SATELLITE TECHNOLOGIES FOR IOT APPLICATIONS

MARCH Produced by

2017

1 Satellite Technologies for IoT Applications

Executive Summary
Although estimates vary significantly due to the definition
of connections, it is evident that the projected growth in
IoT connections (Internet of Things) has the potential to
transform a number of markets. In the context of satellite
communication technology choices, the global satellite
Machine-to-Machine (M2M) and Internet of Things (IoT)
market will reach 5.8 million in-service satellite M2M/IoT
terminals by 2023. Right now, these terminals correspond
to more than $1.5 billion in annual revenues1 . This is
small compared to the scale of connections generally:
current estimates point to over 6 billion connected things
worldwide in 2016. These are forecast to grow to 25 billion
by 2020.2 Cisco projects that the figure could be as high
as 50 billion by 20203.
McKinsey highlights the importance of demonstrating the
application and potential of IoT in the context of various
settings - the environments within which systems are
deployed4. This allows the estimates of potential value of
application beyond industry revenue because it includes
the value captured by customers and consumers as well
as the wider economic benefits.
The basic requirements of the IoT are that all devices
need to be connected wherever they happen to be.
While Wi-Fi deployments, Bluetooth and terrestrial GSM
networks are able to support many IoT applications,
these network services cannot provide the ubiquitous and
seamless coverage of satellites. In 2015, 95% of the global
population live within coverage of a 2G mobile network,
with 69% within a 3G network5. However, there are many
sparsely populated areas with important economic
activities suited for IoT related services, which do not have
mobile terrestrial coverage or other forms of connectivity.
The ultimate success of global IoT coverage will depend
on the active support of satellite networks, such as the
L-band (antenna) services. Satellite technology serves as a
key enabler to transform IoT connectivity across industries
and geographical borders. The applications range from
oil and gas, to mining, consumers and transportation.
Connecting individual IoT devices via satellites is currently
facing several challenges such as a high cost of modules
and high power consumption.
1
NSR: M2M and IoT via satellite, 7th Edition
2
Cisco® Visual Networking Index Global Mobile Data Traffic Forecast
Update, 2016–2021 White Paper
3
ITU/Cisco (2016) ‘Harnessing the Internet of Things for Global
Development’ (available at http://www.itu.int/en/action/broadband/
Documents/Harnessing-IoT-Global-Development.pdf)
2 Satellite Technologies for IoT Applications
In longer term operations, the implication of power
consumption to battery life is what matters the most. High
power consumption affects both the capacity and lifetime
of the device. Higher energy demands also have an
impact on deployments that require unattended battery-
based operation.
Scalability is an issue as the existing satellite networks
are not set up to support hundreds of millions of direct
connections. For commercial applications that require
very low end device costs, low power consumption and
low maintenance costs, the existing means of direct to
satellite to device connections are not suitable. Only few
companies such as ORBCOMM are looking to explore
these types of connections.
In the consumer IoT market the use of direct satellite to
device connections is still viable due to price points and
more relaxed energy constraints (frequent recharging
is possible). The most common products are location
tracking devices e.g. GPS sports trackers, most notably
Globalstar SPOT, DeLorme InReach, and new competitors
and products that will come along in the future. One of
the primary functions of these devices is location tracking
for consumers, even though other functions such as
social media usage is typically included, especially with
future generations of products. The target market for
such devices is outdoor activities, emergency backup and
usage in private vessels, which are expected to be used
in regions where there is no terrestrial network coverage,
such as in mountainous terrain, in remote regions, and in
offshore waters.
The challenge for satellite operators and service providers
will be reaching price points and form factors palatable
to casual outdoor enthusiasts, without reducing ARPU
from existing higher value customers. This involves limiting
feature sets to consumers such as basic location tracking
and social media, while avoiding high level data analytics.
Nonetheless, consumer IoT applications remain a niche
market when compared to the much larger enterprise IoT
market, and it is these enterprise applications that should be
the primary focus for operators and service providers alike.
4
McKinsey & Company (2015) ‘The Internet of Things: Mapping The Value
Beyond The Hype’ (available at http://www.mckinsey.com/business-
functions/digital-mckinsey/our-insights/the-internet-of-things-the-value-
of-digitizing-the-physical-world)
5
ITU (2016) ‘ICT Facts and Figures’ (available at https://www.itu.int/en/
ITU-D/Statistics/Documents/facts/ICTFactsFigures2015.pdf)
Enterprise IoT domain

Connecting terrestrial IoT network segments directly to IoT

service back ends via satellite broadband is becoming
a new business focus, creating opportunities for notable
use of hybrid Low-Power Wide-Area Network (LPWAN) to
satellite gateways. The gateways aggregate terrestrial
narrowband connections. The major advantage is to bring
connectivity to remote areas through a satellite link to a
concentrator (gateway device), which will serve many IoT
devices in local area through an LPWA terrestrial solution.
To provide connectivity to the satellite infrastructure, only
a few higher value concentrator nodes are needed for
each deployment. There are usually 1:10 to 1:1000 nodes,
depending on area of coverage and node density. The
sweet spots for the hybrid satellite-LPWAN terrestrial
solution are remote locations that are not served by
that supply the bandwidth. Another factor is that in
terrestrial communication networks (satellite win) or
well wired areas, nearly every major mobile operator
areas where no easy network roaming is available. The
is already at capacity6. In addition to this, the cost for
connectivity is provided through the terrestrial LPWAN
backhaul continues to increase and the operators are
solutions often in areas, where building or underground
unable to pass these fees along to their customer, cutting
penetration is needed.
off a slice at their profits.

Bottom line: IoT devices can leverage the low-
power, low-cost features of LPWA, omitting battery
life constraints that increase the device cost. This will
ultimately give a raise to a means of new, diverse
business models.
With existing Internet giants such as Facebook, Google,
Skype, LinkedIn and the proliferation of so many devices
globally, the demand for bandwidth for data has grown
exponentially. For example, Apple has developed an
entirely new revenue stream for the sale of applications
— this is generating more than $4bn in revenue. The
business cases of pure Internet companies are based on
the ability of their customers to have access to high-speed
Internet. And these are business models that many IoT
devices manufacturers are aiming towards.
Whilst the business models create tremendous
opportunities, these are also an incredible strain for the
mobile operators and communication service providers
New business models may yet emerge, where satellite
operators provide an end-to-end network and charge per
connected LPWA device, and not per data transmitted over
the satellite link. New solutions for direct satellite LPWA
communications span ultra-narrow band connectivity,
supporting millions of devices at low cost, low power and
with direct connection to IoT end devices. These solutions
will bring about higher autonomy of IoT end devices.
Adoption of more automated solutions of terrestrial
infrastructure, and consequently its maintenance, means
no additional cost and greater freedom when it comes to
mobile networks and cases, where a terrestrial roll-out
and access to sites is proving difficult.
Bottom line: In the longer term, the distribution of new
narrow band satellite communication technologies will
allow for direct connection of millions of IoT devices in
a resource efficient way.

6
In-Stat. (http://www.in-stat.com/press.asp?ID=2899&sku=IN1004716GW)

Satellite Technologies for IoT Applications 3

Key market players

Agriculture Civil Engineering

In agriculture IoT can be used to increase yields and
productivity through optimising crop production as well
as advancing its storage and distribution. Capital costs
have limited agricultural productivity growth in developing
economies. M2M/IoT is in a strong position to address
these limitations. While current projected growth in
in-service satellite M2M/IoT terminals is being driven
by developed countries, particularly North America; the
Middle East and Africa are forecast to grow 5.2% annually,
although revenue growth is slightly more muted at 4.9%
per year. Stronger growth in Asia could see revenues
double by 2023, increasing the region’s share from 17.6%
in 2013 to 23.2% in 20237.
The largest market for LPWAN backhaul will be for
large customers who require hundreds or thousands
of individual sensors or devices to be IoT connected.
An example of this would be precision farming in rural
agricultural areas. Some companies such as Milk Smarts
are already planning to leverage satellite backhaul of
LPWA to new solutions for precision farming in Australian
agribusiness. Stream Technologies and GSE are using
Iridium backhaul to develop ‘pop-up’ IoT networks
for either large customers, or for general base station
usage. The Iridium network is a global, mobile satellite
constellation comprised of 66 low-Earth orbit satellites,
enabling coverage spanning the entire globe, including
the poles. Its unique architecture delivers reliable, real-
time communications for a wide range of M2M markets.
Iridium can extend LoRa based networks anywhere on
the planet and enable low-cost global IoT networking
across 100 percent of the globe.
Monitoring civil engineering projects, particularly in
remote and potentially hazardous areas presents a
notable opportunity for satellite M2M/IoT. Growth for
the construction M2M/IoT sector is driven primarily by
developing economies, fuelled by population growth and
infrastructure development in Latin America, Middle East/
Africa and Asia.
In many industrialised countries, the civil engineering
industry is currently in a transition phase − from building
new constructions to maintaining the large stock of
valuable assets (e.g. bridges). Structural Health Monitoring
system that integrates satellite technologies and IoT can
offer a means of maintenance for different types of asset.
The system provides a complete picture of the structure
in its changing landscape, locating threats caused by
environmental degradation, land motion, engineering
works, landslip, mining and industrial activity.
The market is projected to grow 25% per year to $3.4
billion by 2022. Although growth could be attributed to the
rapidly aging infrastructure in North America, the need for
monitoring of structures in hazardous and inaccessible
areas will also be a key driver8. The higher potential for
the satellite market to take off is in the Middle East and
Africa region as revenues are driven by the absence of
reliable terrestrial competition9.

Vodafone and Inmarsat provide backhaul for IoT devices in

smart farms in far corners of the globe. As LoRa networks
can cover up to 700km2 in rural environments, this is
another suitable solution for tracking cattle. It is possible to
identify sick animals who are behaving unpredictably and it
will also allow any theft to be monitored.

8
Structural Health Monitoring Market by Solutions (Hardware: Sensors,
Data Acquisition System; Software & Services), Technology (Wired
and Wireless), End Users and Geography - Global Forecast to 2022
(summary available at www.marketsandmarkets.com/Market-Reports/
structural-health-monitoring-market-101431220.html)
9
NSR: M2M and IoT via satellite, 7th Edition

4 Satellite Technologies for IoT Applications

Healthcare (post-operative treatment)
For IoT applications to generate maximum benefit
changes in the broader ecosystem are required – from
cost reduction in sensors, behavioural change amongst
health providers and consumers and advanced data
analytics. Indeed the Momentum project identified
as many as 18 critical factors for the successful
implementation of telemedicine following under-adoption
within developed economies across the EU10.
In developing economies, the greatest benefits will
come from expanding health care services for remote
communities, particularly in diagnosis and testing in
remote clinics.
Reduced cost will enable emerging uses of IoT technology,
such as smart bandages, where built in sensors can alert
patients and health officials when a wound or surgical
incision is not healing properly. It is estimated that over
230 million major surgical procedures are undertaken
every year worldwide11. In these developing countries,
the benefits of IoT are contingent on investments in
communication infrastructure to bring connectivity as well
as falling costs of sensor. Satellite M2M/IoT could leverage
the near global population’s 2G coverage to draw
together remote networks into an integrated data centre.
In areas outside of a cellular footprint, the M2M/IoT
data can be aggregated via a VSAT network, either in
a consumer’s residence, or regionally. In the long-term
scenario, the solution is expected to be entirely dependent
on IoT technologies. However, there is a key role for
VSAT networks in acting as a backup for when terrestrial
networks fail – especially in developing economies in
mission critical applications such as healthcare.
10
Momentum (2014) ‘Eighteen critical success factors for deploying
telemedicine’ (available at http://www.telemedicine-momentum.eu/18-
factors/)
11
Weiser et al (2008) ‘An estimation of the global volume of surgery:
a modelling strategy based on available data’ Lancet. 2008 Jul
12;372(9633):139-44 (abstract available at https://www.ncbi.nlm.nih.
gov/pubmed/18582931)
Satellite Technologies for IoT Applications
Multi-modal logistics
Globalisation and free trade are driving an increase in
volumes of cargo transported. Maritime transport is the
backbone of globalisation and lies at the heart of cross-
border transport networks that support supply chains and
enable international trade.
Maritime transport is essential to the world’s economy
with the International Maritime Organisation estimating
that over 90% of the world’s trade is carried by sea and is
the most cost-effective way to move en masse goods and
raw materials around the world.
While logistics companies are often at the forefront of
technology adoption, McKinsey projects that further
integration of IoT in container tracking, could generate up
to $30 billion in economic impacts per year by 2025. An
average shipping container is used only 20% of the time
due to the global distribution of customers. IoT tracking
could increase utilisation rates by 10-25%, reducing
annual costs by $13 billion per year in 2025.
Threats to cargo shipments are an issue, making tracking
and accountability problematic. The economic costs of
piracy are significant. In 2011, the estimated cost was $6.8
billion, with the bulk, 81% being borne by industry and the
remainder by governments12
In this case, satellites tend to be the ‘best fit’ for connecting
IoT devices. Use cases include the monitoring of refrigerated
shipping containers (“reefers”) on the high seas, although
even then it is likely that that container ship has deployed
some kind of local onboard connectivity (for instance 2G
cellular), so that the cost of satellite communications can be
shared between multiple containers.
Currently, projected global revenues for M2M/IoT are
estimated to grow 13% per year, driven by higher growth
in North America. This is projected to increase the share
of global revenues generated by the region from 64% in
2013 to 74% in 202313.
12
International Maritime Organisation (2010) ‘International Shipping
Facts and Figures – Information Resources on Trade, Safety, Security,
Environment’ (available at www.imo.org/en/KnowledgeCentre/
ShipsAndShippingFactsAndFigures/Statisticalresources/Documents/
IMO%20Performance%20indicators%20C_105-3(a)-1[1].pdf
13 NSR: M2M and IoT via satellite, 7th Edition
5
Main value propositions for the future
Lowest cost IoT communication proposition for massive
quantity of users (in million).
 Surrey Satellite Build around 40% of the world’s small satellites. In
Lowest energy consumption footprint and device
autonomy for more than six years.

Global availability (Internet of Everything Everywhere)
- Expected to encompass billions of devices around the
world, the scale of the IoT demands ubiquitous network
coverage even in remote locations, which are best
served by satellite networks.
Secure and high-availability data services for
professional users (trust and data privacy).
Dedicated network with cognitive machine intelligence
capabilities (LTE inspired).
Continuing integration of the IoT is expected to
continue driving up market demand for the integration
of satellite into the overall communications mix.
Reliability - A high level of service reliability is a
key requirement for effective IoT deployments.
The low latency of L-band services holds a distinct
advantage in catering to applications such as remote
asset monitoring that requires reliable, always-on
connectivity.
Speed - The IoT applications involve an exchange
of data between interconnected objects to facilitate
quicker decision making and enhance business
processes. This is driving the demand for high data
speeds to support bandwidth-intensive applications in
real time.
The value along the chain will be generated in the most
part by network operators like Telefónica and Vodafone
that procure, develop, and operate terrestrial networks
directly in order to provide the bandwidth used by M2M/
IoT devices. Resellers, the mobile virtual network operators
(MVNOs), i.e. Raco Wireless, Kore Telematics will buy
capacity directly from the operators. System integrators
(e.g. Wyless, Quake Global) will continue to manufacture
terminals and build software for the M2M/IoT. Service
providers (distributors), i.e. Kore Telematics, T-Mobile can
also have a retail presence, and interact directly with
customers.
14
http://www.inmarsat.com/press-release/inmarsat-actility-deliver-worlds-
first-global-lorawan-iot-network-empowering-business-applications/
6 Satellite Technologies for IoT Applications
UK companies
Company Area of Interest
Technology 2018 they plan to launch navigation equipment for
(SSTL) the GIOVE-A, the first Galileo satellite.
Astrium A quarter of the world’s commercial telecom
satellites are made by this UK company.
Thales Alenia Contribute to the design and manufacture of the
Space UK propulsion subsystem via their Neosat product line.
Airbus Play a major role in the satellite design, communication
module, and propulsion module definition.
Rezatec Developed a unique remote sensing, Earth
observation platform, which provides information
to global business decision-making for reducing
carbon footprint.
BAE Systems Control and operate data collected from satellites.
UK Space Allows maps to be produced to examine how crops
Agency are growing, so farmers can determine how much
fertiliser to put on their fields.
Virgin Galactic Launch commercial small satellites.
XCOR launching larger satellites at reduced cost;
developing the Synergetic Air-Breathing Rocket
Engine, ‘SABRE’ and a space place ‘SKYLON’ that will
be in operation by 2024.
Swiss S3 Launch commercial small satellites.
Reaction Aim to launch larger satellites at reduced cost -
Engines developing the Synergetic Air-Breathing Rocket
Engine, ‘SABRE’ and a space place ‘SKYLON’ that will
be in operation by 2024.
Oxford Space Make equipment for satellites that includes antennas
Systems for data communication and boom systems. This
allows for communication technologies to be
extended outside the satellite and into space at
various distances.
Earth-i Collects data from three high-definition earth
imaging satellites that SSTL launched in 2015. The
collected data are stored onboard the satellites and
transmitted when the satellites next pass over a
ground station. Earth-i extracts from the data specific
information for clients like Rezatec that uses them
mainly in agricultural and environmental monitoring.
Clyde Space Focusing on design and manufacture of hardware
for cube satellites, small satellites and nanosatellites.
Their support for satellites extends from conceptual
design, development, integration, testing, through to
launch and on-orbit operations.
Inmarsat Leading provider of hybrid Satellite to LPWAN
connections.
Actility Partnered with Inmarsat has been announced14,
delivering satellite backhaul for LoRaWAN connectivity
covering broad range of IoT applications.
As the market evolves more UK companies will yet
emerge, taking direct low power narrow band connectivity
to scale. First signs of these kinds of developments can
be seen in other parts of the world. Spearheading this
movement SAT4M2M15, a German-based company, kicked
off projects on direct low power narrow band connectivity
to M2M devices. One base station module has been
implemented on the ISS and end device modules are
under development. Another on the horizon is Canadian-
based Kepler Communication16 – targeting narrow band
communication services in space.
Revenue projection
NSR projects there will be over 770,000 active location
tracking IoT units in 2025, which corresponds to annual
retail revenues of over $220 million17. While as of 2016,
62% of units will be in located in North America, NSR
expects the Asia Pacific region to have the largest growth,
as the likes of Globalstar and others will make a further
push in the region, taking advantage of greater levels
of disposable income as well as shifting trends in terms
of growth in levels of travel and greater utilisation and
dependence of social media. The industry application mix
is not expected to change dramatically by 2023.

Total Market M2M/IoT via Satellite by Vertical Industries, 2013-2023

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Transportation Cargo Oil and Gas Utilities Green Energy

Mining Military Civil Government Construction Agriculture

Data source: NSR

With a compelling value proposition, NSR expects new
devices and players to enter the market, with new form
factors to drive additional unit sales and revenues driven
by new features and higher bandwidth requirements.
New levels of connectivity such as Globalstar’s second
generation network will provide a further boost to demand
for IoT. Churn nevertheless remains an issue for operators,
with aggressive promotions in recent years driving up
usage but increasing levels of churn, ultimately benefiting
the end consumer but harming operator revenues.

15
http://www.sat4m2m.com/
16
http://www.keplercommunications.com/
17
NSR: M2M and IoT via satellite, 7th Edition

Satellite Technologies for IoT Applications 7

 Total Market M2M/IoT via Satellite, Revenue by Frequency, 2013-2023

2023

2022

2021

2020

2019

2018

2017

2016

2015 L-Band Ku-Band

2014 HTS C-Band

2013
0 1000 2000 3000 4000 5000 6000

The backhaul of LPWA networks will bring additional
revenue streams for satellite operators, but the
overall market of general backhaul will be limited to
approximately $5 million by 2025 in retail revenues. This
will be economical on both Ku-band and MSS, due to the
very small bandwidth requirements on LPWA networks
(typically in the order of 10 bytes). However, large
numbers of IoT devices will be required to turn a profit,
considering the ~ $1 per month, or even lower ARPU,
on LPWA networks. Some operators are entering the
market now to get a first mover advantage on backhaul
networks. IoT platform provider Stream Technologies and
the LoRa Alliance18 are delivering reliable, near real-time
communications for a global connectivity over Iridium’
mesh architecture.

18
https://www.lora-alliance.org

8 Satellite Technologies for IoT Applications

 Total Market M2M/IoT via Satellite, Revenue by Regions, 2013-2023

100%
13.2 24.0
21.1 20.6 38.8 40.2
90%
109.3 261.8
80% 95
292.4
70%
131.8
318.5
60%
146.3
265.1
50%

40%
NAM EU
30%
LAM ASIA
20%
MEA AOR
10%
POR IOR
0%
2013 2023

Expectedly, the most significant growth of shares is

taken up by North America, Middle East or Africa and Bottom line: The satellite based M2M/IoT market
the Ocean Regions. High demand for always-on Internet continues its steady climb, with opportunities for
connection and data frequency make/ensures North increase in revenue in every region. Fundamentally,
America dominates the market with most in-service units, there are no major factors in a sense of frequency
with a large and expanding installed base. However, used, new applications or regional demand
Asia experiences the highest growth over the forecast anticipated to see a dramatic change to the game.
period. This is due to continued growth of populations and
economies. Latin America comes in second in revenues
terms as security and reliability requirements become of
increased importance. Europe shows relatively modest
but gradual growth, reaching just below a double digit
by 2023. This is related to the prevalence of competition
amongst terrestrial networks that continues to grow.

Satellite Technologies for IoT Applications 9

Barriers to adoption
High cost of connectivity and communication and
economies of scale for large deployments over wide
areas networks are key barriers for self-sustaining
adoption to create further growth. There remain a number
of other well-established problems:
Security issues - While in the past all cyber attacks
on satellites were unsuccessful, firms like Intelsat
have signalled a dramatic jump in DDoS threats (60
percent from 2015 to 2016), especially as the industry
moves toward IP infrastructure, hybrid networks and
cloud-based solutions. The massive amount of high-
throughput satellites and time spent on connected
devices means the scale of threats grows ever faster.
Reliable solutions are missing that would effectively
patch vulnerabilities across different components that
make up the entire ecosystem.
Cost-prohibitive economics - In the process of
integration, the onboarding and management of
networks remains expensive and inefficient particularly
at large scale. A new class of services such as edge
infrastructure, software platforms and technology
ecosystems is required to transform operational
experiences and mitigate the security, cost and
complexity concerns.
Old model for best practices - For instance, more
innovative approaches to a large number of projects
in smart farming will create a new model for best
practices in agriculture. It will also become an excellent
go-to-market strategy of what companies will be able
to do across many other verticals. Once taken up, these
models should significantly shorten deployment times
and simplify the network architecture which will also
improve security.
Absence of a holistic solution - Right now IoT sensor
networks do not come in a position of readiness
everywhere to reach the most remote “internet
deserts”. A combination of global satellite network and
cloud-based IoT platform that would allow enterprises
to realise the full benefit of M2M/IoT is emerging.
However, the pace by which technology advances is
unprecedented, and solutions must be based on very
forward thinking in how to effectively overcome all
these barriers.
It is challenging for companies trying to mix solutions
from multiple vendors to interconnect and manage
different systems. The diversity and variation of IoT
19
Space Innovation and Growth Strategy 2014–2030
10
devices, application protocols and security, prevent
companies from easily aggregating data across
heterogeneous networks. This model tends to result in
prohibitive operational and infrastructure expenses which
consequently hinder adoption of new solutions.
Market dynamics
Competition within the satellite industry continues to be
strong in the market place. MSS L-band operators support
the vast majority of units – up to 90%. They are competing
against VSATs, which supply more to larger capital
intensive oil and gas, transportation, cargo and green
energy sectors, for both fixed and mobile tracking and
monitoring products.
Rapid population growth is continuing to drive business
growth worldwide. M2M/IoT services generally have the
highest margins of any other services offered, with cost
per bit orders of a magnitude higher than consumer
data products. NSR expects terrestrial based pricing to
drop significantly as operators move towards cost-based
pricing, following increased competition and a push for
players to move into the high-margin M2M/IoT space.
The North American region continues to dominate in
terms of both revenues and in-service units. The growth
is contingent upon reliable, low-cost access to space.
According to Airbus, “currently a small satellite provider is
at the mercy of a bigger satellite (the main customer)”. The
increased spread of spaceports will catalyse the market
for low-cost access to space, running parallel with the
development of smaller satellites.
The projected highest growth space markets over the
next two decades are in satellite-derived services and
applications using data, services and infrastructure19. Earth
observation data are increasingly being used to assist
with maritime surveillance, flood modelling and response,
environmental and agricultural monitoring and natural
resource assessment. Broadcasting direct-to-home (DTH)
satellite TV channels via SES satellites currently presents
many high growth opportunities to deliver content to
remote locations and islands that are underserved by
terrestrial networks.
However, there needs to be public sector support and
promotion for the adoption and use of these services so
that UK can capitalise on “high-value priority markets”, i.e.
maritime surveillance, and satellite broadband in order to
deliver £30 billion per annum of new applications.
Satellite Technologies for IoT Applications
Growth enabling factors

The M2M/IoT has been identified as a strategic area of
growth for the UK with large new markets opening up,
representing real high-growth investment opportunities. It
will benefit from a thriving ecosystem, including a leading
research infrastructure, universities, and a thriving pool
of new business start-ups. The UK is already a leader
in the development of smart, space-based radars for
maritime surveillance. This technology is used to ensure
sustainable fishing, restoring endangered fish stocks,
protecting against illegal fishing and ensuring global
ocean resources are protected for future generations.
Deploying satellite connectivity to complement terrestrial
networks for IoT applications transforms the IoT in to the
“Internet of Everything Everywhere.” The enabling factors
of the IoEE through satellite are:
(i) the interoperability between satellite systems and
sensors and
(ii) the support of IPv6 over satellite20.
It will be important for the UK to develop and tune the
supply chain. The UK has started to supply equipment
and platform building blocks for satellite based IoT
through €18 million ESA contract with Airbus and Thales
Alenia Space, using their Neosat product lines. The ESA
forecasts that there will be €30 billion worth of satellites
built before 2030, with Neosat forming a significant
portion of that new market, representing a potential
return for UK companies of billions of Euros.
Automation of these industries in developed regions has
already advanced, and so the highest growth potential
will remain in developing regions working towards better
technology capabilities. For low bandwidth applications
such as meter readings, satellite is an excellent fit,
especially in developing regions where it provides instant
infrastructure that is not reliant on patchy terrestrial
infrastructure. Greater levels of automation in these
regions will be achieved through better data extraction
and management with immediate impact on applications
such as crop growth monitoring and disease prediction,
productivity through enhanced yields, management of
shortfalls, and reduced use of fuel and fertilisers.
Technology choices are sometimes contingent on what,
how, and how much spectrum is made available21. The
co-existence of multiple networks within a territory might
be useful for M2M/IoT; however different countries have
developed different guidelines on how to govern the data
management. Possibly availability of White Space will
have an effect on how M2M/IoT evolves over the near
future.

Leading M2M/IoT players such as Vodafone will continue

to partner with Inmarsat I-4 satellite network to provide
global L-band coverage through all weather conditions.
This will allow for fixed-line and mobile connectivity
far beyond the reach of terrestrial networks to suit
requirements of many verticals, i.e. agriculture, utilities, oil
and gas, and transportation.

20
Satellite Communications Supporting Internet of Remote Things, available
from: https://www.researchgate.net/publication/282619383_Satellite_
Communications_Supporting_Internet_of_Remote_Things
21
Machina Research ‘M2M & IoT Regulatory Profile’

Satellite Technologies for IoT Applications 11

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Digital Catapult, 101 Euston Road, London,

NW1 2RA
IoTUK.org.uk • info@IoTUK.org.uk

Satellite Technologies for IoT Applications 12