Satellite internet of things (IoT) is set for a rapid expansion through 2035 with connections projected to hit 197.7 million by 2035, up from just 7.7 million in 2023, according to new data from market research firm Omdia.
This represents a compound annual growth rate (CAGR) of 31%, Omdia said.
LEO leads the way
Among satellite IoT connections, Omdia points to low Earth orbit (LEO) satellites growing the fastest over the forecast period supported by:
- Rapid satellite deployment
- Increasing bandwidth and availability
- Falling connectivity costs
LEO satellite IoT connections are projected to have a CAGR of 88.6% from 2023 to 2035. Meanwhile, geostationary Earth orbit (GEO) satellite growth will be more moderate with a CAGR of 7.3%, Omdia forecasts.
“While the technical advances in the satellite market are significant, their timing is equally important,” said John Canali, principal analyst of IoT at Omdia. “As IoT matures enterprises increasingly need global coverage without connectivity gaps as well as greater resilience when terrestrial connectivity is unavailable. These requirements will become more pressing as IoT devices support a growing range of data-intensive models and automated applications.”
Omdia said it expects satellite connectivity to see growing adoption across key IoT verticals like:
- Agriculture and environmental monitoring
- Defense and military
- Energy and utilities
- Transportation and logistics
A key adopter
Interestingly, Omdia forecasts the automotive industry to emerge as a key adopter of satellite connectivity with connected vehicles forecast to grow to 112 million by 2035, up from just 11,000 cars in 2023.
Automotive OEMs are already testing satellite connectivity in vehicles from automakers such as Geely, Tesla, BMW and Stellantis.
Satellite connectivity would allow vehicles to switch dynamically between terrestrial and non-terrestrial networks seamlessly.
