Satellite IoT Market

Updated on : March 14, 2023

Satellite IoT Industry Share and Forecast

[195 Pages Report] The satellite IoT market size is projected to grow from USD 1.1 billion in 2022 to USD 2.9 billion by 2027, at a CAGR of 21.9% during the forecast period.  Increasing use of satellite IoT solutions in Defense organizations to protect their borders, establish communications in desert areas, and access real-time data and imaging is driving the satellite IoT market.

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Satellite IoT Market Dynamics

Driver: Rising proliferation of LEO-based services to connect remote regions

Recently, billions of dollars have been invested in a new generation of satellites that orbit the Earth at a low altitude. These LEO satellites better connect remote and inaccessible regions. The demand for LEO-based services, availability of funding, high-speed broadband, growth of governments in industrialized countries, and demand for low-cost broadband among consumers in less developed countries are driving the market for satellite IoT. These market drivers inspire investments in smallsat-based LEO constellations. According to the Science and Technology Policy Institute, satellite broadband capacity demand (served by both small and larger satellites in Geo-synchronous Earth Orbit (GEO), Medium Earth Orbit (MEO), and LEO orbits) is projected to grow at a CAGR of 29% by 2024, reaching more than three terabits of bandwidth 12; however, proposed LEO constellations can collectively deliver almost 10 times as much, if operational. This, in turn, would lead to some LEO constellations either not deploying fully or failing. If this were to occur, it would not be too dissimilar to the dot-com bubble of the 1990s, where several companies failed, leaving behind many robust organizations, infrastructure, and a trained workforce.

Restraint: High costs associated with development and maintenance of satellite IoT

The high cost incurred in developing and maintaining earth station infrastructure is one of the major factors hindering the market growth. Most of the required components are typically custom-fabricated or purchased from commercial off-the-shelf (COTS) vendors. Significant investments are also required in the R&D, manufacturing, system integration, and assembly stages of the value chains of these systems.

Moreover, satellite IoT services are used for highly sophisticated defense systems, due to which any incident of system failure is unfavorable. Apart from being highly accurate and reliable, they must be durable and energy-efficient and have wide detection ranges. As a result, to maintain market leadership and stay competitive, companies in this market must develop highly functional and efficient ground facilities. This translates into significant investments in testing and infrastructure and collaborations with universities, research institutes, and other companies.

Opportunity: Rising technological advancements

Ka-band and V-band spectrum usage has been observed in newer LEO satellites as they provide higher data rates, greater security, narrow beams, and smaller antennas. Along with advanced spectrum usage, superior active antennas and processing have increased the information/data transfer per satellite, thereby increasing the LEO constellation capacity.

Recent advances in analytics, combined with the increasing computational power and AI-based algorithms, help reduce operating costs and response times.

Challenge: Vulnerability of satellite IoT devices to cybersecurity attacks

Incidents of cybersecurity breaches have increased across the world in the past few years. Security is the most significant area of technical concern for most organizations deploying IoT systems and 5G networks, with multiple devices connected across networks, platforms, and devices. This is also true for satellites, given the size and scope, as well as the number of earth station access points. IoT proliferation means if one single device isn’t encrypted or the communication isn’t protected, a bad actor can manipulate it and potentially a whole network of connected devices. It isn’t just the devices that need to be protected, but every stage of data transmission.

By service type, direct-to-satellite to account for the largest market share during the forecast period

Direct-to-satellite connectivity in remote places can facilitate cutting-edge applications for nature monitoring, situational awareness, and improved safety and economic activities in remote areas. This type of architecture allows devices to communicate directly with the satellite without needing any intermediate ground gateway. The satellite receives data from IoT devices and transmits it to the ground station nearest to the device. The data then gets stored in the application server for further processing. This model can be used for a wide area sensor network with sensors spread over a wide geographical territory. Myriota (an Australian-based startup), Hiberband Direct (a Netherland-based startup), Astrocast, etc., are some of the global providers of low-cost, low-power, secure direct-to-orbit satellite connectivity for the Internet of Things.<

By vertical, agriculture vertical to register higher CAGR during the forecast period.

Precision agriculture, also known as Precision Farming, Agriculture 4.0, or New Farming in some countries, is the key to more effective and sustainable farms. It enables farmers to manage their workforce, resources, and farm operations more effectively while also increasing productivity and crop yield, which has a significant positive impact on profits. However, having connectivity is essential for implementing precision agriculture because the Internet of Things makes it possible. However, the bulk of rural areas has poor cellphone service due to a lack of infrastructure, and the nations that produce most of the world's food are very big. Agriculture has had a long-standing issue with the connection. Here, satellite IoT solutions provide global coverage without a gap. Devices can connect directly to space from any location in the world and provide low-cost connectivity.

North America to account for the largest market share during the forecast period

The market for satellite IoT has grown significantly in North America, which now holds the majority of the industry. The demand for satellite IoT in North America is being driven by the booming digitalization across industries, along with the surging demand for Earth observation satellites, which offer extremely high-resolution Earth images and videos, as close as 1 meter or less, of the Earth’s surface.

The US has the largest market share in North America due to the presence of a very strong and fast-growing space industry. Canada is a fast-developing market with the presence of multiple technology innovators. Both countries have invested heavily in launching various CubeSats and small satellites, medium-sized satellites, and large satellites into LEO for applications, such as earth observation, communications, and entertainment

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Key Market Players

The satellite IoT market vendors have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in this market include Orbcomm (US), Iridium Communication (US), Globalstar (US), Astrocast (Switzerland), Inmarsat Global (UK), Airbus (Netherlands), Intelsat (US), Thales (France), Eutelsat (France), Northrop Grumman (US), Thuraya (Singapore), Vodafone (UK), Surrey Satellite Technology (UK), Head Aerospace (China),  I.M.T. SRL (Italy), Fleetspace Technologies (Australia),  Swarm Technologies (US), Alenspace (Spain), OQ Technology (Luxembourg), Fossa Systems (Spain), Kepler Communications (Canada), Sateliot (Spain), Myriota (Australia), Kineis (France), and Nanoavionics (Lithuania). The study includes an in-depth competitive analysis of these key market players along with their profiles, recent developments, and key market strategies.

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Scope of the Report

This research report categorizes the satellite IoT market to forecast revenues and analyze trends in each of the following subsegments:

By Service Type:

• Satellite IoT Backhaul
• Direct-to-Satellite

By Frequency Band:

• L-Band
• Ku-and Ka-Band
• S-Band
• Other Bands

By Organization Size:

• Large Enterprises
• Small and Medium Sized Enterprises

By Vertical:

• Maritime
• Oil & Gas
• Transportation & Logistics
• Energy & Utilities
• Agriculture
• Healthcare
• Military & Defense
• Other Verticals

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
  •  
• Asia Pacific
  • China
  • Japan
  • India
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• Middle East and Africa
  • Middle East
    • UAE
    • KAS
    • Rest of Middle East
  • Africa
    • South Africa
    • Egypt
    • Nigeria
    • Rest of Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In January 2023, Iridium and Qualcomm collaborated to support satellite messaging in smartphones. The collaboration aims to support satellite services into a variety of smartphone brands and has the potential to expand to other consumer devices in the future.
• In December 2022, Globalstar announced a commercial agreement with Wiagro, an Agtech startup from Argentina. Globalstar is supplying Wiagro with 2,500 ST100 satellite modem transmitters for its Smart Silobag, which allows for the remote monitoring of grain conditions stored in silo bags.
• In February 2022, Astrocast SA launched its commercially available cost-effective, bidirectional satellite IoT (SatIoT) service to connect IoT devices globally outside of cell-based terrestrial networks at a comparable cost.

Frequently Asked Questions (FAQ):

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