Liquid Rocket Engine Global Market Report 2026

A liquid rocket engine is a type of rocket propulsion system that uses liquid propellants, typically a fuel and an oxidizer, stored in separate tanks and delivered into a combustion chamber. There, the propellants chemically react (combust) to produce high-pressure, high-velocity exhaust gases. These gases are expelled through a nozzle, creating thrust based on Newton's third law of motion. Liquid rocket engines provide accurate thrust control, the ability to restart, and greater efficiency compared to solid rocket motors.

The primary types of liquid rocket engines include monopropellant engines, bipropellant engines, and hybrid engines. Monopropellant engines operate using a single chemical propellant, which is decomposed through a catalyst without the need for an additional oxidizer. These systems use various propellant types such as kerosene-based fuels, hydrogen-based fuels, Rocket Propellant 1 (RP-1), liquid oxygen, and hypergolic propellants. The propulsion systems can be either cryogenic or non-cryogenic. They are employed in diverse areas such as space exploration, satellite deployment, military and defense missions, space tourism, and research and development, serving a range of end-users like government space agencies, private aerospace firms, defense organizations, and academic bodies.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have affected the liquid rocket engine market by increasing costs of imported alloys, precision components, and propulsion subsystems. Aerospace exploration and defense segments are most impacted, especially in north america, europe, and asia pacific. Higher tariffs have extended development timelines and increased program costs. However, tariffs are promoting domestic manufacturing of propulsion systems and localized aerospace supply chains.

The liquid rocket engine market research report is one of a series of new reports from The Business Research Company that provides liquid rocket engine market statistics, including liquid rocket engine industry global market size, regional shares, competitors with a liquid rocket engine market share, detailed liquid rocket engine market segments, market trends and opportunities, and any further data you may need to thrive in the liquid rocket engine industry. This liquid rocket engine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The liquid rocket engine market size has grown strongly in recent years. It will grow from $3.34 billion in 2025 to $3.59 billion in 2026 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to government space programs, cold war era propulsion development, satellite launch demand, military missile programs, investment in aerospace research.

The liquid rocket engine market size is expected to see strong growth in the next few years. It will grow to $4.83 billion in 2030 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to growth of commercial spaceflight, expansion of space tourism, increasing satellite constellations, reusable launch vehicle adoption, defense modernization. Major trends in the forecast period include growing demand for reusable rocket engines, expansion of private space launch programs, increased use of cryogenic propulsion, rising adoption of green propellants, focus on high thrust efficiency.

The rising demand for satellite launches is expected to drive the growth of the liquid rocket engine market in the coming years. Satellite launches involve the deployment of artificial satellites into space using launch vehicles. The demand for satellite launches is increasing mainly due to the expanding need for earth observation, as satellites deliver essential data for climate monitoring, natural disaster management, agriculture, and urban planning. Liquid rocket engines support satellite launches by providing the high thrust and precise control necessary to place payloads into designated orbits beyond Earth's atmosphere, ensuring dependable satellite deployment for applications such as communication, earth observation, navigation, and scientific research. For instance, in May 2025, according to a report released by the Satellite Industry Association (SIA), a US-based trade association, the number of satellites operating in Earth orbit reached approximately 11,539 in 2024, representing a notable increase over previous years and highlighting the growing global demand for satellite launches. Therefore, the increasing demand for satellite launches is fueling the growth of the liquid rocket engine market.

Leading companies in the liquid rocket engine market are concentrating on developing advanced products such as storable liquid rocket engines to support rapid deployment and improve mission adaptability. These propulsion systems utilize liquid propellants that can be stored at room temperature for extended durations without deteriorating. Storable engines offer quick launch readiness, making them well-suited for defense and emergency space missions. For instance, in May 2023, Ursa Major Technologies, Inc., a U.S.-based aerospace firm, introduced Draper, a storable liquid rocket engine with 4,000 pounds of thrust designed for hypersonic defense purposes. Draper operates on a closed catalyst cycle using hydrogen peroxide and kerosene, allowing for long-term storage at ambient temperatures and immediate launch capability. This engine provides the maneuverability and adjustable throttle control required to address emerging hypersonic threats, combining the fast response of solid rocket motors with the accuracy of liquid propulsion.

In July 2023, L3Harris Technologies, Inc., a U.S.-based aerospace and defense technology company, completed the acquisition of Aerojet Rocketdyne Holdings, Inc. for an undisclosed sum. This acquisition is intended to reinforce the defense industrial base, increase competitive capacity, and speed up innovation by utilizing Aerojet Rocketdyne's specialized knowledge in propulsion and energetics. The deal supports the delivery of advanced missile defense technologies, hypersonic systems, and space launch capabilities to fulfill the mission-critical requirements of the U.S. Department of Defense and civil space agencies. Aerojet Rocketdyne Holdings, Inc. is a U.S.-based aerospace and defense company known for its development and manufacturing of liquid rocket engines.

Major companies operating in the liquid rocket engine market are Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., Safran S.A., IHI Corporation, Space Exploration Technologies Corp., Blue Origin LLC, ArianeGroup SAS, United Launch Alliance LLC, Rocket Lab USA Inc., Relativity Space Inc., Beijing Landspace Technology Corporation Ltd., Firefly Aerospace Inc., Ursa Major Technologies Inc., Avio S.p.A., Astra Space Inc., Skyrora Limited, Reaction Engines Limited, Gilmour Space Technologies Pty Ltd., China Aerospace Science and Technology Corporation (CASC), China Aerospace Science and Industry Corporation (CASIC), Indian Space Research Organisation (ISRO), Korea Aerospace Industries Ltd.

North America was the largest region in the liquid rocket engine market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the liquid rocket engine market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the liquid rocket engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The liquid rocket engine market consists of sales of liquid propulsion systems, propellant tanks, combustion chambers, turbopumps, nozzles, and related components. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Liquid Rocket Engine Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses liquid rocket engine market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for liquid rocket engine ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The liquid rocket engine market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Engine Type: Monopropellant Engines; Bipropellant Engines
• 2) By Fuel Type: Kerosene-Based Fuels; Hydrogen-Based Fuels; Hypergolic Propellants
• 3) By Propulsion System: Cryogenic; Non-Cryogenic
• 4) By Application: Aerospace Exploration; Satellite Launches; Defense And Military Applications; Space Tourism; Research And Development
• 5) By End-user: Government Space Agencies; Private Space Companies; Defense Contractors
• Subsegments:
• 1) By Monopropellant Engines: Hydrazine-Based Engines; Hydrogen Peroxide-Based Engines; Green Propellant-Based Engines
• 2) By Bipropellant Engines: Hypergolic Propellant Engines; Cryogenic Propellant Engines; Semi-Cryogenic Propellant Engines; Storable Liquid Propellant Engines
• Companies Mentioned: Northrop Grumman Corporation; Mitsubishi Heavy Industries Ltd.; Safran S.A.; IHI Corporation; Space Exploration Technologies Corp.; Blue Origin LLC; ArianeGroup SAS; United Launch Alliance LLC; Rocket Lab USA Inc.; Relativity Space Inc.; Beijing Landspace Technology Corporation Ltd.; Firefly Aerospace Inc.; Ursa Major Technologies Inc.; Avio S.p.A.; Astra Space Inc.; Skyrora Limited; Reaction Engines Limited; Gilmour Space Technologies Pty Ltd.; China Aerospace Science and Technology Corporation (CASC); China Aerospace Science and Industry Corporation (CASIC); Indian Space Research Organisation (ISRO); Korea Aerospace Industries Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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