Marine Antenna 'Number One' IntellianTech... Successful Entry into the Space Internet Market

The gold rush toward space has begun. The space industry is the field where Amazon founder Jeff Bezos and Tesla's Elon Musk persist despite repeated failures. The space exploration projects they are fiercely competing for have become a blue ocean with clear commercialization potential. The stock prices of companies related to the space industry also reflect this. The space industry encompasses various sectors such as space travel, satellite communication network construction, weather and location information collection, and space debris disposal. In Korea, there are excellent companies with the technological capability to capture the 500 trillion won space market. Intellian Technologies and Satrec Initiative are representative examples. These companies are recognized globally based on their independent technological capabilities. Asia Economy analyzed the space industry-related companies gaining attention.

[Asia Economy Reporter Park So-yeon] Intellian Technologies is a manufacturer of satellite communication antennas. It holds the number one global market share in the marine satellite communication antenna sector. Intellian Technologies has succeeded in entering the low Earth orbit satellite communication market by developing ground network antennas beyond its existing strength in maritime communication antennas. This is the ‘space internet’ sector, a key issue in the space industry, i.e., the low Earth orbit satellite communication business. It involves launching satellites from the ground to build communication networks at 5G and 6G levels. Unlike existing internet networks, it allows fast internet access even in underdeveloped countries, mountainous remote areas, and oceans where internet access is poor, attracting attention. The necessity of the international community and the economic interests of companies are intertwined, intensifying competition among private companies to secure satellite-related technologies.

Global companies such as SpaceX, Amazon, Apple, and OneWeb are entering the low Earth orbit satellite communication business and competing fiercely. These companies are potential clients of Intellian Technologies. The market size related to satellite communication antennas is expected to reach 50 trillion won by 2026. This is why the market’s interest is focused on Intellian Technologies, which has been globally recognized for its related technologies.

Contract with Global OneWeb Drives Growth
Potential Clients Include SpaceX and Apple

◇Rapid growth expected from contract with global satellite company OneWeb= In November last year, Intellian Technologies signed a contract with OneWeb, a global company promoting the low Earth orbit satellite communication business. Intellian Technologies developed ground antennas, a core component of the low Earth orbit satellite business, securing orders worth approximately 22 million USD. This accounts for about 20% of Intellian Technologies’ previous year sales. Intellian Technologies developed satellite antennas for various future markets, including ground areas such as communication networks in shadow zones without internet coverage, broadband communication for schools and hospitals, and maritime areas such as commercial and fishing vessels, utilizing OneWeb’s satellites.

Starting this year, the company will begin full-scale product supply, and OneWeb is expected to continue large-scale investments for satellite launches, ground network construction, and commercialization of communication services. It plans to provide global services from the Arctic in the second half of this year to India, Africa, and Asia next year. The total number of antennas for which OneWeb has applied for certification with the US Federal Communications Commission targeting the US market is about 400,000 units. The securities industry estimates that this translates to approximately 2.4 trillion to 5.6 trillion won in value.

There is also additional demand expected from new product launches in the future. This applies only to the US market, but as global business accelerates and demand for new products such as flat-panel antennas increases, the scale is expected to grow further. The market expects Intellian Technologies to achieve rapid growth based on its contract with OneWeb.

With its technology recognized through the contract with OneWeb, the possibility of securing the global low Earth orbit satellite antenna market has increased. The likelihood of contracts with other companies conducting low Earth orbit internet businesses, such as Amazon and SpaceX, has also risen.

Park Jin-hyung, an analyst at Yuanta Securities, said, "Intellian Technologies’ sales in 2022 are expected to grow at an even greater rate."

◇Vulnerable to COVID-19... Steady investment in new growth= Intellian Technologies is a company with high new growth potential but is vulnerable to COVID-19. Last year, as large cruise ships almost stopped operating, the company’s sales and operating profit, mainly from the marine communication antenna business, sharply declined. As of the end of the third quarter last year, Intellian Technologies’ consolidated sales were 78.954 billion won, and operating profit was 60 million won. These figures represent decreases of 7.6% and 99%, respectively, compared to the same period the previous year.

Based on financial stability, Intellian Technologies continues steady investment and technology development for the future. Despite operating profits below 100 million won until the third quarter last year due to COVID-19, it executed over 10 billion won in tangible asset investments. Following the acquisition of tangible assets worth 10.7 billion won in 2019, it acquired 10.3 billion won worth of tangible assets by the third quarter last year.