Feasibility Analysis of Business Models for Satellite Internet Upstream Equipment Suppliers — A Case Study of Xiangkong Technology

Based on collected market data and industry information, I provide you with a detailed analysis report.

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Currently, satellite internet is transitioning from “technology verification” to the “inflection point of large-scale commercialization”, with its market space experiencing explosive growth. According to data from Analysis of Satellite Internet Industry Development from the Perspective of China’s Commercial Spaceflight, it is estimated that by 2025, the scale of China’s satellite internet market will exceed

, and by 2030, the industrial chain scale directly driven by it is expected to exceed [1][2].

From the perspective of the industrial chain, satellite internet covers three major links: “upstream manufacturing - midstream equipment - downstream operation”:

Industrial Chain Segment	2030 Market Size Forecast	Key Sub-sectors
Manufacturing End	RMB 25-46 billion	Satellite platforms, communication payloads, rocket engines
Ground Equipment End	RMB 26.7 billion	Phased array antennas, gateway stations, user terminals
Service End	RMB 22.7 billion	Satellite broadband, internet of vehicles, emergency communications

Globally, according to data from European consulting firms, the global ground segment service market is expected to reach

. As an essential tool for optimizing space missions, aerospace digital simulation is expected to see China’s military computer simulation industry market size reach by 2025[3].

Simulation verification equipment is an indispensable key link in the satellite internet industrial chain, mainly including:

1. Channel Simulators
   : Simulate channel characteristics such as dynamic Doppler, time delay, and attenuation of satellite-ground uplink and downlink links
2. Navigation Signal Simulators
   : Provide simulated navigation signals to ensure time consistency of communication systems
3. Platform Interface Simulators
   : Simulate communication and control interfaces between satellite platforms and communication payloads
4. Research-grade Prototype Verification Equipment
   : Support the development and system verification of underlying communication technologies for satellite internet

With the acceleration of low-Earth orbit (LEO) satellite constellation construction, relevant communication technologies and systems are still in a stage of rapid evolution, leading to sustained growth in demand for simulation verification, prototype testing, and key equipment[4].

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Xiangkong Technology (Shanghai) Co., Ltd. was founded in 2024 and is located in Pudong, Shanghai. Its core products focus on

, covering three product categories:

Product Category	Technical Features	Application Scenarios
Research-grade Prototype Verification Equipment	Simulation, verification, and prototype systems serving the R&D of underlying satellite internet technologies	Satellite network operators, research institutions
High-performance General-purpose Channel Simulators	Provide engineering verification capabilities for communication systems and system architectures	Communication system R&D and testing
Digital Phased Array Terminals	Higher beam control precision and flexibility compared to analog phased arrays	Large-scale application of user terminals

The company completed an

in January 2025, exclusively invested by Liuhe Venture Capital. The funds will be used to increase R&D investment, advance R&D progress, and expand the scale of the R&D team[4][5].

Liu Jinlong, founder of Xiangkong Technology, holds a master’s degree from the School of Electronic Information and Electrical Engineering, Shanghai Jiao Tong University. He has worked in foreign-funded enterprises for nearly 20 years, focusing on R&D and business development in the commercial aerospace field for many years. More than

of the team are researchers, and core technical backbones have an average of of industry experience, with capabilities in cutting-edge technology exploration, complex system architecture design, and rich engineering product development[4].

Xiangkong Technology positions itself as the

in the communications field, and this positioning has the following commercial characteristics:

: Provide simulation, verification, and prototype system solutions for underlying technology R&D to satellite network operators and research institutions
:

• Satellite engineering units
• University laboratories
• Satellite network operators
• Communication equipment R&D institutions
  
  Revenue Model
  : Sales of high-end R&D verification equipment + technical service support
  
  Core Barriers
  :

1. Accumulated technical know-how (team with over 10 years of experience)
2. Forward-looking layout of digital phased array technology route
3. Established business partnerships with leading customers

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The global RF test equipment market is

, mainly monopolized by international giants:

Competitive Tier	Major Enterprises	Market Position
First Tier	Keysight Technologies (Keysight)	Global leader, dominant in high-end products
First Tier	Rohde & Schwarz (R&S)	European leader, technologically advanced
First Tier	Anritsu (Anritsu)	Japanese representative, strong in Asia-Pacific
Second Tier	Spirent, VIAVI	Advantages in niche segments
Third Tier	Kunheng Shunwei, Chuangyuan Xinke, etc.	Domestic manufacturers, in the process of import substitution

According to Mordor Intelligence data, the global RF test equipment market size was approximately

in 2024, with the Asia-Pacific region accounting for of global revenue. China’s self-reliance agenda is driving the development of domestic toolchains[6].

In the domestic market, the simulation test equipment field is showing a trend of

:

:

• Kunheng Shunwei (688283) is the domestic leader in this field, with products benchmarked against Keysight’s F64 and Spirent’s Vertex series
• According to the company’s disclosure, its domestic market share of wireless channel simulators has reached
  nearly 50%
  [7]
• It has outperformed international benchmark products in indicators such as frequency range, maximum bandwidth, and maximum number of independent local oscillators

:

• Xingtu TT&C (920116.BJ) is a national-level specialized, sophisticated, unique, and new “little giant” enterprise
• Its business covers orbit design, constellation networking design, ground station network design, system simulation verification, etc.
• There are no publicly disclosed fully comparable competitors in China, giving it scarcity[3]

:

• Enterprises such as Chuangyuan Xinke, Chengdu Jiujin, and CETC SI are continuously making efforts
• Their products mainly cover the mid-to-low-end market, and breakthroughs are being made in high-end products
• The logic of import substitution is sound[8]

Compared with existing competitors, Xiangkong Technology’s differentiated positioning is reflected in the following aspects:

Dimension	Xiangkong Technology	Competitors
Technology Route	Digital phased array (next-generation technology)	Most manufacturers still rely on analog phased arrays
Product Positioning	“Industrial Mother Machine” in communications	Single equipment suppliers
Target Market	Underlying technology verification for satellite internet	Traditional communication testing or general-purpose testing
Customer Groups	Satellite network operators, research institutions	Communication operators, terminal manufacturers

Liuhe Venture Capital commented: “Xiangkong Technology has established business partnerships with multiple leading customers, and its technology and productization capabilities have been successfully verified by the market”[4].

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:

1. Policy Support
   : Satellite internet has been included in the national “new infrastructure” category, and the 15th Five-Year Plan clearly states the goal of building it into an emerging pillar industry
2. Technological Evolution
   : Satellite internet is evolving from dedicated communication to deep integration with ground mobile communication
3. Constellation Construction
   : LEO satellite networking plans such as the GW Constellation and G60 Starlink are accelerating
4. Demand Outbreak
   : Mobile phone manufacturers such as Huawei and Xiaomi have launched satellite communication functions, driving growth in terminal testing demand

:

• Satellite internet ground equipment market: Expected to reach
  RMB 26.7 billion
  by 2030
• Simulation test equipment accounts for approximately
  7-10%
  of the ground equipment market, corresponding to a market space of approximately
  RMB 1.9-2.7 billion
• Considering the testing and verification demand from LEO satellite constellation construction, the actual market space may be larger

1. High Technical Barriers
   : Simulation verification equipment involves complex system architecture design, with high technical thresholds
2. Customer Stickiness
   : Once included in the supply chain of satellite engineering units, customer relationships are relatively stable
3. First-mover Advantage
   : Early layout of key technology verification work for satellite internet, forming accumulated know-how
4. Import Substitution Dividend
   : There is an urgent demand for import substitution of high-end test equipment, bringing development opportunities for domestic manufacturers

:

• Relatively niche market scale with limited growth ceiling
• High customer concentration, mainly targeting satellite network operators and research institutions
• Rapid technological iteration, leading to sustained high pressure on R&D investment

:

• International giants have obvious technological advantages; companies like Keysight continue to innovate
• Many domestic competitors, potential price wars
• Kunheng Shunwei, Xingtu TT&C, etc. have established certain positions in their respective fields

:

• Founded in 2024, the company has a short operating history, and its business model remains to be verified
• Limited scale of angel round financing, leading to high pressure on R&D funds
• Phased array terminals are still in the R&D stage and have not been sold on a large scale

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1. Track Prosperity
   : Satellite internet is in a critical transition period from “concept verification” to “large-scale implementation”
2. Niche Track Scarcity
   : Simulation verification equipment for the R&D of underlying satellite internet technologies is still scarce in China
3. Team Execution Capability
   : The founder has 20 years of industry experience, and the team’s R&D capabilities have been verified by leading customers
4. Technological Forward-looking
   : The digital phased array technology route is more suitable for the large-scale application of future satellite internet

Comparable Company	Stock Code	2024 PE Ratio	Business Comparison
Kunheng Shunwei	688283	Approximately 80x	Leader in wireless channel simulators
Xingtu TT&C	920116.BJ	Approximately 80x	Aerospace TT&C and digital simulation
Chuangyuan Xinke	831049.BJ	Approximately 54x	Communication test equipment

Considering that Xiangkong Technology is in the early stage of development, it is recommended to continue focusing on:

• R&D progress and product delivery status
• Customer expansion and revenue growth
• R&D breakthroughs in phased array terminals

:

• Pay attention to investment opportunities in upstream equipment suppliers of the satellite internet industrial chain
• Focus on the team’s technical accumulation and customer resources
• Track the bidding progress of LEO satellite constellation construction

:

• Accelerate the commercialization and promotion of research-grade prototype verification equipment
• Continue to invest in the R&D of digital phased array terminals
• Seize the window period for import substitution and establish technical barriers
• Consider subsequent financing to expand the R&D and commercialization teams

:

• Promote the standardization and localization of simulation verification equipment
• Strengthen collaborative innovation across upstream and downstream of the industrial chain
• Pay attention to the technological evolution of 6G and satellite internet integration

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The business model of satellite internet upstream equipment suppliers (taking Xiangkong Technology as an example)

, mainly based on the following judgments:

1. Definite Market Space
   : The satellite internet market is expected to exceed RMB 45 billion in 2025, and the ground equipment segment is expected to reach RMB 26.7 billion by 2030. As a key link in the industrial chain, simulation test equipment will continue to benefit

2. Clear Demand Growth
   : With the acceleration of LEO satellite constellation construction, demand for simulation verification, prototype testing, and key equipment continues to grow, especially in key technical fields such as high-speed dynamic channels and phased array terminals

3. Import Substitution Opportunities
   : There is an urgent demand for import substitution of high-end test equipment. Domestic manufacturers have achieved breakthroughs in some niche segments, with their market share continuously increasing

4. Feasible Business Model
   : Positioned as the “Industrial Mother Machine” in the communications field, Xiangkong Technology focuses on the R&D and verification of underlying satellite internet technologies, with differentiated competitive advantages and first-mover advantages

: Attention should be paid to risk factors such as the company’s short operating history, limited financing scale, and lack of large-scale sales, as well as challenges brought by competition from international giants and technological iteration. It is recommended to continue tracking the company’s R&D progress, customer expansion, and subsequent financing dynamics.

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[1] 21st Century Business Herald - “Satellite Internet Market Space to Exceed RMB 45 Billion: Which Niche Segment Leaders Are Worth Paying Attention To?” (https://www.21jingji.com/article/20251212/herald/24c2ab3d19334d95b3eadd10b62ac0f2.html)
[2] Gelonghui - “2025 Satellite Internet Market Development Status and Competitive Landscape Analysis Report” (https://www.gelonghui.com/p/1806503)
[3] Eastmoney - “Against the Tide of Satellite Internet: The Scarce Pearl of Aerospace TT&C and Digital Simulation” (https://pdf.dfcfw.com/pdf/H3_AP202502241643437529_1.pdf)
[4] 36Kr - “Achieving Delivery of Satellite Internet ‘Industrial Mother Machine’, This Company Secures Over RMB 10 Million in Angel Round Financing” (https://m.36kr.com/p/3635969762657287)
[5] Pedaily - “Xiangkong Technology Completes Over RMB 10 Million Angel Round Financing, Exclusively Invested by Liuhe Venture Capital” (https://news.pedaily.cn/202601/559790.shtml)
[6] Mordor Intelligence - “RF Test Equipment Market Size, Trends, Share and Forecast to 2030” (https://www.mordorintelligence.com/zh-CN/industry-reports/rf-test-equipment-market)
[7] Eastmoney - “High-end Electronic Instrument Manufacturer, Radio Test Simulation Emerging” (https://pdf.dfcfw.com/pdf/H3_AP202210261579503647_1.pdf)
[8] Northeast Securities - “Leading Domestic RF Communication Enterprise, Sound Logic of Import Substitution” (https://www.nesc.cn/timerfiles/upload/report/2024/02/21/15813892.pdf)
[9] Yuanqi Fund - “Analysis of Technological Innovation and Market Outlook for Low-Earth Orbit Satellites” (http://www.yuanqijijin.com/a/zhongchoudongtai/chanyexinwen/540.html)

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This report is generated by Jinling AI, with data as of January 13, 2026. Investment involves risks; please proceed with caution.