Market Trends of China Satellite Communication Industry
Increase in IoT and Autonomous Systems is Driving the Market
- The rising trend of industrial sectors adopting autonomous systems and connected devices influences the market positively. As per the China Internet Network Information Center, in December 2022, almost 1.85 billion internet users in China had access to cellular IoT services. Over half of the IoT end users originated from smart manufacturing, smart public utility, and smart transportation.
- China's expansive coastline and expanding aviation sector also necessitate reliable communication solutions. IoT applications in the marine and aviation industries, such as ship monitoring, maritime safety, fleet management, and in-flight connection, are made possible through satellite communication.
- Companies worldwide are concentrating on extending their IoT reach via satellite communication through strategic alliances, collaborations, and partnerships as organizations adopt IoT.
- For instance, in August 2022, HEAD Aerospace, a global space company, the HEAD-2G satellite effectively launched the Long March 4B from the Taiyuan Satellite Launch Centre in China. The HEAD-2G satellite is the eighth in the HEAD Skywalker LEO constellation, which could eventually include up to 48 small satellites. Each of these satellites will have several payloads, including AIS/VDES, DCS, and ADS-B in both SSO and inclination orbits. When the constellation is completed in 2025, it will likely provide secure, low-power, near-real-time global IoT services.
- Consequently, the market will likely grow due to increasing partnerships spurred on by significant interest in satellite-based IoT connection, the strong expansion of the IoT industry, and the restrictions of terrestrial networks' coverage throughout the projected period.
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Maritime Satellite Communication Holds the Significant Share
- Increased marine threats are the main driver for market expansion. Commercial boats, including container ships, require reliable satellite communications to maintain contact with their headquarters and assist crew welfare activities. Satellite services may offer coverage and a reliable communication route to aid relief efforts during emergencies.
- China has a significant share in the marine satellite communication market in the Asia-Pacific region due to the significant increase in trade. The region's passenger vessels depend on the Chinese market.
- Since the naval sector contributes to the economy's expansion, the country is vital for strengthening maritime security. To promote the growth of intelligent shipping in China, the national government took the initiative. Under this initiative, the government mentioned is working in partnership with various government agencies to establish the strategy design for intellectual shipping development by the end of 2020, improving shipping safety, service, environmental protection level, efficiency, and effectiveness by 2035 and establishing a high-quality smart shipping system by 2050.
- In November 2022, China launched a high-power communications satellite to connect customers in China, Southeast Asia, and remote routes between the Asia-Pacific region and North America. A Long March 3B rocket carrying the Chinasat 19, or Zhongxing 19, communications satellite was introduced from the Xichang launch site in the Sichuan province of southwest China.
