Space tourism market is anticipated to grow at an exponential CAGR of 41.6% during the forecast period (2024-2031). Significant factors contributing to the space tourism market include rising advancements in space technology, coupled with users' inclination toward space adventures. The progress in the space tourism sector is creating numerous opportunities for companies to contribute to the development of spacecraft, infrastructure, and support services tailored to the needs of this growing industry. In September 2023, Virgin Galactic Holdings Inc. launched its third commercial flight sending another crew of paying tourists to the edge of space and back. The flight, named Galactic 03, marks the latest milestone for the venture, founded by billionaire Richard Branson, as it strives to reach a monthly cadence of launches for its commercial business. 

Segmental Outlook 

The global space tourism market is segmented on the type, and end-user. Based on the type, the market is sub-segmented into orbital, and sub-orbital. Further, based on the end-user, the market is sub-segmented into government, and commercial. Among the end-users, the government sub-segment is projected to hold a significant market share, owing to the increasing use of space tourism by government agencies for scientific research, experiments, and observations in microgravity or space environments. 

The Sub-orbital Sub-Segment is Anticipated to Hold a Considerable Share of the Global Space Tourism Market

Among the type, the sub-orbital sub-segment is expected to hold a considerable share of the global Space Tourism market. The segmental growth is attributed to the growing public interest in space exploration, rising technological advancements in sub-orbital vehicle design, propulsion systems and intense competition among companies such as Blue Origin and Virgin Galactic fosters innovation and price competitiveness, making sub-orbital space tourism more accessible. 

According to the article published by CNBC in September 2020, titled, there are two companies competing in the realm of suborbital tourism: Virgin Galactic, which debuted on the public market in 2019 and trades under the ticker SPCE, and Blue Origin, the private space company funded almost entirely by Amazon LLC. The systems of both companies are propelled by rockets and have the capacity to accommodate up to six passengers during a flight, however they differ in various aspects. Virgin Galactic's Space Ship Two is carried aloft by the White Knight Two carrier aircraft, reaching over 40,000 feet. The spacecraft is released, free-falls briefly, then ignites its rocket motor to ascend to 295,000 feet. Virgin Galactic sold about tickets to about 600 passengers at a price between $200,000 and $250,000 each for the first commercial flights. Blue Origin's New Shepard rocket launches with a domed capsule atop a 60-foot tall booster. The capsule separates at the top, reaching over 330,000 feet. 

Regional Outlook

The global space tourism market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, Asia-Pacific is anticipated to exhibit highest CAGR during the forecast period. The presence of cohesive policies and investments from governments in the region, such as China and India, drive the development of space tourism infrastructure. 

Global Space Tourism Market Growth, by Region 2024-2031

North America Holds Major Share in the Global Market

Among all regions, the North America holds major market share. The regional market growth is attributed to the high government expenditure, presence of major players and innovation into the space sector. In 2022, global government expenditure for space programs hit a record of approximately $103 billion. The US Government spent almost $62 billion on its space programs in 2022, making it the country with the highest space expenditure in the world. The US government has a long history of investing heavily in space exploration and technology development. This funding has fuelled innovation and led to the creation of world-leading space agencies, research institutions, and private companies. NASA's budget increased by 3.0% in fiscal year 2022, up to $24 billion. It was still short of the increase that the Biden administration sought, which was 7.0%. For fiscal year 2023, the Biden administration wanted to increase NASA's budget by 8.0% to almost $26 billion. Also, the private space sector in the US is experiencing exponential growth, with companies such as SpaceX, Blue Origin, and Virgin Galactic leading the way in commercial space launches, space tourism, and in-space manufacturing. This growth has inserted new energy and innovation into the space sector, expanding its reach and potential. For instance, in August 2023, Virgin Galactic sent its first tourists to space with tickets priced at up to $450,000.

Market Players Outlook

The major companies serving the space tourism market include Blue Origin, LLC, Boeing Co., Space Exploration Technologies Corp., (SpaceX), Virgin Galactic Holdings, Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in 2022, Orion Span launched a private space station to serve the space tourism and research markets. At the time, the company disclosed a few details about its financing, to raise new funding rounds. 

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global space tourism market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.