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The Global Space Tourism Market size is estimated to grow by USD 6,959.36 million accelerating at a CAGR of 14.1% between 2023 and 2027.
Our report offers in-depth analysis of market drivers, trends, opportunities, and challenges, with segmentation by Type (suborbital tourism and orbital tourism), Technology (innovators, early adopters, and early majority), and Geography (North America, Europe, Asia, and rest of world (ROW)). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, vendor analysis, and COVID-19 impact data. The report also includes a thorough analysis of historical market data from 2017 to 2022.
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Growing spending in travel and tourism is a significant driver for the space tourism market. Although not entirely categorized under traditional travel, space tourism is related and stands to benefit from increased tourism expenditure. As adventure tourism emerges as the fastest-growing segment, space tourism, being inherently risky, aligns with the adventurous appeal. With travel expenditures expected to rise post-COVID-19 lockdowns, the market is set to grow. Companies are increasingly investing in space tourism, and the interest in it is anticipated to surge. Consequently, the demand for space tourism is projected to rise in the forecast period.
A prominent trend in the space tourism market is the decreasing costs associated with it, expected to continue during the forecast period. Traditional satellite launches incur high expenses, around USD10 million plus insurance costs. However, Virgin Galactic aims to offer space tours at USD0.25 million per person, attracting both individual passengers and institutions for suborbital flights. The anticipated use of next-generation space planes reaching orbit is expected to significantly reduce space travel costs, making it economically viable for a broader customer base. This reduction in cost opens opportunities for launching multiple nanosatellites, further driving market growth in the forecast period.
The primary challenge restraining the growth of the space tourism market is the significant risk associated with it. The high-risk factor is a major hindrance to the global space tourism market's expansion. Given the expensive nature of space tourism, the target audience consists of high-net-worth individuals who can afford activities like mountain climbing or skydiving. The preference for such activities depends on factors like availability, physical fitness, and associated risks. While affordability is not an issue for the target market, the correlation between participation and risk coefficient is high at 88%, with a negative correlation indicating that higher risks lead to lower participation. Consequently, the substantial risk involved in space tourism is expected to impede market growth in the forecast period.
The market share growth by the suborbital tourism segment will be significant during the forecast period. Suborbital tours are a more cost-effective solution for people who want to experience a space visit compared with orbital tours. Passengers are expected to experience the acceleration of rocket launch, weightlessness, and the sight of Earth from space.
Space Tourism Market
By Suborbital Tourism
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The suborbital tourism segment shows a gradual increase in the market share of USD 2,703.77 million in 2017 and continued to grow until 2021. Space travel is inherently a risky proposition. Though the flights meet the government-mandated safety regulation, the regulations are only theoretical and cannot completely assume safety. The training required for suborbital space tourism prior to the launch varies from 1-4 weeks. The cost of a spaceflight ticket ranges from USD100,000 to USD500,000, which is only a fraction of the cost that NASA has to incur to send astronauts into space. This is expected to decline further in the future as the second generation of space crafts is expected to streamline the process and provide better experiences at a lower cost. Thus, the aforementioned factors will drive the market during the forecast period.
North America is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Space Tourism Market
By North America
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The evolution of space tourism concepts is expected to drive the development of space tourism technology in North America since most major space tourism stakeholders, such as SpaceX, are based in this region. In February 2021, SpaceX announced an initiative to take a four-person crew for a space mission by the end of 2021. The company is aggressively advancing its space-related technologies in collaboration with various other regional and intercontinental space industry stakeholders. Therefore, it can be concluded that enduring investments in orbital space tourism technologies will also nurture the development of technologies related to space tourism in North America, which, in turn, will drive the growth of the regional market during the forecast period. Since the beginning of 2021, there has been a rise in space research activities, which has propelled the demand for space tourism in the region. Thus, the regional space tourism market is expected to grow during the forecast period.
In 2020, the space tourism market in North America witnessed certain challenges due to the COVID-19 pandemic. However, since the beginning of 2021, there has been a rise in space research activities, which has propelled the demand for space tourism in the region. Thus, the regional space tourism market is expected to grow during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The space tourism market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Space Tourism Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.1% |
Market growth 2023-2027 |
USD 6,959.36 million |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
13.38 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 52% |
Key countries |
US, Russia, UK, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus Group SE, Axiom Space Inc., Bigelow Aerospace LLC, Blue Origin Enterprises LP, Excalibur Almaz Ltd., PD AeroSpace Ltd., Sierra Space Corp., Space Adventures Inc., Space Exploration Technologies Corp., Space Perspective, The Boeing Co., Virgin Galactic Holdings Inc., World View Enterprises Inc., Zero 2 Infinity SL, and Zero Gravity Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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