If a logistics company uses satellite data to track shipments, an insurer underwrites satellite operations, a bank helps space enterprises to raise capital, or a construction company uses remote sensing to monitor projects, are they space companies? The answer is simple: They are already participating in the space economy.

Commercial space is often associated with rockets, satellites and exploration — fields that may appear technically complex and far removed from everyday business. Yet the industry is expanding beyond “sending things into space” to using space-based capabilities to solve problems on Earth.

The World Economic Forum estimates that the global space economy will grow from $630 billion in 2023 to $1.8 trillion by 2035. Ground-based solutions — encompassing communications, navigation, climate services, finance, logistics and urban management — already account for about 55 percent of the market. Once ground equipment, operations, and satellite services are included, nonmanufacturing and nonlaunch activities account for the overwhelming majority of its value.

In other words, many of tomorrow’s space-economy participants may never build a rocket.

This market is no longer a distant prospect. The commercial space sector on the Chinese mainland has entered a period of scaled development. In 2025, mainland companies completed 50 commercial launches, accounting for 54 percent of all domestic launches. They also placed 311 commercial satellites into orbit, representing 84 percent of the total.

The China National Space Administration introduced its Action Plan for Promoting High-Quality and Safe Development of Commercial Space (2025-27) in November, encouraging government procurement, patient capital, new applications and enterprise internationalization. A commercial space standards framework released in April covers research and manufacturing, launch, operations, application services and industry governance.

Other Asia-Pacific economies are also accelerating their efforts. Japan’s Space Strategy Fund provides multiyear support for private-sector development of rockets, satellites and data applications. India is progressively opening its space industry to private participation through a new policy and dedicated agency. Singapore established its national space agency in April, focusing on Earth observation, geospatial analytics, enterprise development and international cooperation.

These developments show that commercial space competition is no longer simply about who launches the most rockets. It is increasingly about who can build the strongest ecosystem of finance, insurance, legal services, data, standards, talent and market access.

That is where Hong Kong can make a distinctive contribution.

In 2025, the mainland’s commercial space industry expanded rapidly, supporting more than 600 registered enterprises and over 310 commercial spacecraft in orbit. As these companies move from research to scaled operations — and from domestic to international markets — they require far more than engineering expertise. They need financing, listings, insurance, legal and accounting services, valuation, data compliance, certification and overseas market access.

Hong Kong may not need launch sites or large satellite factories. Its strengths lie elsewhere: international financial markets, a common-law legal system, insurance and risk-management capabilities, professional services, world-class universities, and a unique ability to connect the mainland with global markets.

A complementary division of labor can therefore emerge within the Guangdong-Hong Kong-Macao Greater Bay Area. Mainland cities can provide technology, manufacturing, testing and extensive application markets, while Hong Kong helps space enterprises raise capital, manage risk, execute international contracts and expand overseas.

The opportunities are already relevant to traditional industries. Shipping companies can use satellite data to monitor vessels, ports and maritime risks. Banks and investors can observe project progress, supply chains and economic activity. Insurers can use remote sensing to assess typhoon, flood, landslide and infrastructure risks. Real estate, utilities, construction and environmental companies can apply satellite capabilities to land, buildings, energy and emissions management.

Joining the space economy does not necessarily mean entering an entirely new business. It can begin with applying existing expertise to new technologies and markets.

The Space Economy Association recently submitted policy recommendations for Hong Kong’s inaugural five-year plan, drawing extensively on input from its members. It proposed positioning the city as an international commercial space services and applications hub, with four priorities.

First, Hong Kong should establish a clear institutional entry point, including an interdepartmental coordination mechanism, a commercial space office, and a single-window system for satellite licensing, data management and investment facilitation. Companies need to know whom to approach and how to proceed.

Second, the city should create pilot and sandbox mechanisms for space finance and satellite data. These would allow companies to test financing, insurance and data-application models within a controlled regulatory environment.

Third, Hong Kong should concentrate on its comparative advantages in financing, insurance, legal services and dispute resolution. These capabilities can encourage more mainland and international space companies to establish operations, raise capital and manage cross-border transactions through the city.

Fourth, the market should be activated through practical demand. Commercial satellite data can support typhoon and flood warnings, marine-pollution monitoring, land and infrastructure management, port logistics and climate-risk analysis. Hong Kong should also promote research commercialization, technology venture acceleration and talent development.

The organization also proposed some reference targets for 2030, including attracting 150 to 200 space-economy-related enterprises to Hong Kong, training 5,000 technical and professional services practitioners, developing 50 government satellite data applications, and supporting 30 to 50 startups through acceleration programs.

These are not market forecasts or government commitments. They are starting points for a wider discussion: Can Hong Kong combine its existing strengths to create a new engine of growth?

Commercial space is not the exclusive domain of technology companies. Banks, funds and family offices can examine medium- to long-term investment opportunities. Insurers can develop new risk products. Lawyers, accountants and consultants can support contracts, valuation and compliance. Companies in technology, shipping, logistics, property, construction and environmental services can become either providers or users of satellite-based solutions.

For Hong Kong companies, the first step need not be changing their core business. It is to ask a different question: How can their existing capital, expertise, clients and services create value in the space economy?

The next global growth market has already launched. Now is the time for Hong Kong to find its place in it.

The author is a director of Space Economy Association (Hong Kong) Ltd.

The views do not necessarily reflect those of China Daily.