ABL Space Systems Exits Commercial Launch Market, Shifts to Missile Defense

ABL Space Systems, a six-year-old launch startup based in El Segundo, California, has announced its exit from the commercial launch market to focus on missile defense programs for the Pentagon.

The decision marks a significant pivot for the company, which has faced numerous challenges in competing against industry heavyweights like SpaceX and Rocket Lab.

“We are stepping away from the commercial launch market and focusing our efforts on missile defense,” - Dan Piemont, ABL’s co-founder and president

Repurposing RS1 Rocket for Defense

ABL plans to retool its RS1 rocket, initially developed to launch small satellites into orbit, for military applications. The company envisions its modular rocket being utilized as a cost-effective solution for missile defense initiatives, such as target vehicles in weapons testing.

The RS1’s modular design allows it to be packaged in standard shipping containers, facilitating rapid deployment—an attribute that Piemont emphasized as particularly appealing for military use.

“We’ll have more to share soon on our roadmap and traction in this area,”- Dan Piemont, ABL’s co-founder and president

By pivoting to missile defense, ABL could find itself competing directly with entrenched defense contractors, offering the Pentagon a more affordable alternative. This comes as the U.S. military seeks to expand its missile-defense capabilities in response to escalating tensions with adversaries like China, North Korea, and Iran.

Expanding Missile Defense Efforts

The Pentagon is expected to increase investment in missile interceptor development and testing, a sector that gained momentum during Donald Trump’s first term as president. Analysts believe the sector will see further expansion under Trump’s second term, particularly as geopolitical threats intensify.

Struggles in the Commercial Launch Market

ABL’s withdrawal from commercial launches highlights the struggles facing small launch providers in an increasingly competitive industry.

Despite raising over $500 million in venture funding and securing high-profile contracts with clients like Amazon’s Project Kuiper and Lockheed Martin, ABL grappled with reliability issues and financial challenges.

The RS1 rocket experienced two major setbacks: a failed inaugural flight in January 2023, which ended shortly after liftoff due to a fire, and a catastrophic static fire test in July 2024 that resulted in the rocket’s destruction. These failures, combined with cost-cutting measures such as layoffs, hindered ABL’s ability to compete in the commercial market.

A Tough Market for Small Launch Providers

ABL’s challenges are emblematic of the broader difficulties faced by small-satellite launch companies. The market has seen high-profile casualties, including Virgin Orbit, which filed for bankruptcy in 2023, and Astra, which continues to face technical and financial hurdles.

Industry analysts note that newcomers face steep barriers to entry, including high development costs and intense competition from established players offering frequent, reliable, and cost-efficient launches.

Looking Ahead

By focusing on missile defense, ABL aims to carve out a niche in a sector with growing demand and fewer competitors. Whether the pivot will pay off remains to be seen, but ABL’s transition underscores the dynamic and often unpredictable nature of the space industry.