Satellite IoT market sees over 100 vendors as LEO drives change
New research has shown more than 100 vendors are active in the satellite IoT market, which is becoming increasingly fragmented as new entrants challenge established companies.
According to IoT Analytics' latest Satellite IoT Market Report 2025–2030, the dominance of legacy satellite network operators (SNOs) is expected to lessen by 2030 as new players such as Starlink and Amazon's Project Kuiper enter the market.
The analysis finds that in 2024, seven longstanding SNOs held over 80% of the total satellite IoT market share. However, with over 100 vendors now active, competition is intensifying and market dynamics are shifting. The presence of new operators leveraging Low Earth Orbit (LEO) satellite constellations is prompting changes amongst established operators, leading to new business strategies in response.
Market overview
IoT Analytics observed 7.5 million satellite IoT connections in 2024. The average revenue per user (ARPU) for satellite IoT was found to be nearly 15 times that of cellular IoT, underscoring the comparatively high value of satellite-based remote connectivity solutions.
The Satellite IoT Market Report 2025–2030 outlines that while legacy SNOs remain significant, major technology companies are entering the arena and shifting the competitive environment. Starlink and Project Kuiper are highlighted as two leading entrants expected to impact market shares by 2030.
Strategic trends
Three core strategic trends have been identified in the report.
Firstly, the adoption of LEO satellite constellations has accelerated. In 2024, 63% of satellite IoT operators used satellites in LEO to support their services. LEO offers lower signal latency, and the costs associated with manufacturing and launching these satellites are generally less than those for higher orbits.
Secondly, legacy operators are increasingly pursuing multi-orbit strategies. By combining LEO, Medium Earth Orbit (MEO), and Geostationary Orbit (GEO) satellites - often through partnerships or acquisitions - these companies seek to enhance service coverage and remain competitive. Companies employing multi-orbit connectivity strategies accounted for 50% of the satellite IoT connectivity market share in 2024.
Thirdly, the implementation of hybrid networks is rising as SNOs partner with mobile network operators (MNOs). This integration of satellite and terrestrial networks is intended to improve both coverage and reliability for end users, offering broader connectivity options globally.
Industry perspective
Satyajit Sinha, Principal Analyst at IoT Analytics, comments that "Legacy players like Iridium and Inmarsat won't be displaced overnight. Their continued relevance comes from a proven ability to evolve. But survival for all, especially for newer players, now depends on adapting to the new market reality: LEO collaboration, cloud-native operations, and flexible pricing models are no longer optional. The entry of tech giants like Starlink will reset expectations, and the industry must respond accordingly. With Starlink bringing over 7,000 LEO satellites into service by mid-2025, price competitiveness in the satellite market will reshape the competitive landscape by 2030."
Sinha's assessment highlights both the resilience of established firms and the adaptability expected of both current and new market participants. The scaling up of LEO deployments, coupled with adjustments to operational models and pricing, is projected to have a significant influence on how services are delivered over the coming years.
Market fragmentation
The analysis notes that the growing number of SNOs and partnerships is contributing to increasing market fragmentation. This trend is considered likely to continue as barriers to entry decrease and technology evolves, making it possible for a wider range of companies to offer satellite IoT services. Hybrid network deployments and cross-sector collaborations are anticipated to be key forces shaping the strategic direction of both new and traditional SNOs.
