Market Overview:
The global Satellite IoT Market size was valued at USD 1.56 billion in 2022, and is projected to reach USD 5.57 billion by 2032 at a CAGR of 22.5% from 2022 to 2032. The satellite IoT market refers to the use of satellite communications technology for connecting and controlling devices and systems in the Internet of Things (IoT) ecosystem. In this context, IoT devices can be located in remote or hard-to-reach areas where terrestrial communication infrastructure may not be available or practical. Satellite IoT enables a wide range of applications, including asset tracking, environmental monitoring, smart agriculture, and industrial automation, among others. One of the main advantages of satellite IoT is its global coverage, which enables connectivity in areas where terrestrial networks are absent or unreliable. For instance, satellite IoT can be used to track shipping containers across oceans, monitor oil pipelines in deserts, or collect weather data in remote areas. Additionally, satellite IoT can provide low-latency and high-bandwidth connectivity for critical applications, such as emergency response or military operations.
According to a report by IoT Analytics, the number of active satellite IoT connections was estimated to be around 5.4 million in 2020. This is expected to grow to over 24 million by 2024. The same report also notes that the transportation and logistics industry is currently the largest user of satellite IoT, with around 2.2 million active connections. Other industries that use satellite IoT include agriculture, energy and utilities, and environmental monitoring. As of 2021, there were over 3,300 operational satellites in orbit around the Earth, with the majority of them being in LEO (Low Earth Orbit).
The satellite IoT market represents a promising opportunity for companies that seek to leverage the benefits of satellite communications for their IoT applications. With the advent of new satellite technologies, the satellite IoT market is expected to expand and diversify, providing new use cases and business models. However, satellite IoT providers must address technical, economic, and regulatory challenges to ensure the success and sustainability of their services.
Increasing demand for global connectivity is propelling the market growth.
One of the key driving factors of the satellite IoT market is the increasing demand for global connectivity. With the proliferation of IoT devices and applications, there is a growing need for ubiquitous and reliable connectivity that can support various use cases and industries. However, traditional communication technologies, such as cellular or Wi-Fi, have limitations in terms of coverage, capacity, and reliability, especially in remote or harsh environments. Satellite IoT can address these challenges by providing a global and resilient connectivity solution that can reach any location on Earth. Satellites can cover vast areas, including oceans, deserts, mountains, and polar regions, where terrestrial networks are unavailable or inadequate. This coverage can enable new applications and services, such as remote monitoring of natural resources, tracking of transportation and logistics, or support for disaster response and humanitarian aid. The increasing demand for global connectivity is driven by various industries and sectors, such as agriculture, energy, transportation, logistics, and government. These industries rely on IoT devices and sensors to collect data, optimize operations, and enhance safety and sustainability. Satellite IoT can provide a cost-effective and scalable connectivity solution that can integrate with existing or emerging IoT platforms and applications.
Segmentation:
By Network Architecture
• LEO (Low Earth Orbit)
• MEO (Medium Earth Orbit)
• GEO (Geostationary Earth Orbit)
By Type
• Hardware
• Software
• Services
By Industry Vertical
• Agriculture
• Energy
• Transportation
• Logistics
• Government
• Military
• Others
Geography:
The satellite IoT market is a global market, and there is no single region that dominates the market. The adoption of satellite IoT varies across different regions and countries, depending on various factors, such as the availability of terrestrial infrastructure, the level of economic development, the regulatory environment, and the specific use cases and industries. North America and Europe are currently the leading regions in terms of satellite IoT deployment and adoption. This is due to several factors, including the availability of established satellite providers, the presence of advanced IoT ecosystems and applications, and the high demand for connectivity in various industries. In North America, the United States is the largest market for satellite IoT, driven by the demand for connectivity in remote and rural areas, as well as the growing adoption of IoT in industries such as energy, transportation, and agriculture. The government and military sectors are also significant users of satellite IoT in the region.
In Europe, the satellite IoT market is driven by the demand for connectivity in maritime, aviation, and land transportation, as well as the need for environmental monitoring and emergency response. The region has several established satellite providers, such as Inmarsat, Eutelsat, and SES, that offer various satellite IoT services and solutions. Asia-Pacific is also a growing market for satellite IoT, with countries such as China, Japan, and India investing in satellite infrastructure and IoT applications. The region has a large and diverse population, as well as vast areas that are not covered by terrestrial networks, making satellite IoT a viable solution for various use cases, such as precision agriculture, asset tracking, and disaster response. In summary, while there is no single region that dominates the satellite IoT market, North America and Europe are currently the leading regions in terms of adoption and deployment, followed by Asia-Pacific and other regions. However, the market is expected to grow globally in the coming years, as the demand for global connectivity and IoT applications continues to increase.
Impact of COVID-19 on the global Satellite IoT Market:
The COVID-19 pandemic has affected the satellite IoT market in several ways. First, it has disrupted supply chains and manufacturing processes, leading to delays in the delivery of satellite IoT hardware and components. Second, it has reduced demand for some satellite IoT services and applications, particularly in sectors such as aviation, hospitality, and tourism, which have been severely affected by travel restrictions and lockdowns. Third, it has accelerated the adoption of remote monitoring and automation solutions, which rely on satellite IoT for connectivity and data transfer. In general, the impact of COVID-19 on the satellite IoT market has been mixed, with some segments experiencing growth and others facing challenges. For example, the demand for satellite IoT services in industries such as agriculture, energy, and government has increased during the pandemic, as these sectors require reliable and resilient connectivity for critical operations.
Impact of the Russia-Ukraine War on the global Satellite IoT Market:
The Russia-Ukraine war has also had an impact on the satellite IoT market, particularly in the region of Eastern Europe and Central Asia. The conflict has disrupted the satellite communication infrastructure and services in some areas, affecting the availability and reliability of satellite IoT connectivity. Moreover, the political and economic instability caused by the conflict has deterred some investors and customers from deploying or using satellite IoT in the region. However, the Russia-Ukraine war has also created new opportunities for satellite IoT providers, particularly in the fields of security and defense. The conflict has highlighted the importance of resilient and secure communication networks for military and government operations, leading to increased demand for satellite IoT solutions in these sectors.
Company Profiles:
• Inmarsat
• Iridium Communications
• Orbcomm
• Globalstar
• SES S.A.
• Thuraya Telecommunications
• Echostar Corporation
• Intelsat
• Kepler Communications
• Hiber
• Kineis
• AST SpaceMobile
• AAC Clyde Space
• Axelspace Corporation
• Sky and Space Global