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24
2017-06
BeiDou and GPS compete for the internet travel market, this time targeting the motorcycle sector
In the battle for market share in the internet-based transportation sector, sparked by new players such as Mobike and ofo, the competitors are not only internet entrepreneurs, but also two major high-precision satellite navigation systems of military origin: the US Global Positioning System (GPS) and the Chinese BeiDou Navigation Satellite System (BeiDou). Mobike has incorporated both GPS and BeiDou systems into its vehicle-mounted devices, and ofo announced a strategic partnership with BeiDou on April 6. On June 22, at the event held by China Fortune Land Development (600340, SH) and Guangdong Tianwei BeiDou...
In the battle for market share in the internet transportation sector, ignited by new players like Mobike and ofo, the competition isn't limited to internet entrepreneurs; it also includes two high-precision satellite navigation systems with military origins: the US Global Positioning System (GPS) and China's BeiDou Satellite Navigation System (BeiDou).
Currently, Mobike incorporates both GPS and BeiDou systems into its vehicle-mounted devices, while ofo announced a strategic partnership with BeiDou on April 6th.
On June 22nd, at the "BeiDou + Internet of Things Industry Application Summit Forum" jointly held by China Fortune Land Development (600340, SH) and Guangdong Tianwei Beidou Technology Co., Ltd. (Tianwei Beidou), Hua Zhibin, the operation director of Tianwei Beidou, told reporters from the Daily Economic News that with the maturity of domestic chip production technology and the decline in equipment costs, high-precision satellite navigation will see increased demand in the civilian market.
At the forum, Tianwei Beidou announced plans to collaborate with motorcycle manufacturers in Jiangmen, Guangdong, to apply three newly developed navigation devices to motorcycles. Tianwei Beidou stated that this aims to improve motorcycle internet services and traffic management capabilities, fostering the development of an industrial cluster for BeiDou vehicle and IoT in Jiangmen.
BeiDou aims to compete with GPS in the high-precision navigation market.
It is understood that there are currently four major players in navigation satellites, in addition to GPS and BeiDou, there is also the Russian GLONASS global navigation satellite system and the European Galileo satellite navigation system.
China's satellite navigation and positioning service industry can be broadly divided into upstream, midstream, and downstream sectors: upstream includes navigation and satellite manufacturing, chips, OEM boards, modules, antennas, etc.; midstream includes terminal integration and system integration; downstream includes sales, operation, and services. Currently, domestic companies mainly focus on the trading sector, accounting for 70% of the downstream market, primarily acting as agents for the sale of foreign high-precision receiver products, modules, and OEM boards, while their share in the operation and service sectors is very small.
Hua Zhibin told reporters that in the domestic market, BeiDou and GPS systems are not independent; general chip manufacturing usually supports both, but this also means higher manufacturing and purchase costs. "While GPS dominates most of the domestic consumer market, only with the popularization of the domestic industrial chain and technological advancements, when domestic chip manufacturers produce dual-mode or multi-mode chips at prices comparable to foreign single-mode chips, can the entire industry drive the adoption of the BeiDou system."
Industry insiders revealed that the BeiDou industry has been adopted by most local governments as a strategic industry for regional economic transformation and upgrading. With the growing demand for high-precision BeiDou navigation and positioning applications in the mass consumer market, the BeiDou industry is poised to enter a new blue ocean worth hundreds of billions of yuan.
Lin Hongzheng, general manager of Tianwei Beidou, stated at the forum that integrating BeiDou system applications with the motorcycle industry is a strategy to promote the transformation and upgrading of the motorcycle industry, and will also play an important role in the transformation and upgrading of some traditional industries in the Pearl River Delta.
The Internet of Things brings opportunities to the high-precision navigation market.
"After installing the module, the motorcycle becomes an intelligent IoT device. For city management, this can reduce illegal parking, theft rates, and other issues. The motorcycle's dashboard can also display incoming calls, making riding more convenient," said Hua Zhibin.
IDC predicts that by 2020, the global IoT market will exceed US$3 trillion, with over 25 billion interconnected systems and 4.4 billion internet users.
Industry insiders say that the maturity of China's IoT technologies varies across different levels, with sensor technology being a key area for breakthroughs, as it forms the foundation of IoT infrastructure. Meanwhile, application innovations in IoT fields such as consumer electronics, mobile terminals, automotive electronics, robotics, and biomedicine are placing higher demands on sensors, creating significant market opportunities for Chinese technology companies producing high-precision navigation products.
A relevant person in charge of China Fortune Land Development introduced that the company is currently laying out three major satellite industrial bases nationwide.
In 2013, Ran Chengqi, spokesperson for the BeiDou Satellite Navigation System and director of the China Satellite Navigation System Management Office, released a set of data showing that at the time, over 95% of the domestic navigation industry was monopolized by the GPS system. "By 2020, the BeiDou system's coverage will extend globally. How much market share BeiDou can recapture will test the capabilities of related Chinese technology companies."
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