The satellite-based IoT (Internet of Things) service market is experiencing a surge in demand as advancements in satellite technology and connectivity solutions revolutionize global communication networks. With the proliferation of IoT devices in various industries, the need for reliable, global, and scalable connectivity solutions has driven significant investment in satellite IoT services.
According to BISResearch, The global satellite-based IoT service market was valued at $279.7 million in 2022, and it is expected to grow with a CAGR of 2.76% and reach $372.6 million by 2033.
Many space agencies and commercial companies worldwide are actively working on the development of low Earth orbit (LEO) satellite constellations, which is expected to propel the market for satellite-based IoT services. Additionally, increased research and development efforts aimed at creating cost-effective IoT terminals and modules are further driving growth in this market. For example, in December 2022, Astrocast SA secured a multi-million-dollar agreement with ArrowSpot to mass-produce ArrowSpot's ArrowTrack SAT device, enabling hardware integration and Satellite IoT (SatIoT) connectivity.
Key Drivers in the Satellite-based IoT Service Market
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Expansion of Terrestrial IoT Network
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Access to Cheaper LEO-Based Satellite Connectivity
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Development of Smaller and Cheaper IoT Hardware
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North America to Dominate the Global Satellite-Based Cloud Computing Market (by Region)
North America is a leading region in terms of satellite-based cloud computing manufacturing due to key satellite-based cloud computing providers, terrestrial-based cloud computing providers, satellite manufacturers, and data handling unit manufacturers. This is also aided by the overwhelming space budget of the U.S., rising to around $24 billion for the fiscal year 2022, a 3% increase from the fiscal year 2021. The cloud continues to be a critical resource across several sectors as enterprises are rapidly relying on on-demand IT resources, from accounting software to full-blown IaaS, PaaS, and SaaS solutions. Project Kuiper, Kuiper Systems LLC, a subsidiary of Amazon, is a coming low Earth orbit (LEO) satellite internet service provider that’s set to launch 1,500 satellites over the next five years (2023-2027). Kuiper plans to reach a total of 3,236 satellites to build out its constellation and offer satellite broadband internet across the globe.
Challenges for the Satellite-based IoT Service Market
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Expensive GEO-Based Satellite Connectivity Services
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Conflict between Satellite Network Latency and Ground Network Latency Requirement
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Evolving Regulatory Framework
Opportunities for the Satellite-based IoT Service Market
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Need for Different Types of IoT Sensors Based on IoT Architecture
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Deployment of IoT across Different Verticals
Future Outlook
The satellite-based IoT service market is poised for substantial growth, driven by the rising demand for seamless connectivity in remote regions and the increasing adoption of IoT applications across various sectors. Market participants are focusing on:
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Developing multi-orbit solutions to enhance service capabilities.
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Increasing partnerships with terrestrial network providers to create hybrid connectivity ecosystems.
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Leveraging AI and edge computing to improve data processing and decision-making in IoT networks.
According to Principal Analyst, BIS Research
The IoT domain is in its growth phase despite delays caused by COVID-19. The expansion of IoT architectures and terrestrial connectivity infrastructure is driving the need for connecting remote units/sensors. Satellite-based remote connectivity has become a must-have as a consequence. Multiple satellite-based IoT service providers utilizing non-GSO constellations are developing their solutions to cater to this growing demand.
The increasing partnership between the downstream IoT solution providers and non-GSO satellite operators will further drive the growth of this market. Evolving hybrid connectivity architecture will also deliver a similar impact. Overall, many new customers are going to enter the IoT domain as satellite-based IoT is expected to help them improve efficiencies and reduce operational costs.
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