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Space application refers to the direct and indirect technology utilization, product production, and service provision on the ground or in space by utilizing space resources, assets, and conditions. After over 60 years of development, the aerospace industry of China has made significant achievements, with over 400 satellites in orbit. However, the system design, basic database, and standards construction that are closely related to space application still cannot satisfy the requirements of high-quality development. Considering the demand for strengthening China's aerospace industry and the medium- and long-term development requirements of the industry, this study reviews the development status of space application in China and abroad, summarizes the new requirements for spaceapplication industry and technologies in China, and analyzes the challenges faced by space application. Moreover, the general ideas, development goals, and top-level systems of space application for strengthening China’s aerospace industry are proposed. The key directions for the development of space application are explored. Furthermore, we suggest that China should improve policies and regulations associated with the aerospace industry, promote the integration of space, ground, and users, and optimize mechanisms and services of the industry, so as to promote the formation of a coordinated space application pattern that features space-ground-user interactive development and unified standards.

China has established three series of remote sensing satellite systems for land, ocean, and atmosphere through the establishment of a high-resolution Earth observation system and the implementation of national civil space infrastructure planning. However, the current systems in China neglect data application and data services while emphasizing satellite engineering. Considering the future requirements of Earth observation for high quality, high benefit, and high efficiency, we adopt an effectiveness analysis method to study the Earth observation systems. We clarify the global development trends of Earth observation satellite systems and summarize the current status in China. Based on this, we analyze the demand and challenges for an effectiveness-oriented Earth-observation system and propose the development goals, components, and key tasks of the new-generation Earth-observation system that features system effectiveness. To improve the application service system and capabilities of China’s remote sensing satellites and to transform the orientation from business services to system effectiveness, it is necessary to build a space–ground integrated perception backbone network as well as management and data transmission tool networks based on top-level design with the High Resolution Earth Eye Program as the core, and implement major application demonstration projects. Moreover, national spectral data sources, quantitative application databases, and industrial ecology cloud platforms need to be strengthened, thereby transforming satellite engineering toward satellite application engineering and constructing a complete national civil space infrastructure.