The rapid expansion of commercial space launches is developing into a potentially significant growth market for industrial gas companies, with Linde indicating the sector could eventually become large enough to be treated as a standalone end market within its reporting structure.
Speaking during its latest earnings call, Executive Vice-President and CFO Matt White said aerospace activity linked to space vehicle production, testing and launch accounted for around half of the company’s 5% manufacturing growth in the US during the quarter.
“We will isolate aerospace as a separate end market when it consistently exceeds 5% or more of global sales,” he added.
An analyst on the call noted that the threshold would equate to roughly $1.7bn in annual sales at current revenue levels and asked whether commercial space revenues could approach that figure by the end of the decade.
White said future growth would depend on launch frequency, rocket size and propellant type as commercial space activity accelerates globally.
“We supply oxygen for the oxidiser and nitrogen for densification [and] fuel-wise … we supply hydrogen and if you do see more hydrogen-based rockets, that could also accelerate the growth for us, depending on the fuel type used,” he said.
The comments come as launch providers and government-backed programmes seek to increase cadence – an industry term for launch frequency – to support satellite constellations, lunar missions and broader commercial space ambitions.
The trend is also expected to benefit Air Products, which recently supplied more than 700,000 gallons of liquid hydrogen for NASA’s Space Launch System (SLS) rocket as part of the programme.
Hydrogen used for Artemis II was delivered to NASA’s hydrogen sphere – the world’s largest hydrogen tank ©Air Products
“We were very proud to be part of the recent NASA Artemis II mission, where Air Products supplied liquid hydrogen and liquid helium using our proprietary liquid heating pumps,” said CEO Eduardo Menezes.
Menezes added that recently announced investments are expected to increase the company’s participation in both NASA and commercial launches.
For Linde, White said supply models for the sector are also expected to evolve as launch frequency increases, with industrial gas infrastructure moving closer to launch sites to reduce logistics costs and support more stable launch schedules.
He said early-stage projects currently rely more heavily on long-distance deliveries due to intermittent demand, but more frequent launches would likely lead to dedicated supply arrangements and new long-term contracts.
“As they get on to a better cadence, then you start talking about new requirements [for] contracts in supporting a more stable launch cycle,” said White. “You put [capacity] closer and so you eliminate the logistics costs.”
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