February 29, 2024
Space Capsule Market

Space Capsule Market is estimated to witness High Growth owing to Increasing space tourism

The Space Capsule Market is estimated to be valued at US$ 4.73 Billion in 2023 and is expected to exhibit a CAGR of 12.6% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
A space capsule is a crew or cargo-carrying (un)manned spacecraft that performs spaceflight missions. Space capsules are designed and developed for carrying both cargo and passengers for scientific and commercial purposes. Some key advantages of space capsules include higher payload capacity, reusability, and safety for both crew and critical equipment during launch and re-entry into the Earth’s atmosphere. The growing commercialization of space and rising space tourism drives the demand for advanced space capsules in the market.

Market key trends:
One of the major trends driving the space capsule market growth is increasing space tourism. Several private space companies are developing new space vehicles to enable space tourism and orbital spaceflight services. For instance, companies such as SpaceX, Blue Origin, and Virgin Galactic have announced plans to offer sub-orbital and orbital space tourism services using their reusable launch vehicles and space capsules. SpaceX’s Crew Dragon and Boeing’s Starliner are being developed under NASA’s commercial crew program for supporting crew transportation services to the International Space Station. The success of inaugural crewed test flights of Crew Dragon and Starliner indicates the growing potential of space tourism market. Furthermore, development of affordable space capsules by newspace companies is expected to boost the sector by enabling more people to experience the thrill of space travel in the coming years.

Porter’s Analysis

Threat of new entrants: Space Capsules Market Demand require huge capital investments and advanced technology skills making the barrier to entry high for new players.

Bargaining power of buyers: The limited number of players producing space capsules give buyers less bargaining power and higher prices.

Bargaining power of suppliers: Key suppliers of critical components like engines, avionics, and materials have some bargaining power over capsule producers.

Threat of new substitutes: No viable substitutes exist for space capsules currently given the need for crewed or uncrewed missions beyond low earth orbit.

Competitive rivalry: Intense competition exists between major players fighting for lucrative government and commercial contracts driving down costs through innovation.

SWOT Analysis

Strengths: Growing commercial opportunities in space tourism and satellite launches are driving major investments in technology.

Weaknesses: High development costs, regulatory hurdles, reliance on limited government budgets for funding of developmental programs. Launch failures can set back programs.

Opportunities: Growing demand for reusable rockets and satellites is opening new verticals. International space station resupply contracts present a large market.

Threats: Geopolitical conflicts can disrupt international partnerships. Increased space debris risks safety of operations. Regulations on reused rockets are still evolving.

Key Takeaways

The global Space Capsule market is expected to witness high growth, exhibiting CAGR of 12.6% over the forecast period, due to increasing commercialization of space. Government agencies and private players are ramping up investments to develop affordable and reusable space transportation systems.

The US dominates the global space capsule market currently owing to the presence of major contractors like SpaceX, Boeing, Lockheed Martin producing capsules for NASA. However, the Asia Pacific region is expected to grow at the fastest pace during the forecast period led by increasing space budgets and capabilities in China, India, and Japan.

Key players operating in the space capsule market are SpaceX, Boeing, Sierra Nevada Corp., Lockheed Martin, Northrop Grumman, Blue Origin, Virgin Galactic, Exos Aerospace, Firefly Aerospace, ULA, Rocket Lab, Vector Launch, Orbex, Relativity Space, Arianespace, IHI Aerospace, Mitsubishi Heavy Industries, Dynetics, Energia, Thales Alenia Space. SpaceX has gained a foothold in the resupply of ISS with its Dragon capsule while Boeing is developing Starliner crew capsule. New players are developing innovative designs for niche applications.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it