Rocket propulsion systems market seen reaching $7.31B by 2030

The defense rocket propulsion systems market is projected to rise from $4.71 billion in 2025 to $5.14 billion in 2026, with growth driven by geopolitical tensions, hypersonic weapons demand and military modernization. North America led the market in 2025, while Asia-Pacific is forecast to grow fastest through 2030.

Why it matters: - Rocket propulsion systems underpin missiles, rockets and long-range strike capabilities used for deterrence and rapid military response. - The market’s growth signals continued defense spending on advanced weapons, propulsion upgrades and space-linked military capabilities.

What happened: - The Business Research Company published a new report on the rocket propulsion systems (defense) market on July 22, 2026. - The report pegs the market at $4.71 billion in 2025 and forecasts $5.14 billion in 2026. - The report projects the market will reach $7.31 billion by 2030. - The forecast implies a 9.0% CAGR from 2025 to 2026 and a 9.2% CAGR through 2030. - A free sample report is available here. - The full report is available here.

The details: - Rocket propulsion systems in defense are specialized engines that generate thrust through controlled combustion of propellants. - The systems are used in ballistic missiles, cruise missiles and tactical rocket systems. - The report says historical growth has been driven by Cold War-era missile programs, higher defense budgets, advances in space propulsion, the dominance of solid rocket motors and the spread of ballistic missile technology. - Future growth is expected to come from demand for hypersonic weapon systems, reusable propulsion, environmentally friendly propellants, AI-assisted guidance and propulsion, and space-based defense and surveillance capabilities. - The forecast period features five main trends: hypersonic propulsion for next-generation missiles, green propellants to reduce toxic emissions, more additive manufacturing for engine components, scramjet and ramjet integration for more speed and range, and modular propulsion systems for multiple missions. - The report identifies geopolitical tensions as a key growth driver. - ACLED recorded more than 165,273 political violence incidents globally in July 2024, a 15% increase from the prior year. - In 2025, North America held the largest share of the market. - Asia-Pacific is expected to be the fastest-growing region during the forecast period. - The report covers Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa.

Between the lines: - The forecast points to a defense market shifting from legacy missile propulsion toward systems built for speed, range, reusability and lower emissions. - The regional outlook suggests established defense budgets still dominate today, but modernization in Asia-Pacific may reshape growth over the next several years.

What's next: - The report says market activity will likely center on hypersonic propulsion, modular designs, additive manufacturing and greener propellants. - The Business Research Company says its 2026 reports now include market attractiveness scoring, TAM analysis, company scoring matrices, Excel forecasting dashboards, market hotspot infographics, and updated graphics and tables. - The company says it offers 30,000+ reports across 27 industries and 60+ geographies, supported by 1,500,000 datasets and its Global Market Model platform.