Investment Prospect of Satellite Industry – Marketing Research & Report
With the continuous improvement of artificial satellites and the rapid development of social economy, Variety kinds of applications appear and the industry threshold seems not so unreachable. In China, an increasing number of applications for civil use herald the rise of satellite industry and the coming explosive market for investment.
The Satellite Industry
Satellite industry, including manufacturing of satellite, manufacturing of terminal on ground, launch, application, and other relative business, is experiencing the most energetic expanding era. As displayed in figure 1, clearly, the biggest part of this pie is not the most complicated high-tech Satellite manufacturing or launch. Inversely, the applications maximum the value of artificial satellites! Meanwhile, from online survey in China, we can also see the dramatic expanding of application market. Considering the huge cost of Satellite development and the launch, and their altogether less than 15% market, we can definitely draw this conclusion‒what a grander prospect of the satellite application industry!
The application of navigation plays a big in military location, but as investors, we will mainly focus on transportation navigation and individual location. The navigation terminals and devices are becoming more and more powerful and inexpensive. As we can see, 5 years ago, Nokia’s flagship‒N95‒would spend around half an hour to connect with the satellite in China. Now? Even the SAMSUNG’s I739, whose price is only 10% of N95 5 years ago, can easily get the location info. Some E-business and express companies‒say, Jingdong, and Sf-express‒even paste the real-time localization information on the web so that people can get the most accurate location info about their parcels. The cab drivers start using their mobile as terminal, and put their location on App, such as Autonavi Navigation. Within a minute, people can get a taxi!
Honestly, the list of navigation applications will go on, but from the listed, it is absolutely a fast-growth market. And the most important, in China, it is just a start, full of potential.
Remote sensing includes the applications in weather, ocean, environment, geological, and mapping. According to some statistic data, it also experienced mushrooming in the last 10 years. And of course the local government is trying to open this industry to non-state-owned enterprises, but so far, we don’t find any document about it. So actually, it is and high-threshold industry, hard to enter for the government issues.
Communication means the phone, TV, broadcasting, internet, and other data-exchange functions. These industries, though also have some dramatic growth as listed in figure 3, are not the perfect industries for investment in China for the reason of government like remote sensing.
Therefore, in China, the friendliest satellite-relative industry with potentiality for investment may be the navigation. The entrant level isn’t high, and there are many kinds of choices about investment, for example, terminal and device manufacturing, and application development.
3. The Opportunities and Threats
Concentrating on navigation, we continue research the market, trying to find the opportunities and threats from this industry.
The biggest opportunity comes from the potential market segments that hardly exist. Innovation is the unique attribution of human beings. In newly market, image the future, the possibility, and we will find the covered demands.
There already is demands‒transportation navigation and individual location services‒are facing higher and higher requirements. Real-time location updating to DBS is the pursuing of many companies, especially for logistics. And in China, it is just an early start.
With the opening up of policies, it will be more convenient for private capital to enter this industry.
In new market, some standardization is not clarified. It is a chance to gain monopoly power if we can be the industry leader.
It is a newly industry which changes so fast, say, Private car navigation. 10 years ago, only the cars priced more than 500,000 Yuan would install the navigation module; these days, people even prefer using IPad for navigation. Following this trend, if without further developing, people will get rid of the car navigation system. Only 10 years, that is the instability.
High-tech industry sometimes needs a big amount of investment at the beginning. In view of the instability, it may hurt.
As a new market, there are many companies staring at this pie. Threat from potential competitors will also be a big problem. How to make the story non-copyable will be one of the mainly concern.
4. Innovation and Potential Market Segments
Based on reality, we offer some innovations and future visions about navigation industry. They will be some good choices for investment if technology permitted.
Location devices for children
As Patents, if there has some types of trinkets within dimension-minimized navigation module, they will feel safer. The questions are dimension and radiation.
Navigation info sharing and connecting
We will need this kind of application. Finding another person’s location and offer navigation; knowing the traffic situation if there are terminals on all the cars; searching the dispatcher’s location so that you can access to your parcel if necessary, and so on.
This report analyzed the investment prospective of satellite and found the best industry for investment is navigation which is under fast expanding and changeable. In China, it is an industry newly opened to private capital some years ago. The explosive market growth will bring hundreds of thousands of new market segments. It is the right time to enter whether the emerging market or the potential.