The rocket propulsion systems market is projected to grow with a CAGR of more than 10% during the forecast period.
- The market is primarily driven by the factors such as rising investments of major economies in the world in space centers and launching of satellites, increasing efforts to reduce the carbon footprints by using alternate fuels, technological advancements aimed at reducing the manufacturing costs and increasing the fuel efficiency.
- Major players in the industry are supported by the government bodies with high space-related investments which enables them to spend more on their R&D that allows the companies to innovate continuously and come up with more efficient and advanced technologies.
Key Market Trends
The increased spending of the major economies for space exploration activities will drive the growth during the forecast period
The major economies of the world are spending a significant share of their GDP in space exploration activities and launching new satellites. The high level of competition among space agencies is significantly high and was evident for several decades. Even in the current scenario, several nations are investing heavily in the space launch activities to achieve milestones in space explorations and into R&D which will help them become pioneers in new space technologies. While NASA’s space budget for 2019 stood at more than USD 21,000 million for space exploration activities, China also allocated a budget of more than USD 11,500 million for CNSA in 2019. During the forecast period the same trend is expected to continue, and countries are projected to spend heavily in space exploration activities. This is particularly due to several ambitious space programs that are lined up in the next few years. NASA is about to launch a rover to Mars, ISRO planning to send manned spacecraft to space and similar projects from many other space agencies are expected to attract huge investments into the space launch industry, thereby driving the rocket propulsion systems market.
Asia-Pacific is Projected to Exhibit the Highest Growth Rate in the Market
In terms of geography, Asia-Pacific is projected to grow with the highest CAGR during the forecast period. Countries in the Asia-Pacific region, such as China and India are investing heavily in space exploration activities and are expected to continue the same during the forecast period. The Indian Space agency is currently focused on developing the indigenous space launch industry. For instance, in 2018, the Government of India approved USD 1308 million for building 40 PSLV and GSLV rockets over the next 5-year span, for the launch of communication satellites and increasing broadband connectivity for rural areas. This will strengthen the space infrastructure and reduce the dependence on procured launches from foreign countries. In addition, there are many projects from the region that are lined up during the forecast period. For instance, from India there are projects like Chandrayaan-3 in 2021 and the Gaganyaan in 2021 in which the agency is planning to send astronauts to space. The Japanese agency JAXA is also about to send its rover on the lunar surface in 2021. The country is supporting the organic growth of the private companies by helping them to invest and penetrate into the rocket propulsion systems market in the country. In 2019, a Japanese aerospace startup, Interstellar Technologies successfully launched the country’s first privately developed rocket, the Momo-3 unmanned rocket. The government support for such private companies will help the ongoing efforts to achieve stable launches and the mass production of rockets in quick cycles in the years to come.
The rocket propulsion systems market is consolidated, with a few players accounting for significant amounts of shares in the market. Some of the prominent companies in the Rocket Propulsion market are Antrix Corporation Ltd., Safran SA, Aerojet Rocketdyne, Orbital ATK and others. Several companies have formed long-term partnerships with the government agencies to upgrade and enhance the space exploration capabilities as well as for the development of future programs of the nations. Companies are investing heavily in research and development for the innovation of new and advanced products and technologies that may help for new discoveries in space. The major players are working on alternative fuel technologies to save fuel and reduce carbon footprints. For instance, in December 2019, Aerojet Rocketdyne announced that it was working on a Hall thruster for the Gateway, a proposed space station in lunar orbit. Likewise, in February 2020, in the UK, Pulsar, a privately owned nuclear fusion firm, built and tested a prototype of a plasma-powered rocket engine that could propel spacecraft at 100,000mph, which can theoretically reduce the journey time to Mars by as much as fifty percent. Such breakthrough technologies are expected to make space exploration and related launch activities faster and more viable, thereby helping the growth of the market.
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