Satellite IoT Communication Market Size

Satellite IoT Communication Market Analysis

The Satellite IoT Communication Market size is estimated at USD 1.87 billion in 2024, and is expected to reach USD 4.61 billion by 2029, growing at a CAGR of 19.76% during the forecast period (2024-2029).

Satellite communication complements terrestrial cellular and non-cellular networks in remote locations, which benefits various industrial applications. 5G ecosystems would be a key trend in seamlessly integrating satellite and terrestrial networks.

• The drive for satellite communications stems from the pressing need for global connectivity for the Internet of Things (IoT) devices. Several businesses in this sector are investing in broadening the applications for satellite communication, most notably with the introduction of SmallSat constellations. Several businesses use satellite IoT services to monitor and track equipment for intelligent data transfers.
• The Global satellite Internet of Things communication market is driven by the development and growth of 5G wireless connectivity. The demand for more interaction between open and standardized ecosystems on both sides is emerging as a result of the growing number of efforts to expand 5G connection via LEO satellites, such as SAT 5G (a 5GPPP project supported by the European Union) and Metro Ethernet Forum (MEF). Building a safe, heterogeneous satellite and terrestrial 5G network would also aid telecom operators and LEO satellite providers better integrate their services.
• Considerable Investments in the LEO Satellite Market are a significant aspect boosting the growth of the satellite IoT Communication Market. The investments have been fueled by adaptability, cheap cost, advanced mechanics, simplicity of assembly and launch, mass production, and short life cycles, which would drive market growth in the coming years.
• Moreover, the growing trend of adopting autonomous systems and connected devices in the industrial sectors positively influences the market studied. According to Ericsson, by the end of 2028, almost 60 percent of cellular IoT connections are forecast to be broadband IoT, with 4G connecting the majority. This would create ample opportunities for the market to grow and enhance throughout the forecast period.
• Extreme Space temperature is a critical factor that could restrain the market. Satellites are exposed to the harsh environment of space, which makes the electronic components housed inside the satellites threatened by extreme temperatures. Hence satellites must maintain operational temperatures to avoid system failures so that communication is not affected.
• The COVID-19 pandemic caused shockwaves across every industry worldwide. It had a significant effect on the satellite IoT communication sector. The sector may be protected from the more severe effects of the global pandemic due to its reliance on government contracts in several areas, including the highly dependable and durable nature of satellite communications services, which are essential for disaster communications and backup services. However, there has been an increasing rise in access to terrestrial connectivity services after the pandemic, which left a significant opportunity for satellite IoT communications.