When the Internet of Things meets satellites, the boundaries between land and sky are being broken.
Just last week, the Ministry of Industry and Information Technology announced the launch of commercial trials for satellite IoT services at the 2025 China 5G + Industrial Internet Conference held in Wuhan, marking a key step in the commercialization of satellite communications in China.
SkyNet: Connecting Every Corner of the Earth
The term “satellite IoT,” which sounds quite sci-fi, actually refers to a new type of service that connects various IoT devices through satellite communication technology, providing wide-area IoT connectivity for data collection, wearable devices, and transportation tools such as cars, ships, and airplanes.
Yu Xiaohui, director of the China Academy of Information and Communications Technology, pointed out its core value in an interview: “Previously, the IoT connected objects through terrestrial networks, but many remote areas, skies, and oceans are not covered by networks. Satellite IoT has the characteristic of global coverage.”
The unique advantage of this technology lies in its ability to fill the blind spots of traditional terrestrial networks, truly achieving seamless coverage of the “Internet of Everything.”
Policy First: Sketching a New Blueprint for the Space Economy
In August of this year, the Ministry of Industry and Information Technology released the “Guiding Opinions on Optimizing Business Access to Promote the Development of the Satellite Communication Industry,” outlining a clear development path for the entire industry. The “Opinions” propose that by 2030, the management system and policies for satellite communications will be further improved, with new models and applications such as direct satellite connections for mobile phones reaching a scale of over ten million users.
Notably, the policy explicitly supports the development of direct satellite services for terminal devices such as mobile phones, promoting the formation of scale effects in satellite communications. This means that in the near future, ordinary users’ smartphones may be able to connect directly to satellites without additional equipment, achieving true global communication.
Opportunities for Private Enterprises: The Space Economy Fully Open to the Market
One of the highlights of this commercial trial is the further opening of the space economy to private enterprises. The Ministry of Industry and Information Technology has clearly stated that it will support qualified enterprises in providing wide-area IoT connectivity services for the sky, ocean, and remote areas based on low-Earth orbit satellite IoT constellations.
The policy encourages private enterprises to legally utilize various high and low Earth orbit satellite resources through leasing satellite resources, providing value-added services, and engaging in distribution and agency business, thereby revitalizing existing satellite resources. This open attitude provides diverse pathways for private enterprises to participate in the space economy.
Awakening of the Industry Chain: Capital Has Already Positioned Itself
With the launch of the satellite IoT commercial trial, upstream and downstream enterprises in the industry chain are ushering in a new round of development opportunities. A recent report from CCID Consulting pointed out that the satellite communication industry has entered the “fast lane,” with investment focus primarily on manufacturing and operational services.
From the investment dynamics, investment in the satellite field is still mainly concentrated in the angel and A rounds, with the number of investments continuing to grow, reflecting the vibrant vitality of the industry. More notably, the investment trajectory over the past three years shows a clear trend of transitioning to B and C rounds, indicating that some early-stage enterprises have validated their technology and market and are entering a phase of scale expansion.
In terms of industry chain segments, initial investments in China’s satellite field were concentrated in satellite manufacturing; as the industry develops, funds are gradually extending to satellite operations and services, as well as ground equipment. Particularly, the investment proportion in the ground equipment sector is expected to significantly increase in 2024 and 2025, indicating that as constellation networking accelerates and application scenarios materialize, the supporting capabilities of the industry chain are being systematically strengthened.
Market Response: How Investors Can Seize Opportunities
The capital market has reacted sensitively to this. As of the close on November 24, all three major operators saw gains, with China Telecom up 0.88%, China Unicom up 0.93%, and China Mobile slightly up 0.22%.
Brokerage analysis reports indicate that with strong policy support, the satellite internet industry is ushering in significant development opportunities, and the “great maritime era” of commercial space is expected to begin. Minsheng Securities believes that space-based computing and transmission will open a new paradigm for data infrastructure and applications.
From an investment perspective, Cinda Securities’ research report lists two categories of targets: unmanned equipment fields such as aerospace electronics and drones; satellite internet and commercial space fields such as Shaanxi Huada and Shanghai Hantong. Minsheng Securities suggests focusing on companies that have already made significant investments in the space computing field, such as Zhongke Shuguang and Ruantong Power, while also paying attention to leading companies in the satellite internet subfields with core positioning advantages.
The Future is Here: The Two-Year Trial Period Will Determine the Industry’s Direction
It is understood that this commercial trial will last for two years. During this period, satellite IoT business trials will be conducted to support qualified enterprises in legally carrying out satellite IoT business, promoting the large-scale application of satellite IoT in various industries such as transportation, energy, fisheries, emergency response, and industry.
Currently, all three major basic telecom operators in China have the qualifications to operate satellite mobile communication services and can legally carry out direct satellite connection services for mobile phones, deepening applications in emergency communications, maritime communications, and remote area communications.
As the trial progresses, satellite IoT will not only further stimulate the vitality of the private economy and support the safe and healthy development of commercial space but will also reshape our connectivity, turning the true meaning of global interconnectivity from concept into reality.
This sky, once belonging only to the state and a few giants, is now opening its arms to more innovators. This time, each of us may become a participant and beneficiary of this connectivity revolution.