China’s Commercial Space Sector Targets $344 Billion Market in 2025

Insider Brief

• China’s commercial space sector is expanding rapidly, with private firms unveiling new rockets, smart satellite factories, and mobile-to-satellite communications at the 2025 Commercial Space Conference in Shenzhen.
• The Chinese government has reiterated policy support for commercial space in its annual Government Work Report, with the domestic market projected to exceed $344 billion in 2025.
• Companies like GalaxySpace, Space Pioneer, and Landspace disclosed production milestones and upcoming launches, including reusable rockets and next-generation communication satellites.

China’s commercial space industry is aiming to surpass $344 billion (2.5 trillion yuan) in 2025, with private rocket makers and satellite manufacturers accelerating production and reusable technologies, according to coverage of a major Chinese space exhibition by a Chinese state-run newspaper.

The 2025 Commercial Space Conference and Exhibition opened Tuesday in Shenzhen, showcasing projects in four areas: in-orbit services, satellite manufacturing and applications, commercial rocket transport and advanced space technologies, The Global Times reports.

More than 350 representatives from aerospace companies, universities, and tech firms gathered at the two-day event to discuss China’s next phase of space development, according to the newspaper.

The Global Times, a state-run Chinese newspaper, is often viewed by foreign analysts as closely aligned with official government messaging. However, it can provide rare access to company statements, interviews and perspectives that offer insight into Beijing’s strategic priorities — particularly in areas such as technology, defense and commercial space.

Backing Leads to Industry Surge

The momentum in the space industry comes amid stronger policy support. For the second consecutive year, China’s annual Government Work Report explicitly referenced commercial space, pledging to “promote the safe and sound development of commercial space,” the Global Times reported.

Analysts cited by the Global Times said the backing has led to a surge in industry activity, with the sector expected to enter a phase of “transformation and upgrading” in 2025. Securities Daily, a media outlet under the China Securities Regulatory Commission, projected the industry’s market size would top 2.5 trillion yuan ($344 billion).

Duan Xiao, chief satellite system designer at GalaxySpace, told the Global Times that “space infrastructure development is emerging as a new engine for global economic growth.”

GalaxySpace, a Beijing-based satellite maker, has built what it describes as a smart factory capable of producing up to 100 satellites per year, each weighing up to two tons. The site uses smart assembly robots, automated guided vehicles (AGVs), and digital manufacturing systems.

The company is now focusing on satellites that enable direct communication with smartphones — a leap toward enabling next-generation mobile services like 6G. According to Duan, GalaxySpace has already demonstrated this mobile-to-satellite capability, linking users in Beijing and Bangkok through a high-quality video connection using China’s first low-Earth orbit broadband experimental constellation.

China’s satellite push mirrors a broader global trend. The European Space Policy Institute (ESPI) estimates the global space economy could reach $1 trillion by 2040, according to the article.

Rocket Makers Expand Operations

Rocket manufacturers are also expanding operations. Space Pioneer, a private company specializing in liquid-fueled launch vehicles, told the Global Times it plans the first launch of its Tianlong-3 rocket in 2025. The rocket is designed to compete with SpaceX’s Falcon 9 and is expected to scale to more than 30 launches per year.

The company gained attention last year as the first private firm to successfully launch a liquid-fueled rocket on its maiden attempt.

Meanwhile, Beijing-based Landspace is working to launch its ZQ-3 reusable rocket in 2025, with commercial operations expected by 2026.

Landspace CEO Zhang Changwu told the Global Times that three launches are planned to validate the rocket’s first-stage recovery capabilities. The company has already completed successful vertical takeoff and landing tests at 100 meters and 10 kilometers.

Zhang said the company plans to accelerate the development of the ZQ-3 rocket.

The ZQ-3 is designed to land upright, much like Falcon 9. Wang Minggang, chief scientist of the rocket’s landing system, said Landspace is testing deployable landing legs that extend when the rocket descends to about 100 meters from the ground.

According to Wang, the legs unfold in three to four seconds under heavy load but “the safety factor remains high, and the testing results in terms of load-bearing capacity are considered satisfactory.”

The commercial space conference underscored China’s intent to build a full-stack space economy, from satellite applications to reusable launch platforms.

Shift in China’s Space Strategy?

The rapid emergence of private firms — many with vertically integrated capabilities and plans to scale — signals a shift in China’s space strategy, once dominated solely by state-backed programs.

At the conference, officials and company executives emphasized international cooperation as a growth driver. The Global Times noted that the 2025 Government Work Report also highlighted the low-altitude economy — a reference to suborbital and near-space technologies that could overlap with commercial space ambitions.

As competition intensifies globally, China’s commercial players are looking to position themselves as agile, tech-forward counterparts to Western incumbents like SpaceX, Blue Origin, and OneWeb.