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

CITIC Securities research report believes that satellite communication technology is undergoing an industrial transformation. Through technological innovations such as reducing orbital height, using phased array antennas, and laser medium applications, transmission speeds have significantly increased, latency has been reduced, and application scenarios have been expanded. The vigorous development of the commercial space industry, especially companies represented by SpaceX, promoting reusable rocket technology and large-scale constellation deployment, reducing launch costs, making it possible to network tens of thousands of satellites, driving diversified demands such as satellite internet, Internet of Things, and potentially creating a broad market for space computing power. The global satellite communication market is expected to grow from $25.2 billion in 2025 to $83 billion in 2035, with a compound annual growth rate of approximately 13%. The new generation of satellite communication technology industry chain can be divided into upstream chips and components, intermediate communication modules, and downstream satellite communication terminals. Leading companies in the relevant fields actively explore the application of new technologies and products in inter-satellite and satellite-to-ground communication, and are expected to benefit from the incremental market growth in satellite communication brought about by the development of the commercial space industry.