Study Period | 2017 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 9.84 Billion |
Market Size (2030) | USD 15.64 Billion |
CAGR (2025 - 2030) | 9.70 % |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
Europe Space Propulsion Market Analysis
The Europe Space Propulsion Market size is estimated at 9.84 billion USD in 2025, and is expected to reach 15.64 billion USD by 2030, growing at a CAGR of 9.70% during the forecast period (2025-2030).
The European space propulsion industry has emerged as a critical sector within the broader aerospace landscape, with the space manufacturing segment alone generating EUR 7.25 billion in revenue and supporting 38,000 highly qualified jobs. The industry's strategic importance extends beyond its economic impact, enabling crucial services across telecommunications, Earth observation, and scientific research applications. European space agencies and private companies are increasingly focusing on developing sustainable and efficient spacecraft propulsion technologies, with particular emphasis on reducing environmental impact and operational costs. This transformation is evident in the growing adoption of alternative green propellants, as demonstrated by Dawn Aerospace's 2023 contract with DLR to enhance the performance of nitrous-oxide-based green propellant systems.
The industry is witnessing a significant shift in propulsion technology preferences, driven by the evolving demands of satellite manufacturers and operators. Electric propulsion systems have gained substantial traction due to their superior fuel efficiency and extended operational lifespan capabilities, enabling satellites to carry larger payloads while consuming less propellant. This technological evolution is exemplified by recent innovations, such as the July 2022 agreement between Thales Alenia Space and Italian startup MIPRONS to develop a revolutionary water-powered satellite propulsion system, marking a significant step toward more sustainable space operations.
The commercial space sector has demonstrated remarkable growth, with data showing that of the more than 570 satellites launched during the 2017-2022 period, approximately 90% were designated for commercial applications. This commercialization trend has catalyzed increased private investment and technological innovation in space propulsion systems. The industry has witnessed several strategic collaborations, including the December 2022 contract between GKN Aerospace and ArianeGroup for the supply of next-generation Ariane 6 turbine and Vulcain nozzle components, highlighting the industry's commitment to advancing propulsion capabilities.
The European space propulsion landscape is characterized by strong institutional support and international collaboration. The European Space Agency's Future Space Transportation Program plays a pivotal role in identifying and developing key launch system technologies, ensuring technological readiness through rigorous testing and validation processes. The industry's robust foundation is further evidenced by the presence of over 1,700 companies in the French space sector alone, employing approximately 33,000 people dedicated to space activities. This extensive industrial base, combined with significant government backing, positions Europe as a major player in the global spacecraft propulsion market, driving innovation and technological advancement across the sector.
Europe Space Propulsion Market Trends
Investment opportunities in the European space propulsion market is driving the demand
- European countries are recognizing the importance of various investments in the space domain. They are increasing their spending on space programs and innovation to stay competitive and innovative in the global space industry. In November 2022, ESA announced that it had proposed a 25% boost in space funding over the next three years designed to maintain Europe's lead in Earth observation, expand navigation services and remain a partner in exploration with the United States. The ESA has asked its 22 nations to support a budget of EUR 18.5 billion from 2023 to 2025. Likewise, in September 2022, the French government announced that it plans to allocate more than USD 9 billion to space activities, an increase of about 25% over the past three years.
- In November 2022, Germany announced that about EUR 2.37 billion were allocated for various space-related activities. In April 2023, Dawn Aerospace was awarded a contract to conduct a feasibility study with DLR (German Aerospace Center) to increase the performance of a nitrous-oxide-based green propellant for satellites and deep-space missions. In December 2022, the UK Space Agency announced EUR 2.7 million for 13 early-stage technology projects. European Astrotech received EUR 54,000 for a propellant loading cart (GSE) to service satellites with electric propulsion systems using xenon or krypton. SmallSpark Space Systems received EUR 76,000 for the development and maturation of SmallSpark’s dual-firing mode propulsion system, the S4-NEWT-A2, which will form part of the architecture of its S4-SLV in-space logistics vehicle and as a candidate system for upper-stage launch vehicles.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Investment opportunities in the European space propulsion market is driving the demand
Segment Analysis: PROPULSION TECH
Liquid Fuel Segment in Europe Space Propulsion Market
The liquid rocket propulsion segment dominates the European space propulsion market, commanding approximately 73% of the total market share in 2024. This significant market position is primarily driven by the segment's high efficiency, controllability, and reliability in space missions. Liquid rocket propulsion technology has become the preferred choice for various orbit classes and satellite applications due to its versatility and proven performance record. Major space agencies and commercial launch providers in Europe heavily rely on liquid fuel propulsion systems, particularly for heavy-lift vehicles and complex orbital maneuvers. The technology's ability to provide precise thrust control and restart capabilities makes it essential for both launch vehicles and satellite operations. Recent developments in sustainable and environmentally friendly liquid propellants have further strengthened this segment's market position.
Gas-Based Segment in Europe Space Propulsion Market
The gas-based propulsion segment is emerging as the fastest-growing segment in the European space propulsion market, with a projected growth rate of approximately 14% from 2024 to 2029. This remarkable growth is driven by increasing demand for cost-effective and reliable propulsion solutions, particularly in small satellite applications. The segment's expansion is further supported by technological advancements in green propellant development and the growing emphasis on environmental sustainability in space operations. European space agencies and commercial entities are increasingly investing in gas-based propulsion research and development, focusing on improving efficiency and reducing environmental impact. The technology's simplicity, reliability, and effectiveness in orbital maintenance and attitude control applications make it particularly attractive for emerging space companies and satellite manufacturers.
Remaining Segments in Propulsion Tech
The electric propulsion segment represents a significant portion of the European space propulsion market, offering unique advantages in terms of fuel efficiency and operational longevity. This technology has gained considerable traction in recent years, particularly for satellite station-keeping and orbit-raising maneuvers. Electric propulsion systems are increasingly being adopted for commercial telecommunications satellites and scientific missions, offering superior specific impulse and enabling longer mission durations. The segment continues to evolve with ongoing developments in Hall thruster and ion propulsion technologies, supported by major European aerospace manufacturers and research institutions. Additionally, advancements in plasma propulsion are contributing to the diversification of propulsion options available for various spacecraft thruster applications.
Europe Space Propulsion Market Geography Segment Analysis
Space Propulsion Market in Russia
Russia maintains its dominant position in the European space propulsion market, accounting for approximately 53% of the total market value in 2024. The country's space industry continues to expand at a remarkable pace, with projections indicating an annual growth rate of nearly 11% from 2024 to 2029. Russia's military emphasis on space capabilities has been a key driver, with over 160 satellites currently in orbit, including 100 military satellites. The country's successful development of advanced rocket propulsion technologies, particularly the Proton rocket series featuring sophisticated RD-276 engines, demonstrates its technical prowess. The focus on developing new types of radar imaging satellites and the planned expansion of the Pion-NKS spacecraft program showcases Russia's commitment to advancing its space capabilities. The country's strategic approach to outer space, including enhanced electronic warfare capabilities and improved communication systems, further strengthens its market position. Additionally, Russia's continued investment in sustainable propulsion technologies and launch vehicle development programs indicates its long-term commitment to maintaining its leadership in space propulsion.
Space Propulsion Market in United Kingdom
The United Kingdom has established itself as a significant player in the European space propulsion market through its comprehensive approach to space industry development. The British space industry has demonstrated remarkable growth, with revenues more than tripling since 2000, driven by increasing global reliance on satellites and reduced launch costs for small satellites. The country's emphasis on innovation in space propulsion is evident through its state-of-the-art testing facilities developed in partnership with the European Space Agency. The UK's strategic focus on satellite communications capabilities, particularly through the Skynet program, demonstrates its commitment to both commercial and military space applications. The nation's ambition to become a major center for satellite launches has led to significant investments in propulsion technology development. The British Space Agency's collaboration with international partners and emphasis on developing cost-effective propulsion solutions has strengthened the country's position in the global space market. Furthermore, the UK's focus on environmental sustainability in space propulsion technologies aligns with global trends toward greener space solutions.
Space Propulsion Market in France
France continues to demonstrate its commitment to space exploration and propulsion technology through substantial investments and strategic initiatives. As the largest contributor to the European Space Agency, France's leadership in space technology development is evident through its robust industrial base of over 1,700 companies dedicated to space activities. The country's emphasis on launch vehicle development and satellite technology has created a strong foundation for propulsion system innovation. French companies are at the forefront of developing sustainable satellite propulsion solutions, including water-powered satellite propulsion systems. The collaboration between French space agencies and international partners has fostered an environment conducive to technological advancement and market growth. The country's strategic focus on both commercial and military space applications has created a diverse market for propulsion technologies. Additionally, France's emphasis on research and development in electric propulsion systems and other advanced technologies positions it well for future growth in the space propulsion sector.
Space Propulsion Market in Other Countries
Beyond the major players, other European countries contribute significantly to the space propulsion market through specialized capabilities and innovative approaches. Germany, with its technical superiority and well-established aerospace industry, plays a crucial role in developing advanced propulsion technologies. The country's emphasis on private investment in satellite manufacturing and commitment to environmental sustainability in propulsion systems demonstrates its forward-thinking approach. Other European nations contribute through various collaborative programs and specialized research initiatives, creating a diverse and dynamic market environment. The interconnected nature of European space programs, facilitated by organizations like the European Space Agency, enables smaller countries to participate in and benefit from advances in propulsion technology. This collaborative approach, combined with individual national initiatives, ensures continued innovation and development in space propulsion technologies across Europe.
Europe Space Propulsion Industry Overview
Top Companies in Europe Space Propulsion Market
The European space propulsion market is characterized by significant technological advancements and strategic collaborations among key players. Companies are heavily investing in research and development to create innovative propulsion systems, particularly focusing on electric propulsion technologies and sustainable solutions like water-powered satellite propulsion. Operational agility is demonstrated through the development of versatile propulsion solutions that can serve multiple satellite sizes and mission types. Strategic partnerships between manufacturers, space agencies, and research institutions have become increasingly common to share expertise and resources. Companies are expanding their manufacturing capabilities and establishing new facilities to meet growing demand, while also focusing on developing cost-effective and environmentally friendly propulsion solutions. The industry has seen a notable trend toward developing reusable launch vehicles and advanced propulsion systems for both commercial and government applications.
Consolidated Market Led By Major Players
The European space propulsion market exhibits a highly consolidated structure dominated by established aerospace conglomerates and specialized propulsion system manufacturers. These major players possess extensive technical expertise, established relationships with space agencies, and significant research and development capabilities. The market is characterized by the presence of both global aerospace giants with diverse product portfolios and specialized companies focusing exclusively on propulsion technologies. The high barriers to entry, including substantial capital requirements and complex regulatory compliance, have contributed to maintaining the concentrated nature of the market.
The industry has witnessed strategic mergers and acquisitions aimed at expanding technological capabilities and market reach. Joint ventures between major aerospace companies have become a common strategy to combine complementary strengths and share development costs. Local players are increasingly forming partnerships with global companies to enhance their competitive position and access new technologies. The market structure is further reinforced by long-term contracts with government space agencies and commercial satellite manufacturers, creating stable relationships between suppliers and customers.
Innovation and Collaboration Drive Future Success
Success in the European spacecraft propulsion market increasingly depends on developing innovative, cost-effective solutions while maintaining high reliability standards. Incumbent companies must focus on expanding their technological capabilities through internal development and strategic partnerships, particularly in emerging areas like electric propulsion and green propellants. Market leaders need to maintain their competitive edge by offering customizable solutions for different satellite sizes and mission requirements, while also investing in manufacturing efficiency to reduce costs. Building strong relationships with both government space agencies and commercial satellite manufacturers remains crucial for maintaining market position.
For contenders seeking to gain market share, specialization in niche technologies and focusing on underserved market segments present opportunities for growth. New entrants must develop innovative solutions that address specific market needs while building credibility through partnerships with established players and space agencies. The increasing focus on environmental sustainability and cost reduction in the space industry creates opportunities for companies offering novel propulsion solutions. Success also depends on navigating complex regulatory requirements and building strong relationships with key stakeholders in the space industry ecosystem. Companies must maintain flexibility to adapt to evolving customer requirements and potential regulatory changes while maintaining high quality and reliability standards.
Europe Space Propulsion Market Leaders
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Ariane Group
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Avio
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Honeywell International Inc.
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Moog Inc.
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Safran SA
- *Disclaimer: Major Players sorted in no particular order
Europe Space Propulsion Market News
- February 2023: Thales Alenia Space has contracted with the Korea Aerospace Research Institute (KARI) to provide the integrated electric propulsion on their GEO-KOMPSAT-3 (GK3) satellite.
- December 2022: GKN Aerospace has contracted with ArianeGroup to supply the next stage of the Ariane 6 turbine and Vulcain nozzle. The contract covers the manufacturing and supply of units for the following 14 Ariane 6 launchers, which will go into production by 2025. GKN Aerospace is currently focused on industrializing and integrating novel and innovative technologies into the Ariane 6 product.
- September 2022: OHB Sweden, a subsidiary of space group OHB SE, and Atlantis, a Spanish space technology company, have signed a contract to jointly supply two microsatellites based on OHB Sweden's InnoSat platformThe satellites will carry four optical channels provided by Satlantis and will be launched in 2024.
Free With This Report
We offer a comprehensive set of global and local metrics that illustrate the fundamentals of the satellites industry. Clients can access in-depth market analysis of various satellites and launch vehicles through granular level segmental information supported by a repository of market data, trends, and expert analysis. Data and analysis on satellite launches, satellite mass, application of satellites, spending on space programs, propulsion systems, end users, etc., are available in the form of comprehensive reports as well as excel based data worksheets.
Europe Space Propulsion Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. KEY INDUSTRY TRENDS
- 4.1 Spending On Space Programs
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4.2 Regulatory Framework
- 4.2.1 France
- 4.2.2 Germany
- 4.2.3 Russia
- 4.2.4 United Kingdom
- 4.3 Value Chain & Distribution Channel Analysis
5. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2030 and analysis of growth prospects)
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5.1 Propulsion Tech
- 5.1.1 Electric
- 5.1.2 Gas based
- 5.1.3 Liquid Fuel
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5.2 Country
- 5.2.1 France
- 5.2.2 Germany
- 5.2.3 Russia
- 5.2.4 United Kingdom
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategic Moves
- 6.2 Market Share Analysis
- 6.3 Company Landscape
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6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 6.4.1 Ariane Group
- 6.4.2 Avio
- 6.4.3 Honeywell International Inc.
- 6.4.4 Moog Inc.
- 6.4.5 OHB SE
- 6.4.6 Safran SA
- 6.4.7 Sitael S.p.A.
- 6.4.8 Space Exploration Technologies Corp.
- 6.4.9 Thales
7. KEY STRATEGIC QUESTIONS FOR SATELLITE CEOS
8. APPENDIX
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8.1 Global Overview
- 8.1.1 Overview
- 8.1.2 Porter’s Five Forces Framework
- 8.1.3 Global Value Chain Analysis
- 8.1.4 Market Dynamics (DROs)
- 8.2 Sources & References
- 8.3 List of Tables & Figures
- 8.4 Primary Insights
- 8.5 Data Pack
- 8.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- SPENDING ON SPACE PROGRAMS BY COUNTRY, USD, EUROPE, 2017 - 2022
- Figure 2:
- EUROPE SPACE PROPULSION MARKET, VALUE, USD, 2017 - 2029
- Figure 3:
- VALUE OF SPACE PROPULSION MARKET BY PROPULSION TECH, USD, EUROPE, 2017 - 2029
- Figure 4:
- VALUE SHARE OF SPACE PROPULSION MARKET BY PROPULSION TECH, %, EUROPE, 2017 VS 2023 VS 2029
- Figure 5:
- VALUE OF ELECTRIC MARKET, USD, EUROPE, 2017 - 2029
- Figure 6:
- VALUE OF GAS BASED MARKET, USD, EUROPE, 2017 - 2029
- Figure 7:
- VALUE OF LIQUID FUEL MARKET, USD, EUROPE, 2017 - 2029
- Figure 8:
- VALUE OF SPACE PROPULSION MARKET BY COUNTRY, USD, EUROPE, 2017 - 2029
- Figure 9:
- VALUE SHARE OF SPACE PROPULSION MARKET BY COUNTRY, %, EUROPE, 2017 VS 2023 VS 2029
- Figure 10:
- VALUE OF SPACE PROPULSION MARKET, USD, FRANCE, 2017 - 2029
- Figure 11:
- VALUE SHARE OF SPACE PROPULSION MARKET %, FRANCE, 2017 VS 2029
- Figure 12:
- VALUE OF SPACE PROPULSION MARKET, USD, GERMANY, 2017 - 2029
- Figure 13:
- VALUE SHARE OF SPACE PROPULSION MARKET %, GERMANY, 2017 VS 2029
- Figure 14:
- VALUE OF SPACE PROPULSION MARKET, USD, RUSSIA, 2017 - 2029
- Figure 15:
- VALUE SHARE OF SPACE PROPULSION MARKET %, RUSSIA, 2017 VS 2029
- Figure 16:
- VALUE OF SPACE PROPULSION MARKET, USD, UNITED KINGDOM, 2017 - 2029
- Figure 17:
- VALUE SHARE OF SPACE PROPULSION MARKET %, UNITED KINGDOM, 2017 VS 2029
- Figure 18:
- NUMBER OF STRATEGIC MOVES OF MOST ACTIVE COMPANIES, EUROPE SPACE PROPULSION MARKET, EUROPE, 2017 - 2029
- Figure 19:
- TOTAL NUMBER OF STRATEGIC MOVES OF COMPANIES, EUROPE SPACE PROPULSION MARKET, EUROPE, 2017 - 2029
- Figure 20:
- MARKET SHARE OF EUROPE SPACE PROPULSION MARKET, %, EUROPE, 2023
Europe Space Propulsion Industry Segmentation
Electric, Gas based, Liquid Fuel are covered as segments by Propulsion Tech. France, Germany, Russia, United Kingdom are covered as segments by Country.Propulsion Tech | Electric |
Gas based | |
Liquid Fuel | |
Country | France |
Germany | |
Russia | |
United Kingdom |
Market Definition
- Application - Various applications or purposes of the satellites are classified into communication, earth observation, space observation, navigation, and others. The purposes listed are those self-reported by the satellite’s operator.
- End User - The primary users or end users of the satellite is described as civil (academic, amateur), commercial, government (meteorological, scientific, etc.), military. Satellites can be multi-use, for both commercial and military applications.
- Launch Vehicle MTOW - The launch vehicle MTOW (maximum take-off weight) means the maximum weight of the launch vehicle during take-off, including the weight of payload, equipment and fuel.
- Orbit Class - The satellite orbits are divided into three broad classes namely GEO, LEO, and MEO. Satellites in elliptical orbits have apogees and perigees that differ significantly from each other and categorized satellite orbits with eccentricity 0.14 and higher as elliptical.
- Propulsion tech - Under this segment, different types of satellite propulsion systems have been classified as electric, liquid-fuel and gas-based propulsion systems.
- Satellite Mass - Under this segment, different types of satellite propulsion systems have been classified as electric, liquid-fuel and gas-based propulsion systems.
- Satellite Subsystem - All the components and subsystems which includes propellants, buses, solar panels, other hardware of satellites are included under this segment.
Keyword | Definition |
---|---|
Attitude Control | The orientation of the satellite relative to the Earth and the sun. |
INTELSAT | The International Telecommunications Satellite Organization operates a network of satellites for international transmission. |
Geostationary Earth Orbit (GEO) | Geostationary satellites in Earth orbit 35,786 km (22,282 mi) above the equator in the same direction and at the same speed as the earth rotates on its axis, making them appear fixed in the sky. |
Low Earth Orbit (LEO) | Low Earth Orbit satellites orbit from 160-2000km above the earth, take approximately 1.5 hours for a full orbit and only cover a portion of the earth’s surface. |
Medium Earth Orbit (MEO) | MEO satellites are located above LEO and below GEO satellites and typically travel in an elliptical orbit over the North and South Pole or in an equatorial orbit. |
Very Small Aperture Terminal (VSAT) | Very Small Aperture Terminal is an antenna that is typically less than 3 meters in diameter |
CubeSat | CubeSat is a class of miniature satellites based on a form factor consisting of 10 cm cubes. CubeSats weigh no more than 2 kg per unit and typically use commercially available components for their construction and electronics. |
Small Satellite Launch Vehicles (SSLVs) | Small Satellite Launch Vehicle (SSLV) is a three-stage Launch Vehicle configured with three Solid Propulsion Stages and a liquid propulsion-based Velocity Trimming Module (VTM) as a terminal stage |
Space Mining | Asteroid mining is the hypothesis of extracting material from asteroids and other asteroids, including near-Earth objects. |
Nano Satellites | Nanosatellites are loosely defined as any satellite weighing less than 10 kilograms. |
Automatic Identification System (AIS) | Automatic identification system (AIS) is an automatic tracking system used to identify and locate ships by exchanging electronic data with other nearby ships, AIS base stations, and satellites. Satellite AIS (S-AIS) is the term used to describe when a satellite is used to detect AIS signatures. |
Reusable launch vehicles (RLVs) | Reusable launch vehicle (RLV) means a launch vehicle that is designed to return to Earth substantially intact and therefore may be launched more than one time or that contains vehicle stages that may be recovered by a launch operator for future use in the operation of a substantially similar launch vehicle. |
Apogee | The point in an elliptical satellite orbit which is farthest from the surface of the earth. Geosynchronous satellites which maintain circular orbits around the earth are first launched into highly elliptical orbits with apogees of 22,237 miles. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. For sales conversion to volume, the average selling price (ASP) is kept constant throughout the forecast period for each country, and inflation is not a part of the pricing.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.