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The Satellite - Rnabled Internet of Things (IoT) Market size is estimated to grow by USD 2.31 billion at a CAGR of 21.92% between 2023 and 2028. The growth of the market depends on several factors such as increasing usage of the Internet, rising proliferation of LEO-based services connecting remote regions and surge in the adoption of satellite-enabled IoT in large businesses.
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The market has been significantly impacted by the rise in Internet usage. There is a rising need for dependable, fast Internet connectivity in rural and underserved areas as more people across the world gain access to the Internet. By bringing Internet connectivity to places where terrestrial infrastructure is weak or nonexistent, satellites play a critical role in closing the digital divide. The market is developing countries such as India, China, and other countries as a result of government initiatives and programs that are designed to provide Internet access. In order to bring reliable and affordable Internet services to unserved and underserved areas, many governments are collaborating with operators to deploy satellite beams.
Furthermore, the increasing deployment of satellite constellations, such as SpaceX's Starlink and OneWeb, aims to provide global broadband coverage. These constellations consist of hundreds or even thousands of small satellites working together to create a mesh network in space. These promise to deliver high-speed Internet access to even the most remote corners of the world, revolutionizing connectivity on a global scale. Thus, the increasing usage of the Internet will drive the market growth and trends during the forecast period.
Increasing research and development (R&D) spending on aerospace and defense in the market can have several benefits. The development of new technology in the aerospace and defense industries is made possible by increased R&D spending. The design of satellites, their propulsion systems, their communication capabilities, their sensors, their imaging technologies, and other essential components may all progress as a result. These scientific developments may improve the functionality, dependability, and performance of satellites used for defense. In addition, improvements in synthetic aperture radar (SAR) systems, higher-resolution cameras, satellite imaging technology, and sophisticated signal processing might all be involved. These enhancements can help defense and security operations by improving situational awareness, target identification, and intelligence collecting.
Moreover, spending on R&D can accelerate the creation of space-based missile defense systems. Ballistic missile tracking and destruction capabilities can be improved with the use of sophisticated satellite-based sensors and interceptors. Additionally, increased R&D efforts may spur the creation of next-generation satellite defense systems to fend off new dangers which can have postive impact on satellite-enabled (IoT) market growth. Thus, the increasing R&D spending will drive the growth of the market trends during the forecast period.
Government rules are one of the main obstacles in the way of the market. The expansion and financial success of satellite-enabled IoT enterprises can be strongly impacted by the rules and regulations that governments put on satellite operations and services. These rules may place limitations on satellite launches, assign spectrum, demand licenses, and set technical criteria. Due to concerns about national security or safeguarding their own domestic industries, governments frequently exercise stringent control and monitoring over satellite activity within their borders.
Additionally, governments may enact tighter compliance requirements, modify current regulations, or establish new ones, all of which can have a big influence on operators. For businesses engaged in the global satellite industry, keeping up with the changing regulatory environment can be very difficult. Thus, stringent regulatory issues will hamper the growth of the market during the forecast period.
The large enterprise segment is estimated to witness significant growth during the forecast period. The large enterprises segment in the market refers to the large-sized enterprises dealing with satellites used for various purposes such as communications, Earth observations, weather monitoring, navigation, and scientific research. This segment includes satellites, which normally weigh more than 5,000 kilograms and are quite massive.
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The large enterprise segment was the largest and was valued at USD 0.61 billion in 2018. Due to the rising demand for communication services, weather monitoring and Earth observation data, and expanding broadcasting networks, the market, especially the large category, is expanding significantly. The development of this segment is also being fueled by technological developments in satellite-enabled IoT manufacturing and launch capabilities, which, in turn, will drive the growth of the market during the forecast period.
Based on service, the market has been segmented into direct-to-satellite and satellite IoT backhaul. The direct-to-satellite segment will account for the largest share of this segment.? The direct-to-satellite segment holds a significant share of the market in 2023 due to the increasing use of high-value IoT services such as tracing, tracking, banking, logistics, and performance monitoring for remote assets. Direct-to-satellite is the direct access connectivity that allows IoT devices to directly communicate with a satellite network without the need for an intermediate terrestrial gateway. The satellite receives data from loT 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. These factors will drive the growth of the direct-to-satellite segment of the market during the forecast period.
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North America is estimated to contribute 36% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The US has the largest satellite-enabled (IoT) market globally and accounts for nearly a third of all the satellites currently orbiting the Earth. The country was one of the first to enter the satellite-based earth observation industry and operates an extensive fleet of satellites for communications, surveillance and intelligence, national security, weather, disaster management, environmental observation, and navigation. Most of these private players are focusing on providing satellite imagery-based analytics and VAS, with others launching their own small satellites for data collection. The US government funding for space programs, including NASA and the National Oceanic and Atmospheric Administration (NOAA), has also witnessed an increase in 2021. This resulted in an increase in the launch of government-funded earth observation satellites into orbit.
For instance, in September 2021, Landsat 9 was launched from Vandenberg Air Force Base in California in association with the United States Geological Survey (USGS) and the National Aeronautics and Space Administration (NASA) for the purpose of monitoring, comprehending, and managing Earths natural resources. Such developmental steps are expected to provide United States Geological Survey (USGS) with high-resolution imaging of Earth with a fast turnaround time, more power-efficient operation, and higher quality of images than currently available other small satellite-based solutions which also resulted in satellite-enabled (IoT) market expansion. Thus, such initiatives are expected to increase the demand, which will propel the growth of the regional market during the forecast period
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Al Yah Satellite Communications Co. PJSC - The company offers satellite-enabled IoT such as Thuraya M2M IoT that delivers seamless airborne satellite connectivity across land and sea for government operations in civil defense.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Al Yah Satellite Communications Co. PJSC, Astrocast, EMnify GmbH, Eutelsat Communications S.A., Fleet Space Technologies Pty Ltd., Globalstar Inc., GMV Innovating Solutions SL, Inmarsat Global Ltd., Intelsat US LLC, Iridium Communications Inc., Kineis, Kongsberg Gruppen ASA, Myriota, OQ Technology, ORBCOMM Inc., SATELIO IOT SERVICES S.L., Space Exploration Technologies Corp., Thales Group, Viasat Inc., and Vodafone Group Plc
Technavio market growth and forecasting report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The Satellite IoT Market witnesses robust growth driven by defense organizations and consumers seeking high-speed broadband. Low-cost broadband solutions via Low Earth Orbit (LEO) satellites benefit both industrialized and less developed countries. Smallsat-based LEO constellations ensure global coverage, facilitated by advancements in Ka-band and V-band spectrum utilization. Data rates, enabled by narrow beams and smaller antennas, support diverse applications. However, operational challenges like vulnerability to cybersecurity attacks and breaches persist. To address this, AI-based algorithms and stringent cybersecurity measures are employed. With varying service types and Earth station access points, satellite IoT platforms offer direct-to-satellite connectivity, promising enhanced response times and expanded IoT system capabilities.
The market forecasting report covers market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Satellite-enabled IoT Market Scope |
|
Market Report Coverage |
Details |
Page number |
151 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.92% |
Market Growth 2024-2028 |
USD 2.31 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.86 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, Russia, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Al Yah Satellite Communications Co. PJSC, Astrocast, EMnify GmbH, Eutelsat Communications S.A., Fleet Space Technologies Pty Ltd., Globalstar Inc., GMV Innovating Solutions SL, Inmarsat Global Ltd., Intelsat US LLC, Iridium Communications Inc., Kineis, Kongsberg Gruppen ASA, Myriota, OQ Technology, ORBCOMM Inc., SATELIO IOT SERVICES S.L., Space Exploration Technologies Corp., Thales Group, Viasat Inc., and Vodafone Group Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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