Microsatellites set to blast off for success
By Cheng Yingqi | China Daily | Updated: 2016-11-10 08:28
Falling costs and rapid development mean the sector is becoming increasingly viable for private operators. Cheng Yingqi reports.
While the accomplishments of China's microsatellite industry have recently been overshadowed by the success of the nation's manned space program, the sector has developed so rapidly that the cost of providing commercial services has fallen to a level where the use of small satellites is now within the range of private companies.
Microsatellites, usually weighing less than 500 kilograms, are of lower mass and size than traditional craft, such as those used by the military, which use customized parts to ensure complete reliability. By contrast, the components used in microsatellites, which have less stringent standards of dependability, can be bought at hardware stores, making them perfect for commercial use.
"Satellites can watch over the globe and provide a view that other devices can't. For example, we can monitor traffic at any port or logistics center on Earth and thus calculate the scale of operations, which has great commercial value," said Cao Jin, a senior engineer at the Innovation Academy for Microsatellites, which is affiliated to the Chinese Academy of Sciences.
"A number of innovators in China, including research institutes, colleges and startups, are actively exploring the commercial value of microsatellites," he said.
The country's major developers are State-owned research agencies such as the Chinese Academy of Sciences, China Aerospace Science and Technology Corp and China Aerospace Science and Industry Corp.
One example is Cao's academy, which sent the Banxing 2, or Companion 2, microsatellite into space with the Tiangong II space lab in September.
The satellite's mission is to photograph the Shenzhou-XI manned spaceship, which docked with the space lab on Oct 19 for a 30-day mission that is scheduled to draw to a close soon.
Development barriers
Currently, the application of microsatellites is limited to State-funded research projects, and only few have been produced and launched by private companies.
"China's commercial space business is just beginning to explore opportunities, but we have not yet developed a mature business model that will make a profit," said Huang He, an associate professor at the Shaanxi Engineering Laboratory for Microsatellites at Northwestern Polytechnical University in Xi'an.
According to Huang, the cost of developing microsatellites has been reduced to a relatively low level, ranging from 3 million yuan ($433,000) to 20 million. That is about 20 to 30 percent of the cost of traditional satellites. However, an absence of operators is proving the major barrier to full commercialization.
"The key to establishing the industry is application. If you want to use microsatellites to provide full-time Wi-Fi signals or digital maps, launching a constellation of satellites will not be enough; you have to develop high-quality client application terminals (systems that can receive signals from the satellite and provide services to users) as well," he said.
The laboratory is planning to produce a 36-satellite constellation for a company that is providing services for ships to send out short messages in the middle of the ocean. Each satellite will cost about 5 million yuan.
"As more and more startups emerge, the market is beginning to recognize the value of satellite-based services," he said.
Short-term goals
Another obstacle is that launch services are monopolized by State-owned companies, which have shown little interest in civil applications. However, the picture is set to change as a result of competition from companies overseas.
"Becoming China's SpaceX is just our short-term goal," Han Qingping, president of ChinaRocket Co in Beijing, told a media briefing last month.
Space Exploration Technologies Corp, known as SpaceX, is a US aerospace manufacturer and provider of space transport services. It is famous for developing the Falcon 1, Falcon 9 launch vehicle and the Dragon cargo spacecraft, which ferried supplies to the International Space Station.
ChinaRocket, established on Oct 19, is a subsidiary of the State-owned China Aerospace Science and Technology Corp, the main contractor for the country's space program. It plans to exploit the technical expertise of its parent company and expects to begin carrying cargo into space and providing high-atmosphere passenger services by as early as 2020.
"With 60 years' experience of space launches, our technological foundation is very strong. Also, (Elon) Musk (founder of SpaceX) has limited funds, but China has ample capital," Han said. "SpaceX only has two types of Falcon launch vehicle, but our company owns a dozen types of Long March rocket that can carry payloads ranging from hundreds of kilograms to 20 tons."
In February, China Aerospace Science and Industry Corp, another State-owned defense technology giant, set up Expace Technology Co to market its Kuaizhou-series of solid-fueled rockets. According to media reports, the first Kuaizhou rocket will blast off in December with a cargo of two microsatellites.
"With reference to the experience of the US, the primary question is how to involve more companies and improve the quality of the participants," said Cao from the microsatellite academy.
Investment
Last month, the US government unveiled a project aimed at boosting the commercial space industry by encouraging NASA to invest $30 million in microsatellites which would allow smaller companies to enter the sector.
"The Chinese government should reciprocate by opening some aeronautics projects to private companies to create a competitive environment. By this process, the industry would develop gradually as it draws talent and technologies," Cao said.
In September, China Aerospace Science and Industry Corp signed an agreement with the government of Hubei province to jointly build a commercial spaceflight industry park and develop an entire industry chain, including rocket launches, satellite development, spatial information services and the production of aerospace ground equipment.
By 2020, the park intends to produce 30 billion yuan worth of equipment, including 50 launch vehicles, 40 100-kg satellites and 100 satellites weighing less than 100 kg.
Globally, the market for nano- and microsatellites is expected to show average annual growth of more than 20 percent until 2021, according to a report by Mordor Intelligence, a market researcher and consultancy in India.
Some experts are predicting further developments in the sector.
"We already have Internet Plus in China. In the future, we will be able to propose a new concept - Spaceflight Plus - by opening our launch capacity to the market, and thus driving productivity in other industries," said Han, of ChinaRocket.
"The reputation and reliability of China's aerospace industry means we have already received offers of cooperation from many sides, and that is likely to facilitate the formation of a Spaceflight Plus industry," he added.
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Two other notable launch provider startup from China, are OneSpace and
LandSpace.
