According to a new market intelligence report by BIS Research the satellite M2M and IoT network market is estimated to reach US$3.21 billion by 2023, growing at a CAGR of 32.58 percent by 2018 – 2023. The report is titled ‘Global Satellite M2M and IoT Network Market, Analysis and Forecast, 2018 – 2023’,
With the advent of computing, sensing, and communication as a part of fourth technical revolution, expectations have risen to reduce the manual intervention and use advanced technologies at work. This led to the advent of Machine to Machine (M2M) and Internet of Things (IoT) to assure a connected ecosystem, working based on next-generation sensors, cloud platform, telematics, and various other technologies. These two technologies catered the urgency of acquiring information from globally scattered resources through satellites. Satellites can potentially integrate the gathered information by monitoring the fixed and mobile assets remotely.
The global satellite M2M and IoT network market is categorized on the basis of end-user that includes logistics and transportation, natural resources, heavy industries, government and military, aviation, and others. The other end-user segment that includes banking and retail, connected cars, smart cities, consumer IoT; is estimated to grow at the highest CAGR of 37.05 percent during the forecast period, 2018-2023.
Currently, the major demand for satellite M2M and IoT network is for transportation and logistics and heavy industries. The global satellite M2M and IoT network market is also classified on the frequency band such as L-band, Ku-and Ka-band, S-band, and other (X-band and C-band).
The rapid expansion in the IoT network to connect the globally scattered resources at a central location and to disseminate the insights across the internal network are the predominant factors which will drive the growth in the satellite M2M and IoT network market. To cater the market with more value propositions and to reduce the investment costs of the end-user, satellite operators and device manufacturers are together developing robust solutions that can potentially switch between terrestrial and satellite network as required.
Moreover, it has been witnessed that satellite operators are also collaborating with IoT and connectivity application developers to advance the capability of end to end solutions.
“Satellite IoT and M2M network market will be majorly driven by technological advancements in associated devices for M2M and IoT enabling satellites, increase in IoT connectivity network and launch of Nanosatellite constellation,” wrote Sunil Bafna, author of the report. “Also, the satellite network operators are developing relatively scalable and hybrid components, which facilitate capabilities equivalent to the components that are being used in traditional big satellites. Applications such as mobile, telemetry, and asset monitoring, that require relatively low power, are well supported by L-Band as it is a reliable frequency spectrum which is licensed and can help to access the services globally. Additionally, L-Band is highly robust and is not affected by turbulent weather conditions as other satellite bands, particularly Ku-and Ka-band.”
With the huge demand for satellite M2M and IoT network, development of smart cities and investments in connected cars are considered lucrative opportunities that satellite operators are progressing to harness in the coming years. Apart from these, agriculture, construction, autonomous aircraft or UAV (Unmanned Aerial Vehicles) are also expected to provide growth opportunities to the market players.
“North America is one of the most prominent regions for the growth of the global satellite M2M and IoT network market. In 2017, North America dominated the global satellite M2M and IoT network market with the U.S. acquiring the maximum market share, globally,” according to Rahul Papney, author of the report. “However, the geographical analysis of this market unveils an immense potential for its growth in the Asia-Pacific region. The U.K. acquired the largest market share in Europe, whereas, Switzerland is expected to witness the highest growth rate in this region during the forecast period, 2018-2023. Similarly, the APAC market is also likely to witness numerous growth opportunities during the forecast period 2018-2023.”