Driving Down the Cost of Space: The Rise of Reusable Launch Vehicles
While the MRFR data highlights strong growth, several strategic challenges and risks are implicit in the RSLV market.
First, the cost and technical complexity of reusable launch vehicles is high: recovery, refurbishment, turnaround logistics all add risk. While MRFR doesn’t detail all risks in the summary, it does note the necessity of investment in reusable technology development.
Second, competition from expendable or partially reusable systems may slow adoption in certain segments or regions. If cost-advantages are not realised or delivery cadence lags, operators may prefer traditional expendable systems.
Third, for heavy-payload and GTO missions, the technology is more challenging; the segment over 10,000 kg has the largest share, meaning cost-efficiency must scale.
Fourth, regional regulatory, infrastructure and market readiness vary—emerging markets may face slower uptake due to infrastructure or financing constraints. Strategic implications: companies must ensure sustainable business models—reuse must deliver cost savings; launch cadence must generate enough flights to amortise infrastructure. Operators must balance investment in new reusable vehicles with risk mitigation and contract backlog.
Governments and regulators must support launch infrastructure, spaceports, maritime recovery platforms (sea-based). For satellite operators, aligning with reusable launch providers early in the constellation build-out may lock in cost advantages. In conclusion, the RSLV market offers strong growth (to USD 13.1 billion by 2035) and large opportunity, but success will depend on overcoming technical, cost and infrastructure challenges, and executing launch operations at scale and frequency. Those who navigate these strategic issues effectively will capture the value.