are driving the demand for efficient satellite propulsion systems, favoring segmental growth.     

The nano satellites segment is expected to record the highest CAGR of nearly 15.0% from 2024 to 2030. Nano satellites are emerging as a powerful tool for scientific research and exploration, which is transforming the space exploration sector by making it more accessible, flexible, and affordable. Besides, these satellites have less production cost and can be simultaneously launched in large numbers. The rising demand for these satellites to conduct scientific research, communications, or observation missions in space is creating lucrative opportunities for the market.

Propulsion Insights

The chemical segment accounted for the largest revenue share in 2023 owing to greater reference for this propulsion technology on account of its high thrust capabilities, making it suitable for launch vehicles and large satellites. While electric propulsion is gaining traction for specific mission profiles, chemical propulsion remains essential for initial orbit insertion and large orbital maneuvers. The increasing number of satellite launches, driven by growing government space programs and commercialization of space, is driving the demand for high-performance chemical propulsion systems, underlining the dominance of the segment. 

The non-chemical segment is expected to record the highest CAGR from 2024 to 2030. The growth is credited to various factors, such as increasing focus on sustainability, coupled with the need for longer mission life and reduced operational costs. The non-chemical systems offer higher specific impulse, resulting in lower propellant consumption and extended mission life. Moreover, the growing number of small satellites and satellite constellations has fueled the adoption of non-chemical alternatives, such as electric propulsion systems, due to their efficiency and cost-effectiveness.    

Component Insights

The thrusters segment accounted for the largest revenue share in 2023 owing to the increasing number of satellite launches driven by both commercial and government entities, stimulating the demand for propulsion systems. Thrusters are the core component responsible for generating thrust, making them essential for satellite orbit maintenance, attitude control, and station-keeping. Moreover, the growing preference for smaller satellites has increased the demand for miniaturized and efficient thrusters. The ongoing expansion of the satellite industry is expected to drive the product demand, accelerating the segment growth.  

The propellant feed systems segment is expected to record the highest CAGR from 2024 to 2030. Increasing satellite complexity and the demand for higher-performance missions require sophisticated propellant management. Besides, the advent of electric propulsion systems, with their specific propellant handling requirements, is driving innovation and demand for advanced propellant feed systems. Moreover, the growing emphasis on in-orbit servicing and refueling missions necessitates reliable and efficient propellant transfer technologies, which is further contributing to the expansion of the propellant feed systems segment within the satellite propulsion market.   

End Use Insights

The government segment accounted for a significant revenue share in 2023 owing to increasing expenditure on space exploration, national security, and intelligence gathering, leading to heightened demand for advanced satellite propulsion systems. Space agencies and military organizations require high-performance propulsion technologies to launch and operate satellites for communication, surveillance, navigation, and other critical missions. Moreover, favorable government initiatives aimed at the development of space-based capabilities, such as missile defense systems and space situational awareness, are further stimulating the market expansion.

The commercial segment is expected to record the highest CAGR from 2024 to 2030 owing to the burgeoning demand for propulsion systems amid a significant surge in satellite constellations for communication, internet services, and Earth observation in this sector. In addition, the expanding commercial space economy, including satellite-based services for agriculture, maritime, and disaster management, is further creating ample growth opportunities for the market. Furthermore, the emergence of various new players in this sector, that are engaged in the development and testing of reusable rockets and launching payloads into the orbit, is also playing a pivotal role in segmental growth.           

Regional Insights

The satellite propulsion system market in North America accounted for largest revenue share of over 52.0% in 2023. Substantial government funding for space exploration and research has fueled innovation in propulsion technologies. The rise of commercial space activities coupled with increasing public-private partnerships is also fueling the demand for advanced satellite technologies.  The market outlook is being further enhanced by the growing emphasis on the development of environmentally friendly propulsion systems amid the growing significance of sustainable solutions in the space industry.  

U.S. Satellite Propulsion System Market Trends

The U.S. satellite propulsion system market is estimated to witness a significant growth rate of more than 10.0% from 2024 to 2030. The country is home to several leading aerospace and defense companies with expertise in propulsion systems, such as SpaceX, Lockheed Martin Corporation, and Northrop Grumman.     

Asia Pacific Satellite Propulsion System Market Trends

The satellite propulsion system market in Asia Pacific is expected to record a notable growth rate from 2024 to 2030. The regional countries, including China, India, Japan, and South Korea, have significantly increased their space budgets, leading to more satellite launches and the need for advanced propulsion systems. For instance, South Korea’s current investment in space is nearly USD 720 million, which is projected to record a 50% rise by 2027. Furthermore, the region is also witnessing a surge in satellite launches for various applications, including communication, navigation, remote sensing, and defense, creating lucrative opportunities for the satellite propulsion system market.  

The satellite propulsion system market in India is estimated to record a notable growth rate from 2024 to 2030. The growth is attributed to the growing significance of space assets across various industries. The active launch of various satellites for forestry, disaster management, and agriculture activities is stimulating the demand for robust satellite technologies, thereby contributing to market growth further.  

The satellite propulsion system market in China accounted for a significant revenue share in 2023, owing to increased commercialization in its space sector. Moreover, favorable initiatives by the government authorities in China is also playing a crucial role in market growth.   

The satellite propulsion system market in Japan is expected to witness a notable CAGR from 2024 to 2030 owing to a robust space program with substantial government investment, fostering the development of advanced satellite technologies.

Europe Satellite Propulsion System Market Trends  

The satellite propulsion system market in Europe accounted for a notable revenue share of in 2023 and is expected to grow significantly in the upcoming years. The region has a robust space industry with the presence of major players such as Airbus, Thales Group, and ArianeGroup, driving demand for advanced satellite propulsion systems. Besides, European space agencies are at the forefront of electric propulsion technology, leading to increased adoption in satellites. Moreover, growing emphasis on reducing space debris and environmental impact is driving demand for cleaner propulsion systems, enhancing the overall market outlook.    

The satellite propulsion system market in the UK is expected to grow significantly over the coming years. The growth is attributed to the rising demand for robust propulsion systems driven by commercial space activities, including satellite communications and Earth observation.      

The satellite propulsion system market in Germany is estimated to record a notable CAGR from 2024 to 2030 owing to supportive government initiatives involving space exploration and research, which are fostering innovation in satellite technologies.

Middle East & Africa (MEA) Satellite Propulsion System Market Trends

The satellite propulsion system market in the Middle East and Africa (MEA) region is estimated to record a considerable CAGR from 2024 to 2030. The growth is attributed to the increasing investments in space programs across countries, including UAE, Saudi Arabia, and South Africa, driving demand for satellite propulsion systems. Moreover, the growing demand for satellite-based broadcasting and communication services requires advanced propulsion systems for satellite positioning and maintenance, which is further contributing to the regional market growth.         

Satellite propulsion system market in Saudi Arabia accounted for a notable revenue share in 2023 on account of the country's growing interest in space technology, including satellite launches and space exploration programs, will necessitate advanced propulsion systems.

Key Satellite Propulsion System Company Insights

Some of the key players operating in the market include Thales Group, Northrop Grumman, and L3Harris Technologies, Inc. among others.

• Thales Group operates as a technology provider involved in digital and deep tech innovations - big data, artificial intelligence, cybersecurity, connectivity, and quantum technology. The major business segments of the company include aerospace, defense and security, digital identity & security, and ground transportation systems.

• Northrop Grumman delivers a broad range of products, services, and solutions to the U.S. and global customers, mainly to the U.S. Department of Defense (DoD) and intelligence community. The company’s major segments include aeronautics systems, defense systems, mission systems, and space systems.

• L3Harris Technologies, Inc. operates as a global aerospace and defense technology company, providing advanced military and commercial technologies across various domains including air, land, sea, cyber, and space. The company offers electric propulsion systems, delivering solutions for various satellite missions.

ArianeGroup and Busek Co. Inc. are some of the emerging market participants in the satellite propulsion system market.

• ArianeGroup is a prominent company, working to design and create innovative and competitive launch systems, providing military and civil space solutions for customers operating in institutional, commercial, and industrial domains. It offers various cutting-edge solutions, equipment, and services, to support the defense, space, energy, and other industrial sectors.

• Busek Co. Inc. is engaged in hardware development, specialty manufacturing, and applied research for in-space propulsion systems. The company is dedicated to the development of electric propulsion, solar electric propulsion systems, sensors, power electronics, and material science. It delivers advanced electric propulsion thrusters and systems used on defense, commercial, and civil satellites.

Recent Developments

• In August 2024, Safran announced to have commenced the development of manufacturing facilities for small satellite propulsion systems in the U.S. to cater to the rising demand in commercial as well as defense sectors. This initiative is aimed at expediting the growth of North American small satellite market, which is estimated to reach over USD 5 billion by 2030.     

• In July 2024, L3Harris Technologies, Inc. announced the developments and performance progress after the acquisition of power and propulsion provider Aerojet Rocketdyne Holdings, Inc. The company increased investments in the latter by 40% year-over-year, including the modernization and expansion of production capabilities. It also allocated more than USD 25 million in funding to the suppliers to bolster the supply chain of solid rocket motor subcomponents.

• In February 2023, In-space propulsion company Busek Co. Inc. announced successful on-orbit commissioning of BHT-350 Hall effect thrusters. The company’s thrusters are being utilized for orbit-raising, collision avoidance, station-keeping, and de-orbit. This project brings a total of 542 satellites launched for the LEO satellite communications company OneWeb and marks the first occasion for the space launch of BHT-350 solar electric propulsion systems.     

Satellite Propulsion System Market Report Scope

Global Satellite Propulsion System Market Report Segmentation

This report forecasts and estimates revenue growth at the global, regional, and country levels along with analyzes the latest market trends and opportunities in each one of the sub-segments from 2018 to 2030. For this study, Grand View Research has further segmented the global satellite propulsion system market report based on platform, propulsion, component, end user, and region.   

• Platform Outlook (Revenue, USD Million, 2018 - 2030)

  • Large Satellites

  • Medium-Sized Satellites

  • Nano Satellites

  • CubeSats

• Propulsion Outlook (Revenue, USD Million, 2018 - 2030)

  • Chemical

  • Non-Chemical

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Thrusters

  • Propellant Feed Systems

  • Nozzles

  • Rocket Motors

  • Others

• End User Outlook (Revenue, USD Million, 2018 - 2030)

  • Government

  • Commercial

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • UAE

    • Saudi Arabia

    • South Africa