Rockets are the foundation of all aerospace undertakings. With the construction of the Star Network and Qianfan Constellation, China’s space launch market will reach a scale of 100 billion in the future. How to divide such a big piece of cake? Which companies will become key points in the industrial chain?<\/p>\n
Today we will take stock of: China\u2019s commercial aerospace industry chain map in 2025\u2014a 100-billion-dollar rocket launch market. <\/p>\n
01<\/p>\n
Rocket launch industry chain and market size<\/p>\n
1. Two major low-orbit satellite Internet constellations create a 100-billion-dollar rocket launch market<\/p>\n
In 2025, my country has a number of recyclable rockets planned to make their first flights; in terms of satellites, giant constellations such as the Qianfan Constellation and the GW Constellation continue to be launched into space, and the demand for small satellites has exploded. It is expected that the size of China’s commercial aerospace market will exceed 2.5 trillion yuan this year.<\/p>\n
As the basis of all aerospace activities, the size of the rocket launch market directly reflects the activity of a country’s aerospace industry. From 2022 to 2024, China’s space launch market will complete 62, 67, and 68 launch missions respectively.<\/p>\n
According to Nihao Space statistics, by 2030, China will need to launch more than 3,000 satellites every year, more than 10 times the 257 satellites in orbit in 2024, and the output value is expected to exceed 100 billion yuan.<\/p>\n
2. Hundreds of billions of rocket launch industry chain <\/p>\n
According to the upstream and downstream divisions of the industrial chain, the rocket launch industry chain is roughly divided into: upstream parts manufacturing, midstream overall design\/assembly, and downstream launch services. Among them, the longest industrial chain is the upstream manufacturing industry, which can be divided into engine system manufacturing (liquid engine accounts for about 50% of the total cost of the rocket), rocket body structure manufacturing (accounting for about 25% of the total cost of the rocket), electrical systems and software (accounting for about 15% of the total cost of the rocket), and the remaining 10% of the cost comes from ground testing, fuel, etc. Among them: Engine system manufacturing includes: engine assembly manufacturing and core component manufacturing such as turbine pumps, thrust chambers, and gas generators. Specific to the technical level, the most promising future is the recyclable liquid rocket engine (usually with the characteristics of multiple starts, depth variable thrust, etc.). The upstream needs to pay attention to key suppliers such as recyclable thrust chamber products and 3D manufacturing processes that can significantly reduce the complexity of the engine (which can reduce the manufacturing cost and cycle of complex components such as turbine pumps and nozzles). Rocket body structure manufacturing includes: tank manufacturing, fairing manufacturing, structural parts (interstage sections, instrument cabins, tail ends, etc.) manufacturing, connecting parts (high-temperature alloy bolts, low-temperature pipelines, valves, etc.), and unlocking parts (pyrotechnics, non-pyrotechnics unlocking). The most commercial value in the rocket body structure manufacturing industry chain is the fairing manufacturing industry, which accounts for about 10% of the total cost of the rocket, followed by the stainless steel storage box industry, which can significantly reduce the manufacturing cost of the box and facilitate recycling. Electrical systems and software include: measurement and control systems (sensors, external measurement equipment and ground systems), control systems (inertial navigation equipment, comprehensive control computers, timing control, attitude and orbit control systems, power distribution systems) and software. Under the demand for low-cost transportation capacity, the selection of electrical system components has transformed from “aerospace grade” to “industrial grade”. <\/p>\n
02<\/p>\n
New segmented tracks and leading companies<\/p>\n
1. Leading engine system companies <\/p>\n
1. Liquid engine. There are not many companies in China that focus on high thrust, deep variable thrust, and multiple starts of liquid rocket engines. This is mainly because general manufacturing companies such as Blue Arrow Aerospace, Tianbing Technology, Zhongke Aerospace, Galaxy Power, and Star Glory have chosen to self-research engines out of technical safety considerations of “core technology self-research.” The leading companies include:<\/p>\n
Kyushu Cloud Arrow. The core product is the Longyun 70-ton liquid oxygen methane engine. The installed rockets include the Long March 12A of the Eighth Academy and the Yuanxingzhe 1 of Jianyuan Technology. It is the best commercialized recyclable engine in China.<\/p>\n
Tianhui Aerospace. The core product is the Qiaolong No. 1 liquid oxygen kerosene engine. The product adopts its original extraction combustion cycle technology, which greatly reduces the engine structure and reaches a thrust-to-weight ratio of 160.<\/p>\n
Aerospace propulsion. The core product is the 70-ton Mosasaurus 1 liquid oxygen methane engine, which is said to be used as the first-stage main power of the Xuantiao-1 rocket.<\/p>\n
Xi’an Aerospace Engine. The core engine manufacturing enterprise of the Sixth Academy, the YF-20 series and YF-100 series are both produced by Xi’an Aerospace Engine Company.<\/p>\n
Shaanxi Shangfa. The core products are the YF-102 series and YF-209 engines, of which YF-102 is the first-stage engine for Tianlong 2 and Lijian 2.<\/p>\n
2. Solid motor. Solid engines cannot be reused due to factors such as unadjustable thrust, so their future development is limited. However, they still have small-scale application prospects in small satellite networks and other small-capacity, quick-response demand ends. The leading companies include:<\/p>\n
Xi’an Aerospace Commercial Rocket Power is a subsidiary of the Fourth Aerospace Institute. It is the largest solid power research and development enterprise in China, providing solid power for many types of solid rockets such as Ceres 1, Lijian 1, Gravity 1, and Chang Liujia.<\/p>\n
Tianqing Aerospace. Founder Yang Wei graduated from Northwestern Polytechnical University and worked at the Shanghai Aerospace Power Technology Institute. He mainly provides solid launch vehicles, rocket engines, drones and high-end aerospace components.<\/p>\n
Smart and flying. Focusing on the research and development of aerospace solid power products, it has developed take-off boosters for many types of domestic unmanned aerial vehicles.<\/p>\n
3. Servo system. The servo system is an important execution component for the rocket engine nozzle to swing and adjust the flight attitude. The leading companies include:<\/p>\n
Aerospace servo. Co-founder Zheng Huayi comes from the First Academy of Aerospace Science and Technology and was the overall designer of the Long March 5 rocket servo system. The company provided the most powerful electric servo system in China for Gravity 1.<\/p>\n
33 institutes of the Third Academy of Aerospace Science and Industry. Affiliated to the China Aerospace Science and Industry Flight Technology Research Institute, it is the core unit of the China Aerospace Science and Industry Corporation engaged in inertial, navigation, and control technology research. On August 15, 2025, the Suzaku 2E failed to launch in Jiuquan, and its secondary servo system was provided by 33.<\/p>\n
Navigation Star Transmission. Focusing on the R&D and design of aerospace servo systems, the product power range covers 20 watts to 20 kilowatts, which can meet the application needs of different power levels in the commercial aerospace and military fields.<\/p>\n
Xinhui sky. Founded in 2014, it focuses on the research and development, production, sales and service of electric servo systems in the aerospace field. In May 2025, it completed tens of millions of yuan in Pre-A round financing.<\/p>\n
There are 18 institutes in the First Academy of Aerospace Science and Technology. An institution affiliated to the First Academy specializes in the research and development of precision electromechanical control equipment. Its functions cover the design and production of core components such as spacecraft servo systems and high-precision transmission devices.<\/p>\n
4. Engine core components. Including engine nozzles, thrust chambers, gas generators, turbine pumps and other components, they have high value in the engine system due to the harsh working environment and difficulty in manufacturing. The leading companies include:<\/p>\n
Sri New Materials (thrust chamber). Focusing on the R&D and manufacturing of high-performance copper alloy materials, products and other special copper alloy series materials, it provides chromium-zirconium-copper thrust chamber products for Jiuzhou Yunjian’s Longyun engine.<\/p>\n
Platinum (3D printing of engine parts). The leading domestic additive technology solution provider provides 3D printing manufacturing of turbine pump casings, thrust chambers, etc. for the Jiuzhou Yunjian Longyun engine.<\/p>\n
2. Leading companies in arrow body structure<\/p>\n
1. Storage box. The new technology focuses on the research and development of large-size stainless steel storage tanks. The leading companies include:<\/p>\n
Nine-day song. The main business includes the production and development of liquid rocket tanks, interstage sections and other structural parts. The diameter of the tanks covers 2.25 meters to 10 meters. It has completed the first 3D printing of the bottom of the aluminum alloy rocket tank in China.<\/p>\n
The world is dry. On September 3, 2025, Huanyu Qiankun completed the acceptance of the 4.2-meter-diameter rocket tank, demonstrating its outstanding strength in rocket tank system integration.<\/p>\n
Light Years of Exploration. The company was established in January 2022 and is located in Taicang City, Jiangsu Province. Its products include stainless steel bulging tanks, fairings, inter-tank sections and other launch vehicle parts.<\/p>\n
Amahara Exploration. Founded in 2024, it has a liquid rocket propellant tank manufacturing base in Jiangning, Jiangsu.<\/p>\n
2. Fairing. The fairing is the most valuable product among rocket structural components, accounting for about 10% of the total cost of the rocket. The leading companies include:<\/p>\n
ASTAR Aerospace. Focusing on the R&D and manufacturing of aerospace carbon fiber composite fairings, its customers include Star Glory, Galaxy Power, China Aerospace, Tianbing Technology, Blue Arrow Aerospace, Oriental Space, as well as enterprises inside and outside the system of aerospace science and technology, aerospace science and industry, and the Chinese Academy of Sciences.<\/p>\n
Anhui Menkes. Deeply engaged in the two technical routes of resin-based and ceramic-based, it is the production base for the transformation of ultra-high-temperature ceramic-based technology achievements of Harbin Institute of Technology. It has provided fairing products for the Ceres-1 Yaoqiu rocket.<\/p>\n
Light Years of Exploration. An explorer of low-cost fairing technology, in July 2024, it successfully trial-produced a wood-skinned fairing, which was made using flame-retardant plywood wood skins, vehicle thin steel plate welded frames and other structural solutions, reducing the cost of fairing manufacturing to the level of general industrial structural products.<\/p>\n
3. Connection & unlocking parts: Ningbo Xingjian (pipes, valves, propellant filling system, etc.), Lingyi Aerospace (separation device), Differential Aerospace (separation device), Aerospace Chenguang (metal hose), Aerospace Airui (valves and other fluid control products), Hangwei Hi-Tech (high temperature alloy bolts), etc.;<\/p>\n
4. Structural parts: Parker New Materials (aerospace forgings), Fujiang Industrial (interstage section), Aerospace Changzheng (tail end, interstage section and other structural parts), Aerospace Huayu (structural parts), Xinghe Zhonggong (surface treatment), etc.<\/p>\n
3. Leading companies in electrical systems and software<\/p>\n
1. Measurement and control system: Aerospace Times (measurement and control equipment), Jinmaijie (environmental sensors), Nanjing Gaohua (speed, pressure, etc. sensors), Aerospace Jintai (displacement, liquid level sensor), No. 704 Institute of the Ninth Academy (measurement and control equipment), space-based satellite launch measurement and control (launch measurement and control system), etc.;<\/p>\n
2. Control system: Guoke Tianxun (inertial navigation equipment, comprehensive control computer), Aerospace and Aerospace (control products, gyroscopes, etc.), No. 12 Institute of Aerospace Engineering (control system), China Aerospace Science and Technology Corporation (inertial navigation equipment), etc.;<\/p>\n
3. Software: Aerospace Wanyuan, China Technology Software, Aerospace Software Evaluation Center.<\/p>\n
4. Rockets\u2019 overall leading company<\/p>\n
1. Liquid rocket. Low-cost, large-capacity, recyclable liquid rockets are the basis for giant low-orbit satellite Internet constellation networking. Leading enterprises are divided into institutional and private enterprises according to their holding structures.<\/p>\n
Within the system:<\/p>\n
Chinese business fire. The core product is 12 meters long and 4.37 meters in diameter. It is equipped with nine YF-102R liquid oxygen kerosene engines in the first stage. It is expected to make its first flight in 2026.<\/p>\n
First Aerospace Academy. Also known as the “Rocket Academy”, it mainly undertakes national missions. Its core products, the Chang 5 series rockets, are the rockets with the largest capacity in active service in China. The Chang 5B and Chang Bajia are currently the main rockets for the Star Network.<\/p>\n
Eighth Institute of Aerospace Engineering. The core products are Chang Liujia, Chang Twelve, and Chang Twelve. Among them, Chang Liujia and Chang Twelve are responsible for the task of forming a satellite network. The first level of Chang Twelve A uses seven Longyun liquid oxygen methane engines and is expected to make its first flight at the end of 2025.<\/p>\n
Private enterprises:<\/p>\n
Blue Arrow Aerospace. Liquid products Zhuque 2E, Zhuque No. 3. Among them, Zhuque 2E is the first liquid rocket launched by a private enterprise to achieve commercial operation. Zhuque-3 is expected to make its first flight in the fourth quarter of 2025 and perform a recovery test on its first flight.<\/p>\n
Tianbing Technology. Liquid products Tianlong No. 2 and Tianlong No. 3. Among them, the improved version of Tianlong 2 is scheduled to fly for the first time in 2026, and Tianlong 3 is scheduled to fly for the first time at the end of 2025.<\/p>\n
China Aerospace. The liquid product Lijian 2 has now completed first- and second-level test runs and plans to make its first flight in the fourth quarter of 2025.<\/p>\n
Galaxy Power. The liquid product Pallas 1 is expected to be capable of its first flight by the end of the year.<\/p>\n
Interstellar glory. The liquid product Hyperbola No. 3 is expected to be capable of first flight by the end of the year.<\/p>\n
Eastern space. Liquid Products Gravity 2 has completed the hot test run of the 110-ton liquid oxygen kerosene engine Force 110.<\/p>\n
Deep Blue Aerospace. The liquid product Nebula-1 is expected to be capable of its first flight by the end of the year, but its LEO carrying capacity is only 2 tons.<\/p>\n
Arrow Technology. The liquid product is Yuanxingzhe 1, which has completed splash recovery tests at sea.<\/p>\n
2. Solid rocket<\/p>\n
Within the system:<\/p>\n
Chinese rocket. It is a rocket enterprise affiliated to the First Academy of Aerospace Science and Technology. Its core product is Jielong 3.<\/p>\n
Science and engineering rocket. The core products are Kuaizhou-1A and Kuaizhou-11 solid rockets.<\/p>\n
Private enterprises:<\/p>\n
Galaxy Power. Solid products Ceres 1 and Ceres 2. Among them, Ceres 1 has carried out 21 launch missions and is the most launched private rocket in China. Ceres 2 will soon carry out its first flight mission of “one rocket and six satellites”.<\/p>\n
Interstellar glory. The solid product Hyperbola-1 has carried out 8 launch missions, 4 of which failed.<\/p>\n
Eastern space. The solid product Gravity 1 is the world’s largest solid rocket, with a low-Earth orbit transport capacity of up to 6.5 tons.<\/p>\n
Mixed ownership: China Aerospace. The solid product Lijian-1 has carried out 8 launch missions.<\/p>\n
3. Suborbital rockets: Tenth Academy of Science and Technology, Zhongtian Rockets, Lingkong Tianxing, Star Exploration, Galaxy Power, etc.<\/p>\n
5. Leading companies in ground testing<\/p>\n
1. Environmental testing: Institute 702 of the Ninth Academy of Aerospace Science and Technology, Institute 201 of Aerospace Science and Industry, Beijing Institute of Aerospace Systems Engineering, Hangju Technology (the first domestic private enterprise with an arc wind tunnel), Institute 207 of Aerospace Science and Industry (research on optical and electromagnetic properties), etc.;<\/p>\n
2. Engine testing: Institute 165 of the Sixth Institute of Aerospace, Huanyu Qiankun, Institute 101 of the First Institute of Aerospace, Institute 401 of the Fourth Institute of Aerospace, Deep Blue Jigang, etc.<\/p>\n
6. Leading companies in launch and support systems<\/p>\n
1. Launch site:<\/p>\n
Launch sites within the system: Wenchang International Launch Site, Jiuquan Launch Site, Taiyuan Launch Site, Xichang Launch Site, Haiyang Space Port.<\/p>\n
Commercial launch site: Hainan Commercial Launch.<\/p>\n
2. Launch support system: Institute 15 of the First Institute of Aerospace Science (overall launch system), Institute 206 of the Second Institute of Science and Technology (overall launch system), Beijing Institute of Aerospace Architecture (construction of the space launch site), Aerospace Tianma (quiver transport vehicle).<\/p>\n
3. Aerospace special gas: Jovo Energy (signed with Hainan Commercial Development), Shaanxi Coal Group (coal-based kerosene), Shanghai Chemical Reagent Research Institute, etc.<\/p>\n
7. Leading companies in launch services<\/p>\n
On-orbit delivery: Great Space Wall, China Commercial Vehicles, China Rockets.<\/p>\n
Insurance services: Jiangtai Insurance, PICC Property & Casualty Insurance, Ping An Property & Casualty Insurance, BOC Insurance, etc.<\/p>\n
03<\/p>\n
Summary and Outlook<\/p>\n
In 2025, commercial aerospace has reached an “inflection point” for rapid launch of constellation networks. The launch of StarNet and Qianfan constellations are in urgent need of high-capacity, low-cost recyclable rockets to achieve rapid networking. In the fourth quarter of this year, four large-scale commercial recovery rockets, including Suzaku-3 and Tianlong-3, will make their first flights. If the first flights are successful and put into commercial use, the hundreds of billions-level rocket launch market will be activated, and the entire upstream and downstream industry chain will also enter a rapid reshuffle stage in 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"
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