BEIJING — (BUSINESS WIRE) — September 29, 2011 — In October 2010, the State Council officially released the Decision of the State Council on Accelerating the Fostering and Development of Strategic Emerging Industries, which established China’s strategic emerging industry system including the satellite and satellite application industry. Meanwhile, the vigorous growth of such location information services markets as Internet geographic information service, vehicle navigation service and mobile phone location-based service, along with the sustained development China’s national emergency communications system and digital cities, will drive the rapid growth of the satellite application market. Under the impetus of favorable industrial policies as well as market demand, China’s satellite application industry will continue to maintain a high speed. Therefore, CCID Consulting (HKSE: 08235) released China's Satellite Application Industry Map White Paper to provide an overview of China’s satellite application industry layout, unique features and its future trends.
I. Preliminary Formation of Four Major Clusters
As can be seen from the layout chart of China’s satellite application industry in 2010, the industry has preliminarily established four industrial clusters in the Bohai Rim, the Yangtze River Delta, the Pearl River Delta and the Midwestern Region, with their major cities actively engaged in the construction and development of related industrial parks.
Figure 1 Layout of China’s Satellite Application Industry in 2010
Source: CCID Consulting, August 2011
The Bohai Rim is favorably endowed with exceptional advantages in location, resources and economic strength. In particular, both Beijing and Tianjin municipalities boast a fast-growing satellite application industry.
The satellite application capacities of the Yangtze River Delta are mainly located in Jiangsu Province and Shanghai Municipality. Jiangsu Province’s Nanjing City is home to the simulating compulsory fitted earth station of China’s pioneering satellite communications project 311, while Shanghai Municipality boasts the National Civil Aerospace Industrial Base and China’s first satellite navigation application industry base.
With advantages in manufacturing and operation services, the Pearl River Delta has gathered large numbers of GPS satellite positioning & navigation software and hardware R&D enterprises, manufacturers, operation service providers, technology providers, component suppliers and electronic map enterprises. Currently the region is well positioned in terms of GPS system integration and operation management, with a majority of its satellite navigation enterprises located in Shenzhen and Guangzhou cities.
In the Midwestern Region, Shaanxi and Hubei provinces are emerging as the main clusters in satellite application. Xi’an National Civil Aerospace Industrial Base in Shaanxi Province has the most intensive portfolio of satellite application projects in China, while Hubei Province’s Wuhan City, with great advantages in such aspects as geographic information system, satellite navigation, satellite remote sensing as well as integration, is a leader in terrestrial space information technology and industrial development in China.
II. Developed Provincial Capitals Leading Industrial Development
As can be seen from the following figure of major cities in China’s satellite application industry in 2010, the developed provincial capitals are taking the lead, while other emerging cities are also planning for their development in the industry.
Figure 2 Major Cities in China’s Satellite Application Industry in
Source: CCID Consulting, August 2011
III. Future Trends of China’s Satellite Application Industry Layout
Combination of enterprise, academia and research forces
The satellite application industry features high added-value, strong driving force and concentration of knowledge and technology, posing a high demand for the technology resources, talent resources, location conditions and policy supports. It is expected that in the coming decade, the satellite application industry of China will continue to thrive in the regions where the enterprise，academia and research forces can be well combined, including the Bohai Rim represented by Beijing and Tianjin, the Yangtze River Delta represented by Shanghai and Nanjing, the Pearl River Delta represented by Guangzhou, as well as developed cities with sufficient resources such as Xi’an and Wuhan.
Extension to economically developed cities
The Satellite navigation application industry is to a large extent subject to the market demand. Currently, China’s satellite navigation technology is mainly applied to such areas as vehicle navigation, location-based service, consumer electronics, digital cities and logistics. As technology and talent resources are the most significant factors in the development of the local satellite navigation application industry, the satellite navigation application industry of China will gradually extend to economically developed cities of the Eastern Coastal Region such as Shenyang, Qingdao, Changzhou, Ningbo as well as inland provincial capitals such as Wuhan, Chengdu and Hefei.
Extension of satellite communications and remote sensing market to remote areas prone to natural disasters
For the sake of public welfare in remote areas that are prone to natural
disasters, and with the maturing application of satellite communications
and remote sensing technologies in governmental emergency systems
including natural disaster monitoring, agriculture & forestry monitoring
and ocean monitoring, the satellite application market will further
extend to cover provinces and regions including Jiangxi, Inner Mongolia