North America Advanced Rocket and Missile Propulsion Systems Market

North America Advanced Rocket and Missile Propulsion Systems Market

Focus on Propulsion Type, Application, and Component, and Country Analysis Analysis and Forecast: 2020-2025

December 2020

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North America Advanced Rocket and Missile Propulsion Systems Market

Executive Summary

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North America Advanced Rocket and Missile Propulsion Systems Market

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Executive Summary The North America advanced rocket and missile propulsion system industry is in the process of constant evolution, with various technological developments taking place in the industry that have enhanced efficiency and features to make the launch of rockets and missiles successful with low operational cost.

The space sector has been experienced several developments since the past years such as cost-effective reusable rockets, increasing private investments by emerging players in the industry, and increasing need for better communication and connectivity. The rocket and missile propulsion system market, which was an exclusive domain of the U.S. and Russia, is now accessible to the other nations as well, in which, companies from the U.S., Europe, China, India, Russia and Japan, among others compete. In 2019, China, the U.S. and Russia were the dominant countries that made close to 83 rocket launches, wherein propulsion systems were provided by companies such as China Aerospace Science and Technology Corporation (CASTC), SpaceX, NPO Energomash (Glushko), and Aerojet Rocketdyne. However, new companies are entering the propulsion system industry. For instance, in June 2020, Accion System signed a cooperative research development agreement with the U.S. Air Force for the development of electrospray thrusters and the Tiled Ionic Liquid Electrospray (TILE) propulsion system for deploying small satellite. Furthermore, in 2019, SpaceX tested Raptor engine for the first time, with methane and liquid oxygen as a propellant. This engine is currently under

Apart from this, space agencies are also focused on developing more efficient and less toxic propulsion systems. For instance, in October 2019, NASA awarded contract worth $43.2 million to 14 companies including Blue Origin, Space X, OxEon Energy, Skyre, SpaceX, Infinity Fuel Cell, Paragon Space, Tallann Quest, Accion System, CU Aerospace, ExoTerra, Blue Canyon Technologies, Astrobotic Technology, Intuitive Machines, and Luna Innovations among others, for developing advance propulsion system, satellite, avionics and cryogenic propellant. Such developments are expected to provide impetus to the North America rocket and missile propulsion system market over the coming years.

F igu r e 1:

Roc k et La u nc h es f ro m 2 0 15 - 20 1 9

Number of Rocket Launches

105

102

100

97

95 90

91 87

85

85 80 75 2015

2016

2017

Source: Space Launch Report and BIS Research Analysis

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2018

2019

North America Advanced Rocket and Missile Propulsion Systems Market

development and will be used for SpaceX’s private moon mission.

The growth in the launch vehicle industry is expected to drive the rocket propulsion systems market during the forecast period. The emerging companies in the small launch vehicle market are developing their proprietary propulsion systems. For instance, in March 2018, Firefly Aerospace demonstrated the Lightning 1 engine for the propulsion of the second stage of the Firefly alpha launch vehicle. Moreover, research and development of engines is expected to remain prominently active across the launch vehicle industry in the coming years.

The major driving forces behind the growth of North America advance rocket and missile propulsion system market is modernization of missiles and missile defense systems and development of hypersonic weapons.

Moreover, upgradation and development programs of offensive and defensive missile and rockets are largely attributed to the increase in demand for North America advanced propulsion systems and associated investments.

F igu r e 2:

N ort h A m eric a A dv a n c e d R oc k et a n d Mis s i le Pr op uls i o n S ys t e m s Mar k e t, $ Milli o n, 20 1 9- 2 02 5

North America Advanced Rocket and Missile Propulsion Systems Market 4,000.0

3,700.9 3,489.8

3,500.0

Revenue ($Million)

3,000.0

2,856.6 2,670.8

2,645.5

2019

2020

2,500.0 2,000.0 1,500.0 1,000.0 500.0 0.0 2021

2022

2023

2024

2025

Source: Expert Interviews and BIS Research Analysis

In 2019, the North America advanced rocket and missile propulsion system market was valued at $2,670.8 million and is expected to reach $3,700.9 million by 2025, growing at a CAGR of 6.94% during the forecast period, 2020-2025. One of the factors attributing to this growth is the demand for propulsion systems accelerated with the growing U.S. defense budget for missile and ballistic missile defense programs.

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North America Advanced Rocket and Missile Propulsion Systems Market

3,278.7 3,067.7

Missile Segment Dominates the North America Advanced Rocket and Missile Propulsion Systems Market Missile segment dominates the North America advanced rocket and missile propulsion systems market during the forecast period, 2020-2025. One of the factors attributing to the growth of this due to large stockpile of cruise missiles, ballistic missiles, and ballistic missiles across the globe. Moreover, this number is increasing year on year as the global tension rises. The development of airbreathing propulsion engine for hypersonic flights is expected to further drive the advanced rocket and missile propulsion systems market in future.

F igu r e 3:

N ort h A m eric a A dv a n c e d R oc k et a n d Mis s i le Pr op uls i o n S ys t e m Mar k e t (by Ap plic a tio n ) , $M il lio n, 2 01 9 -2 02 5 1,800.0 1,600.0

1,200.0 1,000.0 800.0 600.0 400.0 200.0 -

Space Launch Vehicle Missiles Rockets

2019 503.1 1,296.0 871.6

2020 458.6 1,260.0 926.8

2021 517.3 1,352.1 987.2

2022 579.2 1,442.9 1,045.6

2023 644.4 1,532.5 1,101.9

2024 712.8 1,620.8 1,156.2

2025 784.4 1,707.9 1,208.6

Source: Expert Interviews and BIS Research Analysis

The space launch vehicle segment dominates the market after missiles segment in North America advanced rocket and missile propulsion systems market in 2019. This is mainly due to the increasing number of satellites launches for defense and communication application.

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North America Advanced Rocket and Missile Propulsion Systems Market

Revenue ($Million)

1,400.0

Solid Propulsion Rocket Motor Segment Dominates the North America Advanced Rocket and Missile Propulsion Systems Market Solid propulsion rocket motor segment dominates the North America advanced rocket and missile propulsion systems market due to its utilization in missiles, rocket, and some space launch vehicles. However, growth rate of airbreathing propulsion engine, hybrid propulsion engine and liquid propulsion engine is expected to be faster than solid propulsion engine.

F igu r e 4:

N ort h A m eric a A dv a n c e d R oc k et a n d Mis s i le Pr op uls i o n S ys t e m Mar k e t (by Pr op uls i o n T yp e ) , $ Milli o n, 2 01 9 - 2 02 5 4,000.0 3,500.0

$Million

3,000.0 2,500.0 2,000.0 1,500.0 1,000.0

0.0 Airbreathing Propulsion Engine Hybrid Propulsion Engine Liquid Propulsion Engine Solid Propulsion Rocket Motor

2019 64.5 412.2 2,194.0

2020 12.2 151.5 295.8 2,186.0

2021 35.2 169.0 308.6 2,343.8

2022 61.4 187.3 319.8 2,499.1

2023 91.0 206.4 329.4 2,652.0

2024 123.7 226.3 337.4 2,802.4

2025 159.8 246.9 343.8 2,950.4

Source: Expert Interviews and BIS Research Analysis

U.S.: The Frontrunner in North America Advanced Rocket and Missile Propulsion System Market The North America rocket and missile propulsion system market has witnessed different market dynamics across U.S. and Canada. U.S. is expected to grow at a CAGR of 6.96% during the forecast period 2020-2025.

The growth of the country is mainly driven key manufacturers of advanced rocket and missile propulsion systems present and operating in the U.S. such as Aerojet Rocketdyne, Northrop Grumman Corporation, SpaceX, Blue Origin.

In addition to this, the increasing defense budget for defensive and offensive missile systems generates significant demand for rocket and missile propulsion systems. Additionally, emerging satellite manufacturing companies such as SpaceX, Blue Origin, Planet Labs Inc., Virgin Galactic, and Orbital Sciences Corporation in the country are developing cost-effective satellites.

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North America Advanced Rocket and Missile Propulsion Systems Market

500.0

F igu r e 5:

N ort h A m eric a A dv a n c e d R oc k et a n d Mis s i le Pr op uls i o n S ys t e m s Mar k e t (by C o u ntr y ) , $ Milli o n, 2 0 19

Canada Total Market: $49.1 Million

Source: Expert Interviews and BIS Research Analysis

U.S. currently dominates the North America advanced rocket and missile propulsion system market with a share of 98.16% as of 2019. Its total market is estimated to be $2,621.7 million in 2019 and is projected to reach $3,631.6 million by 2025, registering a CAGR of 6.96% during the forecast period 2020-2025.

Competitive Landscape The North America advanced rocket and missile propulsion system market is one of the most competitive industries with the leading players actively competing against each other to gain a greater share in the industry.

The key players that are actively participating in the North America advanced rocket and missile propulsion systems market include Aerojet Rocketdyne, Space Exploration Technologies Corp. (SpaceX), Northrop Grumman Corporation, Lockheed Martin Corporation, Moog Inc., and Blue Origin.

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North America Advanced Rocket and Missile Propulsion Systems Market

U.S. Total Market: $2,621.7 Million

The prominent players in the North America advanced rocket and missile propulsion system market adopted product launches, acquisitions, partnerships and collaborations, contracts, and other strategies to expand their business. The companies are also involved in some of the other developments that include demonstrations, and business expansions. Due to the intensive competition, the North America advanced rocket and missile propulsion systems industry requires manufacturers to constantly innovate and develop cost-effective

North America Advanced Rocket and Missile Propulsion Systems Market

products.

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North America Advanced Rocket and Missile Propulsion Systems Market

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