Space Launch Services Market (By Payload: Satellite, Human Spaceflight, Cargo, Testing Probes, Others; By Launch Platform: Land, Air, Sea; By Service: Pre-launch Services, Post-launch Services; By Orbit: Low Earth Orbit, Medium Earth Orbit, Geosynchronous Orbit, Polar Orbit; By Application: Commercial, Government, Military) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global space launch services market size was exhibited at USD 14.55 billion in 2022 and is projected to hit around USD 50.41 billion by 2032, growing at a CAGR of 13.23% during the forecast period 2023 to 2032.

Key Pointers:

• North America has generated more than 39% of revenue share in 2022.
• Asia Pacific market is expected to expand at the fastest CAGR between 2023 and 2032.
• By Payload, the satellite segment has captured more than 46% of revenue share in 2022 and is expected to expand at the fastest CAGR between 2023 and 2032.
• By Service, in terms of revenue, the pre-launch services segment is predicted to take the lead between 2023 and 2032.
• By Orbit, the low-earth orbit segment is expected to expand at the fastest CAGR between 2023 and 2032.
• By Application, in terms of revenue, the government segment dominated the global market in 2022.

Space Launch Services Market Report Scope

Space launch services are services undertaken by every space mission to deliver a satellite into space at a specified orbit. These services are chosen based on the requirement of the mission along with the defined budget for conducting the space expedition. These services involve several operations, including launch planning, payload integration, licensing, launch infrastructure, and launch mission.

The rising number of space test missions launched in earth orbits and outer space is expected to drive the space launch services market size. For instance, in September 2022, the U.S. Space Force unveiled a mission contract with Firefly Aerospace and Millennium Space to mount the Victus Nox mission. Also, the market is expected to achieve high growth owing to the increasing number of rising number for spaceflights.

Space launch services Market Dynamics

Driver: Increased deployment of small satellites 

Over the past few years, space companies have started production of low-cost small/miniaturized satellites, which enable them to provide services equivalent to major companies that conventionally serve government agencies or public sector industries.

One of the factors responsible for the growth of the satellite industry is the increase in the adoption of small satellites for applications such as Earth observation, communication, and scientific research and the increasing focus on reducing total mission costs.

As launch service providers decide the cost of launch based on the weight of the spacecraft, spacecraft manufacturers are focused on miniaturizing the size of satellites. Small satellites tend to cost less, especially in cases where mission payloads have fewer demanding requirements, which enables a reduction in the size of the launch vehicle and thus the fuel need. In addition, technological advancements, such as reusable launch vehicles designed by SpaceX (US), are expected to further enhance the capabilities of satellites at a significantly lower cost. As satellite launch costs decline, the number of satellite launches is expected to increase.

Restraint : Lack of dedicated launch vehicles

Small satellites are carried as secondary payloads and do not have dedicated launch vehicles. Furthermore, as secondary payloads, small satellite missions are restricted by the lack of control of the launch schedule and destination orbit of the vehicle.

This is due to constraints on the volume and pressure of the stored propellant, primarily for the protection of the primary payload, and the requirement of antenna systems for primary payloads, which may restrict the launch of small satellite payloads in more suitable or favorable mission orbits. Moreover, the primary payload may need a pre-programmed orbital velocity and be placed in a specified orbit, limiting launch windows for small satellite missions. This also limits the fulfillment of the mission requirement for small satellites in some applications.

Therefore, the potential use of small satellites in various applications is dependent on the availability of reliable launch vehicles with a requisite range of performance capabilities. However, current launch vehicle performance capabilities do not effectively span the range of potential payloads.

Opportunity: Technological upgrades in space industry

The high development cost of satellites and other spacecraft has always been a major hindrance to the growth of the space industry. Due to technologies, such as the miniaturization of satellites and payloads, manufacturers seek to leverage cost reduction while performing key operations in the value chain.

Defense domains across the globe are also seeking less expensive multifunctional spacecraft. Recoverable launch vehicles are another technology that is a major opportunity for the space industry. Such technologies have made launches easier and cheaper, driving the growth of the space launch services market.

Challenges: Scarce intellectual assets 

The tremendous success of recent space exploration missions by space agencies in the Asia Pacific, such as the Indian Space and Research Organization (ISRO) and the China National Space Administration (CNSA), can be attributed to a large number of qualified scientists and personnel with relevant key skills in the region. Critical space operations rely heavily on intellectual assets, incorporating research & development, patents, software, human resources, and new organizational structures. These assets are strategic factors in value creation for firms.

However, the expansion of the services sector, globalization, deregulation, and the emergence of new information and communication technologies has resulted in the scarcity of intellectual assets across the globe. Countries such as Morocco, South Africa, Nigeria, Somalia, Kenya, Bangladesh, Nepal, and Bhutan, among others, have scarce intellectual assets in terms of qualified personnel for space exploration programs. This has resulted in a lack of space exploration programs in these countries, limiting the growth of the space launch services market.

Some of the prominent players in the Space Launch Services Market include:

• Airbus S.A.S
• Antrix Corporation Ltd.
• China Aerospace Science, and Technology Corporation
• Lockheed Martin Corporation
• Mitsubishi Heavy Industries
• Northrop Grumman Corporation
• Rocket Lab U.S.A.
• Safran S.A.
• Space Exploration Technologies Corp.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Space Launch Services market.

By Payload

• Satellite
• Human Spaceflight
• Cargo
• Testing Probes
• Others

By Launch Platform

• Land
• Air
• Sea

By Service

• Pre-launch Services
• Post-launch Services

By Orbit 

• Low Earth Orbit
• Medium Earth Orbit
• Geosynchronous Orbit
• Polar Orbit

By Application

• Commercial
• Government
• Military

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)