Hong Kong Stock Concept Tracking | Satellite IoT Commercial Test Officially Launched! 100 billion market size can be expected (with concept stocks)

The Zhitong Finance App learned that at the 2025 China “5G+” Industrial Internet Conference, which opened on November 22, the Ministry of Industry and Information Technology announced the official launch of commercial testing of China's satellite IoT business. According to reports, this commercial trial period is two years. The aim is to enrich the satellite communication market supply by carrying out commercial tests of satellite IoT services, stimulate the vitality of business entities, enhance industry service capabilities, establish a safety supervision system, form replicable and promoted experiences and models, and support the safe and healthy development of emerging industries such as commercial aerospace and low-altitude economy.

Industry insiders explained that after China starts commercial testing of the satellite Internet of Things, it will bring a large amount of demand for satellite launches, thereby driving the rapid development of upstream and downstream industrial chains such as satellite manufacturing and rocket launch.

Satellite IoT business refers to a type of low-speed data service that connects various IoT devices through satellite communication technology to provide wide-area IoT connections to various terminals such as data collection terminals, wearable devices, handheld terminals, etc., as well as vehicles such as automobiles, ships, and airplanes.

As an important part of the new infrastructure, China's satellite communication development has entered the fast track since this year. In August of this year, the Ministry of Industry and Information Technology issued the “Guiding Opinions on Optimizing Business Entry and Promoting the Development of the Satellite Communications Industry” (hereinafter referred to as the “Guiding Opinions”) to coordinate the layout and system planning of opening up satellite communications services. Carrying out commercial tests of satellite IoT services is an important measure to implement the “Guiding Opinions” work plan, adapt to the general trend of scientific and technological innovation and industrial transformation, and actively explore new satellite communication services.

With the implementation of the policy and the launch of tests, the market prospects for satellite internet have attracted widespread attention. According to the CITIC Securities Research Report, the satellite communications industry has a prominent strategic position and clear policy orientation. At the domestic industry level, high-frequency launches have arrived, and the industry's inflection point is imminent. According to the CITIC Construction Investment Securities Research Report, China's satellite communications market will exceed 80 billion yuan in 2023. The compound annual growth rate of the market size is expected to be about 15% from 2024 to 2029, and the satellite communications industry market size is expected to exceed 200 billion yuan in 2029.

Once the commercial test of the satellite IoT business is successful, which scenarios will be the first to explode? Gao Zelong, an expert member of the China Transportation Association's Low-Altitude Transportation and Economy Professional Committee, said in an interview with the media that the integrated space-space network will take the lead in spawning changes in the four major scenarios. Among them, agricultural intelligence will use it to connect drones and sensors in remote areas to achieve accurate irrigation and production control. In the field of energy digitalization, various facilities such as oil fields and wind farms will rely on satellites to achieve real-time data transmission and remote monitoring, significantly reducing operation and maintenance costs.

Gao Zelong mentioned that in emergency communication support, temporary networks can be quickly built for disaster areas and remote areas, becoming a “lifeline” for rescue commands. At the same time, the satellite Internet of Things is also a key cornerstone of large-scale applications in the low-altitude economy. It will provide wide-area and reliable communication support for drone logistics, air traffic management, etc., and enable three-dimensional smart transportation networks.

Galaxy Securities recently stated that commercial satellite IoT testing will drive the extension of China's commercial aerospace industry chain from upstream manufacturing to downstream applications. This means that the commercial satellite industry is about to enter a new stage of demand-side traction and supply-side support, and a closed loop of industry is expected to take shape. Relying on space-based networks, the satellite Internet of Things can achieve global real-time tracking and data transmission of low-altitude aircraft, and can accurately fill the communication shortcomings of the low-altitude economy. The satellite Internet of Things has become a key link connecting the two major new types of productivity in commercial space and the low-altitude economy, promoting deep coupling and collaborative efforts between the two, and enterprises involved upstream and downstream of the industrial chain have ushered in broad development space.

According to the Cathay Pacific Shipping Research Report, as competition for space resources becomes more intense, satellite internet has become a new highland of global scientific and technological competition. As the networking process accelerates and technology continues to mature, satellite Internet will gradually move from “strategic layout” to “commercial operation” and become an important force driving changes in global communications. Although China started late, it is expected to occupy a place in the new space economy with national strategic support and market size advantages.

Related concept stocks:

China Telecom (00728): On November 21, at the 2025 Mobile Communications High Quality Development Forum held in Wuhan, Hubei Province, Shen Junxiang, Deputy General Manager of China Telecom Marketing Department, delivered a keynote speech on “Integrating Smart Cloud Networks to Promote High-Quality Mobile Communications Development”. Shen Junxiang explained that China Telecom has always adhered to the development idea of innovation-driven industrial upgrading, and made every effort to promote the development of space-terrestrial integrated satellite Internet. Early breakthroughs in some key technologies solved the problem of incompatibility between mobile phone RF transceiver performance and traditional high-orbit satellite data services, and ignited an industrial boom where mobile phones are directly connected to satellites. This year, through continuous exploration and innovation, the first verification of direct-connected satellite data services on consumer terminals was completed. Currently, the direct-connected satellite business has covered 25 million mobile phone terminals, providing cars from many leading companies with direct satellite connection services. By building a 4G and 5G boutique network with multi-frequency collaboration, a domestic IoT NTN commercial network will be built to achieve an integrated sky and celestial network layout with global coverage, heterogeneous integration, and intelligent collaboration.

China Mobile (00941): On September 29, the Ministry of Industry and Information Technology's official WeChat “Industry and Information Technology WeChat” published an article stating that the Ministry of Industry and Information Technology issued a satellite mobile communication business license to China Mobile Communications Group Co., Ltd. (hereinafter referred to as “China Mobile”). According to law, China Mobile can carry out services such as connecting mobile phones directly to satellites, deepening applications in scenarios such as emergency communication, maritime communication, and remote area communication, and enriching the supply of communication services and products.

China Unicom (00762): Recently, four low-orbit satellites of the “Unicom Galaxy” Star 01 and 04 stars in cooperation with China Unicom and Space Daoyu were successfully launched into orbit in the waters off Rizhao, Shandong recently. According to reports, the “Unicom Galaxy” star 01/03 is a low-orbit IoT communication satellite. Meanwhile, “Unicom Galaxy” 04 is the first low-orbit satellite with 3GPP narrowband IoT communication capabilities in China. For the first time, it uses many core technologies such as reconfigurable payload, flexible beam allocation, spectrum sensing, and interference avoidance, and has direct connection to low-power terminals, dynamic beam scheduling, and adaptability to complex electromagnetic environments. After entering orbit, it will carry out the first in-orbit test of the low-orbit 3GPP narrowband IoT system in China, supporting direct connection of low-power IoT terminals to satellite communication, and supporting China's low-orbit satellite IoT field to take a key step.

Nanjing Panda Electronics Co., Ltd. (00553): Nanjing Panda recently stated on the investor interactive platform that the company has carried out technology research related to next-generation satellite communication terminals, and that its technology can be applied to mobile phones, vehicles, ships, airplanes, etc.