Elon Musk's SpaceX is under threat from new competitors after United Launch Alliance, a joint venture between Boeing and Lockheed Martin Corp, successfully launched a Vulcan rocket this week.
This launch represents a long-awaited milestone by the US government in its effort to build a roster of satellite launch service providers.
Boeing teamed up with United Launch Alliance on Monday to send a Vulcan rocket into space for the first time. It's a first step toward regaining market share from SpaceX, whose reusable Falcon 9 rocket has been the country's first choice for launching satellites into space for years.
Despite the successful launch of the Vulcan rocket, the privately funded lunar lander will be unable to complete its mission due to technical problems.
This launch puts United Launch Alliance in a leading position to challenge SpaceX's near monopoly on rocket launches.
If United Launch Alliance can prove that the Vulcan rocket is capable of rapid, repeated launches, it will give the market another path to space.
Reliance on SpaceX is a concern for the US Department of Defense, which wants to have multiple launch vehicles capable of launching flights into orbit.
The US Department of Defense wants to verify its ability to reach space with its Vulcan rocket to meet national security requirements in case SpaceX runs into problems in the future.
Demand for launches is growing, thanks in large part to plans by countries and companies like Amazon to send thousands of Internet satellites into space.
The launch vehicle market is facing supply problems, with Europe's sovereign access to space affected by delays in missile development, and the West is isolating Russia's missile program due to the war in Ukraine.
United Launch Alliance has sold more than 70 future launch projects, including 38 dedicated to Amazon's Kuiper Space Internet project.