A motorcyclist uses a mobile phone navigational system to map out his route. Companies, such as Amap.com and Baidu.com, have developed Beidou-based navigational applications for smartphone users. [Photo provided to China Daily]

In the MIIT report, it was revealed that Beidou still lags behind global positioning networks in the United States when it comes to GPS systems in privately-owned vehicles.

"Less than half a million, or 5 percent, of private cars had a navigational device instal-led which was compatible with the Chinese satellite system by the end of last year," the report said.

Still, Peng Hongbing, deputy director of the division overseeing China's electronic information development at the MIIT, is confident Beidou's market share in commercial and privately-owned vehicles will continue to grow.

The country's leading auto manufactures, including SAIC Motor Co in Shanghai and Dongfeng Motor Corp in northeast China's Jilin province, have started to roll out the network in new vehicles.

"The good news is that market is starting to realize Beidou is a great platform because it offers an efficient and stable service," Peng said.

Other business sectors are also taking advantage of the satellite system.

Revenues generated by the geographical information industry, including mapping and hardware equipment, posted a 20 percent annual increase in revenue during the past few years, according to the Ministry of Land and Resources, without disclosing detailed figures.

But probably the biggest growth sector has been "location requests" sent from smartphones.

With the market booming, online giant Alibaba Group Holding Ltd set up a 2 billion yuan joint venture with China North Industries Group Corp, which helped develop Beidou, in September.

Along with the State-owned military equipment manufacturer, Alibaba launched QianxunLocation Networks Co Ltd, an Internet company, that will use the satellite system platform for location and data analysis services.

"Beidou plays a fundamental role in a good number of sectors that provide basic services to Chinese people," Miao, secretary-general at GLAC, said.

"More location-based services, including transportation, health care and disaster relief, will be dependent on Beidou in the future."

The vibrant online-to-offline market, or O2O, has been one of the major reasons for Beidou's rapid expansion in the commercial world. This allows shoppers to buy goods online which are then delivered to their homes.

"Smartphones have fueled the demand in growth for location-based services and so boost Beidou," Dong Xu, a researcher at consultancy Analysys International in Beijing, said.