Reusable Launch Vehicle Market Size, Share & COVID-19 Impact Analysis, By Orbit Type (Low Earth Orbit (LEO), Geosynchronous Transfer Orbit (GTO), and Others), By Payload (Upto 5,000 kg, 5,000 kg to 10,000 kg, and Over 10,000 kg), and Regional Forecast, 2023-2030

The global reusable launch vehicle market size was valued at USD 1.61 billion in 2022. The market is projected to grow from USD 1.94 billion in 2023 to USD 5.41 billion by 2030, exhibiting a CAGR of 15.77% during the forecast period.

A Reusable Launch Vehicle (RLV) is a space launch system that allows partial or full recovery stages of the rocket after delivering a satellite into orbit. An RLV’s primary goal is to lower the cost of single-stage and multi-stage satellite launches by recovering expended essential systems and components.

Currently, SpaceX is involved in designing and developing the RLV to deploy its Starlink internet satellites and other communication, navigation, and earth observation satellites. Also, Blue Origin LLC designs and develops heavy-lift reusable launch vehicles. The rockets, consisting of two-stage and three-stage reusable launch vehicles, were commercialized by the end of 2022.

COVID-19 IMPACT

Suspended Satellite Launching Programs Negatively Impacted Space Industry

The COVID-19 pandemic drastically affected the market. The impact of the pandemic was global and affected the market in 2020 and 2021. Several rocket launches were postponed to 2021 and 2022. Disruptions in the supply chain and financial markets have negatively affected small and medium-sized enterprises.

Moreover, COVID-19 impacted the space industry, due to which satellite launches were suspended or postponed. Major companies such as SpaceX, ISRO, and other space agencies are redesigning the production structure of satellites and launch vehicles. The companies are implementing safety norms for the protection of their workforce under COVID-19.

LATEST TRENDS

Development of Sea-based Launch Platforms is Anticipated to Increase the Reusability of RSLV during the Forecast Period

An Autonomous Spaceport Drone Ship (ASDS) is a barge-derived ocean-going vessel with fixed engines and a large landing platform that is autonomously piloted when at a station for landing. The construction of such ships would allow first-stage sea rescue of launch vehicles for missions that do not contain enough fuel to return to the launch site after the spacecraft has entered orbit or interplanetary orbit.

• Furthermore, in September 2021, SpaceX's newest drone vessel, A Shortfall of Gravitas (ASOG), arrived in port on Tuesday with its first catch secured to its deck. The booster, dubbed B1061 by SpaceX, launched just two days ago to carry the Dragon cargo spacecraft to NASA's International Space Station (ISS). The gigantic vessel is the latest in a trio of SpaceX drone ships designed to act as floating landing pads for the company's rockets to land on.

DRIVING FACTORS

Rising Demand for Space Applications and Satellite Constellation will Proliferate the Market Growth

Space exploration programs have gained a lot of attention. The U.S., Russia, China, India, and others have dominated the global space launch vehicle industry by proving their space capabilities. Expanding space R&D initiatives have also fueled the global spacecraft market expansion.

• In December 2020, AgniKul Cosmos Private Limited, based in Chennai, became the first space start-up to finalize a deal with the Indian Space Research Organization (ISRO) to use the space agency's knowledge and facilities to develop its rocket. The company is set to launch India’s first fully 3D printed cryogenic rocket engine by 2022.

Furthermore, growing partnerships among space institutions across the globe for incorporating technology and making investments are boosting the global market for space missions, which is anticipated to propel the reusable launch vehicle market growth. The increase in space exploration missions is due to increased government spending or space budget.

Investments in Reusable Technology Development by Private Sector will Boost the Market

Government investment, usually in R&D and start-ups, is considered a way to address social impacts while also facilitating independence from imports, with the goal of eventually becoming a global provider of solutions in a variety of fields, including space. Many governments also acknowledge that their venture sectors are not as developed as those in the U.S., and thus do not receive as much Venture Capital (VC) funding.

• Furthermore, the European Space Agency (ESA) announced an investment of roughly USD 33 million in Hall Effect Thruster (HET) propulsion technology and other business incubators for developing reusable launch vehicles.

RESTRAINING FACTORS

Rising International Conflicts to Affect Country-specific Launch Contracts

Russia’s invasion of Ukraine triggered a space war, with satellites providing internet and intelligence and long-standing international relations in space rapidly changing. Russia’s space agency partners have reacted negatively to the invasion of Europe.

Furthermore, over the next three years, member states of the European Space Agency (ESA) approved a record-breaking budget of nearly USD 17.9 billion to help the ExoMars Rosalind Franklin rover, whose mission was last delayed in February 2022 by Russia's invasion of Ukraine.

• In August 2022, the U.S. State Department and NASA have fronted the Artemis Accords also known as a non-binding declaration of principles and rules grounded in the 1967 Outer Space Treaty. This amendment is to safeguard safe and clear civil space exploration, and endorse “peaceful cooperation in space exploration and scientific endeavors”.

SEGMENTATION

By Orbit Type Analysis

LEO Segment to Dominate due to Increase in Space Exploration Programs for Low Earth Orbit (LEO) 

By orbit type, the market is divided into Geosynchronous Transfer Orbit (GTO), Low Earth Orbit (LEO), and others. Due to increasing deployment of small satellites and earth observation satellites in the orbit, the LEO segment accounted for a greater proportion of the market in 2019, with 62.33%. It is also expected to be a quickly developing segment during the forecast period. In the next five years, SpaceX Starlink plans to deploy 12,000 broadband satellites into low earth orbit.

The GTO segment is projected to witness significant growth during the forecast period. The growth in the segment is due to the increase in space exploration programs targeting GTO orbit. For instance, in November 2022, Exotrail and Isar Aerospace signed multiple launch service contracts. Isar Aerospace's launch vehicle, Spectrum, will serve as Exotrail's spacevan for multiple launches into LEO and Geostationary Moving Orbit (GTO) from Isar Aerospace's Andoya, Norway Site, and French Guiana between 2024 and 2029. This launch pad combination gives Isar Aerospace access to all orbits.

By Payload Analysis

Over 10,000 kg Segment Dominated the Market in 2021 Owing to Rising Deployment in Heavy Payload Rocket

Based on payload, the market is classified into upto 5,000 kg, 5,000 to 10,000 kg, and over 10,000 kg. Due to increased deployment of heavy payload rockets and large number of space programs by SpaceX and other agencies, the over 10,000 kg segment will dominate the market. Moreover, increase in investment activities by the key players acts as a catalyst to boost the market growth.

The upto 5,000 kg segment is anticipated to witness significant growth owing to the rising deployment of small satellites in low earth orbit. Small satellites are deployed for telecommunication satellites, navigation satellites, and earth observation satellites in low earth orbit.

The 5,000 kg to 10,000 kg segment is anticipated to be a rapidly-growing segment due to high investments by space agencies and the private sector in space exploration activities. Furthermore, the increased launch of Falcon 9 and Falcon Heavy is anticipated to boost the segmental growth.

REGIONAL INSIGHTS

Geographically, the global market is divided into Europe, North America, Asia Pacific, the Middle East, and the Rest of the World.

North America is expected to dominate the reusable launch vehicle market share with a valuation of USD 0.98 billion in 2022. The increase is due to the government’s budget allocation for space exploration activities and rise in various space missions.

• Furthermore, the United States Congress allocated USD 23 billion to NASA for various space missions and activities in fiscal year 2021. In addition, the presence of key market players such Moog Inc. (U.S), Ball Corporation (U.S.), Busek Co. Inc. (U.S.), Cobham Limited (U.S.), Blue Origin (U.S.), and SpaceX (U.S.) drives the market growth. 

Asia Pacific is anticipated to witness significant growth during the forecast period. The growth is attributed to the growing space industry in the Asia Pacific region, growing economy along with significant increase in space missions from South Korea, China, India, and others. ISRO, for example, has been developing and testing key technologies via technology demonstrations such as the Reusable Launch Vehicle Technology Demonstrator (RLV TD). The RLV TD is a hybrid vehicle that stacks airplane and launch vehicle technology on top of each other to obtain a Two Stage To Orbit (TSTO) capability.

Europe is expected to register significant growth in the market during 2023-2030. The growth in the region is owing to increase in demand for technological advancements and rise in contracts with the European Space Agency (ESA).

• Furthermore, in October 2020, the ESA granted a contract to develop the world’s first iodine electric propulsion system.

In the rest of the world, this market will witness moderate growth due to government expenditure, demand for advancement in space technology. Moreover, demand for satellite networks and services has increased for both commercial and defense uses. As a result, there has been an increase in satellite launches for military surveillance, communication, navigation, earth observation, and scientific research, resulting in a parallel need for reusable satellite launch vehicles to reduce launch costs.

KEY INDUSTRY PLAYERS

Key Players Focus on Developing Reusable Launch Vehicle Systems that are Cost-effective

Major players are focused on the development of reusable launch vehicle systems that are advanced and cost-effective. To simplify the process, several OEMs are developing technologically advanced hardware and software systems. Additionally, companies are constantly trying to establish partnerships with preeminent firms from emerging and developed countries.

LIST OF KEY COMPANIES PROFILED:

• ArianeGroup (France)


• Blue Origin LLC (U.S.)


• Lockheed Martin Corporation (U.S.)


• National Aeronautics and Space Administration (NASA) (U.S.)


• Rocket Labs USA (U.S.)


• Space Exploration Technologies Corp. (SpaceX) (U.S.)


• The Boeing Company (U.S.)


• The Spaceship Company (U.S.)


• United Launch Alliance (ULA) (U. S.)


• European Space Agency (France)


• Indian Space Research Organisation (India)


• Israel Space Agency (Israel)


• Italian Space Agency (Italy)  

KEY INDUSTRY DEVELOPMENTS:

• In May 2022-The U.K.-based rocket company Orbex unveiled an eco-friendly rocket prototype for small satellites. The reusable Prime Rocket is the first micro launcher developed in Europe. The company announced that it is gearing up for the rocket's maiden flight in a few months.


• In October 2021- Accurus Aerospace Wichita, C.E. Machine Company Inc, Harlow Aerostructures LLC, and Orizon Aerostructures, LLC, all of which are based in the Greater Wichita area, have signed multi-year contracts with Blue Origin. Blue Origin's engine development, as well as New Glenn, a reusable heavy-lift orbital launch vehicle designed to accommodate commercial, civil, and national security space missions, will be supported by these contracts.


• In September 2021- The Indian Space Research Organization (ISRO) announced that it is working on a technology that would allow a GSLV Mk-III rocket to land vertically and recover the first and second stages. This would allow the space agency to reuse GSLV Mk-III, saving money.


• In July 2021- iRocket signed a space act agreement worth USD 50 million with NASA marshal space flight center for providing testing and engineering for Reusable Launch Vehicle (RLV).


• In May 2021- Sener Aeroespacial signed a contract with Thales Alenia Space Italia for the development of a reusable unmanned orbital spacecraft, a continuation of the Intermediate eXperimental Vehicle (IXV).

REPORT COVERAGE

The research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, types, and leading applications of the market. Besides this, it offers insights into the market trends and highlights key industry developments of a reusable rocket launches. Moreover, it encompasses various key factors that have contributed to the market growth in recent years.

Report Scope & Segmentation