The Beidou Navigation Satellite System developed by China is poised to enter a critical phase of large-scale application, with plans of pilot projects unveiled for its wider use in areas such as consumer electronics and industrial manufacturing, experts said.

The comments came after the Ministry of Industry and Information Technology, China's top industry regulator, last week released a notice regarding the selection of pilot cities for the large-scale application of Beidou in the industrial and information technology sectors.

The goal is to foster new business forms, models and dynamics through innovative applications and research, creating exemplary pilot cities with advanced Beidou industries and significant application results that can influence nationwide development.

Stating that Beidou provides positioning, navigation and timing services, Hong Yong, an expert from the China Digital and Real Economy Integration 50 Forum, a Beijing-based think tank, emphasized the importance and timeliness of MIIT's move.

Government guidance and preferential policies can incentivize enterprise innovation, expedite the development of Beidou products and services, and enhance market competitiveness, Hong said.

According to MIIT, the pilot projects will focus on three areas: consumer applications, industrial manufacturing and integrated innovation.

In the consumer sector, pilot cities will prioritize the use of Beidou in smart devices, wearable technology, tablets, shared mobility and low-altitude drone applications, encouraging enterprises to develop and produce Beidou products and continually improving product supply capabilities.

In industrial manufacturing, the emphasis will be on promoting Beidou applications in automobiles, ships, aircraft and robots, leveraging regional characteristics and conditions to explore new industrial manufacturing scenarios powered by Beidou.

For integrated innovation, pilot cities will explore new industrial technology systems and application models, establishing innovative application platforms across various industries to foster "Beidou plus" integrated innovation applications.

Yuan Shuai, deputy secretary-general of the Z-Park Internet of Things Industry Alliance, highlighted the need for multiple measures to build a complete Beidou system industrial chain and promote high-quality, high-value development.

These include nurturing competitive enterprises, enhancing product supply capabilities and technological levels, strengthening upstream and downstream industry chain collaboration, and driving technological and application innovations to create new economic forms and business models, Yuan said.

The total output value of China's satellite navigation and positioning services industry reached 536.2 billion yuan ($73.8 billion) in 2023, up 7.09 percent year-on-year, according to a white paper published by the Global Navigation Satellite System and Location-Based Services Association of China, which goes by the abbreviation GLAC.

According to the white paper, the digital transformation and intelligent upgrade of various industries released demand for satellite navigation equipment and data, injecting vitality into the development of the Beidou information application and service market.

Industry experts said they view the selection of pilot cities for Beidou's large-scale application as a significant milestone in China's development of the satellite navigation system.

This initiative will broaden the application of the Beidou system across various fields, and better contribute to China's economic and social development.

However, they also said there were challenges and opportunities ahead, and emphasized the need for collective and sustained efforts from all sections of society.

Greater efforts are needed to establish a comprehensive service support system for Beidou to demonstrate its value, said Xiang Ligang, director-general of the Information Consumption Alliance, a telecommunications industry association in China.