Published   Riot

Satellite IoT Forecast 2019-2024

Satellite IoT market to reach $5.9bn by 2025, 30.3mn devices

The report finds that initial market growth will not take away from LPWAN market, but competition will get hostile in the later part of the forecast period.

The global market for IoT-focused satellite services, focused on end-device connectivity hardware and the annual connectivity fees charged, will grow to $5.9bn in 2025, after taking off in the 2021-2022 period. Incumbent satellite providers will be pressured by a new wave of startups that are leveraging the recent advances in smaller satellite technologies, but many of these new entrants are going to strike out or be absorbed by their larger and entrenched rivals.

The costs of entry to this market are much smaller than just a few years ago, thanks to improvements in the launch technologies as well as miniaturization of the satellites themselves, with Low Earth Orbit (LEO) designs now weighing just 10kg and some not larger than two shoeboxes. LEO networks are able to provide lower power consumption for end devices, and they can be deployed in a modular fashion, expanding as more customers or funding becomes available.

While terrestrial LPWAN networks have taken hold, they have not achieved the sorts of footprints first promised by the most enthusiastic marketers. While much of the nanosatellite marketing can be critiqued in the same fashion, there are vast swathes of the earth that do not have LPWAN coverage but could make use of these low-cost satellite networks.

For the incumbent satellite providers, IoT-focused customers could be a nice way to improve their margins, especially in the increasingly cut-throat broadband and broadcast satellite market. For the nanosatellite startups, these are hugely lucrative opportunities for companies that don’t have to take on anywhere near the level of capex burden that the incumbent satellite network operators have been saddled with.

However, this market is still around 3x smaller than the terrestrial LPWAN market, according to Riot Research’s recent market forecast, despite higher hardware and connectivity revenues per device. While some of the industries involved do overlap with LPWAN, these satellite devices will not compete directly with LPWAN deployments all that frequently, due to their use cases having much better tolerances and allowances for the power consumption of the end device.

Connectivity is often said to be between 10% and 20% of the total cost of ownership (TCO) for an application, and because of this, higher value applications are likely going to drift towards satellite or non-LPWAN cellular options, as these applications are going to be able to justify or settle for having to swap batteries out when needed. The unlicensed spectrum LPWAN (U-LPWAN) markets also have to solve the global roaming problem quickly, in order to counter the marketing narrative from the satellite community – that satellite is the only way to get truly global coverage.

While there are an estimated 2.5mn satellite IoT devices deployed currently, we expect that 2021 will see a major jump in deployed devices, as the first few startups begin launching their constellations and supporting live customers. When viewed on a graph, this presents as an initial bump that slows the next year, before a period of prolonged growth settles in.

Because of the scalability of nanosatellites, more units can be added to a constellation to support more devices, should the maximum throughput threshold be met. However, there will be some wasted resources, as many of these startups will be competing directly with each other. Should a startup fail, they will be adding to the cloud of space junk orbiting the earth – as it is not clear how easily another operator could take over these communications assets, in the wake of a bankruptcy.

By 2025, we expect there to be some 30.3mn Satellite IoT devices deployed globally, growing at a CAGR of just under 40%. We expect this growth to begin to flatten off in around 2027, due in part to the spread of terrestrial rivals for Satellite IoT connectivity, and improvements in fixed and local networks that can be used as alternatives for the global satellite ones. In terms of usage, we have identified key use cases within the three main elements of the global economy – Agriculture, Industry, and Services.

Who should read this report and what will they get out of it?

This report is for anyone at C-Suite and strategy level who is trying to cost a major IoT application, using a network for collection. This report shows that you must now consider satellite as well as both licensed and unlicensed LPWAN. It will help you understand which technology is the best way to collect your data, and if you are in Agriculture, Industry, and Services, it is likely to be via on of the new Low Earth Orbit satellite networks.

There are multiple types of satellite and a massive number of new market entrants, and this report will help you understand each of them, what they are capable of sensing from space, and how you are likely to be charged for using satellites to collect IoT data.

This is a sprint to around 2027 with the market growing at 40% CAGR each year, because satellite is such a strong option, outweighing the benefits of LPWAN in key circumstances.

And if you are one of the early market users of this technology, you are likely to be able to attract low pricing and massive reach using satellite IoT, as there are new entrants using nano-satellites, vying for market share with older, established satellite players and larger satellites. The price cutting will be brutal. There will be a race for each of them to collect enough business to balance their initial cost base.

This is a 33 page report with comprehensive graphs and diagrams showing how this market will break into different value layers, and who we expect to take the market lead.

Companies mentioned in this report:

Actility, Amazon, Astrocast, Eutelsat, Fleet Space Technologies, Globalstar, GOMSpace, Hiber, hiSky, Inmarsat, Iridium, John Deere, Kepler Communications, Kinéis, Lacuna Space, LoRa Alliance, Myriota, NanoAvionics, Orbcomm, SES O3B, Sigfox, Sky and Space Global (SAS), SpaceX (Tesla), Swarm Technologies.

For more information contact:

Natalia Szczepanek

Client Relations and Marketing Manager

[email protected]

Office phone: +44 (0)1179 257019

Download the Executive Summary:

Executive Summary Download

Contents 2

Graphs 3

Introduction 4

The Current Marketplace 6

Comparison to LPWAN 8

Device Growth 10

Global Market 12

Global Revenue by Sector 13

Use Cases 15

Agriculture 17

Industrial 18

Utility 19

Automotive 20

Enterprise 21

Logistics 22

Summary 23

Regional Markets 24

North America 24

Latin America 25

Europe West 26

Europe East and CIS 27



Summary 30

Methodology 31

About Rethink 32

Satellite IoT Devices 10

Revenue Breakdown 11

Global Revenue by Macroeconomic Sector – 2019 12

Global Revenue by Macroeconomic Sector – 2025 13

Global Revenue by Sector 13

Global Revenue by Sector – 2019 14

Global Revenue by Sector – 2025 14

Revenue by Region – Agriculture 17

Share of Global Total Market – Agriculture 2025 18

Revenue by Region – Industrial 18

Share of Global Total Market – Industrial 2025 19

Revenue by Region – Utility 19

Share of Global Total Market – Utility 2025 20

Revenue by Region – Automotive 20

Share of Global Total Market – Automotive 2025 21

Revenue by Region – Enterprise 21

Share of Global Total Market – Enterprise 2020 22

Revenue by Region – Logistics 22

Share of Global Total Market – Logistics 2025 23

Revenue by Sector – Global 23

Revenue by Sector – North America 24

Share of Global Total Market – North America 2025 24

Revenue by Sector – Latin America 25

Share of Global Total Market – Latin America 2025 25

Revenue by Sector – Europe West 26

Share of Global Total Market – Europe West 2025 26

Revenue by Sector – Europe East & CIS 27

Share of Global Total Market – Europe East & CIS 27

Revenue by Sector – MENA 28

Share of Global Total Market – MENA 28

Revenue by Sector – APAC 29

Share of Global Total Market – APAC 29

Revenue – Regions Summary 30

Share of Global Total Market – Regions 2025 30