According to the latest research from Omdia, the satellite IoT sector is entering a phase of rapid expansion, with connection numbers projected to surge from 7.7 million in 2023 to 197.7 million by 2035, representing a compound annual growth rate (CAGR) of 31%.

Low Earth Orbit (LEO) connectivity is set to spearhead this satellite IoT growth. During the forecast period, LEO satellite IoT connections are expected to climb at a remarkable CAGR of 88.6%, fueled by accelerated satellite deployments, enhanced bandwidth and service availability, and declining connection costs. The Geostationary Orbit (GEO) satellite market will also contribute to industry growth, though at a more modest CAGR of 7.3%.

John Canali, Principal Analyst for IoT at Omdia, noted that while the technological advancements in the satellite sector are substantial, the timing of these developments is equally crucial. As the IoT market matures, enterprises are increasingly demanding seamless global coverage without connectivity dead zones and greater connection resilience when terrestrial networks are unavailable. These requirements are becoming more pressing as IoT devices support increasingly data-intensive models and automation applications.

Omdia anticipates that satellite connectivity will see widespread adoption across several key IoT verticals, including agriculture and environmental monitoring, defense and military applications, energy and utilities, as well as transportation and logistics. The automotive industry is expected to emerge as one of the most significant adopters of satellite connectivity, with the number of connected vehicles projected to skyrocket from a mere 11,000 units in 2023 to over 112 million by 2035, achieving a CAGR of 115%.

Major automakers, including Geely, Tesla, BMW, and Stellantis, are actively testing and deploying satellite connectivity solutions to build a true "network of networks." This approach enables vehicles to dynamically switch between terrestrial and non-terrestrial networks, delivering a more seamless and uninterrupted connectivity experience.