Space has a vast amount of satellite presence, which contains all the different types of satellites based on the type of orbit they are in and the type of application they serve. All the satellites present in space serve different purposes, which can vary from Earth observation (EO), communication, navigation, satellite-based Internet of Things (IoT), and many more.
Today there are about 155 satellite companies that are deploying constellations, and the satellite industry is constantly expanding. Additionally, a few major competitors in the market are looking for mega-constellations, including names like SpaceX and Amazon; where Amazon has planned a project called Project Kuiper, which is going to be a small satellite constellation serving the purpose of telecommunications that can expand its service in the satellites-based IoT service market. Most of these competitors plan on utilizing small satellites suited for low Earth orbit (LEO) rather than geostationary Earth orbit (GEO) satellites, as it reduces manufacturing and operating costs by quite a significant margin. Therefore, the small satellite market is on the rise, directly resulting in the increase in supply and demand for the development and manufacturing of terminals for terrestrial ground networks as well as satellites orbiting for serving the purposes of telecommunications and the Internet of Things (IoT).
Furthermore, automation is witnessing a rise in every industry and especially in areas where the presence of a human workforce is not possible. Therefore, the most convenient way to remotely access equipment is possible by access to satellite-based IoT services. Potentially, satellites can combine the data acquired from tracking both stationary and moving distant objects. Moreover, machine-to-machine (M2M) communication generally provides point-to-point data and enables remote asset monitoring and control over a terrestrial or aerial network. At the same time, IoT is a technological advancement that enables the collection of enormous amounts of data from numerous sensors and the conversion of that data into valuable information.
It also enables the operator to have access to their monitoring solutions, be it software for fleet management, asset tracking, or services for applications such as agriculture, natural resource monitoring, oil and gas, energy, automotive, healthcare, and retail. This all can be done through the utilization of the Internet of Things and via the integration of IoT into satellites in upcoming years.
Additionally, government space agencies, commercial players, educational institutions, and research and development centers are more focused on developing advanced satellite-based IoT services. For instance, in December 2022, Inmarsat and Videosoft entered an agreement on the integration of Inmarsat's global ELERA(L-Band) network into Videosoft's real-time streaming solutions that would enable them to deal with solutions related to railway crossings and autonomous farm equipment. Similarly, in December 2022, Astrocast SA signed a multi-million-dollar contract with ArrowSpot to start the mass production of ArrowSpot's ArrowTrack SAT device for hardware integration and satellite IoT (SatIoT) connectivity. This includes the contract for the first three years.
The global satellite-based IoT service market (by terminal) is estimated to reach $5.56 billion in 2033 from $4.08 billion in 2022, at a growth rate of 3.01% during the forecast period. The global satellite-based IoT service market is expected to have significant growth during the forecast period 2023-2033. The factors attributing to the growth of the market include the rise in the adoption of emerging IoT technologies, increasing demand for small satellites, and overall growth of the adoption of IoT-based applications.
The global satellite-based IoT service market is expected to witness huge revenues from the aviation product segment, followed by the marine segment. The global satellite-based IoT service market for the aviation segment reported revenue generation of $1,639.9 million in 2022 and is expected to grow at a CAGR of 2.94% during the forecast period 2023-2033 to reach $2,213.3 million by 2033.
The global satellite-based IoT service market by service includes oil and gas, which is expected to dominate the market with a share of 29.08% in 2033. Its market value was witnessed to be $81.3 million in 2022 and is projected to reach $108.4 million by 2033, registering a CAGR of 2.71% during the forecast period 2023-2033. However, the aviation segment is anticipated to emerge as the second dominant segment in the service segment by 2033, growing at the CAGR of 2.94% during the forecast period 2023-2033.
North America accounted for the highest share of 36.95% in the global satellite-based IoT service market by value (service) in 2022, owing to a significant number of service providers based in the region. Europe had a share of 35.16% in 2022 and is expected to witness the second-highest growth during the forecast period 2023-2033, driven by various activities in the U.K., Germany, France, and Russia. Increased spending by commercial organizations such as Boeing, Astrocast SA, Intelsat, Iridium Satellite Communications, Echo Star, KORE Wireless, Orbcomm Inc, ViaSat, Hughes Networks, and government key agencies for different end users is expected to drive huge growth in the global satellite-based IoT service market during the forecast period.
The competitive landscape of the global satellite-based IoT service market consists of several organic and inorganic strategies followed by the key players to increase their market share. The strategies include product innovations, contracts, partnerships, acquisitions, and business expansions, among others.
Some of the key players in the global satellite-based IoT service market include Intelsat, Orbcomm, Astrocast SA, Kepler Communications, Inmarsat, Eutelsat, Thales, and Boeing. These companies are aiming for a wide range of partnerships, collaborations, agreements, and contracts to expand their operations and increase their market presence globally to generate revenues and attract new customers.
