Key Facts
• June 2025: Honda successfully tested reusable small rocket, a first for Japan.
• Domestic space startups projected to reach 109 by 2025, a 40% increase in 3 years.
• Global space market expected to exceed $1.8 trillion by 2035, tripling from 2023.
• 2024 rocket launches: U.S. 153, China 66, Japan only 5.
• Mitsubishi Heavy Industries aims to halve launch costs to $33 million with H3 rocket.
• Japan’s government targets $53 billion domestic market by early 2030s, doubling 2020 levels.
• SpaceX dominates U.S. launches with cost-efficient reusable rockets.
• Space development seen as a “first-mover advantage” industry, requiring speed and investment.
Summary
Japan is intensifying efforts to expand its space industry, aiming to double its domestic market to $53 billion by the early 2030s. Honda achieved a milestone in June 2025 with the successful test of a reusable small rocket, leveraging its autonomous driving technology. The number of domestic space startups is expected to grow by 40% from 2022 to 2025, reaching 109 companies. However, Japan faces stiff competition from the U.S. and China, which lead in rocket launches and technological advancements. In 2024, the U.S. conducted 153 launches, China 66, while Japan managed only 5. To address cost challenges, Mitsubishi Heavy Industries is developing the H3 rocket to cut launch expenses by half. The global space market is projected to exceed $1.8 trillion by 2035, emphasizing the need for Japan to accelerate innovation and investment. Experts stress the importance of stimulating demand, attracting talent, and securing funding to remain competitive in this rapidly growing sector.
