Key Takeaways

• Adoption of hybrid satellite IoT networks is increasing, with 55% of surveyed organizations using satellite connectivity as of 2025.
• 93% of decision-makers plan to increase IoT spending next year, reflecting a shift toward hybrid models for improved operational efficiency.
• Challenges such as integration difficulties and cost remain significant barriers, with many organizations still reliant on terrestrial-only systems.

Shifting to Hybrid Satellite IoT Networks

Industrial enterprises are increasingly turning to hybrid satellite IoT networks to enhance operational capabilities, particularly in remote areas where traditional terrestrial networks fall short. Historically, operational technology directors and supply chain executives have managed separate connectivity solutions—cellular networks in urban regions and satellite networks in remote locations—leading to complexities involving distinct hardware and contracts.

Recent advancements in Direct-to-Device (D2D) technology, aligned with 3rd Generation Partnership Project (3GPP) Release 17 standards, now enable standard chipsets to seamlessly transition between terrestrial and satellite networks. This has sparked a surge in the adoption of satellite connectivity within industrial IoT environments. According to Viasat’s survey of 600 decision-makers across sectors like agriculture, energy, and transport, 55% reported utilizing satellite connectivity in 2025, up from 41% the previous year.

Businesses employing hybrid models—integrating both satellite and terrestrial links—have reported greater progress in IoT deployments. Approximately 86% of those using this approach saw improved deployment rates over the last year, compared to 70% relying on terrestrial networks alone. This shift has influenced capital allocation, with 93% of decision-makers indicating plans to boost their IoT budgets by an average of 27% in the coming year.

Sector-specific trends indicate varying levels of commitment to adopting D2D technology. Mining organizations, often operating in isolated environments, show a high adoption intent—83% plan to implement D2D technology. Conversely, the energy sector is more cautious, with only 61% planning to adopt within the next year due to stringent safety protocols governing remote equipment changes.

The consensus among 90% of survey respondents is that D2D will accelerate the global IoT rollout. The incorporation of satellite standards into conventional mobile protocols allows devices to switch connectivity modes automatically. Andy Kessler, Vice President of Enterprise at Viasat, emphasized that the standards-based D2D technology generates excitement among organizations looking to deploy this innovative solution quickly and efficiently.

Despite the growing interest in hybrid satellite IoT networks, barriers to adoption persist. While 32% of current terrestrial IoT users intend to adopt D2D technology within six months, 81% believe it may take 1-2 years before full implementation is feasible. Key challenges include integration difficulties, with 47% of those using terrestrial-only systems citing issues connecting satellite feeds to existing platforms. Additionally, 69% highlighted cost as a major hurdle, compounded by hardware limitations; 39% noted a lack of compatible IoT devices driving up prices.

Another significant barrier is the knowledge gap among decision-makers. A quarter of IoT stakeholders were unable to accurately define D2D technology, potentially contributing to delays in project approval—88% indicated that senior leaders require substantial persuasion to greenlight such initiatives.

Procurement processes for hybrid satellite IoT connectivity remain fragmented as the market has yet to settle on a standardized delivery model. Preferences vary among buyers, with 25% looking to systems integrators or managed service providers, 22% seeking solutions through cloud platforms like AWS or Azure, and 21% preferring direct partnerships with satellite operators.

Ultimately, security and compliance remain top priorities in the procurement process, with 43% of organizations emphasizing these factors, followed by cost-effectiveness at 37%. Even though coverage is a significant draw, the successful implementation of D2D technology hinges on comprehending compliance requirements and effectively integrating data within existing governance frameworks. An overwhelming 89% of organizations expressed willingness to consider replacing their current IoT connectivity with D2D solutions over the next few years, provided that they can navigate the associated complexities.

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