Medium Earth Orbit (MEO) Satellite IoT Market Size

Medium Earth Orbit Satellite IoT Market Size

Medium Earth Orbit (MEO) Satellite IoT Market was valued at USD 43 million in 2023 and is anticipated to register a CAGR of over 17% over the forecast period of 2024-2032. The rapid growth in IoT devices across sectors such as agriculture, transportation, and energy fuels the demand for robust connectivity solutions.

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MEO satellites, with their extensive coverage and lower latency compared to GEO satellites, are ideal for remote areas lacking terrestrial infrastructure. For instance, in October 2023, U-Blox outlined advancements in satellite IoT connectivity, emphasizing the potential of MEO satellites as a complement to terrestrial networks. The 3GPP initiative for Non-terrestrial Networks (NTN) is expected to enhance global IoT applications, particularly in remote areas where traditional connectivity is limited. This initiative aims to lower costs and extend wireless communication reach, which is crucial for sectors such as agriculture and transportation.

Recent advancements in satellite technology, including miniaturization and cost reductions, have made MEO satellites more accessible and cost-effective. Innovations in manufacturing and communication systems lower deployment and operational expenses, making it feasible for more players to enter the market. For instance, in March 2024, CelcomDigi Berhad signed a Memorandum of Understanding (MoU) with SES to explore MEO satellite connectivity services in Malaysia. The event was witnessed by officials from the Malaysian Communications and Multimedia Commission (MCMC), indicating government support for the initiative. This partnership aims to leverage SES’s MEO satellites to enhance connectivity services such as 4G and 5G, particularly in underserved regions.

MEO satellites offer a balanced solution for global connectivity, providing comprehensive coverage that is essential for applications in remote or large geographic areas. Unlike GEO satellites with higher latency, MEO satellites deliver better performance for real-time data transmission. This capability is crucial for sectors such as logistics and environmental monitoring, where consistent, wide-ranging coverage is necessary, driving growth in the MEO satellite IoT market.

The high cost of launching and maintaining MEO satellites poses a significant barrier to entry in the market. Expenses include satellite production, launch services, and ground infrastructure. This substantial initial investment can limit participation among well-funded companies and slow market growth. Smaller players or startups may struggle with the financial burden, potentially hindering innovation and market diversification in the MEO satellite IoT sector.