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 space application 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.