Frost & Sullivan: The competition in the mapping industry is shifting from domestic to international markets

Overall, the advantages of the Beidou system mainly come from four aspects: wide coverage and high precision, three-frequency signals, active/passive dual-mode positioning, and short message communication.

Compared to GPS's global monitoring coverage rate of 98%, the Beidou system is a true global navigation system, mainly due to its advantage in satellite numbers; (The Beidou system consists of 35 satellites, including 5 geostationary orbit satellites and 30 non-geostationary orbit satellites, among which 24 are medium Earth orbit and 6 are high Earth orbit satellites, while GPS consists of 28 satellites, including 4 spare satellites, all of which are medium Earth orbit satellites)

In terms of accuracy, the Beidou system is on par with GPS, achieving 10-meter-level positioning accuracy, 0.2-meter per second speed measurement accuracy, and 20 nanoseconds timing accuracy at the civilian level. Even in the Asia-Pacific region, the Beidou system has better positioning accuracy; (in the Asia-Pacific region, it can achieve 5-meter positioning accuracy, 0.1-meter per second speed measurement accuracy, and 10 nanoseconds timing accuracy);

Additionally, the advantages of the Beidou system are also evident in its signals. As the world's first satellite navigation system to provide triple-frequency signal services, it has better signal anti-interference capabilities and more reliable positioning compared to GPS with dual-frequency signals. (Triple-frequency signals can better eliminate the effects of higher-order ionospheric delays, improve positioning reliability, enhance data preprocessing capabilities, and greatly improve the fixed efficiency of ambiguity. Moreover, if there is a problem with one frequency signal, traditional methods can be used to locate using the other two frequencies, improving the reliability and anti-interference capabilities of positioning.)

Secondly, the dual-mode capability of active and passive positioning is also a unique advantage of the Beidou system. It allows for communication with satellites by receiving signals emitted by satellites or by directly transmitting radio waves without emitting them. This ensures that positioning can still be completed under extreme observation conditions, making it suitable for emergency calls;

The Beidou system also has original short message communication services, innovatively integrating navigation and communication functions to achieve two-way communication. Its application scenarios will be more diverse, and it will have significant advantages in future professional fields such as traffic operations, fisheries going out to sea, rescue and search, etc.

There are mainly three difficulties in obtaining foreign map data:

The first issue is cost. From a process perspective, map surveying and mapping require specialized technicians who collect roads and POIs (Point of Interest) through vehicle collection or pedestrian surveys. After the data is collected, it needs to be processed by professionals to obtain electronic map data. This period requires significant investment in manpower, material resources, and finances.

Secondly, there are regulatory restrictions. Since map data involves national security, the surveying and mapping of maps often require qualifications certified by the country where they are located. Domestic map manufacturers can only purchase map data from suppliers when they are unable to collect it themselves overseas, and such data is often monopolized by giants like Google or HERE.

Thirdly, there are quality requirements. Foreign map software such as Google Maps is relatively mature, and users often have higher demands for the quality and accuracy of maps. Therefore, enterprises need to collect, process, and update maps with more advanced technology and equipment.

The overseas expansion of Gaode Map will assist Chinese real economy enterprises in their overseas endeavors.

The first to be hit are traditional logistics providers or travel service companies such as Anglia Logistics, Dada Express, Goolala, SF Express, etc. Gaode Map has already carried out in-depth cooperation with these enterprises.

Secondly, in terms of overseas solutions, Gaode Map has collaborated with companies such as Alipay and Taobao to assist Alibaba in its payment and e-commerce layout in Southeast Asia. Moreover, Gaode also provides services for mobile apps that have already gone global, such as Douyin, Kuaishou, and Cool Dog Music.

In addition to mobile devices, the automotive industry has also become the next growth point for map loading. As independent automakers such as Jianghuai Automobile, Great Wall Motor, SAIC Group, and Geely Group are expanding their investment in overseas markets and building factories, cooperation between AutoNavi and automakers will further strengthen.

In addition, as a global map navigation partner for the 'Belt and Road Global Tour', users can view local services on the map, including dining, attractions, hotels, shopping centers, etc. This will not only drive outbound tourism but also inevitably boost local economic development.

Gaode Map's HQ Live MAP Lite map can be replicated overseas through cooperation with autonomous driving automakers. Gaode Map has more than 20 automaker partners in advanced assisted driving, serving hundreds of thousands of mass-produced vehicles in total. Moreover, as the industry as a whole vigorously develops perception technology, HQ Live MAP will also be rapidly updated and iterated accordingly.

As for the challenges, they still lie in obtaining overseas map information and how to adapt to local conditions based on overseas markets to meet the data needs of overseas users for maps. This requires consideration of factors such as laws and regulations, cultural backgrounds, and differences between countries and regions.

The main competitive focus between Gaode and Baidu Maps overseas lies in the local lifestyle businesses derived from map scenarios.

In China, the local life services of map-based software have become relatively mature. Both Gaode Map and Baidu Map have integrated local services such as travel taxis, charging and refueling, and vehicle maintenance. However, the business model overseas is not yet mature, which presents market opportunities for Gaode and Baidu Map.

In the domestic market, Gaode Map has performed impressively over the past two years, with monthly active users (MAU) exceeding 400 million and daily active users surpassing 100 million. Moreover, the business is developing towards a comprehensive travel platform. However, Baidu Map started exploring overseas markets as early as 2016, while Gaode Map was struggling to establish itself and was unable to keep up in time to enter the overseas market. It adopted a strategy of concentrating its resources on strategic confrontation with Baidu Map in the domestic market. Losing the advantage in overseas markets could lead to insufficient experience.

Therefore, compared to Baidu Maps, users who lack overseas operation experience and time to accumulate data related to user preferences tend to prefer Baidu Maps, which is precisely what B2B users value.

Moreover, with the continuous record highs in the number of outbound travelers in China, Baidu Maps has achieved an penetration rate of 50% among outbound travelers. This means that for every two outbound travelers, one uses Baidu Maps. At this time, the market share space of Gaode Map overseas is relatively small.

However, for the map industry, it is inevitable that competition will shift from domestic to international markets. A series of supply models based on local life services developed by Gaode Map in China can be replicated overseas, just as all local enterprises go global. Gaode's entry into overseas markets will also present both opportunities and challenges.

The main issue is that basic map data is monopolized by giants and cannot be mapped and surveyed independently, thereby affecting user experience.

Google Maps has over 1 billion global monthly active users, a significant lead over AutoNavi's 400 million domestic monthly active users. Compared to Google, AutoNavi faces challenges in data integrity, data update speed, and navigation accuracy, indicating a long and arduous task ahead.

Given that Gaode Map has been launched in over 200 countries and regions around the world and its capabilities as a travel service provider are becoming increasingly strong, although there may still be a technological gap compared to the most advanced map companies in the United States, China's map navigation technology is already in a leading position in terms of application and scenario implementation.

Overall, the development prospects of Gaode Map overseas are still promising.