Space Launch Services Market Expected to Reach $47.3 Billion by 2032

According to a new report published by Allied Market Research, titled, “Space Launch Services Market," The space launch services market was valued at $13.9 billion in 2022, and is estimated to reach $47.3 billion by 2032, growing at a CAGR of 13.4% from 2023 to 2032.

The capability of transporting payloads such as satellites, cargo, passengers and scientific instruments from the earth's surface into earth’s orbit and space for various purposes is called space launch service. The launch of such payloads helps the user to study earth, monitor weather patterns and conditions and collect geospatial data. The space launch service assists organizations and nations that lack expertise and space-related capabilities. It helps organizations and nations to design, and develop infrastructure related to the space launch program. The service also assists in the construction and development of space payloads, as well as providing professional advice on before and after launch of the payload. 

Moreover, the space launch services market is witnessing suitable growth in recent years, owing to the increase in contracts and demand for satellite launches across the globe. Moreover, the key manufacturers operating in the industry have been inclined towards developing new and advance technology which will reduce the cost of the overall service and offers space tourism as an activity to any aspiring person. For instance, in June 2023, Virgin Galactic completed its first commercial spaceflight mission. The spaceflight named galactic 01. The spaceflight took a 75 minute suborbital journey and landed successfully. Similarly in September 2021, SpaceX falcon 9 has also delivered a four person crew to the space station as a part of company’s space tourism program. Such developments in space tourism program creates opportunities and growth for the space launch service market across the globe.

Increased satellite launches due to rising need for satellite-based services such as broadband internet, navigation, remote sensing, and communication supplements the growth of the market. These services are employed across industries, such as logistics, telecommunications, agriculture, and defense. Moreover, with the advancement in technology and engineering, satellite launch has been made easier and less expensive thus leading to the growth of the market across the globe. With the production of reusable rockets and other space technology has significantly decreased launch costs. Companies alike SpaceX, Blue Origin, and Rocket Lab have developed new launch vehicles and technologies that could lower the cost of satellite launches even further. For instance, on March 1, 2022, NASA successfully launched a third next-generation satellite for the National Oceanic and Atmospheric Administration (NOAA). GOES-T, the latest geostationary operational environmental satellite, was launched from Cape Canaveral Space Force Station on a United Launch Alliance Atlas V rocket.

The satellite is anticipated to provide continuous coverage of the weather and dangerous environmental situations of the Western Hemisphere. In addition, GOES forecasts near-Earth space weather, which is projected to interfere with satellite electronics, GPS, and radio communications. GOES-T is expected to be renamed to GOES-18 after it is located on geostationary orbit 22,300 miles above Earth. GOES-18 is expected to begin its operation over the west coast of the U.S. and the Pacific Ocean after a successful orbital checkout of its instruments and systems. Countries and private organizations have spent extensively in space technologies and resources in order to explore the commercial and scientific possibilities of space.

Moreover, the factors such as increase in government investment in space exploration activities, increase in demand for commercial non-geostationary satellite orbit (NGSO) space launches & increase in satellite launches across the globe. However, high initial investment associated with space launch services and high initial investment associated with space launch services hamper the growth of the market. On the contrary, focus on price reduction for space launch services through Product Innovation and rise in space tourism to foster growth are the major factors that are expected to provide lucrative opportunities for the market growth during the forecast period.

COVID-19 Impact Analysis:

According to information provided by project authorities to NASA's Office of the Chief Financial Officer (OCFO), COVID-19 impacted 56 NASA programs and projects in FY 2020 as of October 2020, 30 of which met the threshold for a major program or project. The cancellations and delays from pandemic resulted in financial losses for the space launch sector and its accompanying services.

KEY FINDINGS OF THE STUDY

• By payload type, the human spaceflight segment is projected to dominate the global market in terms of growth rate.
• By launch platform type, sea as a launch platform is projected to dominate the global space launch service market in terms of growth rate.
• By service type, the pre-launch segment is projected to dominate the global space launch service market in terms of growth rate.
• By launch vehicle type, the small launch vehicle segment is projected to dominate the global space launch service market in terms of growth rate.
• By end use, the commercial segment is projected to dominate the global market in terms of growth rate.

The key players operating in the global space launch services market include Airbus S.A.S, Antrix Corporation Limited, China Aerospace Science and Technology Corporation, Lockheed Martin Corporation, Mitsubishi Heavy Industries (MHI), Northrop Grumman Corporation, Rocket Lab USA, Safran SA, Space Exploration Technologies Corp. (SpaceX), Starsem, ROSCOSMOS, S7 SPACE, Boeing Corporation.