U.S. Space Vehicle & Missile Market to Hit $64.4 Billion by 2032, Driven by Hypersonic Tech and AI Integration

According to the latest market research study published by P&S Intelligence, the U.S. space vehicle and missile market was valued at USD 41.8 billion in 2024 and is projected to grow at a CAGR of 5.7% to reach USD 64.4 billion by 2032. This significant expansion is underpinned by the rising government expenditure on defense and space modernization, alongside intensifying geopolitical tensions and global conflicts.

Federal agencies such as NASA, the Department of Defense (DoD), and the U.S. Space Force are boosting investments in space and missile capabilities, which is further reinforced by a proposed USD 1.01-trillion defense budget for FY 2026. Simultaneously, private players like SpaceX, Blue Origin, and Lockheed Martin are intensifying innovation, pushing the technological frontier of hypersonic propulsion, autonomous systems, and reusable space vehicles.

From the expansion of military satellite constellations to cutting-edge government contracts, the U.S. continues to strengthen its strategic space and missile infrastructure. These dynamics are driving robust market growth and reshaping the country’s aerospace defense ecosystem.

Key Insights

• In terms of platform, land-based systems held the dominant share of 85% in 2024, fueled by a vast inventory of surface-launched missiles such as the Minuteman III ICBMs and missile defense systems like THAAD and Patriot.
• The space-based platform will grow the fastest at a CAGR of 6% through 2032, driven by increased militarization of space, advancements in satellite technologies, and initiatives like the U.S. Space Force’s Proliferated Warfighter Space Architecture (PWSA).
• Among propulsion types, solid propulsion led the market with a 45% share in 2024, due to its simplicity and reliability in systems like Trident II and Patriot missiles.
• Hypersonic propulsion will be the fastest-growing propulsion category, with a projected CAGR of 6.5%, backed by multi-billion-dollar federal investments and technological developments in scramjets and boost-glide vehicles.
• By product type, missiles dominated the market with a 60% share in 2024, driven by large-scale procurement and technological upgrades for programs such as THAAD, ARRW, and LRHW.
• Space vehicles will exhibit the highest growth rate, of 5.8% CAGR, due to the rising momentum in commercial space exploration initiatives and NASA’s Artemis program, which is targeting lunar and Mars missions.
• In terms of end users, the military and defense segment held the largest share at 60% in 2024, sustained by extensive federal funding for programs focused on hypersonic weapons, missile defense, and satellite surveillance.
• The commercial sector is expected to grow at a CAGR of 6.2%, propelled by innovations from SpaceX, Blue Origin, and Amazon in reusable launch systems, satellite constellations, and private lunar missions.
• Regionally, the South led the market with a 40% share in 2024, due to the presence of major space centers like Kennedy Space Center and Redstone Arsenal.
• The West will be the fastest-growing region, at a CAGR of 6.8%, owing to the rise of space tech hubs in California, with key players like SpaceX, Rocket Lab, and Relativity Space driving innovation.
• AI and autonomous systems are reshaping the market, with applications ranging from collision avoidance and anomaly detection in spacecraft to real-time decision-making for SDA systems.
• U.S. defense agencies are actively integrating AI into operations through policies such as the Space Force Data & AI Strategic Action Plan and the Executive Order on AI, facilitating autonomous systems in space and missile applications.
• Market consolidation is high, with major players like Lockheed Martin, Boeing, Northrop Grumman, and Raytheon dominating due to their long-standing government contracts and strategic capabilities.
• Notable developments include Rocket Lab’s acquisition of Geost LLC for USD 275 million to enter the satellite payload market, and Maxar Technologies' exclusive data agreement with Satellogic Inc. to enhance real-time monitoring capabilities.

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