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As the footprint of terrestrial (cellular) network coverage is largely complete, the focus is shifting to satellite connectivity. According to Omdia, new technologies and innovation are driving renewed interest in the satellite market with telecom providers eagerly forming partnerships with satellite operators to offer new services. High-potential services such as satellite broadband and direct-to-device satellite smartphone communication are expected to be both lucrative and transformative technologies especially in critical situations. The excitement for satellite technology is certainly merited.
While the revenues for satellite IoT are smaller compared to other markets, it remains significant with connections projected to grow at a healthy CAGR of 22.2% from 2021 to 2023. Satellite connectivity will be vital for many enterprises’ IoT deployment particularly for devices situated in remote locations or travelling across oceans with limited to no terrestrial network coverage. Effective tracking and monitoring of devices can be crucial to the needs of an enterprise. As hardware costs such as gateways continue to fall and new standards emerge, direct-to-IoT device communication via satellite is becoming a viable option for enterprises backhauling data from remote devices.
“Enterprises are realizing that they are not faced with an ‘either/or’ decision between terrestrial and non-terrestrial connectivity,” said John Canali, the IoT principal analyst at Omdia. “Instead, solutions are emerging where enterprises can use terrestrial coverage when available and revert to satellite connectivity when it is not. The resiliency will be invaluable to enterprises.”
Andrew Brown, the IoT practice lead at Omdia, said, “Our research suggests that the satellite market is experiencing a Renaissance with new and vibrant players advancing the technology. Communications service providers (CSPs) and other key IoT stakeholders should prioritize forging partnerships with satellite operators that can supplement their connectivity offerings.”
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