China’s 2025 Space Forum: Breaking Down Infrastructure Strategy, Concerns, and Market Implications

Last month, ABI Research attended the 13th Science and Technology Expo Aerospace International Forum held in Mianyang, China. The forum provided a deep dive into the developments and progression of various aspects of the space industry in China, from the BeiDou navigation system and its expanding Earth Observation (EO) satellite fleet to the aggressive push toward launching Low Earth Orbit (LEO) mega constellations and emphasizing the significance of international developments and collaborations in this sector.

Key high-level takeaways from the sessions include the following:

• A Shift Toward Space Infrastructure as National Assets: Space infrastructure continues to evolve and expand beyond communications and navigation tools, as many nations are building space-based infrastructure as a core pillar for their long-term strategic goals. It is no longer just an extra layer on top of terrestrial networks, but satellites in space are becoming “Infrastructure-as-a-Service” platforms, enabling everything from Satellite Communications (SatCom) and Direct-to-Device (D2D) services, to connecting cars, buildings, and cities. For example, in September 2025, Chinese aerospace company Geespace launched 11 additional satellites into orbit, bringing its Internet of Things (IoT) constellation to a total of 41 satellites to date, designed primarily to serve connected and self-driving cars. Similarly, in May 2025, GuoDianGaoKe Technology’s Tianqi satellite constellation has accelerated its development with 37 satellites in orbit currently (Phase 1 completion requires a total of 72 satellites) that provide services for smart cities, marine monitoring, emergency communications, and environmental monitoring.
• China Is Looking Toward More International Collaboration for Driving Technological Advancements: There was an emphasis from speakers across multiple organizations—including China Sensing of Remote Sensing Application (CSRS), China Aerospace Science and Technology (CAST), and Asia Pacific Space Corporation Organization (APSCO)—on the significance of international collaboration in this industry. Notably, China Great Wall Industry Corporation (CGWIC) has established partnerships with 15 countries, supporting or delivering 101 full spacecraft launch missions, including 74 international commercial satellites and 261 domestic commercial satellites to date. CGWIC is positioning itself as a reliable partner, an integrated space systems provider, and a one-stop turnkey in-orbit solution provider, and its international footprint is only expected to grow from here. The push for a collaborative approach democratizes global access to critical satellite services, especially for emerging nations. This includes satellite data sharing for emergencies and disaster responses, monitoring climate and environmental change, and space sustainability.
• Boosting the Economy Through NewSpace and Commercial Opportunities: Many countries, including China, are focusing on accelerating growth in the commercial space sector. This creates a spillover effect on the technology markets (please see ABI Insight “Rising Stars: How Asia-Pacific Is Shaping the Future of Space Technologies”), such as the device and electronics sector, manufacturing and robotics sector, and the cloud and Artificial Intelligence (AI) sector, among others. On top of that, investing in domestic manufacturing capabilities will support the growth of local supply chains, while creating economic opportunities through hiring and nurturing local talent and skillsets. Ultimately, the space industry is developing as a key sector for national economies—with startups, investors, and job creation all playing a role in strengthening the national economy.

While many opportunities are emerging in the space ecosystem, some thought-provoking conversations with Chinese space companies across the value chain raise a key concern. We are witnessing ambitious efforts, momentum, and results behind China’s satellite programs—ranging from LEO mega-constellations, expanding BeiDou Global Navigation Satellite System (GNSS), and a growing EO Fleet—where these programs are progressing quickly backed by strong government support and funding. However, a critical roadblock is present in the long term: cost.

To address this, China is aggressively developing reusable launch technology, which is a crucial step toward reducing launch expenses in the long run as more satellites are launched into orbit. But they have yet to match the maturity and operational track record of SpaceX’s Falcon 9, which has reshaped global launch economics through regular and reliable use. This raises another question: When China succeeds in developing and executing a reusable launcher for missions and closes the gap in satellite deployment volumes to the current market leader—SpaceX—can they truly capitalize on its massive domestic space ecosystem and become a leader in space? Beyond just sending satellites into orbit, the challenge will be delivering value through innovation, services, and scalability that can support the capacity of millions of users.

Amid growing competition and evolving dynamics across satellite manufacturing, launch services, and commercial space companies, the space sector continues to reflect its inherently multipolar nature. What does this mean for different stakeholders: investors and venture capitalists, policymakers and regulators, and the commercial sector?

• Investors and Venture Capitalists: Historically, a large portion of investments pouring into space technology comes from government research and development programs across the world. Looking ahead, commercial and national investment strategies have shifted to supporting technologies such as AI, cybersecurity, software-defined networks, space logistics, and more, which are critical enablers of next-generation space capabilities. On top of that, private investors are monitoring governments’ actions to align their bets with national roadmap goals. The government as an anchor customer plays a key role in unlocking private capital, providing stability and confidence in the sector. In China, the dominant investor in space tech is ultimately the government, which aligns its budget alongside long-term policies, but undervalued investment opportunities remain in China’s new space scene. According to ABI Research, satellite Non-Terrestrial Network (NTN) and Direct-to-Cellular (D2C) user revenue are forecast to grow from approximately US$1.4 billion in 2025 to US$52.8 billion in 2035 globally, representing a Compound Annual Growth Rate (CAGR) of 43.4%. The Asia-Pacific region is forecast to grow from US$756 million in 2025 to US$18 billion in 2035, at a CAGR of 37.4%.
• Policymakers and Regulators: As the number of satellites in orbit grows at an exponential rate, particularly from mega constellations like Starlink and Spacesail, there is the increasing need for coordination in space, space sustainability, and governance. Without careful management, this can increase the risk of collisions, and Kessler Syndrome, which is a cascading, self-perpetuating chain reaction of space debris collisions that can render Earth’s orbit unusable, resulting in long-term orbital instability. Hence, increased transparency and stronger policies around de-orbiting satellites at their end of life to reduce debris in space for shared accountability is key. For example, the Zero Debris Charter—a global initiative led by the European Space Agency (ESA)—is a collaborative effort with inputs from numerous countries, organizations, companies, and academic institutions. It aims to shape the global consensus on space sustainability and be debris-neutral by 2030. Stronger global enforcement and the inclusion of emerging space actors can support implementing the strategy more seriously.
• Commercial Sector Globally: With China’s commercial sector maturing fast across the space value chain—launch services, satellite manufacturing, ground systems, downstream data applications, and partnerships with international companies to expand their footprint—a new wave of competition is expected to enter the global export markets. More competition will likely drive prices down, increasing the availability of lower-cost, vertically-integrated solutions that are made possible by state subsidies and economies of scale. At the same time, the downstream competition in vertical markets (agriculture, insurance, logistics, urban planning, disaster response, and more) will intensify. Companies offering Satellite Data-as-a-Service, such as SkyWatch, EOS Data Analytics, and SpaceKnow, among others, will need to go beyond purely offering raw data or they risk becoming obsolete. To differentiate, they must focus on vertical integration and customization, value-added analytics, and delivering localized insights.

• Building Entire Value Chains and Interlinked Systems: Companies that want to differentiate should build competitive ecosystems that deliver value across the full stack, instead of purely standalone technology. More companies are implementing modular, interoperable ecosystems that integrate hardware, software, and data platforms into a seamless solution. Diversifying and building a vertically aligned system allows a seamless process for customers to onboard quickly, instead of searching for different solution providers. For example, CGWIC offers one-stop turnkey services providing commercial launch services, in-orbit delivery, ground operations, financial services, and insurance. However, some customers prefer customized solutions for a specific need without the entire solution, especially in sectors like insurance, logistics, or climate monitoring. Hence, companies should build for integration, but sell with flexibility that allows clients to plug in at any point.
• Invest in Dual-Use Capabilities (Defense + Commercial): Many current space tech (EO, GNSS, SatCom) are dual-use by design and serve both commercial and defense applications. For example, GNSS are utilized for both civilian navigation and military positioning, and EO satellites supports weather forecasting and surveillance. In order to extract more value from these infrastructure assets, it is crucial to encourage partnerships between defense and commercial companies—just as past collaborations led to transformative technologies like the Internet and the Global Positioning System (GPS). Datasets originally used for the military can also be adapted for climate monitoring, disaster response, or commercial surveillance. This multiple-use approach can unlock new revenue streams and help investors realize the added value of space assets to increase their Return on Investment (ROI), ultimately increasing the flow of capital into the space industry.
• Strengthening Trust Through Transparency, Security, and Compliance: With the increasing number of satellites in orbit and as space-based services become more integrated into critical infrastructure (such as automotive systems, data centers, and smart cities), there are higher vulnerability entry points, increasing the risk of data breaches and cyberattacks. Commercial space companies should proactively invest in data security and cyber resilience, especially when dealing with sensitive applications that include satellite imaging and communications technologies. Building that key foundational trust and reliability that comply with international standards and clear security protocols will ultimately earn the confidence of clients in this increasingly competitive space market.