The U.S. space launch services market is expected to grow steadily, with a projected compound annual growth rate (CAGR) of 12.7%. Technological advancements by both public and private entities, such as NASA, SpaceX, and Blue Origin, are driving demand for more affordable and efficient space launches. Government funding and private sector investments are also playing a key role in accelerating growth.
Informational Source:
https://www.fortunebusinessinsights.com/u-s-space-launch-services-market-107568
Latest Trends: Autonomous Spaceport Drone Ships (ASDS)
A significant innovation in this sector is the use of Autonomous Spaceport Drone Ships (ASDS). These vessels, essentially floating platforms equipped with engines, allow rockets to land on the ocean when there isn't enough fuel to return to land-based launch sites.
SpaceX has pioneered the use of these drone ships to recover the first stages of rockets, reducing costs and enabling reusable launches. This technology is expected to further enhance the efficiency of the space launch services market.
The increasing number of small satellite launches is another key factor propelling market growth. Small satellites are often sent into space as secondary payloads on larger rockets, making launches more cost-effective. However, the downside of sharing a launch with a primary payload is the limited control over launch schedules and orbits.
This is changing with new solutions. Rocket Lab’s Electron rockets and large rockets like SpaceX’s Transporter missions now cater specifically to small satellites. For instance, SpaceX’s Transporter-1 mission in 2021 set a record by launching 143 satellites in a single mission, followed by 85 payloads on Transporter-2. Custom orbit services for small satellites are also becoming more common, further boosting market demand.
Despite the growing demand, the high costs involved in infrastructure, maintenance, and operations pose a challenge. Launch services can range anywhere between $1 million to $100 million, making it difficult for new entrants to compete and survive in the market.
The U.S. space launch services market is dominated by several major players, including:
NASA also runs its Launch Services Program (LSP), which focuses on unmanned missions, such as launching satellites for Earth observation. The agency has been actively awarding contracts to private companies to increase launch capacity. For example, in September 2022, NASA awarded contracts to 13 companies under its VADR mission program, which supports rideshare and small satellite launches.