Satellite IoT Market by Service Type (Satellite IoT Backhaul, Direct-to-satellite), Frequency Band (L-Band, Ku and Ka-Band, S-band), Organization Size (Large Enterprises, Small and Medium Sized Enterprises), Vertical & Region - Global Forecast to 2027
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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Report Metrics |
Details |
Market size available for years |
2017-2027 |
Base year considered |
2021 |
Forecast period |
2022-2027 |
Forecast units |
Value (USD Million/Billion) |
Segments covered |
By service type, frequency band, organization size, vertical, and region |
Regions covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies covered |
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). |
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
-
Middle East
-
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):
What is satellite IoT?
Satellite IoT refers to connecting IoT devices or nodes using a satellite network and satellite communication. A satellite network is the best solution to connect terrestrial and remote devices that are difficult to reach through a cellular network. Satellite IoT leverages low-power wireless technology and LEO satellites to enable IoT connectivity.
Which countries are considered in the North American region?
The report includes an analysis of the US and Canada in the North American region.
Which are the key drivers supporting the growth of the satellite IoT market?
The key drivers supporting the growth of the satellite IoT market include proliferation of LEO-based services to better connect remote and inaccessible regions and increasing development of satellite network to provide internet access in area without low broadband connectivity.
What are some of the technological advancements in the market?
Technological advancements like Machine learning (ML) and AI enable the analysis of satellite data obtained from earth observation (EO), global navigation satellite systems (GNSS), and remote sensing, to extend IoT coverage beyond cities into remote regions; satellite and IoT networks are merged.
Who are the key vendors in the satellite IoT market?
The key vendors operating in the satellite IoT 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).
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This research study involved extensive secondary sources, directories, and databases, to identify and collect information useful for this technical, market-oriented, and commercial study of the satellite IoT market. The primary sources were mainly several industry experts from core and related industries and preferred suppliers, manufacturers, distributors, Service Providers (SPs), technology developers, alliances, and organizations related to the segments of this industry’s value chain. In-depth interviews were conducted with various primary respondents that included key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants to obtain and verify critical qualitative and quantitative information, as well as assess prospects.
Secondary Research
The market size of companies offering satellite IoT solutions and services to various segments is based on the secondary data available through paid and unpaid sources, and by analyzing the product portfolios of the major companies in the ecosystem and rating the companies based on their performance and quality. In the secondary research process, various sources were referred to, for identifying and collecting information for the study. The secondary sources included annual reports, press releases, and investor presentations of companies; white papers and certified publications, such as the Institute of Electrical and Electronics Engineers (IEEE), satellite IoT Journal, NASA, ESA, UCS Satellite Database, Committee on Earth Observation Satellites (CEOS), Nanosats Database (Erik Kulu); and articles from recognized associations and government publishing sources research papers.
Secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from market and technology-oriented perspective–all of which were further validated by primary sources.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations providing automated testing applications across industry verticals. The primary sources from the demand side included end users, such as Chief Information Officers (CIOs), consultants, service professionals, technicians, and technologists.
In the market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market’s segments and subsegments listed in the report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list key information/insights throughout the report.
After the complete market engineering process (including calculations for market statistics, market breakups, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information, and verify and validate the critical numbers arrived at. Primary research was also conducted to identify the segmentation types; industry trends; key players; competitive landscape of different market players; and key market dynamics, such as drivers, restraints, opportunities, challenges; industry trends; and key strategies.
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Market Size Estimation
In the market engineering process, the top-down and bottom-up approaches were used along with multiple data triangulation methods to estimate and validate the size of the satellite IoT market and other dependent submarkets. Key market players were identified through secondary research, and their market share in the targeted regions was determined with the help of primary and secondary research. This entire research methodology included the study of annual and financial presentations of the top market players as well as interviews with experts for key insights (quantitative and qualitative).
The percentage share, splits, and breakdowns were determined using secondary sources and verified through primary research. All the possible parameters that affect the satellite IoT market were verified in detail with the help of primary sources and analyzed to obtain quantitative and qualitative data. This data was supplemented with detailed inputs and analysis from MarketsandMarkets and presented in the report.
Satellite IoT Market: Top-Down Approach
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Data Triangulation
After arriving at the overall market size using the market size estimation processes explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Report Objectives
- To determine and forecast the satellite IoT market based on service type, frequency band, organization size, vertical, and region from 2017 to 2027, and analyze various macro and microeconomic factors that affect the market growth.
- To forecast the size of the market’s segments with respect to five main regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the satellite IoT market.
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the total satellite IoT market.
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the satellite IoT market.
- To profile key market players (top vendors and startups); provide a comparative analysis based on their business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the market’s competitive landscape.
- To track and analyze competitive developments, such as mergers and acquisitions, new product launches and developments, partnerships, agreements, collaborations, business expansions, and Research & Development (R&D) activities, in the market.
Available Customizations
Along with the market data, MarketsandMarkets offers customizations as per a company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product Matrix which gives a detailed comparison of the product portfolio of each company
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Satellite IoT Market