CITIC Construction Investment: The development of the commercial aerospace industry brings incremental demand to the satellite communication market

CITIC Construction Investment Securities research report believes that satellite communication technology is undergoing an industrial transformation. Through technological innovations such as reduced orbital altitude, phased array antenna applications, and laser medium applications, transmission speeds have significantly increased, latency has decreased, and application scenarios have expanded. The booming commercial space industry, especially companies represented by SpaceX promoting reusable rocket technology and large-scale constellation deployment, has compressed launch costs, making the networking of tens of thousands of satellites possible, driving diversified demands such as satellite internet and the Internet of Things, and will create vast markets such as space computing power in the future. The global satellite communication market is expected to grow from USD 25.2 billion in 2025 to USD 83 billion in 2035, with a compound annual growth rate of approximately 13%. The new generation satellite communication technology industry chain can be divided into upstream chips and components, midstream communication modules, and downstream satellite communication terminals. Leading enterprises in related fields are actively exploring the application of new technologies and products in inter-satellite and ground-satellite communication, and are expected to benefit from the incremental market of satellite communication brought about by the development of the commercial space industry