Commercial aerospace and the low-altitude economy, as pivotal terms, hold a prominent place in the 2025 government work report, underscoring their strategic importance.

The 2025 government work report emphasizes:

"Cultivate and expand emerging and future industries. Deeply promote the integrated cluster development of strategic emerging industries. Implement large-scale application demonstration initiatives for new technologies, products, and scenarios, fostering the safe and sustainable growth of sectors like commercial aerospace and the low-altitude economy."

In the 2024 report, commercial aerospace and the low-altitude economy debuted as "emerging and future industries," alongside biomanufacturing, with an emphasis on their forward-looking potential. This year, they are explicitly categorized as "strategic emerging industries," with the language shifting from "actively cultivating" to "cultivating and expanding," solidifying their role as engines of new productive forces and potential pillars of the national economy.

The 2024 report states:

"Vigorously propel the construction of a modern industrial system, accelerate the development of new productive forces, actively cultivate emerging and future industries, and foster new growth engines such as biomanufacturing, commercial aerospace, and the low-altitude economy."

Driven by global strategic significance, economic growth potential, and industrial dynamism, the positioning of commercial aerospace and the low-altitude economy has witnessed a significant leap. As these sectors embrace new opportunities for high-quality development, which regions have secured an early lead? Let's delve into commercial aerospace first.

01

Commercial Aerospace Industry Chain Overview

Commercial aerospace encompasses space activities driven by market mechanisms, primarily aimed at generating commercial profits. China's commercial aerospace activities primarily revolve around satellites and rockets. The industry chain spans upstream, midstream, and downstream segments:

The upstream segment involves satellite manufacturing. Artificial satellites consist of a support system and a payload. The payload, varying by task, performs functions post-orbit; the support system comprises fundamental modules such as thermal control, structure, power supply, data management, and propulsion. After assembly, satellites tailored for communication, navigation, remote sensing, and scientific verification are produced.

The midstream segment encompasses satellite launch services and ground equipment manufacturing. Launch vehicles, comprising a body structure, power plant, control system, and electrical system, are crucial for commercial satellite launches. Ground equipment includes testing and control equipment (monitoring satellite status) and terminal technology equipment (supporting navigation, communication, and remote sensing applications), falling under the upstream of satellite application services.

The downstream segment focuses on satellite applications and services, covering fields like satellite communications, navigation, and remote sensing. Satellite communications, widely used in broadcasting, broadband, and video calls, offer broad maritime, aviation, and terrestrial communication prospects. The BeiDou Navigation Satellite System, fully completed in 2020, serves positioning, navigation, transportation, agriculture, and more. Satellite remote sensing has expanded from public services to commercial applications like precision agriculture and environmental monitoring, with growing market demand fueled by technological advancements and cost reductions.

Commercial Aerospace Industry Chain Overview

Source: Flarestone Creation Industry Data Center

02

Key Cities and Representative Enterprises in Commercial Aerospace

Spurred by policies and a conducive business environment, numerous Chinese cities have rolled out commercial aerospace plans to accelerate industry development. Data from the Flarestone Creation Industry Data Center reveals that Beijing, Shenzhen, Shanghai, Xi'an, Chengdu, Nanjing, Wuhan, and other cities host a myriad of commercial aerospace enterprises, laying a solid industrial foundation.

Beijing

Beijing has unveiled the "Action Plan for Accelerating the Innovation and Development of Commercial Aerospace in Beijing (2024-2028)" to expand a hundred-billion-yuan commercial aerospace cluster and build a globally influential innovation hub. Beijing boasts a "Southern Rockets, Northern Satellites" layout, with the Beijing Economic-Technological Development Area and Daxing District housing commercial rocket R&D and manufacturing enterprises, and Haidian District gathering satellite manufacturing, testing, control, and operating firms.

Representative enterprises: LandSpace, GalaxySpace, iSpace, MicroNanoSat, Galaxy Power, Xinghe Yuxing, etc.

Shanghai

Shanghai stands as a significant commercial aerospace hub, boasting a comprehensive industry chain from rockets and satellites to ground equipment and application services. According to the "Shanghai Action Plan for Promoting the Development of Commercial Aerospace and Building a Space Information Industry Hub (2023-2025)," Shanghai aims to create flagship products like "new-generation medium and large launch vehicles, low-cost integrated satellites, and intelligent application terminals," with annual production capacities of 50 commercial rockets and 600 satellites.

Representative enterprises: The Eighth Academy of China Aerospace Science and Technology Corporation, Small Satellite Engineering Center, Huace Navigation, Qianxun Positioning, etc.

Xi'an

Xi'an, China's aviation epicenter, boasts a robust commercial aerospace chain encompassing rocket and engine development, satellite systems, testing, control, and applications. Home to the Fourth and Sixth Academies of China Aerospace Science and Technology Corporation and the Xi'an Aerospace Base, Xi'an offers a full industrial chain from upstream component manufacturing to downstream services.

Representative enterprises: Zhongke Xiguang, iSpace, GalaxySpace, Skyroot Aerospace, Zhongke Tianta, LandSpace, Zhongke Yuhang, etc.

Chengdu

Chengdu, with a strong aerospace foundation, is a vital pole in China's aerospace industry, specializing in ground communication, satellite electronics, rocket manufacturing, and services. It hosts multiple national and provincial innovation platforms, ensuring a seamless chain from R&D and design to system integration and operational services.

Representative enterprises: iSpace, Tianyi Huayu Group, Aksa Technology, Guoxing Yuhang, etc.

Shenzhen

Shenzhen's commercial aerospace industry covers satellite development, component manufacturing, and satellite communication, navigation, and remote sensing applications. The "Guangdong Province Action Plan for Promoting the High-Quality Development of Commercial Aerospace (2024-2028)" outlines Shenzhen and Guangzhou's collaboration to form a comprehensive industry chain spanning rockets, satellites, ground stations, terminal equipment, and applications.

Representative enterprises: Shenzhen Dongfanghong, APT Satellite, Huada Beidou, Huaxin Antenna, etc.

Wuhan

Wuhan, a key commercial aerospace base, focuses on rocket development, satellite manufacturing, and space information applications. By establishing the National Aerospace Industrial Base and the "China Star Valley," Wuhan has cultivated a "one core, two districts, multiple parks" development model, with the National Aerospace Industrial Base emerging as a significant commercial aerospace cluster.

Representative enterprises: China Aerospace Science and Industry Corporation, Aerospace Cloud, Xiangji Technology, etc.

Collectively, China's commercial aerospace landscape showcases a vibrant, coordinated development trend. Each city leverages its unique strengths to focus on different fields, fostering distinct industrial clusters. Amidst the global aerospace commercialization wave, space has emerged as a new frontier for competition, heralding the era of grand aerospace exploration. With government and corporate synergy, commercial aerospace is poised for even greater achievements.

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Author | Flarestone Creation Weng Jianping

Review | Flarestone Creation Yin Li