Global Space Militarization Market Research Report: Forecast (2024-2030)

Market Definition

Space militarization refers to the system of manufacturing, deploying, and utilizing military capacities and assets in space. This consists of the deployment of military satellites, space-based weapons systems, surveillance and reconnaissance systems, and different technologies designed for military objectives. Space militarization also can involve the establishment of military bases or outposts in space, as well as the development of doctrines and strategies for the usage of space assets in defense operations.

Market Insights & Analysis: Global Space Militarization Market (2024-30):

The Global Space Militarization Market size is valued at around USD 59.88 billion in 2024 and is estimated to grow at a CAGR of around 6.6% during the forecast period, i.e., 2024-30. The evolving global security landscape, expansion of the commercial space industry, growing competition for military prowess, etc., drive the market growth. The evolving global security landscape has witnessed an emergence of sophisticated threats targeting space systems, prompting governments in Europe, North America, and the Asia-Pacific region to re-strategize their space policy.

Over the past couple of years, the extensive focus on anti-satellite weapons and the growth of state-sponsored and organized cyber-attacks have emerged as major threats to space assets. Moreover, the geopolitical alignments of countries such as Russia, China, the US, the EU, and North Korea reached a tipping point in 2024. Russia is believed to have already deployed space weapons that can potentially target US satellites used for civil and military use.

Therefore, the research and development on anti-satellite weapons, space-oriented electronic warfare capabilities, etc., to neutralize each other’s defense space capabilities is soaring. China has been extensively focused on these developments to outpower the US in the space race.  Moreover, countries like India, Israel, Australia, and the UK have also been gearing up to bolster their offensive as well the defensive capabilities to safeguard their space assets. The investments in deep space radars, laser-armed satellites, etc., are growing from India, France, the UK, Japan, South Korea, and Australia.

The gradual evolution of the commercial space industry across countries like China, India, Brazil, Japan, etc., is further complementing the development of advanced space-based military capabilities. The integration of AI, robotics, and the deployment of nanosatellites and microsatellites for spying, communication, and navigation capabilities by the commercial entities in these countries is solidifying their outer space strength. For instance,

• In 2021, SpaceX signed a contract with the US National Reconnaissance Office (NRO), an intelligence agency that manages spy satellites, to build a spy satellite network.

Global Space Militarization Market Driver:

Rapid Advancements in Space Technology – Rapid advancements in space technology, including miniaturization, increased launch capabilities, and the development of reusable space launch systems, etc., have been lowering the barriers to entry for space militarization. Growing innovation in miniaturization is facilitating the development of smaller and lighter space assets, including satellites, launcher systems, and sensors. The US has been a pioneer on this front. NASA and US Air Force-supported R&D programs for military purposes with private entities are expected to flourish the miniaturization ecosystem in the country. For instance,

• In 2024, the U.S. defense contractor SAIC landed its first contract with the Pentagon to integrate a small satellite, leveraging a partnership with spacecraft manufacturer GomSpace.

The growing military tensions between countries like; India-China & Pakistan, China-Taiwan, Australia, Japan & South Korea, Southeast Asia, Russia-Ukraine & Europe, Russia-the US, etc., are pushing the sales of advanced imaging systems consisting of synthetic aperture radar (SAR), and multispectral imaging. Moreover, with the gradual adoption of machine learning and state of art semiconductors, these countries are driving the space militarization industry.

Global Space Militarization Market Opportunity:

Use of Advanced Technologies to Offer Lucrative Growth Opportunities – The companies supporting the space militarization initiatives of governments across the globe are increasingly deploying disruptive technologies such as 3D printing, light-based manufacturing, etc. The manufacturers are leveraging the 3D printing technology to reduce weight, optimize airflow, reduce integration time, and customize the designs to optimize the system performance in the outer space environment with a minimized requirement for external tooling. Moreover, the usage of critical chemicals such as Germanium substrates in solar cells for military satellite applications is also growing.

Several companies, such as Boeing, Savvy Rocket Lab, ACMI, etc., have been actively engaged with the Department of Defense and the Government of the USA to introduce these innovative solutions for the space force of the US. For instance

• In 2023, 3D printing Savvy Rocket Lab lands USD 515 million space force defense contract with the Space Development Agency (SDA), a U.S. Space Force Unit, to design and build a constellation of data transport satellites.

The ability to iterate designs and produce custom components on demand enhances the responsiveness and adaptability of military space programs, thereby likely driving innovation and growth in the Global Space Militarization Market in the coming years.

Global Space Militarization Market Challenge:

Growing Space Debris and Congestion Issues to Hinder Market Growth – From 1950 to 2024, more than 100,000 satellites have been launched into outer space. However, as of 2024, there are around 9,900 (as per the Union of Concerned Scientists) satellites actively working. Around 600 of these satellites are known military satellites, around a 100% increase from 2018.

So, with this rapid growth in satellite launches, satellite debris is gradually becoming a major challenge for the entities engaged in the deployment of commercial and military satellites in outer space. As the amount of debris increases, the probability of satellite collisions is rising at an astronomical pace, potentially leading to costly damage or even the destruction of military assets. This could limit the frequency and scope of military space missions, hindering the expansion of the space militarization market during the forecast period.

Global Space Militarization Market Trend:

Increasing Allocation of Budget Towards Space-Based Capabilities – Governments across the globe are concerned about space dominance more than ever. Countries such as the US, Russia, and China have been quite aggressively allocating funds toward the militarization of space. NASA’s annual budget for space missions was more than USD 25 billion in 2023, while China’s Government allocated around USD 15 billion for the same year. The Government of Russia approved a budget of over USD 10 billion for its space programs.  Despite these major stalwarts, countries such as India, the UK, Brazil, France, Germany, etc., have lately started allocating separate budgets for space ambitions to improve their military capabilities. The annual budget of India, France, and the UK exceeded USD 2 billion for 2023. 

Increased funding encourages research and development efforts aimed at creating cutting-edge technologies for space-based defense systems. This includes advancements in anti-satellite (ASAT) weapons, enhancement of their space situational awareness (SSA) capabilities, satellite design, propulsion systems, and communication networks. For instance,

• In 2023, the UK released a new military space strategy and announced plans to invest USD 1.9 billion in low Earth orbit satellites and other technologies.

Countries like Australia, Japan, South Korea, Canada, etc., are also gradually working with their global allies to develop such capabilities. The space budgets of these countries are also witnessing an uptrend.

Global Space Militarization Market (2024-30): Segmentation Analysis

The Global Space Militarization Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Capability:

• Defense
• Support

The defense segment is predicted to hold the most market share of the global Space Militarization Market by 2030. Technological developments, national security concerns, geopolitical issues, and the desire for military modernization are the main drivers of the expanding market for space militarization. Space-based assets provide crucial capabilities that enhance intelligence gathering and situational awareness, bolstering a country's defense capabilities in the contemporary world. Recognizing the strategic value of space, nations spend money creating and deploying military systems that could project power, defend interests, and perhaps neutralize threats in space, driving defense capability share in the market.

Moreover, geopolitical tensions and rivalries between major economies like the US, China, Russia, etc. fueled the competition in space. Major powers view space as a critical domain for asserting influence and protecting their interests. As a result, there is a growing emphasis on developing and deploying military systems that could operate effectively in space. For instance,

• In 2021, the India Department of Research and Development Organisation (DRDO) deployed a surveillance satellite to monitor the activities of both military warships in the Indian Ocean Region (IOR).

Hence, the growing deployment of military systems is expected to drive growth in the defense capability segment of the space militarization industry in the coming years, as countries continue to prioritize investments in space-based defense initiatives to address evolving security challenges and assert strategic dominance in space.

Based on Solution:

• Space-Based Equipment
• Ground-Based Equipment
• Logistics & Services

The space-based equipment segment is anticipated to grab a substantial market share during the forecast period. Space-based equipment offers global reach and coverage, allowing military forces to operate effectively across vast distances and in remote or inaccessible areas. The demand for such equipment is soaring from countries like the US, China, and Russia, which are engaged in a space race to establish global dominance. The extensive satellite network of the US monitoring the entire world is expected to be a major contributor to space-based equipment market growth. As of March 2024, the US had around 300+ active military satellites capturing global events, followed by China with a known fleet exceeding 100.  

Global Space Militarization Market (2024-30): Regional Projections

Geographically, the Global Space Militarization Market expands across:

• North America
• South America
• Europe
• The Middle East and Africa
• Asia-Pacific

North America is anticipated to lead the space militarization industry throughout the forecast period due to increased space sector spending, the number of satellite launches for defense purposes, and the expansion of NASA and SpaceX's space exploration operations. The region is home to a complete ecosystem of space-oriented contractors and system integrators working with NASA and the US Space Force to develop lethal capabilities in outer space. Within North America, the US had a market share of over 95%. Canadian and Mexican space militarization programs were in the stage of infancy in 2023, owing to their dependence on the US satellite constellation for civil and commercial purposes. Also, both countries are under the US umbrella in case of any risk of an external military threat. So, the allocation towards overall militarization has been quite low over the past couple of decades. 

However, Asia-Pacific, led by China, is expected to cruise at steady growth during the forecast period. The country is working towards its ambition of becoming a global space superpower by 2035, overpowering the US. The country has been developing in-house capabilities to bolster space surveillance, propulsion technology, launchers, etc., after the cancellation of contracts by Western companies to supply critical components such as satellite parts, ground station equipment, etc., meant for space programs.

Global Space Militarization Industry Recent Development:

• In 2024: Northrop Grumman Corporation passive refueling module is adopted by the US military.
• In 2024, Lockheed Martin Corporation and Boeing are awarded USD 66 million in contracts from the U.S. Space Force to design a new narrowband communications satellite.

Gain a Competitive Edge with Our Global Space Militarization Market Report

1. Global Space Militarization Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
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