Satellite IoT connections set to reach 198 million by 2035

Satellite internet of things (IoT) connections are forecast to surge from 7.7 million in 2023 to 197.7 million by 2035, according to new research by Omdia, as businesses increasingly turn to satellite networks for global coverage and resilience.

The projected increase represents a compound annual growth rate of 31 per cent, marking a period of rapid expansion for satellite-based IoT connectivity.

Low Earth orbit (LEO) networks are expected to lead the growth, with connections forecast to rise at a compound annual growth rate of 88.6 per cent over the period.

Omdia attributed the rapid expansion of LEO satellite IoT to faster satellite deployment, greater bandwidth and availability, and falling connectivity costs.

Geostationary Earth orbit (GEO) satellite connectivity is also expected to expand, although at a considerably slower annual rate of 7.3 per cent.

“While the technical advances in the satellite market are significant, their timing is equally important,” said John Canali, principal analyst for IoT at Omdia.

“As IoT matures, enterprises increasingly need global coverage without connectivity gaps, as well as greater resilience when terrestrial connectivity is unavailable,” Canali said.

“These requirements will become more pressing as IoT devices support a growing range of data-intensive models and automated applications,” he added.

Omdia expects satellite connectivity to become increasingly important across a range of IoT sectors, including agriculture and environmental monitoring, defence and military, energy and utilities, and transport and logistics.

The automotive industry is expected to become one of the most significant adopters of satellite connectivity as manufacturers seek to keep connected vehicles online beyond the reach of conventional terrestrial networks.

The number of connected vehicles using satellite connectivity is projected to increase from just 11,000 in 2023 to more than 112 million by 2035.

That represents a compound annual growth rate of 115 per cent, making automotive satellite IoT one of the fastest-growing segments identified in the research.

Major manufacturers including Geely, Tesla, BMW and Stellantis are already testing and deploying satellite connectivity solutions, according to Omdia.

The technology is intended to help create a so-called “network of networks”, allowing vehicles to switch dynamically between terrestrial and non-terrestrial networks.

Such an approach could enable connected vehicles to maintain connectivity as they move between areas covered by conventional mobile networks and locations where satellite connectivity is required.

The research points to a broader shift in IoT connectivity as businesses seek to support increasingly data-intensive and automated applications while reducing reliance on any single type of network.