Press release
United States Advanced Rocket and Missile Propulsion Systems Market 2025 | Growth Drivers, Key Players & Investment Opportunities
Market Size and GrowthGlobal advanced rocket and missile propulsion systems market size reached US$ 38.79 billion in 2024 and is expected to reach US$ 77.58 billion by 2032, growing with a CAGR of 9.05% during the forecast period 2025-2032.
Key Development:
United States: Recent Industry Developments
✅ In September 2025, Northrop Grumman inaugurated a state-of-the-art missile integration facility in West Virginia, backed by over $1 billion in investment. This expansion aims to enhance production capacity for critical defense systems and meet growing demand from military clients.
✅ In September 2025, Raytheon and Avio USA secured up to $26 million to accelerate the production of the Mk 104 dual-thrust rocket motor. This initiative supports Raytheon's Standard Missile franchise and strengthens the resilience of the U.S. missile supply chain.
✅ In September 2025, Firehawk Aerospace received a $4 million contract from the U.S. Air Force to advance 3D-printed rocket propulsion technology. This funding, provided through AFWERX, aims to enhance manufacturing efficiency and innovation in defense capabilities.
Japan: Recent Industry Developments
✅ In June 2025, Japan's Space Exploration Agency (JAXA) partnered with Kawasaki Heavy Industries to co-develop reusable liquid propulsion systems. This collaboration focuses on reducing lifecycle costs for missile and rocket launches, with testing phases progressing through 2026 under national defense priorities.
✅ In September 2025, a Japanese Defense Ministry panel recommended exploring the use of next-generation propulsion systems in new submarines equipped with vertical launch systems (VLS). This initiative aims to enhance Japan's defense capabilities with advanced propulsion technologies.
✅ In July 2025, Japanese startup Letara introduced solid plastic fuel for powering small satellites and rockets. This innovative fuel offers improved safety and cost-effectiveness, with plans to scale the technology for broader aerospace applications.
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Recent Mergers and Acquisitions:
United States: Recent M&A Activity
✅ In August 2025, Rocket Lab announced the acquisition of Geost, a company specializing in optical payloads. The $275 million deal will establish a new business unit called Optical Systems, focusing on scaling electro-optical and infrared sensor manufacturing to support defense applications.
✅ In July 2025, iRocket, a next-generation reusable rocket developer, announced plans to go public via a $400 million merger with BPGC Acquisition Corp. This move aims to transform the space launch industry and position the company for significant growth in the aerospace sector.
✅ In May 2025, Karman Space & Defense acquired Industrial Solid Propulsion (ISP), a leading supplier of energetic propulsion technologies for next-generation unmanned aerial systems (UAS), UAS intercept, and rocket-assisted takeoff systems. This acquisition enhances Karman's capabilities in small-diameter energetic propulsion systems, including tactical boost motors and solid rocket propellant gas generators.
Key Players:
=> Lockheed Martin Corporation, Northrop Grumman Corporation, RTX Corporation, Boeing Company, BAE Systems plc, Aerojet Rocketdyne Holdings, Inc., Safran S.A., Thales Group, General Dynamics Corporation and L3Harris Technologies, Inc.
Growth Forecast Projected:
The Global Advanced Rocket and Missile Propulsion Systems Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. In 2024, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.
Research Process:
Both primary and secondary data sources have been used in the global Advanced Rocket and Missile Propulsion Systems Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.
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Key Segments:
➥ By Propulsion Type: Solid Propulsion, Liquid Propulsion, Hybrid Propulsion
➥ By Platform: Ground-based, Airborne, Naval, Space
➥ By Component: Motor Casing, Propellant, Nozzle, Igniter, Others
➥ By Range: Short Range, Medium Range, Intermediate Range, Intercontinental Range
➥ By Application: Tactical Missiles, Ballistic Missiles, Cruise Missiles, Hypersonic Missiles, Others
Regional Analysis for Advanced Rocket and Missile Propulsion Systems Market:
⇥ North America (U.S., Canada, Mexico)
⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)
⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)
⇥ South America (Colombia, Brazil, Argentina, Rest of South America)
⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)
Benefits of the Report:
Chapter 1: Sets the stage by outlining the report's coverage, summarizing key market segments by region, product type, and application. Presents a snapshot of market sizes, growth potential across segments, and anticipated industry evolution both short and long term.
Chapter 2: Highlights pivotal market insights and uncovers the most significant emerging trends driving change within the industry.
Chapter 3: Offers an in-depth look at the competitive landscape among Advanced Rocket and Missile Propulsion Systems producers, including revenue shares, strategic moves, and recent mergers and acquisitions.
Chapter 4: Presents comprehensive profiles of the market's key players, delving into details such as revenue, profit margins, product portfolios, and company milestones.
Chapters 5 & 6: Analyze Advanced Rocket and Missile Propulsion Systems revenue at both regional and country levels, providing quantitative breakdowns of market sizes, growth opportunities, and development prospects worldwide.
Chapter 7: Focuses on different market segments by type, examining their individual sizes and potential, guiding readers toward high-impact, untapped market areas.
Chapter 8: Explores segmentation by application, evaluating industry growth potential in various downstream markets and pinpointing promising sectors for expansion.
Chapter 9: Provides a thorough review of the industry's supply chain mapping out both upstream and downstream activities.
Chapter 10: Concludes with a summary of the report's key findings and highlights the most critical takeaways for industry stakeholders.
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FAQ
What is the current size of the Advanced Rocket and Missile Propulsion Systems Market?
A: In 2024, the Advanced Rocket and Missile Propulsion Systems Market was valued at US$ 38.79 billion, reflecting its strong industry presence.
Q2: How large is the Advanced Rocket and Missile Propulsion Systems Market expected to be by 2031?
A: By 2032, industry forecasts suggest the Advanced Rocket and Missile Propulsion Systems Market will grow to around US$ 77.58 billion , demonstrating significant expansion.
Q3: What is the growth rate of the Advanced Rocket and Missile Propulsion Systems Market?
A: The market is projected to expand at a compound annual growth rate (CAGR) of 9.05% during the forecast period from 2025 to 2032.
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