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Satellite IoT/M2M market until 2024-2030

January 2019

Analytical Report (full version)

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Analytical Report (full version)

Satellite IoT/M2M market until 2024-2030
Satellite IoT/M2M market until 2024-2030
January 2019

Satellite IoT/M2M market until 2024-2030

January 2019

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Despite the fact that today the existing satellite communication networks are significantly inferior in terms of economic parameters of terrestrial communication, the use of satellite technologies for IoT/M2M is critical and appropriate in those areas where satellite communication is an alternative type of communication or requires a backup of terrestrial communication channels.

 

J'son & Partners Consulting analyzed the satellite segment of the IoT market, determined the trends of its development taking into account the features of the technologies used, assessed the prospects for use of satellite systems for IoT/M2M tasks.

 

Key takeaways of the study

 

The analysis of the satellite IOT/M2M market was carried out taking into account the main system technological directions of its development:

 

  • direct access of consumers to subscriber terminals (sensors);
  • organization of transport satellite channels (backhaul) for base stations in LPWAN networks.

 

Based on the analysis of these areas, the main segments of the common IoT/M2M market are identified in which satellite technologies can play a significant role or are associated with the predominant use of satellite technologies.

 

The most attractive segments for satellite IoT/M2M are industries that have long been using and in demand telemetry services that do not require high data rates.

 

With the development of the IoT market in the number of connected objects involved objects in remote areas where terrestrial communication is usually not available (the implementation is not economically feasible) or unstable (for example, in the case of mobile communication on the border of the cell). In the latter case, critical applications may need to reserve a satellite link. In addition, in the context of business digitalization, the requirement to ensure end-to-end traceability of equipment and infrastructure elements becomes relevant.

 

These and a number of other factors necessitate the use of satellite communications for direct connection and management of IoT/M2M facilities. Based on the analysis of international experience, it is determined that the most popular such solutions can be in industry (oil and gas industry, electricity), agriculture and forestry to monitor environmental parameters.

 

At the same time, satellite communication technologies can be used in the construction of hybrid networks – to connect LPWAN base stations (in the absence of ground communications), the organization of backhaul transport networks. Hybrid networks are used in projects of" smart "housing and communal services," smart " agriculture, tracking of people and Pets and many other projects.

 

Despite the fact that the volume of these satellite segments (relative to the total market M2M/IoT) is relatively small and is estimated by J'son & Partners Consulting less than 0.1% and revenues from services occupy a small share in the total revenues of operators, the market is growing and developing.

 

J'son & Partners Consulting has identified the main conditions of development of the market of IoT/M2M and assessed the prospects for use of satellite IoT/M2M systems in different consumer segments in the future 2024 – 2030 in the following implementation scenarios:

 

  • Conservative (organic development "as is"), in conditions when the cost of services and equipment will not be significantly reduced, satellite networks with ground networks will not be integrated, large low-orbit groups will not be deployed;
  • Optimistic (taking into account the creation of an IoT/M2M target satellite system with optimal technical and economic parameters for consumers). This scenario assumes that powerful low-orbit groupings integrated with terrestrial networks will be deployed, which will expand their scope of application by reducing the cost of services to a level comparable to the cost of terrestrial networks.

 

The market potential is associated with the implementation of new multi-satellite systems with IoT/M2M functions, according to the optimistic forecast, the volume of the global market by 2030 could reach $8.4 billion.

 

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This information note was prepared by the J'son & Partners Consulting. We work hard to provide factual and prognostic data that fully reflect the situation and available at the time of release. J'son & Partners Consulting reserves the right to revise the data after publication of new official information by individual players. 

 

Copyright © 2018, J'son & Partners Consulting. The media can use the text, graphics, and data contained in this market review only using a link to the source of information - J'son & Partners Consulting or with an active link to the JSON.TV portal

 

™ J'son & Partners [registered trademark] 

 

 

Detailed results of the study are presented in the full version of the report:

 

Satellite IoT market until 2024-2030”

 

Contents

  1. Satellite IOT/M2M market up to 2030

1.1.The subject of the research

1.2.Satellite IoT/M2M market as of 2018

1.3.Major systems and players in the IoT/M2M market as of 2018

1.3.1.1.        Inmarsat

1.3.1.2.        Thuraya

1.3.1.3.        Echostar XXI

1.3.1.4.        Ligado Networks (Sky Terra-1)

1.3.1.5.        Iridium

1.3.1.6.        Globalstar

1.3.1.7.        Aprize Satellite (EVxx)

1.3.1.8.        Orbcomm

1.3.1.9.        Gonets

1.3.1.10.     Players using fixed service satellites

1.3.2.            Estimation of the satellite M2M/IoT market volume

1.3.3.            Analysis of pPic indicators of services and subscriber equipment

1.3.4.            Market segments and their profitability

1.3.5.            Examples of services in the segments of the satellite market of IoT/M2M in the future 2024 – 2030

1.3.6.            IoT in agriculture and environmental protection ("precision agriculture", environmental monitoring – environmental pollution, prediction and detection of natural disasters)

1.3.7.            IoT for national security purposes (state border control, anti-terrorist activities, military IoT)

1.3.8.            Market assessment by regions

1.3.9.            The dependency of the market volume on technology

1.3.10.           The Russian market

1.4.Analysis of the satellite IoT/M2M market in the long term till 2030

1.5.Analysis of the prospects of satellite M2M/IoT systems announced in 2017-2018

1.5.1.1.        AISTech

1.5.1.2.        Analytical Space

1.5.1.3.        Sky and Space Global

1.5.1.4.        Fleet Space

1.5.1.5.        Helios Wire

1.5.1.6.        Blink Astro

1.5.1.7.        Magnitude Space

1.5.1.8.        Lacuna Space

1.5.1.9.        Mariota

1.5.2.            The competitive environment for satellite M2M / IoT

1.5.3.            New satellite projects, analysis of their development and prospects for solving M2M/IoT problems

1.5.4.            A brief analysis of the applicability of new satellite projects in Russia for M2M/IoT services

1.5.5.            Forecast assessment of the satellite IOT/M2M market for the period 2024-2030

1.6.Conditions under which it is possible to develop the satellite IOT/M2M market in the future

1.6.1.            Price indicators

1.6.2.            Conditions of globality

1.6.3.            Conditions of unification of network technology solutions

1.6.4.            Conditions of radio frequency security

1.6.5.            New technologies

  1. Status and prospects of using hybrid LPWAN and satellite communication networks for the IoT market

2.1.Hybrid networks based on satellite backhaul

2.1.1.            Equipment for satellite backhaul

2.1.2.            Equipment for satellite backhaul channels in the future (2024-2030)

2.2.Hybrid networks using resources of PSS systems for direct access to M2M/IoT subscriber devices

2.3.Results of the analysis of LPWAN protocols for the creation of M2M/IoT subsystem as part of an advanced low earth orbit system for the period 2024-2030

  1. Justification of requirements for equipment of telecommunication networks focused on the provision of IoT services

3.1.Analysis of domestic and foreign experience in creating equipment for satellite M2M/IoT networks

3.1.1.            About Iridium system

3.1.2.            ORBCOMM system

3.1.3.            “Gonets” system

3.1.4.            Proposals for the creation of the most optimal structure to ensure compliance with the perspective low-orbit satellite system to modern and prospective requirements of potential consumers of M2M/IoT services

  1. Short summary

Annex 1 to section 2

Annex 2 to section 3

 

List of pictures

Pic.1 Intersection of satellite broadband AND satellite M2M/IoT markets

Pic.2 Volume and dynamics of the development of satellite segment of the market of M2M/IoT

Pic.3 Сhange in the backhaul segment share in the satellite M2M/IoT market

Pic.4 Distribution of income from the connection of the subscriber

Pic.5 Distribution of income by the satellite IoT market segments according to J'son & Partners Consulting

Pic.6 Distribution of income by the satellite IoT market segments according to NSR data

Pic.7 Example of using satellite communication to connect LPWAN (backhaul) base stations

Pic.8 Robotic drilling platform for oil production

Pic.9 Diagram of the process control system with the use of global mobile satellite communications system Globalstar, for example

Pic.10 Distribution of potential consumers of IOT/M2M satellite services by regions of the world

Pic.11 Percentage distribution of potential users of satellite IOT / M2M services by countries and regions

Pic.12 Profitability forecast for the satellite IOT/M2M market by regions

Pic.13 Estimation of market volume for FSS and PSS systems 

Pic.14 Forecast of annual ARPU of operators of satellite systems of PSS by market segments

Pic.15 Forecast of average ARPU in LPWAN networks

 

List of tables

Table.1 SSS Systems providing IoT/M2M services (May 2018)

Table.2 Additional sources of information that are taken into account in the evaluation of the satellite market M2M/IoT

Table.3 Estimation of ARPU and number of subscribers for IOT / M2M service of operators of low-orbit PSS systems

Table.4 Estimation of ARPU and number of subscribers for IOT/M2M service of terrestrial network operators

Table.5 Growth potential of satellite IoT/M2M in various industries and basic services

Table.6 Support for existing operators of MSS and FSS satellite development segment

Table.7 Projects of M2M/IoT satellite systems

Table.8 Parameters of KyWay™ 1 antenna array from Kymeta

Table.9 IOT/M2M Subscriber terminals in the Iridium network

Table.10 Сost of IOT/M2M subscriber terminals in the Iridium network

Table.11 Еxample of IOT/M2M satellite service tariff plan

Table.12 Cost of IOT/M2M terminals in the L-band Inmarsat system

Table.13 Brief information about LPWAN protocols for the frequency of 868 MHz