Satellite IoT Predicted to Surge, With Connections Projected to Hit 197.7 Million by 2035

Key Takeaways

Satellite IoT connections are expected to grow from 7.7 million in 2023 to 197.7 million by 2035, a CAGR of 31%.
Low Earth Orbit (LEO) satellite connections will increase at 88.6% CAGR, driven by enhanced deployments and lower costs.
The automotive sector will see the largest growth in satellite connectivity, surging from 11,000 connected vehicles in 2023 to over 112 million by 2035.

Growth of Satellite IoT Connectivity

The satellite Internet of Things (IoT) market is poised for significant growth, with projections indicating an increase in connections from 7.7 million in 2023 to a staggering 197.7 million by 2035, reflecting a compound annual growth rate (CAGR) of 31%. This growth is largely attributed to advancements in technology and the need for expanded connectivity in various sectors.

According to Omdia, Low Earth Orbit (LEO) satellites are expected to lead this expansion. LEO satellite IoT connections are forecasted to grow at an impressive CAGR of 88.6% during this period, thanks to rapid satellite deployments, increasing bandwidth, and decreasing costs. In contrast, the Geostationary Earth Orbit (GEO) satellite market is anticipated to grow at a slower rate of 7.3%.

John Canali, Principal Analyst for IoT at Omdia, emphasized the significance of timing alongside technical advancements in the satellite market. As IoT technology evolves, enterprises require comprehensive global coverage to eliminate connectivity gaps, seeking increased resilience especially when terrestrial networks are unavailable. These demands are anticipated to escalate as IoT devices engage in more data-intensive tasks and automated operations.

Adoption of satellite connectivity is expected to gain momentum in several key sectors including agriculture, environmental monitoring, defense, energy, and transportation. Notably, the automotive industry is projected to be a major adopter of satellite technology. Connected vehicles are estimated to rise from 11,000 in 2023 to over 112 million by 2035, signifying a remarkable CAGR of 115%.

Leading automotive manufacturers such as Geely, Tesla, BMW, and Stellantis are actively pursuing satellite connectivity solutions. These advancements aim to create a cohesive “network of networks,” enabling vehicles to transition seamlessly between terrestrial and non-terrestrial communication networks. This capability is crucial for enhancing operational efficiency and ensuring reliable connectivity for future automotive applications.

In summary, the satellite IoT sector is on an upward trajectory, driven largely by LEO connectivity and automotive innovations. This growth will play a crucial role in meeting the evolving connectivity demands of various industries worldwide.

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