In and Out: Comparative Analysis of NASA and Industry Spacecraft Costs

An illustration showing some of the many NASA satellites in Earth orbit. Credit: NASA

Author(s): Moon Kim and Tupper Hyde

Publisher: AIAA Journal of Spacecraft and Rockets

Publication Date: August 22, 2025

Link: https://doi.org/10.2514/1.A36406

This study compares the costs of spacecraft development between NASA’s in-house efforts and industry-led out-of-house programs. It addresses the question: “are industry-built spacecraft less expensive than those developed by NASA?” The findings indicate that industry-built spacecraft can be more cost-effective, but only under specific conditions. By applying statistical methods to analyze NASA’s internal cost data, the study team developed a nuanced understanding of the circumstances under which industry development offers cost advantages.

Findings

  • Cost Advantage: Analysis across all mission class types indicates that industry-built spacecraft are, on average, 21% less expensive than those developed by NASA. This cost advantage increases to 30% for Class C and D missions. However, for more complex Class A and B missions, the choice of developer (NASA or industry) has no significant impact on cost.
  • Total Project Cost: Despite variations in spacecraft development costs, the study found that the choice of developer does not significantly affect the overall project cost. 
  • Primary Cost Drivers: The research confirms that spacecraft mass is the primary driver of costs. Mission risk classification and the distinction between deep-space and near-Earth operations also significantly influence costs, though mass remains the most critical factor.