Satellite Launch Vehicle Market

Increase in Defence Expenditure is driving the market growth.

The Defence and government segment has the highest Market CAGR. Armed forces worldwide have been strengthening their satellite networks to perform more efficient intelligence, surveillance, and reconnaissance (ISR) missions that essentially need secure and robust communication channels accessible from anywhere by the forces. The armed forces demand more data bandwidth and reliable communication infrastructure to meet the growing requirements for large-scale data transfer. The development of tactical communication systems, tactical data links, modern network-centric battle force capabilities, and advanced SATCOMs are significant applications of military communication satellites.

Improved use of SATCOM may simplify the integration of C4ISR, thus enabling the better use of UAVs and more advanced administrative, support, and personal welfare services. In this regard, several countries emphasize launching communications satellites for better data transfer capabilities. For instance, in November 2021, three CERES satellites were launched onboard the Vega rocket. The military signals intelligence satellite was developed for the French armed forces with Airbus as the prime contractor and Thales in charge of the payload, user ground segment, and satellite platform. The satellite was developed for Signals Intelligence (SIGINT) applications.

The launches of satellites, especially smaller ones, are being done on a large scale by universities, colleges, and even high school students. With governments and various foundations currently funding research in civil satellites, the constant growth of this segment is expected during the forecast period. As part of NASA’s CubeSat Launch Initiative, which provides opportunities for small satellite payloads built by universities, high schools, and non-profit organizations to fly on upcoming launches, NASA provides these CubeSat developers a low-cost pathway to conduct scientific investigations and technology demonstrations in space.

This enables students, teachers, and faculty to obtain hands-on flight hardware development experience. Such developments are expected to drive the Satellite Launch Vehicle market revenue.

Additionally, the small satellite launches market issues are looked at by organizations in the market development. The absence of a talented labor force and protection from flexibility toward new advancements is another element that hampers market development.

The Global Satellite Launch Vehicle Market Industry is projected to experience substantial growth, with estimates indicating a market size of 75.5 USD Billion by 2035. This growth is underpinned by a compound annual growth rate of 11.89% from 2025 to 2035, reflecting the increasing investments in satellite technology and launch capabilities. The expansion of commercial space activities, coupled with government initiatives, is likely to drive demand for satellite launches. As the industry evolves, the integration of advanced technologies and the emergence of new players are expected to reshape the competitive landscape, contributing to a dynamic market environment.

Government initiatives play a crucial role in the Global Satellite Launch Vehicle Market Industry, as many countries are prioritizing space exploration and satellite deployment. National space agencies, such as NASA and ESA, are increasing their budgets to support satellite missions and launch capabilities. Additionally, public-private partnerships are emerging, allowing for shared investments in satellite technology. These initiatives not only bolster national security and scientific research but also stimulate economic growth through job creation in the aerospace sector. The anticipated growth in government funding is likely to further enhance the market's expansion, with projections indicating a market size of 75.5 USD Billion by 2035.

The rise of commercial space activities is a significant driver of the Global Satellite Launch Vehicle Market Industry. Private companies are increasingly engaging in satellite launches, driven by the demand for commercial satellite services, including telecommunications and Earth observation. This trend is exemplified by the growing number of small satellite launches, which cater to diverse applications such as remote sensing and data analytics. The competitive landscape is evolving, with new players entering the market, thereby increasing launch options and reducing costs. This dynamic environment is expected to foster innovation and contribute to the overall growth of the industry.

Global space exploration initiatives are fostering growth within the Global Satellite Launch Vehicle Market Industry. Countries are investing in ambitious space programs aimed at exploring celestial bodies and conducting scientific research. Missions to the Moon, Mars, and beyond are driving the need for advanced launch vehicles capable of carrying heavier payloads. Collaborative efforts, such as the Artemis program, highlight the importance of international partnerships in achieving these goals. As nations strive to establish a presence in space, the demand for reliable and efficient launch vehicles is likely to increase, further propelling market growth.

The Global Satellite Launch Vehicle Market Industry is experiencing a surge in demand for satellite services, driven by the growing need for communication, navigation, and Earth observation. As of 2024, the market is valued at approximately 21.9 USD Billion, reflecting the increasing reliance on satellite technology across various sectors. The proliferation of Internet of Things devices and the expansion of 5G networks are further propelling this demand. Governments and private entities are investing heavily in satellite infrastructure to enhance connectivity and data collection capabilities, indicating a robust growth trajectory for the industry.

Technological innovations in launch vehicles are significantly shaping the Global Satellite Launch Vehicle Market Industry. The development of reusable rocket technology, exemplified by companies like SpaceX, has the potential to reduce launch costs and increase launch frequency. This advancement not only makes satellite deployment more economical but also encourages new entrants into the market. As the industry evolves, the integration of artificial intelligence and automation in launch operations is likely to enhance efficiency and reliability. Such technological progress is expected to attract investments and stimulate growth, contributing to the projected CAGR of 11.89% from 2025 to 2035.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Satellite Launch Vehicle market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The satellite launch vehicle industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the satellite launch vehicle industry to benefit clients and increase the market sector. In recent years, the satellite launch vehicle industry has offered some of the most significant advantages to defense. Major players in the satellite launch vehicle market, including Space Exploration Technologies Corporation (US), Eurockot Launch Services GmbH (Germany), Bristol Airspace (UK), Kelly Space & Technology Inc. (US), Virgin Orbit (US), E-Prime Aerospace (US), Scaled Composites LLC (US) and others, are attempting to increase market demand by investing in research and development operations.

Orbital Express Launch Ltd., or Orbex, is a United Kingdom-based aerospace company developing a small commercial orbital rocket called Prime. Orbex is headquartered in Forres, Moray, Scotland, and has subsidiaries in Denmark and Germany. The U.K.-based rocket firm Orbex unveiled a prototype of its environmentally friendly small-satellite launching rocket. The reusable Prime rocket is the first micro-launcher developed in Europe. The company announced that it is preparing for the rocket's debut flight in a few months.

Northrop Grumman Corporation is an American multinational aerospace and defense technology company. With 90,000 employees and annual revenue of over $30 billion, it is one of the world's largest weapons manufacturers and military technology providers. Northrop Grumman Corporation's expertise brings technology solutions to life in autonomous systems, cyber, C4ISR, strike, space, and logistics and modernization for our customers around the globe. Northrop Grumman Corporation delivered the ESPAStar-D spacecraft bus to L3Harris Technologies. The platform supports the Navigation Technology Satellite-3 (NTS-3) mission for the Air Force Research Laboratory, which is scheduled to be launched from Cape Canaveral in 2022.