Space Tourism Market

Space Tourism Market Size (2024-2029):

The Global Space Tourism Market was worth US$ 2.52 billion in 2023 and is anticipated to reach a valuation of US$ 13.84 billion by 2029 and it is predicted to register a CAGR of 32.8% during the forecast period 2024-2029.

Market Overview:

Space tourism is a concept in which people go on a trip to outer space or near space. Space flights, suborbital flights, and space-based experiences, such as orbiting the Earth or visiting a space station, are some activities people can experience through space tourism. The companies operating in space tourism are currently offering short trips, such as traveling to space’s edge, and longer trips, such as trips to the moon and Mars. However, as of now, space tourism has not evolved much, and many opportunities to explore are not given to many. Considering the technological advancements and improvements in the capabilities of space tourism, space tourism is expected to be accessible and affordable to many during the coming years. Around the world, many private companies are putting significant efforts into developing space tourism options. A few of the market participants in the space tourism market are already offering short trips such as suborbital flights. Other market participants are developing the technology and infrastructure required to explore more complex space tourism adventures.

Market Drivers:

Technological advancements are one of the major factors propelling the space tourism market growth. Due to the growing adoption of the development of new technologies such as reusable rockets and spaceplanes, space tourism has become affordable and accessible. Owing to the factor above, it has become possible for the market participants of space tourism to offer services such as short trips to interested people. The growing interest from people to experience the space is anticipated to boost the space tourism market’s growth rate. Recently, interest levels from people to explore the space have been noticed; these interest levels are further anticipated to grow in the coming days, which is expected to result in market growth. In addition, the support for space tourism from the governments of developed countries in terms of investments and regulations is favoring the growth rate of the space tourism market.

The rising investments from private companies to promote space tourism ventures are predicted to favor market growth during the forecast period. The economic benefits associated with space tourism are a big plus to the market's growth. The space tourism market has the potential to generate more job opportunities in the region it operates, which further leads to economic growth. In addition, the environmental benefits associated with space tourism are expected to have a favorable impact on market growth. The usage of space tourism results in reducing environmental impact, unlike the traditional forms of tourism, by limiting the need for long-distance travel.

Market Restraints:

High costs associated with space tourism are a significant factor hampering the market growth. One trip to space costs hundreds of thousands to millions of dollars, which is very expensive, and more people would want to invest such a hefty amount. This high cost is expected to act as a significant restraint to the growth of the space tourism market. In addition, factors such as limited availability, safety concerns, regulatory barriers, competition from other forms of tourism, and limited infrastructure are predicted to impose an unfavorable impact on the growth rate of the space tourism market.

Market Opportunities:

The space tourism market is one of the potential concepts and has the potential to contribute significantly to the global economy in the coming years. The growing number of suborbital space offerings from the market participants is anticipated to offer growth opportunities. Suborbital spaceflights offer short trips through which tourists can experience the curvature of Earth from space. In the coming days, the demand for such trips is expected to increase and generate opportunities in the market. Likewise, the orbital space offering is also anticipated to generate opportunities. Furthermore, growing awareness regarding moon tourism and increasing efforts by market participants to send people to the moon are expected to offer growth possibilities in the market. For instance, SpaceX has announced its plans to send humans to the moon in the coming years.

Market Key Developments:

• In April 2022, NASA, Axiom, and SpaceX launched a mission to the ISS with three civilians and a former NASA astronaut. The mission was launched aboard a SpaceX Dragon spacecraft, a reusable spacecraft developed by SpaceX for transporting crew and cargo to and from the ISS.

SPACE TOURISM MARKET REPORT COVERAGE:

Market Segmentation:

Space Tourism Market – By Type:

• Orbital
• Sub-orbital
• Others

Based on type, the sub-orbital segment accounted for the largest share of the global market in 2021 and is expected to register a healthy CAGR during the forecast period. The domination of the segment can be credited to low manufacturing costs compared to the orbital flights. The rockets can be reused for sub-orbital traveling and save enormous costs to the market participants, primarily supporting and leading to the segment’s growth.

On the other hand, the orbital segment is also anticipated to progress at a significant CAGR during the forecast period.

Space Tourism Market – By End-user:

• Government

• Commercial
• Others

Based on the end-user, the commercial segment led the space tourism market in 2021 and is forecasted to showcase a promising CAGR during the forecast period. On the other hand, the government segment is predicted to showcase a promising CAGR during the forecast period.

Space Tourism Market – By Region:

• North America

• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

North America captured a significant share of the global space tourism market in 2021. During the forecast period, the domination of the North American region is predicted to be continuing throughout the forecast period. The growth of the space tourism market in North America is primarily driven by technological advancements, increasing interest from the public regarding space travel, and the growing efforts by private companies in terms of space tourism offerings. Throughout the world, the U.S. anticipated leading the market for space tourism owing to the presence of people with high net worth and increasing investments in technological developments.

The Asia-Pacific region is projected to grow at a considerable CAGR during the forecast period. From the Asia-Pacific region, people from China are interested in exploring space tourism. They are willing to pay the high costs, which is expected to favor regional market growth. In addition, the presence of several space research organizations is expected to be a plus to the market’s growth rate.

COVID-19 Impact on the space tourism market

COVID-19 has had a significant negative impact on the space tourism market. Due to the COVID-19 pandemic, the market participants in space tourism have had to suspend their operations, which resulted in the decline of the market’s growth rate in the short term. For instance, Virgin Galactic, one of the leading players in the space tourism market, planned to begin its commercial operations in 2020. But postponed their space tourism flights due to COVID-19. Similarly, Blue Origin, another major participant in the space tourism market, had to cancel its flight trials due to COVID-19. COVID-19 further impacted the development of space tourism technologies and infrastructure. The market participants have made several plan adjustments due to supply chain disturbances and other issues. However, considering the reduced impact of COVID-19, the space tourism market is anticipated to recover quickly and is predicted to register a healthy CAGR during the forecast period.

Market Key Players:

1. Airbus Group SE
2. Axiom Space
3. Blue Origin
4. Boeing
5. Orion Span
6. Space Adventures
7. SpaceX
8. Virgin Galactic
9. Zero2Infinity
10. ZERO-G