Satellite IoT Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[226+ Pages Report] According to Facts and Factors, the global satellite IoT market size was around USD 1098.67 million in 2022 and is anticipated to reach USD 5054.79 million by the end of 2030. The satellite IoT industry is expected to grow with a CAGR of 21.02% between 2023 and 2030.

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Market Overview

Satellite IoT refers to the utilization of satellite technology to offer communication and connectivity for devices with the help of the Internet of Things (IoT) ecosystem. It offers proper connectivity to sensors and devices in remote regions. The satellite IoT network provides two-way communications, thereby helping devices to transfer data to the central servers and receive updates from the main servers.

Key Insights

• As per the analysis shared by our research analyst, the global satellite IoT market size is estimated to grow annually at a CAGR of around 21.02% over the forecast period (2023-2030).
• In terms of revenue, the global satellite IoT market size was valued at around USD 1098.67 million in 2022 and is projected to reach USD 5054.79 million by 2030.
• Need for rural and remote connectivity is driving the growth of the global satellite IoT market.
• Based on the industry verticals, the agriculture segment is growing at a high rate and is projected to dominate the global market.
• Based on the enterprise sizes, the large enterprise segment is projected to swipe the largest market share.
• Based on the frequency bands, the Ku and Ka-band segment is the fastest-growing segment in the global market.
• Based on the service types, the direct-to-satellite segment is likely to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

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Growth Drivers

• Need for rural and remote connectivity is likely to drive the growth of the global market.

Satellite IoT services offer an ideal solution for connecting devices in remote and rural areas where terrestrial networks are not available. Also, these services are of high importance in monitoring remote industrial sites, wildlife tracking, precision agriculture, and many others, which in turn is likely to further accentuate the growth of the satellite IoT industry.

Also, the growing requirement for monitoring weather conditions and tracking vessels and aircraft at the seaside is another major factor boosting the demand for satellite IoT services. Satellite IoT technology is also widely used in agriculture for precision farming. It involves various activities like irrigation management, soil condition monitoring, management of crops & livestock, and others.

For instance, Inmarsat 2022 partnered with AWS and Infosys to check for innovative solutions for moving to the cloud. The company was expected to migrate the SAP environment from the legacy operating system to the cloud.

Restraints

• Cost and latency are likely to restrict the growth of the global market.

Satellite communication creates latency because of its travel time from space. However, it is a huge limitation for latency-sensitive cases like telemedicine and autonomous vehicles, which is further expected to restrict the growth of the global satellite IoT market.

Also, it comes up with a high upfront cost, which is a big barrier for potential adopters. Small businesses and emerging markets are less likely to invest in satellite IoT technology, thereby reducing its adoption rate.

Opportunities

• Sustainability and green initiatives are likely to offer lucrative growth opportunities in the global market.

There is a significant shift in focus on using sustainable and eco-friendly technologies to save the environment and human sustenance. Satellite IoT helps in reducing carbon emissions and improving resource management practices, which are further expected to widen the scope of the global satellite IoT market during the forecast period.

For instance, Telestat entered into an agreement with SpaceX to come up with a low-earth orbit satellite constellation. The major aim of this agreement is to offer global broadband service from space.

Challenges

• Limited bandwidth and competing technologies are a big challenge in the global market.

Satellite networks hold limited bandwidth, and it has emerged as a huge problem because of the increasing number of IoT devices along with the growing need for data transmission. This limitation is a huge challenge in the satellite IoT industry because of the growing density of devices all across the globe.

Also, regulatory issues like licensing and spectrum allocation further create a big barrier to the deployment of satellite IoT networks, and therefore, it is another big challenge for the service providers.

Segmentation Analysis

The global satellite IoT market can be segmented into industry verticals, enterprise sizes, frequency bands, service types, and others.

By industry vertical, the market can be segmented into military, healthcare, maritime, agriculture, energy & utilities, transportation & logistics, oil & gas, and others. The agriculture segment accounts for the largest share of the satellite IoT industry during the anticipated period.

The agriculture sector is highly utilizing IoT technology for remote monitoring. Companies operating in the agriculture sector are highly dependent on satellite solutions to improve crop yields, avoid unnecessary expenses, and schedule their operations. Satellite IoT is also widely used for precision agriculture, which involves advanced satellite imagery to offer insights regarding pest control, fertilization, irrigation, and planting.

By enterprise size, the market can be segmented into small enterprises, medium and large enterprises. The large enterprise segment is likely to swipe the largest share of the global satellite IoT market during the forecast period. The large enterprises own more financial resources and are readily interested in investing in advanced technologies like satellite IoT. Large enterprises hold complex and expensive operations that are extended over multiple geo-locations.

Therefore, satellite IoT has emerged as an effective solution to manage and connect the operations dispersed in remote areas. Additionally, these enterprises have a global reach, and therefore, the satellite IoT offers global connectivity, thereby helping businesses overcome the disadvantage of limited terrestrial network coverage.      

By frequency band, the market can be segmented into S-band, Ku & Ka-band, and L-band. The Ku and Ka-band is the fastest-growing segment in the satellite IoT industry. This band offers higher data transfer rates when compared to other alternatives, which makes them ideal for applications that need faster data transmission.

Broadband satellite services utilize these frequency bands for a wide range of applications like real-time monitoring, remote sensing, and high-quality video streaming. Advancements in satellite technology have made it more feasible for the higher frequency bands to enhance their efficiency and performance.

By service type, the market can be segmented into satellite IoT backhaul and direct-to-satellite. The direct-to-satellite segment is anticipated to dominate the satellite IoT industry during the predicted period. Direct-to-satellite service complements the IoT devices to communicate directly without the intervention or the requirement of a terrestrial framework.

Also, these services offer global coverage and, therefore, help devices to communicate with each other depending on their geo-location. Moreover, these are highly preferred by the vendors because they offer low latency communication, which is helpful in emergency response and asset tracking activities. These satellite services also offer scalability, thereby helping companies extend their coverage.

Report Scope

Report Attribute	Details
Market Size in 2022	USD 1098.67 Million
Projected Market Size in 2030	USD 5054.79 Million
CAGR Growth Rate	21.02% CAGR
Base Year	2022
Forecast Years	2023-2030
Key Market Players	Iridium Communications Inc., Globalstar Inc., Orbcomm, Sigfox, Astrocast, Myriota, Nanosatellite and Microsatellite Manufacturers, Telesat, Fleet Space Technologies, Space Exploration Technologies Corp., Kongsberg Satellite Services, Hughes Network Systems, EchoStar Corporation, Inmarsat Global Limited, and Others.
Key Segment	By Industry Verticals, By Enterprise Sizes, By Frequency Band, By Service Type, and Region
Major Regions Covered	North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
Purchase Options	Request customized purchase options to meet your research needs. Explore purchase options

Regional Analysis

• North America to lead the growth graph during the projected timeline

North America accounts for the largest share of the global satellite IoT market. Companies in the region are adopting satellite IoT solutions for remote monitoring and advanced communication requirements, especially in areas with no terrestrial connectivity.

Also, the fast-growing end-user sectors like agriculture, transportation & logistics, maritime, and other government services are further expected to contribute heavily towards the growth of the regional market. The oil and gas sector is widely using these satellite IoT services for pipeline management, remote monitoring, and offshore drilling operations.

These services offer companies consistent communication in harsh environmental conditions, thereby boosting their popularity in the sector.

Asia Pacific is likely to grow steadily during the forecast period because of the presence of diverse opportunities in the market. The rapid urbanization and industrialization are likely to contribute heavily to the growth of the regional market. Satellite IoT is important for tracking the fish vessels, ensuring maritime safety, and managing fish, and thereby, the fast-growing maritime and fishing industry in the region is likely to positively impact the growth of the regional market.

The satellite IoT technology is crucial for tracking large fleets in the Asia Pacific, particularly in the countries with extensive road networks and growing logistics industries, which in turn is also likely to complement the growth trajectory of the regional market.

For instance, Hughes Network Systems innovated a new S-Band satellite communication to help expand low earth orbit essentials framed by the US Space Force (USSF) in September 2023.

Competitive Analysis

The key players in the global satellite IoT market include:

• Iridium Communications Inc.
• Globalstar Inc.
• Orbcomm
• Sigfox
• Astrocast
• Myriota
• Nanosatellite and Microsatellite Manufacturers
• Telesat
• Fleet Space Technologies
• Space Exploration Technologies Corp.
• Kongsberg Satellite Services
• Hughes Network Systems
• EchoStar Corporation
• Inmarsat Global Limited

For instance, EchoStar merged with Dish Network in October 2023. The merger is aimed to target rural and extremely hard-to-reach areas. Dish is an end-to-end networking company.

The global satellite IoT market is segmented as follows:

By Industry Verticals Segment Analysis

• Military
• Healthcare
• Maritime
• Agriculture
• Energy & Utilities
• Transportation & Logistics
• Oil & Gas
• Others

By Enterprise Sizes Segment Analysis

• Small Enterprises
• Medium Enterprises
• Large Enterprises

By Frequency Band Segment Analysis

• S Band
• Ku & Ka Band
• L Band

By Service Type Segment Analysis

• IoT Backhaul
• Direct To Satellite

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America