The profit model of China's commercial satellites is still confused: satellites are still too expensive. Deqing-1 may witness the beginning of the first year of China's commercial aerospace, and commercial aerospace is becoming increasingly close to people's lives. Experts say that the current commercial satellite market has great potential, but the profit model is still relatively confused. Data map: Satellites operating in geosynchronous orbit. Zhejiang Online, January 20 (Zhejiang Online reporter Chen Weibin, from Jiuquan) On January 19, China s commercial aerospace industry witnessed the birth of a new record: the successful launch of the country s first remote sensing satellite named after a county, Deqing-1. There are reports that 2018 may be a milestone year for China s commercial aerospace industry. Commercial aerospace and people are getting closer and closer, and there is a huge demand for remote sensing, communications, sky WiFi, navigation enhancement, etc. Relevant data shows that the global aerospace industry is growing rapidly at 6% to 7% every year, and the scale of China's aerospace market will reach 800 billion yuan in 2020. So what stage is China's private commercial aerospace at now? What is the relationship between aerospace technology and people s lives? What is the market potential of the satellite itself and its applications? What practical problems will we face in the future? In this regard, the reporter talked with Zhang Tao, deputy chief engineer of the Manned Space Application System and director of the central system department, and Jin Zhonghe, deputy dean of the School of Aeronautics and Astronautics of Zhejiang University and director of the Microsatellite Research Center, to talk about these topics. The proportion of commercial satellites in China is still low. Reporter: At present, what is the technical level of China's private commercial satellites? Jin Zhonghe: The technical level of China's commercial satellites is not bad in terms of various indicators, but it is true that some countries in the United States and Europe are still stronger in this regard. Reporter: Among all the satellites launched by our country, do commercial satellites account for a high proportion? Jin Zhonghe: Satellites mainly used for commercial or civilian purposes account for a relatively low proportion of China s satellites. Zhang Tao: Commercial spaceflight has been promoted in recent years, but space launch services are still supported within the system. Only a small number of satellites can be customized for commercial purposes. The volume is still very small, and universities also account for a part. Reporter: How much does it cost to launch a commercial satellite? Jin Zhonghe: It is now feasible technically and through channels. The cost of launching a satellite ranges from several million to tens of millions to hundreds of millions. The difference is huge, mainly depending on demand. Reporter: What are the better markets and applications for commercial satellites in reality? Jin Zhonghe: The biggest market now is still official, such as detailed land and resources surveys, surveying and mapping, etc. The relatively new ones are insurance companies and the futures market. For example, in the case of grain products, data provided by commercial satellites can be used by insurance companies to set insurance rates, or to predict grain price trends for the market. These are very interesting applications. The other is to provide safety-level information, such as forest fires or the recent ship collision in the East China Sea. Such large-scale monitoring still relies on satellites. Reporter: Will market-oriented intervention better promote the aerospace industry? Zhang Tao: I personally understand that the current goal of commercial aerospace is not to obtain commercial profits immediately, but to reduce aerospace costs. First open the application market and service market so that ordinary people can afford it. This is where commercial aerospace will play its role. Reporter: But are people using it now? Jin Zhonghe: Ordinary people can t use it yet, but when the cost is reduced to a certain level, some people will use it. The real market actually comes from everyone. The market potential is huge, but the profit model is unclear. Reporter: From this point of view, the commercial satellite market has great potential? Jin Zhonghe: Our market demand for commercial satellites is still relatively large, and the satellite itself and the services it can provide have great market potential both at home and abroad. Our country is also gradually developing the aerospace market. Zhang Tao: At this stage, from the perspective of social and economic development and other needs, the potential is still quite large. Reporter: What channels did you use to obtain satellite resources in the past? Jin Zhonghe: In fact, the commercial satellite market already exists. In terms of business itself, this service was mainly provided by foreign satellites in the past. If you want to use it, you can find and purchase it in this market. The second is that it can be obtained from government channels. In our country, it is mainly in the form of projects and is provided to demanders at almost free prices. Reporter: Now some companies have seen this potential and are entering the satellite market through various means. What do you think? Zhang Tao: The aerospace development cycle is long and the capital is large. Some startups or capital companies are not particularly suitable for rolling development. They may be able to make money independently in the short term, but they cannot survive and develop in isolation in large system projects. Although commercial aerospace has become more popular in recent years, and some companies plan to launch hundreds of satellites, and there are many such plans, the sum of these plans does exceed demand. The startup model may not be an optimal choice for commercial aerospace. Reporter: So what s the problem? Jin Zhonghe: Satellites are still too expensive. There are many people who want to do it at this stage, but they are still confused about the profit model. We may see that some projects can be done very cheaply, but the overall cost is still high. Zhang Tao: The profit point has not been found. This is related to the business characteristics of satellites. It is difficult for one enterprise or local government to support a large system. The key is to reduce costs and shorten the industrial chain. Reporter: We are confused about the profit model. What is the key issue? Jin Zhonghe: The main problem in catching up with space is cost. The market potential is huge, but the key is to reduce costs. Reporter: Why is the cost high? Jin Zhonghe: In fact, China has advantages in manufacturing, but it is precisely in this area that the advantage has not yet been formed Most of the core practitioners in this industry are state-owned institutions with strong monopolies and relatively high costs. If the overall advantages of the manufacturing industry can be brought into play and the technical threshold is lowered, then this area of development can explode. Reporter: How to reduce costs? Jin Zhonghe: Satellites can be completely customized. Zhejiang University is doing work in this area. Private enterprises in Zhejiang have a lot of demand in this area, and many enterprises have communicated with us. Our current costs are much lower than other units because we have compressed the industrial chain. Satellites are made up of many components, and a series of industrial chains are very long. We need to study how to shorten the chain concentrating related technologies to lower the technical threshold. We have been doing this for the past ten years. For example, now we can build a satellite in one laboratory, which reduces costs. Moreover, if the launch vehicle is launched once and only contains one satellite, the cost will be high. But if you can launch 20 or 50 pellets at a time, the cost will be much lower. We are also doing this, but the weight is much smaller than others with the same performance. Aerospace technology is gradually making its way into people's lives. According to a report released by the United States Space Foundation, the total global aerospace economy is approximately US 330 billion, of which the commercial aerospace industry accounts for 76%. The aerospace industry, which was originally dominated by the government, is gradually moving towards the era of mass consumption and eventually into the homes of ordinary people. Gao Hongwei, Party Secretary and Chairman of China Aerospace Science and Industry Corporation, said that in addition to military and public management fields, satellite applications have already entered people's lives in communication services, positioning services and geographical information services, and have begun to take shape in the global mobile Internet and Internet of Things applications. Gao Hongwei said that in recent years, more than 2,000 aerospace technology achievements in our country have been transplanted to various sectors of the national economy, which have had a profound impact on many areas of the national economy and social life. At present, the world's major aerospace countries and organizations are vigorously promoting the development of commercial aerospace, and their business scope is expanding from traditional commercial satellite launches and commercial satellite applications to the development of commercial manned spaceflight and other fields. The entry of some of the world's largest Internet companies into the aerospace field will also bring new thinking, new concepts and new models to the commercial aerospace field. This is a critical stage for aerospace technology to achieve widespread commercial application. Gao Hongwei said, If our development of aerospace technology was only a great undertaking in the past, then we should develop it as a great industry now