https://www.fortunebusinessinsights.com/satellite-launch-vehicle-market-111955

Satellite Launch Vehicle Market Insights,
Trends, Size, Share, Forecast 2025–2032
According to Fortune Business Insights™, the global satellite launch vehicle market was
valued at USD 426.54 billion in 2024 and is projected to grow from USD 442.33 billion in
2025 to USD 571.83 billion by 2032, exhibiting a CAGR of 3.7% during the forecast period.
The market expansion is fueled by the rising demand for satellite deployments in
commercial, military, and civil applications, alongside advancements in reusable launch
technologies, miniaturized satellite designs, and AI integration.
The demand for satellite launch vehicles is accelerating due to the increasing role of
satellites in communication, navigation, Earth observation, weather forecasting, and
defense. Modernization of platforms, digital transformation, and ongoing innovations are
reshaping the market landscape. For instance, in November 2024, Boeing delivered two
additional O3b mPOWER satellites for SES, showcasing advanced software-controlled
payload technology for flexible bandwidth allocation.

Key Companies Profiled
 Airbus S.A.S (Netherlands)
 Arianespace (France)
 The Boeing Company (U.S.)
 Rocket Lab (U.S.)
 Mitsubishi Heavy Industries, Ltd. (Japan)
 Northrop Grumman (U.S.)

https://www.fortunebusinessinsights.com/satellite-launch-vehicle-market-111955

 Lockheed Martin Corporation (U.S.)
 Blue Origin Enterprises, L.P. (U.S.)
 SpaceX (U.S.)

ISRO (India)
Major players such as SpaceX, United Launch Alliance, ISRO, NASA, and CASC are
contributing significantly to market growth through technological advancements and
increasing satellite launch frequency.
Information Source:
https://www.fortunebusinessinsights.com/satellite-launch-vehicle-market-111955
Market Segmentation
By Vehicle Technology
 Conventional Vehicle: Accounted for the largest market share in 2024, supported by
technological upgrades and government investments.
 Reusable Launch Vehicle (RLV): Expected to be the fastest-growing segment (2025–
2032). Reusable launch technologies reduce costs and enhance mission flexibility.
For instance, in September 2024, ISRO approved the development of its Next
Generation Launch Vehicle (NGLV), designed for reusability and heavier payloads.
By Orbit Type
 Low Earth Orbit (LEO): Fastest-growing segment, driven by demand for low-latency
and cost-effective communications. For example, Geespace launched 10 LEO
satellites in September 2024 to expand its mega-constellation.
 Geostationary Orbit (GEO): Second-fastest growing segment, driven by
communication services and government initiatives.
 Medium Earth Orbit (MEO): Stable demand for navigation and positioning services.
By Payload Capacity
 Less than 1000 kg: Fastest-growing segment due to rising adoption of CubeSats and
small satellites for military, communication, and research. In April 2024, SAIC and
GomSpace collaborated to develop an AI-powered small satellite.
 1000 kg to 2500 kg: Second fastest-growing, fueled by medium-size satellite
launches.
 More than 2500 kg: Stable demand for large payload launches.
By Component
 Propulsion System: Fastest-growing segment, with innovations in green propulsion
and electric systems. For example, in September 2024, Benchmark Space Systems
received USD 4.9 million to develop ASCENT monopropellant propulsion systems.
 Avionics: Second fastest-growing segment, as advanced GPS and navigation systems
enhance mission reliability.
 Other components include structure, payload, and guidance systems.
By End User
 Military: Fastest-growing segment, driven by satellite investments for defense,
surveillance, and secure communication. India announced USD 3 billion investment
in space defense programs in March 2024.
 Commercial: Largest share in 2024, supported by growing satellite services for
communication and broadband.
 Civil & Government: Ongoing investments in space exploration and scientific
research.
Market Dynamics
Drivers
The satellite launch vehicle market is primarily driven by the rising demand for
communication, Earth observation, and scientific satellites, which continues to fuel the need
for reliable launch services. The rapid growth of small satellite and CubeSat missions is
further accelerating this demand, as these platforms require cost-effective and flexible
launch solutions. Increasing private sector participation, led by companies such as SpaceX
and Rocket Lab, is transforming the industry with innovative reusable rocket technologies
and reduced launch costs. Additionally, government space initiatives and higher defense
spending are strengthening the global market, with national space agencies focusing on
independent launch capabilities and strategic space programs.
Restraints
Despite strong growth prospects, the market faces several restraints. High research and
development costs represent a significant challenge, particularly for smaller players
attempting to compete with established providers. Engineering and refurbishment issues
linked to reusable launch vehicles add further complexity and raise operational risks.
Moreover, the risk of launch failures poses both financial and reputational setbacks for
companies. Another restraint is the supply-demand imbalance caused by overcapacity in
certain regions, which can limit profitability and disrupt launch schedules.
Opportunities
On the other hand, the industry is witnessing emerging opportunities that could redefine its
trajectory. The integration of artificial intelligence in mission planning and space debris
management has the potential to enhance safety, efficiency, and operational reliability.
Advancements in additive manufacturing, particularly 3D printing, are enabling cost-
efficient and rapid production of components, reducing overall development cycles. The
growing adoption of sustainable practices such as green propulsion systems and recyclable
materials reflects the industry’s commitment to environmentally responsible operations.
Furthermore, the expansion of the small satellite and CubeSat markets offers consistent
opportunities for dedicated and rideshare launches.
Challenges
Nevertheless, the market continues to grapple with several challenges. Limited payload
capacities restrict the competitiveness of some systems compared to next-generation
heavy-lift vehicles. While reusability has become a major focus, the high costs and technical
difficulties associated with it remain barriers to widespread adoption. Demand forecasting
also poses a challenge due to longer satellite lifespans and changing mission requirements.
Additionally, overcapacity issues, particularly evident in regions such as India with ISRO’s
current infrastructure, can lead to inefficiencies and delays, further complicating market
growth.
Market Trends
 Advanced Propulsion Technologies: Increasing shift toward eco-friendly fuels such
as green propellants. For example, Bellatrix Aerospace tested its non-toxic Rudra
propulsion system in January 2024.
 AI and Automation: Enhancing efficiency in launch planning, trajectory optimization,
and payload integration. In September 2024, Proteus Space announced plans to
launch the first AI-designed ESPA-class satellite in 2025.
Regional Insights
North America: Largest market share (USD 145.83 billion in 2024). Driven by U.S. defense
spending, NASA investments, and strong private sector involvement.

Asia Pacific: Fastest-growing region. Countries like China, India, and Japan are advancing
national security initiatives and fostering private space startups. For example, India
launched RHUMI 1, a reusable hybrid rocket, in August 2024.

Europe: Second-fastest growing region. ESA expanding investment in commercial-led launch
services.

Middle East & Africa: Moderate growth with new programs from UAE, Saudi Arabia, and
Israel. Yahsat selected SpaceX for satellite launches in July 2024.

Latin America: Growth led by Brazil, Argentina, and Colombia through new partnerships,
such as Brazil’s 2024 agreement with China’s National Data Administration and SpaceSail.
Recent Developments
 November 2024: Rocket Lab USA signed a multi-launch contract for its Neutron
medium-lift rocket with a commercial satellite operator.
 November 2024: ESA and ArianeGroup signed contract addendums worth USD
232.47 million to advance Prometheus engine testing and reusable rocket
demonstrator Themis.