MOUNTAIN VIEW, California – The satellite industry could capture two percent of the growing internet-of-things (IoT) market, if companies take a series of steps to appeal to potential customers, said Justin Cadman, partner at Quilty Analytics, a research and consulting firm based in St. Petersburg, Florida, focused on satellites and the space industry.
“We are quite bullish on this opportunity both for incumbent players and some of the new entrants,” Cadman said Oct. 9 at the Satellite Innovation 2019 conference here.
Incumbent players include Iridium Communications, Globalstar, Orbcomm and Inmarsat. Quilty Analytics is tracking about two dozen companies seeking to enter the satellite IoT market.
Satellites now claim less than one percent of the overall IoT market. “We think the potential is somewhere on the order of two percent of the market,” if companies address key obstacles to growth, Cadman said.
First, companies need to replace “high cost, large, power-hungry terminals” and “bring down the cost of service for applications that are highly price sensitive,” Cadman said. Many high volume applications for satellite IoT have not been tapped because terminal and service costs are currently too high, he added.
Another factor is spectrum. “I can’t overestimate the importance of spectrum ...