Global Space Tourism Market by Type (Orbital, Sub Orbital), By End-User (Government, Commercial), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global space tourism market size is expected to be worth around USD 17742.4 Million by 2032, from USD 1,158.0 Million in 2023, growing at a CAGR of 36.6% during the forecast period from 2023 to 2032.

Space tourism, an emerging sector within the aerospace industry, refers to the commercial activity of sending private individuals into space for recreational, leisure, or adventure purposes. This market has garnered significant attention and investment in recent years, driven by advancements in space technology and a growing interest in space exploration.

The space tourism market is relatively emerging but has been gaining momentum in recent years. It encompasses various players, including space tourism companies, spacecraft manufacturers, spaceports, and related service providers. These entities collaborate to offer space travel experiences to a growing number of customers who are willing to pay a premium for the opportunity.

Analyst Viewpoint

The market for space tourism is rapidly evolving, propelled by significant investments from pioneering companies. For instance, Virgin Galactic raised $400 million in October 2023 to enhance its commercial spaceflight operations and develop the SpaceShip III vehicle.

Similarly, Blue Origin’s acquisition of $1 billion funding, led by BlackRock, is advancing its suborbital tourism programs and lunar exploration initiatives. SpaceX, a key player in this realm, has also attracted substantial private investments, recently securing $750 million, likely supporting its Starship development and expanding the Starlink satellite network.

Innovations in space tourism are broadening the scope of what these experiences can offer. Companies like Space Perspective are introducing luxurious stratospheric balloon capsules, slated for launch in 2024, designed to provide breathtaking views of Earth from the edge of space.

Orion Span aims to construct the first luxury space hotel, Aurora Station, by 2030, offering orbital accommodations with features like panoramic views and artificial gravity. Zero 2 Infinity, planning to initiate suborbital flights from Spain in 2025, will provide passengers with a unique experience of floating seats and expansive windows.

The space tourism market is on a trajectory of rapid growth, with forecasts suggesting it could reach a valuation of $1 trillion by 2040. This growth is supported by the evolving regulatory landscape, with bodies like the FAA introducing new frameworks to foster industry development. The Space Summit held in Dubai in December 2023 further underscored the global interest and potential in space tourism, highlighting the sector’s current developments and future opportunities.

Key Takeaway

• The global space tourism market is projected to reach a substantial value of USD 17,742 million by 2032. This impressive growth is driven by a remarkable compound annual growth rate (CAGR) of 36.6% from 2023 to 2032.
• Sub-Orbital travel dominates the market, capturing more than a 52.7% share in 2022, with a CAGR of 37.8%.
• In 2022, the Commercial segment held a dominant market position, capturing more than a 57.3% share. This is attributed to companies like Virgin Galactic and Blue Origin, offering suborbital space tourism experiences to individuals.
• North America emerged as the leading region in the global space tourism market in 2022, capturing more than a 39.8% share. This is due to the presence of pioneering companies like SpaceX, Blue Origin, and Virgin Galactic.
• Asia Pacific is expected to be the fastest-growing region in the forecast period, with a CAGR of 35.5%. This is driven by significant investments in space tourism programs by countries like India and China.
• 676 people have journeyed to space, according to the U.S. definition of reaching an altitude of 50 miles (80 kilometers).
• Out of these, 643 astronauts have reached the Kármán line, which is internationally recognized at 100 km (62 miles) above Earth.
• Approximately 86% of astronauts complete their journey with at least one orbit around the Earth, while an additional 4% venture beyond Earth orbit.
• SpaceX Starship system: Plans to use its Starship system for space tourism flights, capable of carrying up to 100 passengers.
• Around 60,000 people have expressed interest in flying to space, many of whom are expected to take the trip once commercial operations commence.

Type Analysis

In 2022, the sub-orbital segment held a dominant position in the space tourism market, capturing more than a 52.7% share with CAGR of 37.8%. This dominance can be attributed to several key factors that make sub-orbital travel more accessible and appealing to a broader audience.

Firstly, sub-orbital flights are significantly shorter and less complex than orbital missions, making them a more feasible option for private companies in terms of technology and investment requirements. The relatively lower cost of sub-orbital flights, compared to orbital experiences, also makes them more attainable for potential space tourists. This affordability widens the customer base, allowing more individuals to experience space travel.

Furthermore, sub-orbital flights require less extensive training for passengers, reducing preparation time and costs, and making the experience more user-friendly for those without professional astronaut training. This aspect is crucial in attracting customers who are interested in space tourism but are not necessarily looking for an extensively demanding experience.

The technological advancements in this segment have been significant, with companies like Virgin Galactic and Blue Origin leading the way in offering commercial sub-orbital flights. These companies have successfully conducted test flights and are advancing towards regular commercial operations. The high-profile nature of these ventures, backed by prominent figures and extensive media coverage, has also played a role in popularizing sub-orbital space tourism.

End-User Analysis

In 2022, the Commercial segment held a dominant market position in the space tourism industry, capturing more than a 57.3% share. This segment’s dominance can be attributed to several key factors.

Firstly, commercial space tourism companies have played a pivotal role in driving the market’s growth by leveraging private investments and innovative business models. Companies such as Virgin Galactic and Blue Origin have been at the forefront, offering suborbital space tourism experiences to individuals. Their efforts have spurred competition, resulting in technological advancements, cost reductions, and increased accessibility.

Additionally, the commercial segment has capitalized on the growing consumer demand for unique space travel experiences. There is a significant interest among individuals to witness the awe-inspiring views of our planet from space and experience weightlessness. By catering to this demand, commercial space tourism companies have been able to attract a substantial customer base, further bolstering their market position.

Moreover, the commercial segment has benefited from the economic potential associated with space tourism. These companies have recognized the revenue-generating opportunities within the industry and have made significant investments in infrastructure, spacecraft development, and marketing. This proactive approach has allowed them to offer competitive pricing, making space tourism more attainable for a broader range of consumers.

Furthermore, the commercial segment’s dominance can be attributed to the support and regulatory flexibility provided by governments worldwide. Governments have recognized the potential economic benefits and have encouraged private sector participation in space tourism. They have introduced regulatory frameworks that foster innovation and ensure safety while allowing commercial space tourism companies to operate and flourish.

Government Segment is Identified as Fastest Growing Material Segment in Projected Period.

Government is also an important end-user segment in the space tourism market, and it is expected to grow faster in the end-user segment in the space tourism market with a CAGR of 38.3% and a market share is 36.7%.

Commercial space tourism means private companies like SpaceX, Blue Origin, and others working in the space industry. Various private and government organizations undertook thirteen spaceflight missions, and seven missions were executed successfully. As a result, Billionaires invested a significant amount in traveling to space and seeing Earth from above.

Key Market Segments

Based on Type

• Orbital
• Sub-Orbital

Based on End-User

• Government
• Commercial
• Other End-Users

Driver

Technological Advancements

Technological advancements have been a significant driver of growth in the space tourism market. Over the years, there have been remarkable developments in space technology, making space travel more feasible, safe, and accessible. One of the key advancements is the development of reusable rockets and spacecraft, pioneered by companies like SpaceX. By reusing launch vehicles, the cost of space travel has significantly decreased, making it more economically viable for commercial space tourism ventures.

Additionally, advancements in spacecraft design, propulsion systems, and materials have improved the overall safety and efficiency of space travel. Innovations in life support systems ensure the well-being of passengers during their journey, while advancements in navigation and communication systems enhance the overall experience and safety of space tourists. These technological breakthroughs have instilled confidence in potential customers and have sparked interest in space tourism.

Restraint

High Costs of Space Travel

One of the major restraints faced by the space tourism market is the high cost associated with space travel. Currently, space tourism experiences come with a hefty price tag, limiting the market to a relatively small segment of high-net-worth individuals. The high costs are primarily driven by the complex nature of space travel, including research and development expenses, operational costs, and the need for advanced technology and infrastructure.

However, it is important to note that the cost of space travel is gradually decreasing as advancements in technology and increased competition among space tourism companies drive down prices. The development of more efficient and reusable spacecraft, along with economies of scale, is expected to significantly reduce the cost barrier, paving the way for a broader market of potential space tourists.

Opportunity

Growing Interest in Experiential Travel

An opportunity for the space tourism market lies in the growing interest in experiential travel. Modern travelers are increasingly seeking unique and extraordinary experiences, and space tourism provides an unparalleled opportunity to explore the cosmos. The desire to witness Earth from space, experience weightlessness, and be part of a select group of individuals who have traveled beyond our planet is a powerful motivator for many.

The rise of social media and the sharing of experiences have also contributed to the appeal of space tourism. Space travel provides a once-in-a-lifetime opportunity for individuals to capture breathtaking photos and videos, share them with their networks, and create lasting memories. This growing interest in experiential travel, combined with advancements in technology and decreasing costs, presents a significant opportunity for the space tourism market to expand its customer base and attract a broader range of travelers.

Challenge

Safety and Regulatory Hurdles

A key challenge for the space tourism market is ensuring the safety of passengers and addressing regulatory hurdles. Space travel involves inherent risks, and ensuring the well-being of space tourists is of paramount importance. Companies in the space tourism industry must adhere to strict safety standards and protocols to minimize risks and ensure the successful completion of each mission.

Furthermore, space tourism is a highly regulated industry due to the potential risks involved and the need to protect both passengers and the environment. Governments and regulatory bodies play a vital role in establishing guidelines, licensing requirements, and safety regulations for space tourism operations.

The challenge lies in striking the right balance between safety and enabling the growth of the industry. Collaborative efforts between industry stakeholders, governments, and regulatory bodies are essential to establish clear and robust frameworks that address safety concerns while allowing for innovation and growth in the space tourism market.

Regional Analysis

In 2022, North America emerged as the leading region in the global space tourism market, capturing more than a 39.8% share. This dominant position can be attributed to several factors unique to the region. First and foremost, North America is home to some of the most pioneering companies in the space tourism sector, including SpaceX, Blue Origin, and Virgin Galactic. These companies have been at the forefront of technological advancements in space travel, contributing significantly to the development of the industry.

The region’s robust financial backing for space-related endeavors plays a critical role in its market dominance. North American investors, both private and institutional, have shown a strong inclination to invest in space technology and tourism ventures, providing essential capital for research, development, and operational scaling. This financial support has been instrumental in advancing the commercial space tourism industry.

Furthermore, North America benefits from a well-established aerospace infrastructure and a long history of space exploration. This legacy, spearheaded by agencies like NASA, has fostered a skilled workforce, advanced technological capabilities, and a culture that is highly supportive of space exploration endeavors. The regulatory environment in North America, particularly in the United States, has also been conducive to the growth of the space tourism industry. The government has shown a willingness to work with private companies, offering regulatory guidance and support that has helped propel the industry forward.

Additionally, the region’s strong emphasis on research and innovation in the field of aerospace and related technologies continues to drive advancements in space tourism. From the development of reusable rockets to the creation of luxury space accommodations, North American companies are constantly pushing the boundaries of what is possible in space travel.

Asia Pacific is expected to be as fastest growing region in the forecast period in the space tourism market, with a CAGR of 35.5%. Due to many factors, like it being the home of some of the world’s fastest-growing economies like India & China, they are heavily investing in space tourism programs.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The major players working in the market focuses on key strategies in the market, like product launches, merger, acquisitions, partnerships, and collaborations. They also focus on strengthening their market reach for maintaining their goodwill in the competitive market.

Key players are spending significantly on research & development activities to integrate advanced technologies in spacecraft. The key players are mainly focusing on offering individuals a day or a week tour which creates an adventurous experience for the tourists.

Top Key Players

• Blue Origin
• Virgin Galactic
• SpaceX
• Airbus Group SE
• Boeing
• ZERO-G
• Axiom Space
• Bigelow Aerospace
• Orion Span
• Space Adventures
• Space Perspective
• World View Enterprises
• Zero2Infinity
• Other Key Players

Recent Developments

• Blue Origin: On December 19th, 2023, Blue Origin successfully completed its first New Shepard mission since September 2022, demonstrating a safe return to flight and paving the way for future tourism flights.
• Space Perspective: This company secured $70 million in Series A funding in December 2023, propelling their development of stratospheric balloon capsules for near-space tourism experiences.
• Spaceports: Construction of the world’s first dedicated space tourism spaceport, Spaceport Cornwall in the UK, is now 50% complete and on track for opening in 2025.

Report Scope