Spacecrafts Market Size, Share, Analysis, Trends, Growth, 2032

Spacecrafts Industry Prospective:

The global spacecrafts market size was worth around USD 6.63 billion in 2023 and is predicted to grow to around USD 9.99 billion by 2032 with a compound annual growth rate (CAGR) of roughly 4.78% between 2024 and 2032.

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Spacecrafts Market: Overview

A spacecraft is a specially designed vehicle used for traveling or exploring space. These vehicles are designed to travel in outer space and operate in these areas. They are used for an extensive range of applications including communication, surveillance, research, transportation of materials and humans, Earth observation, research, and meteorology. Almost all spacecraft are pushed into outer space using a launch vehicle also known as a carrier rocket. Furthermore, these vehicles can also be used for traveling to other planets or stars and conducting research or non-research operations. At present times, numerous manned and unmanned spacecrafts are either circulating the Earth's atmosphere or stationed at other planetary bodies such as Earth’s moon and the planet Mars.

There are two main types of spacecraft. They are crewed variants and orbit satellites. The former is designed to carry and support humans or animals into outer space. These vehicles must be developed to ensure the safety of the living organisms onboard. On the other hand, Earth orbit satellites orbit around the planet and play a specific role in capturing and relaying important information that could be of either military or commercial interest. Satellites are further divided into three categories: geosynchronous Earth orbit satellites, medium Earth orbit satellites, and low Earth orbit satellites. The critical components of a spacecraft include a power subsystem, an engine, a communication system, and a steering system. The high cost of spacecraft development and manufacturing is expected to limit the industry’s growth rate during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global spacecrafts market is estimated to grow annually at a CAGR of around 4.78% over the forecast period (2024-2032)
• In terms of revenue, the global spacecrafts market size was valued at around USD 6.63 billion in 2023 and is projected to reach USD 9.99 billion, by 2032.
• The market is projected to grow at a significant rate due to the growing investments in Mars exploration events
• Based on the end-use, the military segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the type, the unmanned spacecrafts segment is anticipated to command the largest market share
• Based on region, North America is projected to dominate the global market during the forecast period

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Spacecrafts Market: Growth Drivers

Growing investments in Mars exploration events may drive the market demand

The global spacecrafts market is expected to grow due to the increasing investments in Mars exploration activities. Early space exploration activities helped scientists identify four known water sources on the planet which later became the main reason for heightened interest in Mars exploration activities. Scientists believe that by studying Mars and its atmosphere, the research community can gain valuable insights into life survival on planet Earth. The information obtained during Mars exploration activities can help gain a better understanding of life formation and evolution on Earth. In a recent event, the National Aeronautics and Space Administration (NASA), as a part of its Mars 2020 missions, landed a new rover on Mars's surface.

The rover is called Perseverance and safely landed on the surface on 18th February 2021. Perseverance will be used for exploring Mars'ssurface and seeking signs of life in the past or present on the planet. The US space agency invested nearly USD 2.4 billion to successfully launch the rover and conduct experiments. Similarly, other countries have shown greater interest in launching spacecraft to Mars to gain an upper hand in space exploration events. In March 2022, Europe backed out from the most anticipated partnership of the region with Russia for the ExoMars mission. After this event, Russia was reported to work along in exploring the planet. Mars exploration activities are likely to witness higher investments in the coming years thus driving the demand for highly effective spacecrafts.

Growing entry of private companies facilitating space tourism may prove beneficial for the industry

Until a few years ago, space exploration activities were only carried out by government-sponsored projects and space agencies. However, in the last decade, there has been a steady rise in the number of private companies offering space tourism solutions. In September 2023, SpaceVIP, a US-based space expedition organization, announced that it would open up new opportunities for space exploration in the Indian market. These opportunities currently can be leveraged by individuals or high net worth thus promoting the global spacecrafts market. In August 2023, Virgin Galactic launched a spacecraft to the edge of space carrying its first set of passengers. The company plans to start monthly voyages in the coming years.

Spacecrafts Market: Restraints

High cost of investment to develop spacecrafts limits the market expansion rate

The global spacecrafts market is expected to be restricted due to the high cost of investment that is associated with the development of spacecrafts. These entities are engineering marvels that run on state-of-the-art technologies. Moreover, the highest cost is often linked to several aspects of spacecrafts including the superior-grade materials used for constructing spacecraft and the launch vehicles. The initial investment needed to deploy spacecraft into the atmosphere starts at a million dollars and continues to rise as spacecraft strength and overall performance criteria change. In 2014, the cost of each United Launch Alliance rocket launch had reached USD 420 million as per the Government Accountability Office.

Spacecrafts Market: Opportunities

Growing launch of military surveillance and communication satellites could open new opportunities for further expansion

The global spacecrafts market is expected to generate high growth opportunities due to the increasing launch of satellites for military applications. The world is currently witnessing a sharp rise in the number of world peace destabilizing activities including terrorist activities and wars encompassing large economies. For instance, the ongoing Russia-Ukraine war has led to disruption in global peace along with other such events. Military satellites help defense sectors improve national security solutions. These satellites are used for gathering critical information such as target location thus allowing the defense sectors to take precautionary measures. In April 2024, Tata Advanced Systems Ltd (TASL) announced the launch of India's first privately made military-grade geospatial satellite in partnership with SpaceX. In December 2023, Russia announced the launch of a new military satellite in space facilitated by the Soyuz-2.1v light carrier rocket. These agencies are actively seeking more advanced solutions to help them gain deeper insights into national security threats.

Increasing focus on developing novel materials and technologies for building modern-age spacecrafts could help the industry flourish

As global space agencies achieve profound successes, they are expected to invest in developing more advanced technologies that can help them successfully deliver new space exploration projects. This can be achieved by continuously investing in new technologies and materials for building new vehicles in the global spacecrafts market. In February 2024, the US and Japan were reported to be working on launching a wooden satellite in outer space. The LignoSat probe was developed by Sumitomo Forestry and Kyoto University and is known to be more environmentally friendly as compared to contemporary solutions.

Spacecrafts Market: Challenges

Pollution caused by spacecrafts could challenge the industry’s growth rate

The global industry for spacecrafts is projected to be challenged due to the rising concerns about pollution caused by spacecrafts. Rockets, the launching vehicles for spacecraft, are known to produce some amount of black carbon also known as soot along with other harmful elements such as chlorine, nitrogen oxides, hydrochloric acid, and alumina particles. The growing rate of rocket launches has led to an increase in concerns over the environmental impact of such events. Additionally, the growing rate of space debris in the outer environment may further add to the existing growth complications.

Spacecrafts Market: Segmentation

The global spacecrafts market is segmented based on end-use, type, and region.

Based on the end-use, the global market divisions are civil & commercial and military. In 2023, the highest growth was observed in the military segment. Most spacecraft-related projects are approved and sponsored by regional governments and spaced agencies. These spacecrafts are used for research purposes and also have military applications. Since spacecrafts require extensive investment, only a limited number of private companies are currently operating in the industry. The 2024 annual budget for the European Space Agency is around USD 7.8 billion.

Based on the type, the global market divisions are unmanned spacecrafts and manned spacecrafts. In 2023, the highest growth was witnessed in unmanned spacecrafts. The growing launch of military and civil satellites orbiting the Earth; 's atmosphere is driving the segmental demand. These artificially-made entities are used across industries including communication, environmental monitoring, surveillance, and imaging. At the start of 2023, more than 26,600 satellites were orbiting the Earth’s atmosphere.

Spacecrafts Market: Report Scope

Spacecrafts Market: Regional Analysis

North America to lead the growth rate during the forecast period

The global spacecrafts market is currently dominated by North America and the same trend is expected in the future. The US leads the regional market revenue since the country has already established its foothold in the space exploration sector. The US space agency is one of the world’s most renowned agencies globally. It is technologically equipped to handle advanced spacecraft launch and operation. In 2023, the US spent over USD 73 billion on space exploration as per official reports. It has previously funded successful manned missions including the first landing on Moon in 1969. The US-owned Apollo program was responsible for 6 crewed landings on the Moon between 1969 and 1972 thus gaining dominance in the space exploration sector. Since then, NASA has continued to experiment with new spacecraft and launching mechanisms. The military satellite segment is a crucial growth driver in the US. In February 2024, US-based SpaceX launched a classified mission for the US military. Through this project, the company sent around 6 missile detection satellites out of which 4 will be used by the Space Development Agency and two for the Missile Defense Agency. In January 2024, the US announced partners with India for the development of the new satellite mission NISAR. The partnership is with the Indian Space Research Organization and will allow the countries to monitor the changing Earth in minute detail.

Spacecrafts Market: Competitive Analysis

The global spacecrafts market is led by players like:

• Orbital Sciences Corporation
• Airbus Defence and Space
• SpaceX
• Northrop Grumman
• Thales Alenia Space
• Maxar Technologies
• Mitsubishi Heavy Industries
• Arianespace
• Lockheed Martin
• Boeing
• Sierra Nevada Corporation
• Blue Origin
• Virgin Galactic
• United Launch Alliance (ULA)
• Rocket Lab.

The global spacecrafts market is segmented as follows:

By End-Use

• Civil
• Commercial and Military

By Type

• Unmanned Spacecrafts
• Manned Spacecraft

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa