Orbital Sciences Corp. shares took a 16.8% beating after its Antares rocket carrying equipment to a NASA space station blew up upon liftoff on Tuesday.

The flight was unmanned, but there is sure to be at least some collateral damage on the aerospace and defence sectors.

At the same time, some companies may be able to capitalize on the problems their rival faces in the lucrative industry of taking equipment and people into space. The Pentagon satellite launch market alone is worth a reported US$68-billion and the industry has attracted interest from new players such as Tesla Motors Inc. founder Elon Musk and Amazon.com Inc. founder Jeff Bezos.

Here are a few names and stocks involved in the sector and what theyre up to, as space enthusiasts see bright prospects for humans beyond earth and governments rely on private companies to make space deliveries.

The Antares rocket is powered by an AJ-26 engine built by GenCorp Inc. which helps explains the stocks sharp 5.4% decline on Wednesday.

However, the dominant market status of its Aerojet Rocketdyne business essentially makes the company a strategic national security asset in the U.S.

In addition to building landing system thrusters and the nuclear power support for NASAs Mars 2020 rover, Gencorps 2013 purchase of Rocketdyne has made it the backbone of the Department of Defense’s strategic and tactical missile defense systems.

KeyBanc analyst Michael Ciarmoli believes this status will allow the company to benefit from current industry developments and favourable future space and defence trends.

Increased geopolitical tensions such as those between Russia and Ukraine have prompted the U.S. government to take another look at its rocket propulsion supply chain.

GenCorp stands to benefit from any increased funding for current programs as well as awards for future programs if the DoD relies more on domestic propulsion providers.

Alliant Techsystems Inc.

This Virginia-based company with a US$4-billion market cap is set to merge with Orbital in the next few months, after it spins off its sporting gun business.

Despite Orbitals problems this week, experts dont seem to think the deal will be impacted, although Allieds stock tumbled 6.5% Wednesday.

Jefferies & Co. analyst Howard Rubel acknowledged that the explosion was significant, but doesnt see it upsetting the combination.

There is no expectation that this will hinder the transaction, another source told Reuters. This is an event that occurs in this industry.

Meanwhile, Alliants defence revenues and margins have exceeded expectations as progress on its aerostructure platforms and international weapons sales continue to more than offset weakness in small-calibre ammunition.

However, threats include future budget uncertainty, a lack of clarity on NASAs plans, and the conclusion of war operations in Iraq.

Space Exploration Technologies Corp.

This private manufacturer and launcher of advanced rockets and spacecraft had an explosion of its own in August, when problems with a reusable rocket prototype forced it to be destroyed above the companys testing lands in Texas.

On the plus side, SpaceX, founded by Telsa Motorss Elon Musk, was awarded a contract by NASA to provide transportation to the International Space Station, and it also wants to put a sustainable human colony on Mars.

But its next project is a little closer to home: trying to land a rocket on a football-field sized platform floating in the Atlantic Ocean.

Musk says the operation has a 50% chance of success, but a successful landing could serve as a significant milestone since one-time rockets are extremely expensive.

In a cost-conscious customer market, SpaceX boasts its rockets can put a satellite into space for about US$100-million compared to US$225-million by some others.

Boeing Co. and Lockheed Martin Corp.

United Launch Alliance, a government-funded joint venture between Boeing and Lockheed, provides spacecraft launch services to U.S. government customers such as NASA and the DoD.

ULA recently announced an investment in a new rocket engine being developed by Blue Origin LLC, a private company set up by Amazon.coms founder Jeff Bezos that wants to enable humans get into space.

NASA also recently announced a contract for Boeing to develop capsules that can take U.S. astronauts into orbit.

ULA is competing with Orbital, Blue Origin and SpaceX for business from the U.S. government, which needs to cut costs for the Air Force and NASA due to budget limitations.

ULA had previously used Russian-built engines for its heavy rocket launches, but that relationship is in doubt due to ongoing tensions between Russia and Ukraine.