Aerospace Cryogenic Fuel Market Size, Share & Industry Analysis, By End User (Rocket, Space Launch Vehicles, and Others), By Fuel Type (Liquid Nitrogen, Liquid Hydrogen, Liquid Helium, Liquid Neon, Liquid Air, and Others), and Regional Forecast, 2024-2032

The global aerospace cryogenic fuel market size was valued at USD 10.45 billion in 2023 and is projected to grow from USD 11.67 billion in 2024 to USD 19.45 billion by 2032, exhibiting a CAGR of 6.60% during the forecast period. North America dominated the aerospace cryogenic fuel market with a market share of 34.35% in 2023.

Aerospace cryogenic fuel refers to cryogenic fuels used in the aerospace industry, particularly in rocket propulsion systems. Aerospace cryogenic fuels, such as liquid hydrogen, liquid oxygen, and liquid methane, are cooled to cryogenic temperatures to transition into a liquid state, significantly increasing their energy density. Cryogenic fuels are known for their high energy density, and efficient combustion properties and are favored for space launch vehicles due to their high thrust-to-weight ratio. They play a crucial role in space exploration, lifting heavy payloads into space and enabling future missions to destinations, such as Mars. Cryogenic fuels are stored and handled at extremely low temperatures, requiring advanced insulation technologies and safety protocols. Despite challenges, ongoing advancements in cryogenic fuel technology are driving more efficient and potentially sustainable energy solutions in aerospace and other high-energy-demand sectors.

The COVID-19 pandemic had a significant impact on the aerospace industry, including the cryogenic fuels market. However, the long-term effects are still unknown. In the short term, the aviation sector has clearly been hit hard by the pandemic. However, with the expected increase in global GDP, the number of air travelers is projected to grow three to four-fold by the middle of this century. The cryogenic fuels market, which includes liquid Hydrogen (LH2) and liquefied natural gas (LNG), is expected to continue growing in the coming years. Advancements in healthcare, metallurgy, and the increasing demand for LNG in countries, such as Japan, South Korea, India, Russia, and Qatar will drive this growth.

Aerospace Cryogenic Fuel Market Trends

Advancing Sustainable Flight and Decarbonizing the Aviation Sector to Enhance Operational Efficiency is Propelling Market Growth

The trend in aerospace regarding cryogenic fuel is significant, with a focus on advancing sustainable flight and decarbonizing the aviation sector. Companies, such as ZeroAvia, Universal Hydrogen, and Airbus are leading the way by retrofitting existing aircraft to run on Hydrogen, showcasing groundbreaking strides toward sustainable aviation. Additionally, the development of cryogenic technology, such as cryogenic hydrogen tanks and cryogenically cooled electrical systems, is driving efficiency improvements in aviation. The aerospace industry's adoption of cryogenic fuels, such as liquid hydrogen and liquid oxygen, is not only enhancing propulsion efficiency but also contributing to environmental benefits by reducing harmful emissions, aligning with the global push for cleaner energy solutions. This trend underscores the industry's commitment to innovation and sustainability in aviation fuel technologies is propelling the aerospace cryogenic fuel market growth.

Aerospace Cryogenic Fuel Market Growth Factors

Adoption of Liquefied Natural Gas (LNG) in Aerospace Sector to Boost Market Growth

The adoption of liquefied natural gas (LNG) as a fuel is driving growth in the aerospace cryogenic fuel market. LNG is becoming increasingly popular as a cleaner and more efficient alternative to traditional fossil fuels in various applications, including power generation, transportation, and industrial processes.

In the aerospace industry specifically, LNG is gaining traction as a fuel source due to its low emissions and cost-effectiveness compared to traditional jet fuels. The growing demand for LNG in the aerospace sector is expected to drive the demand for cryogenic fuels and equipment used in the production, storage, and transportation of LNG.

Furthermore, ongoing technological advancements in cryogenic equipment, such as improvements in heat transfer efficiency, materials, and control systems, are further enhancing the viability of LNG as an aerospace cryogenic fuel. As the aerospace industry continues to seek more sustainable and cost-effective solutions, the adoption of LNG is likely to accelerate, providing a significant boost to the aerospace cryogenic fuel market share in this sector. 

Growing Procurement of Cryogenic Fuels Due to High Thrust Propelling Market Growth

Cryogenic fuels are essential for the aerospace industry, particularly for rocket propulsion. The most common cryogenic fuels used in rocket engines are liquid hydrogen (LH2) and liquid oxygen (LOX). Aerospace cryogenic fuels provide high thrust with relatively low weight, making them ideal for space travel. They are stored in heavily insulated tanks to keep them at extremely low temperatures - liquid hydrogen must be stored at -253°C and liquid oxygen at -183°C.

MT Aerospace, a leading aerospace company, has decades of experience in the use of liquid Hydrogen in rocket propulsion systems. It develops innovative solutions for the storage of liquid and gaseous Hydrogen, as well as for the supply of fuel cells and direct combustion.

For example, MT Aerospace manufactures all cryogenic storage tanks (made of liquid Hydrogen and liquid oxygen) for the Ariane 6 launch vehicle, drawing on their expertise in material selection and industrialized manufacturing processes.

Creare, another company specializing in cryogenic systems, offers complete services from conceptual design to fabrication and testing. It has developed advanced cryocoolers and components for applications, such as gas liquefaction, zero-venting cryogen storage, and cooling of infrared detectors.

In summary, aerospace cryogenic fuels are crucial for aerospace applications, particularly for rocket propulsion, and companies, such as MT Aerospace and Creare are at the forefront of developing innovative solutions for their storage, handling, and use.

RESTRAINING FACTORS

Challenges of Maintaining Cryogenic Temperatures and the Weight Carrying Capacity Limitations to Hamper Market Growth

Restraints in aerospace cryogenic fuel systems primarily revolve around weight limitations and the challenges of maintaining cryogenic temperatures. Cryogenic storage tanks for aerospace applications, especially in aircraft, face constraints due to the need for lightweight structures to meet flight duration requirements. Metal hydrides, an alternative method for storing Hydrogen compactly, are limited by excessive weight, making them unsuitable for weight-sensitive aerospace applications, such as flight vehicles. Additionally, the storage of liquid Hydrogen (LH2) at cryogenic temperatures poses challenges in insulation systems, structural designs, and materials selection to ensure lightweight and efficient long-term storage systems for aircraft applications.

The development of cryogenic fuel systems in aerospace is crucial for future aircraft utilizing liquid hydrogen as an alternative fuel. These systems must address the challenges of weight, insulation, and structural design to enable efficient and safe storage of cryogenic fuels for extended flight durations.

Aerospace Cryogenic Fuel Market Segmentation Analysis

By End User Analysis

Rising Procurement of Space Launch Vehicles Boosted Segment Growth

Based on the end user, the market is segmented into rocket, space launch vehicles, and others.

The space launch vehicles segment dominated the market in 2023 due to increasing commercial expenditure and procurement of launch vehicles for space operations. Cryogenic fuels, particularly liquid hydrogen (LH2) and liquid oxygen (LOX), are critical components in modern space launch vehicles due to their high energy density and efficient combustion properties. When cooled to extremely low temperatures, these gases liquefy, allowing for more efficient storage and transportation.

The rocket segment is expected to showcase the highest growth during the forecast period. This is due to the increasing demand for these rocket applications, such as satellite transportation, space exploration, and surveillance. Cryogenic fuels are essential for rocket engines, especially in space operations where ordinary fuels cannot be used due to extreme temperatures and lack of combustion support. These fuels, such as liquid hydrogen, require storage at very low temperatures to remain in a liquid state.

By Fuel Type Analysis

Liquid Nitrogen Dominates the Market Due to Low Boiling Point at Atmospheric Pressure

By fuel type, the market is segmented into liquid nitrogen, liquid air, liquid helium, liquid neon, liquid hydrogen, and others.

As liquid nitrogen has a shallow boiling point at atmospheric pressure, it dominates the market globally. The use of vacuum insulation creates cryogenic fuels to maintain a low boiling point. Demand for aerospace cryogenic fuels for nitrogen storage and transport is complemented by increased demand for liquid nitrogen in the aerospace industry.

The liquid hydrogen segment is expected to experience significant growth during the assessment period. Globally, governments are focusing on reducing greenhouse gas emissions. This factor increases the use of hydrogen in several aerospace sectors.

REGIONAL INSIGHTS

The global market is segmented based on region into North America, Europe, Asia Pacific, and Rest of the world.

North America stood at USD 3.59 billion in 2023 and is expected to dominate the global market during the forecast period. The aerospace industry in the region is significantly involved in the utilization of cryogenic fuels, particularly liquid hydrogen, for various applications. Cryogenic fuels, such as liquid hydrogen, are crucial in aerospace for their ability to provide high thrust with relatively low weight, making them ideal for rocket engines and other high-performance aircraft engines. These fuels are stored at extremely low temperatures to maintain them in a liquid state, essential for space travel due to the high thrust needed to escape Earth's gravity and reach orbit.

The market in Asia Pacific is anticipated to showcase remarkable growth during the forecast period. Asia Pacific is a crucial market for aerospace cryogenic fuels, with significant growth expected in the aerospace, energy, and manufacturing sectors. Advancements in cryogenic technologies, such as Airbus' ASCEND project, showcase the potential for cryogenic fuels to power future aircraft and space vehicles.

Europe is anticipated to showcase significant growth owing to the presence of major aerospace companies, such as Airbus, that utilize cryogenic fuels, including liquid hydrogen and liquefied natural gas (LNG), for space missions and aircraft propulsion. The European aerospace industry is a significant consumer of cryogenic fuels, with applications in rocket propulsion, satellite launch vehicles, and aircraft fuel systems.

The aerospace cryogenic fuel market growth in the Rest of the World is attributable to the rising demand for civil and defense applications. Major economies across the globe are allocating substantial portions of their GDP to space exploration activities and satellite launches. Competition among space agencies is intense, leading to significant investments in space exploration and research.

KEY INDUSTRY PLAYERS

Key Market Leaders Invest Heavily in Research and Development to Expand their Product Line

The major players in the market include Air Liquide, Air Products & Chemicals, Air Water, Inc., Messer Group GmbH, Mitsubishi Chemical Holdings (Taiyo Nippon Sanso), Narco Inc., Linde Plc (Praxair Technology, Inc.), and SOL Group. These companies are investing heavily in space exploration activities and ambitious space programs, which is driving growth in the aerospace cryogenic fuel market. Developing carbon capture technologies, increasing M&A activities in the industrial gases industry, and growing space and satellite missions are some of the key opportunities being pursued by market leaders.

LIST OF TOP AEROSPACE CRYOGENIC FUEL COMPANIES:

• Air Liquide (France)


• Air Products & Chemicals (U.S.)


• Air Water, Inc. (Japan)


• ZeroAvia, Inc. (U.S.)


• Universal Hydrogen (U.S.)


• Messer Group GmbH (Germany)


• Mitsubishi Chemical Holdings (Taiyo Nippon Sanso) (Japan)


• Narco Inc. (U.S.)


• Linde Plc (Praxair Technology, Inc.) (Ireland)


• SOL Group (Italy)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 – Air Products supplies liquid Hydrogen to Kennedy Space Center, Cape Canaveral Space Station, and other NASA facilities. Air Products announced that it won several NASA supply contracts totaling more than USD 130 million to supply liquid hydrogen to various NASA facilities, including the Kennedy Space Center, Cape Canaveral Space Station, and other facilities.


• November 2022 - MT Aerospace AG signed a USD 36 million contract with ArianeGroup GmbH to develop further demonstrations of CFRP upper stages for European launch vehicles. ArianeGroup and MT Aerospace received a contract from the European Space Agency (ESA) to continue the development of the PHOEBUS project (Prototype for Highly Optimized Black Upper Stage).


• November 2021 - Skyroot test launched India's first privately built cryogenic rocket engine. The rocket engine, called Dhawan-1, was developed using 3D printing technology and is fueled by liquefied natural gas and liquid oxygen, Skyroot Aerospace reports.


• June 2021 - ArianeGroup GmbH awarded MT Aerospace AG, a subsidiary of aerospace and technology group OHB SE, as part of the preparatory Future Launcher program of the European Space Agency (ESA) to develop advanced technology for the future black upper stage. European launch vehicle Ariane 6. The advantages of the intelligent material CFRP (Carbon Fiber Reinforced Plastic) are required in the custom development of propellant containers and structures.


• February 2021 - Chart Industries acquired equipment and liquefied natural gas (LNG) supplier Cryogenic Gas Technologies. In addition, Chart Industries and ExxonMobil collaborated to create state-of-the-art cryogenic tools and procedures to develop new CO2 capture technology.

REPORT COVERAGE

Moreover, the research report offers insights into aerospace cryogenic fuel market trends, competitive landscape, market competition, product pricing, market status, and key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the sizing of the global market over recent years.

Report Scope & Segmentation