Rocket Lab's Expansion Outpaces SpaceX's; Here's the Reason Behind
SpaceX concluded 2024 with an impressive 138 rocket launches, including star attractions like the test flights of its mammoth Starship mega-rocket. Although SpaceX's second stage malfunctioned in its first test flight of 2025, the company showcased its resilience as the Super Heavy booster of Starship successfully took off and then returned for a thrilling 'chopsticks' landing at SpaceX's Mechazilla launch-and-landing tower.
Beating SpaceX at its own game might seem like an impossible task, yet 2024 saw Rocket Lab, the up-and-coming rocket company, launch 16 times, a significant leap from its 10 launches the previous year. This marked a 60% increase in launch cadence for Rocket Lab, outpacing SpaceX's impressive 41% growth in rocket launches.
While Rocket Lab still falls short in terms of sheer numbers, with SpaceX launching 122 more rockets, it's intriguing to marvel at how the underdog manages to make its mark.
Big-league players like SpaceX, ULA, and Arianespace dominate the heavy-lift rocket market, offering unbeatable prices for their impressive payloads. SpaceX's Falcon 9 remains a force to reckon with, priced at just under $70 million, delivering an impressive 22 tons to Low Earth Orbit (LEO). ULA and Arianespace, however, charge exorbitant prices for lesser capabilities.
Rocket Lab's Electron rocket, with a proven maximum payload of 320 kg and an average launch price of about $8.4 million, serves as an appealing alternative in certain scenarios. Despite Electron's lack of comparability to the capabilities of SpaceX's Falcon 9, ULA's Vulcan, or Arianespace's Ariane 6, Rocket Lab efficiently caters to niche markets.
Price becomes a secondary concern when SpaceX launches on dedicated missions, charging exorbitant prices in order to utilize just a fraction of the rocket's payload. In such instances, Rocket Lab's premium pricing for dedicated launches starts to appear more reasonable.
As Rocket Lab flexes its muscles, the introduction of its new medium-lift Neutron rocket later this year will turn heads in the industry. Neutron is predicted to launch for around $50-$55 million, undercutting the price of SpaceX's Falcon 9. Although Neutron's payload capacity is lower than that of Falcon 9 at 13 tons, the competitive pricing and innovative features, such as its clamshell fairing design and reusable first stage, makes it a compelling alternative for medium-sized missions.
The Neutron rocket promises to be a cost-effective option in several scenarios, such as smaller payload missions, dedicated missions, and missions requiring precise orbital placements. As investors eagerly await the Neutron rocket's debut, its cost-effectiveness and advanced technologies position it as a formidable competitor in the evolving space launch market.
In the world of finance and investing, Rocket Lab's impressive performance in 2024 has caught the attention of potential investors. With a projected launch price of around $50-$55 million for its Neutron rocket, Rocket Lab is poised to offer a competitive alternative in the medium-lift market, challenging the dominance of established players like SpaceX.
