Electric Propulsion Satellites Market to Reach US$ 95.23 Billion by 2031 | CAGR 11.77% | Key Players: Accion Systems, Ad Astra Rocket, L3Harris Technologies, Safran Group, Airbus, ArianeGroup, Boeing, Lockheed Martin

Market Overview

The global electric propulsion satellites market reached US$ 39.10 billion in 2023 and is projected to reach US$ 95.23 billion by 2031, growing at a CAGR of 11.77% during the forecast period 2024-2031. Market growth is driven by the increasing demand for cost-effective, fuel-efficient, and high-performance satellite propulsion systems. Electric propulsion enables satellites to use electric thrust instead of conventional chemical propulsion, extending operational lifetimes, optimizing fuel consumption, and reducing launch costs.

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The market is further fueled by the rising deployment of satellites for earth observation, communications, and other applications. The emergence of small satellite constellations and CubeSats is transforming the industry. CubeSats compact, low-cost satellites are increasingly used for remote sensing, scientific research, and communications. According to forecasts, 2080 nanosatellites are expected to be launched between 2022 and 2027, highlighting the expanding opportunities for electric propulsion solutions in small satellite platforms.

Recent Key Developments:

✅ 2025: Indian Space Research Organisation (ISRO) successfully completed a 1,000‐hour life test of a 300 mN xenon-based stationary plasma thruster for satellite electric propulsion, validating its readiness for future fully electric satellites.

✅ 2025: Magdrive Ltd, a UK electric plasma propulsion startup, conducted its first in-orbit plasma thruster tests aboard a rideshare mission, demonstrating real-world performance of compact electric propulsion systems for small satellites.

✅ 2025: Several next-generation Hall thruster models and enhanced ion propulsion units entered qualification phases, improving performance for both large GEO satellites and small CubeSats.

✅ November 2024: ThrustMe and Airbus Defence and Space initiated the IPISC project, exploring cost-effective iodine-based propulsion as an alternative to traditional xenon systems for future satellite missions.

✅ August 2024: Safran established a new electric propulsion manufacturing facility in the United States, aimed at accelerating production of its EPS®X00 electric thruster systems for small satellite customers.

✅ 2024-2025: Research and demonstrations continued with advancements in high-power Hall effect thrusters, micro-thrusters for CubeSats, and AI-assisted propulsion monitoring technologies, reflecting ongoing innovation in the electric propulsion segment.

Key Players:
Accion Systems, Ad Astra Rocket, L3Harris Technologies, Inc., Safran Group, Airbus, ArianeGroup, Boeing, Lockheed Martin and Northrop Grumman and Thales.

Accion Systems - Develops advanced electrospray and ion propulsion systems for small satellites and CubeSats, focusing on high-efficiency, low-mass solutions.

Ad Astra Rocket - Specializes in plasma propulsion technology for space vehicles, including the VASIMR® engine for orbital maneuvers and satellite propulsion.

L3Harris Technologies, Inc. - Offers electric propulsion solutions integrated with satellite platforms for communication, earth observation, and defense applications.

Safran Group - Provides commercial and defense satellite electric propulsion systems, including Hall-effect thrusters and advanced ion engines.

Airbus - Delivers in-orbit electric propulsion systems for GEO and LEO satellites, including high-power Hall thrusters for communications and Earth observation.

ArianeGroup - Focuses on propulsion system development for satellite constellations and small satellite launch applications.

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Regional Insights:

North America: 40% (Largest share globally, driven by the presence of leading aerospace and defense companies such as L3Harris Technologies, Boeing, Lockheed Martin, and Northrop Grumman. High adoption of electric propulsion technologies for small satellites, CubeSats, and defense applications, combined with strong R&D investment, contributes to market growth.)

Europe: 30% (Steady growth, supported by established players like Airbus, ArianeGroup, Safran, and Thales. Government and ESA initiatives promoting small satellite deployments, coupled with technological advancements in Hall-effect and ion thrusters, drive adoption across GEO and LEO satellites.)

Asia Pacific: 20% (Rapid growth due to increasing satellite launches in China, India, and Japan. Growing investments in CubeSats and small satellite constellations, along with expansion of regional manufacturing capabilities, are key drivers.)

Market Dynamics:

Driver - Increasing Demand for Low-Cost Satellite Launch Solutions:
The rising emphasis on reducing satellite launch costs is a key driver of the electric propulsion market. Traditional chemical propulsion systems are fuel-intensive and heavier, resulting in higher launch expenses. In contrast, electric propulsion systems are lighter and more fuel-efficient, potentially reducing launch weight by up to 50%, which allows for additional payload capacity. Governments also support these cost-effective alternatives to strengthen national space programs and expand connectivity initiatives. Electric propulsion is increasingly seen as a solution for economical and sustainable satellite operations.

Driver - Rising Energy Demand and Climate Goals:
The growing deployment of earth observation and communications satellites is driven by the need for real-time data to improve weather forecasting, disaster management, and global communications. Electric propulsion enables long-duration missions with improved efficiency, supporting government programs such as the European Union's Copernicus Earth observation program. The number of Earth observation satellites has increased significantly over the past decade, expanding the availability of satellite solutions to address climate challenges and bridge digital divides.

Restraint - High Initial Development Costs:
The development of electric propulsion satellites involves complex technical and financial challenges. High costs discourage small and medium-sized space companies from adopting these systems. Supply chain limitations for components such as ion thrusters and Hall effect thrusters have further increased procurement costs and delayed production schedules. Emerging space countries with limited technical capabilities, such as South Africa and Brazil, rely heavily on imports. Initiatives like NASA's Small Business Innovation Research (SBIR) program and public-private collaborations are essential to reduce costs, promote research, and facilitate wider adoption of electric propulsion technologies.

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Market Segmentation:

By Orbit: Low Earth Orbit (LEO, up to 2,000 KM) dominates with approximately 50% share, driven by the surge in small satellite and CubeSat deployments for communications, Earth observation, and research missions. Medium Earth Orbit (MEO, 2,000-35,000 KM) accounts for 25%, primarily supporting navigation and specialized communication satellites. Geostationary Orbit (GEO, more than 35,000 KM) contributes 25%, as electric propulsion extends operational lifetime and fuel efficiency for high-value communication and broadcasting satellites.

By Type: Full electric propulsion systems hold 60% of the market, favored for their efficiency, long mission duration, and reduced operational costs. Hybrid systems capture 40%, offering combined chemical and electric propulsion advantages for satellites requiring both high thrust and long-duration efficiency.

By Size: Small satellites (up to 250 KG) dominate with 55%, driven by the popularity of CubeSats and nanosatellite constellations. Medium satellites (250-500 KG) account for 25%, while large satellites (more than 500 KG) make up 20%, reflecting traditional GEO communication and Earth observation platforms adopting electric propulsion to extend mission lifetimes.

By Application: Earth Observation & Sciences leads with 35%, reflecting strong demand for remote sensing and environmental monitoring. Telecommunication satellites follow at 25%, supported by satellite internet and communication constellations. Navigation satellites hold 15%, while Astronomy, Interplanetary & Space Exploration account for 15%, including scientific and deep-space missions. Others constitute 10%, covering specialized or experimental missions.

By End-User: Government applications account for 55%, driven by defense, space research, and national satellite programs. Commercial applications represent 45%, supported by private satellite operators, small satellite constellations, and commercial telecommunication initiatives seeking cost-effective, long-duration propulsion solutions.

Key Developments

In November 2024, ThrustMe and Airbus Defence and Space have launched the IPISC project, supported by ESA and CNES, to explore iodine as a cost-effective alternative to noble gases like xenon for satellite propulsion. Focused on satellites over 500 kg, the project evaluates iodine's impact on satellite materials and components to meet the demands of long-duration missions.

In October 2024, Isro is set to launch its first electric propulsion-led spacecraft, which significantly reduces satellite mass. Upcoming missions include Gaganyaan in 2026, Chandrayaan-4 in 2028 and Chandrayaan-5 post-2028. The Indo-US NISAR satellite is prepped for a February launch, advancing earth imaging technology.

In August 2024, Safran strengthening its U.S. footprint by establishing a new manufacturing facility in Colorado to produce the "Made-in-the-USA" EPS®X00 electric propulsion system, targeting the booming North American small satellite market, projected to surpass US$ 5 billion by 2030.

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