China Satellite Communication Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 13.06 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Satellite Communication Market Analysis
The Chinese satellite communication market is expected to grow from USD 4.84 billion in the current year. It is expected to record a CAGR of 13.06% during the forecast period, reaching USD 8.91 billion by the next five years.
- China's satellite communication market is swiftly expanding, owing to the country's increasing need for small satellites for earth observation services in a variety of industries, including civil engineering, agriculture, energy, and oil and gas, which are speeding up satellite communications. China launched many communication satellites, notably the Tianlian series for space tracking and data relay and the ChinaSat series for domestic communication.
- Small satellite technology is enhancing ground operations for broadband services, mobile satellite communication, and high-speed internet. These satellites provide clear images for reasonable investments. The government-led expansion projects for the Pearl River Delta and the China Belt and Road Initiative are also anticipated to accelerate the market's growth throughout the projection period.
- Additionally, the sector has seen the emergence of the IoT, which will likely augment SATCOM's market share. During the forecast period, the market is anticipated to grow as IoT use increases in the aviation sector. Applications for IoT-based devices and systems in the aviation sector communicate real-time data with processing units, which aids in streamlining operations in the sector. Additionally, satellite connection is utilized by IoT devices to transmit and exchange real-time data across the IoT systems and components employed in these domains, minimizing the process' overall time of the process.
- On the other hand, as launching a satellite to transmit data is very sensitive, cybersecurity has grown to be a major concern for satellite communication. The launch systems, communications, telemetry, tracking and command, and mission completion are some of the mission-critical vulnerabilities prone to cybersecurity attacks. Satellite communication's over-reliance on secure cyber capabilities throughout the satellite's lifetime is a key concern that prevents widespread adoption.
China Satellite Communication Market Trends
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.
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.
China Satellite Communication Industry Overview
The Chinese satellite communication market is moderately fragmented, with the presence of players like China Satellite Communications Co. Ltd, China Aerospace Science and Technology Corporation, and Antesky Science Technology Inc. The market players are involved in several strategic developments to boost their market presence. For instance,
- In September 2022, the Long March 7A was introduced with a military communications satellite, potentially signaling the beginning of a transformation of launches for the country's armed forces from aging booster designs with risky propellants to newer rockets with more ecologically friendly fuels.
- In March 2022, six broadband communication satellites were launched by GalaxySpace from the Xichang Satellite Launch Centre, demonstrating the networking and service capabilities of the internet constellation.
China Satellite Communication Market Leaders
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China Satellite Communications Co., Ltd
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China Aerospace Science and Technology Corporation
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China Telecom Satellite Communications Co., Ltd.
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Antesky Science Technology Inc.
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AKD Communication Technology Co.,Ltd
*Disclaimer: Major Players sorted in no particular order
China Satellite Communication Market News
- In April 2023 - CAST (China Academy of Space Technology) partnered with the Egyptian Space Agency and the Ethiopian Space Science and Technology Institute (now the Ethiopian Space Science and Geospatial Institute) to implement the HOPE program to promote cooperation and exchanges between Chinese and African space agencies in space exploration and innovative science popularisation. CAST has also supported the construction of satellite systems and research facilities in Africa and cultivated aerospace talents, including engineering training and degree education for young people.
Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Buyers
- 4.2.2 Bargaining Power of Suppliers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increase in IoT and Autonomous Systems is Driving the Market
- 5.1.2 Rising Investments in Satellite Infrastructure
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5.2 Market Restraints
- 5.2.1 Stringent Government Regulations and Policies Restrict Satellite Communication System Deployment
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Ground Equipment
- 6.1.2 Services
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6.2 By Platform
- 6.2.1 Portable
- 6.2.2 Land
- 6.2.3 Maritime
- 6.2.4 Airborne
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6.3 By End-user Vertical
- 6.3.1 Maritime
- 6.3.2 Defense and Government
- 6.3.3 Enterprises
- 6.3.4 Media and Entertainment
- 6.3.5 Other End-user Verticals
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 China Satellite Communications Co. Ltd
- 7.1.2 China Aerospace Science and Technology Corporation
- 7.1.3 China Telecom Satellite Communications Co. Ltd
- 7.1.4 AKD Communication Technology Co. Ltd
- 7.1.5 Antesky Science Technology Inc.
- 7.1.6 Kenbotong Technology Co. Ltd
- 7.1.7 CHANG GUANG SATELLITE TECHNOLOGY CO. LTD
- 7.1.8 Diadem Technologies Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityChina Satellite Communication Industry Segmentation
Satellite communication is the transfer of data and information via satellites orbiting the Earth. It enables long-distance communication by relaying signals between ground stations and satellite receivers in orbit, enabling television broadcasts, internet access, and phone calls. The satellite communication (SATCOM) market is defined based on the revenues generated from the types used in various end-user verticals such as maritime, defense and government, enterprises, and media and entertainment. The analysis is based on the market insights captured through secondary research and the primaries. The report also covers the major factors impacting the market's growth in terms of drivers and restraints.
The scope of the study has been segmented based on the type of satellite communication equipment and services (ground equipment (a gateway, very small aperture terminal (VSAT) equipment, network operation center (NOC), and satellite newsgathering (SNG) equipment) and services (mobile satellite services (MSS), fixed satellite services, and earth observation services), platform (portable, land, maritime, and airborne), and end-user vertical (maritime, defense and government, enterprises, media and entertainment, and other end-user verticals). Common satellite communication services include voice calling and internet access for different applications. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, supporting the market estimations and growth rates over the forecast period. In addition, the study provides the SATCOM market trends, along with key vendor profiles. The study further analyzes the overall impact of COVID-19 on the ecosystem.
| By Type | Ground Equipment |
| Services | |
| By Platform | Portable |
| Land | |
| Maritime | |
| Airborne | |
| By End-user Vertical | Maritime |
| Defense and Government | |
| Enterprises | |
| Media and Entertainment | |
| Other End-user Verticals |
Frequently Asked Questions
What is the current China Satellite Communication Market size?
The China Satellite Communication Market is projected to register a CAGR of 13.06% during the forecast period (2024-2029)
Who are the key players in China Satellite Communication Market?
China Satellite Communications Co., Ltd, China Aerospace Science and Technology Corporation, China Telecom Satellite Communications Co., Ltd., Antesky Science Technology Inc. and AKD Communication Technology Co.,Ltd are the major companies operating in the China Satellite Communication Market.
What years does this China Satellite Communication Market cover?
The report covers the China Satellite Communication Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Satellite Communication Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Satellite Communication Industry Report
Statistics for the 2024 China Satellite Communication market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Satellite Communication analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
