As the Internet of Things (IoT)-Non-Terrestrial Network (NTN) market evolves, legacy satellite operators are increasingly entering the space, creating new competition for dedicated IoT-NTN providers. Leveraging mature infrastructure, Low Earth Orbit (LEO)-based legacy operators such as Iridium and Globalstar can offer lower latency, cost-effective solutions, and better coverage. This makes them well-positioned to dominate cost-sensitive IoT markets like asset tracking and agriculture. However, dedicated IoT-NTN operators remain competitive with their standardized protocols and focus on hybrid satellite/cellular use cases. ABI Research analyzes the growing rivalry and the strategic advantages each player brings to the market, highlighting key opportunities and challenges.
Market Overview
The competition between legacy satellite operators and dedicated Internet of Things (IoT)-Non-Terrestrial Network (NTN) operators is rapidly heating up as both look to dominate the growing satellite IoT market. Traditionally, these two player types have not directly competed with each other. Legacy satellite operators, including those utilizing Low Earth Orbit (LEO) constellations, have established themselves as reliable providers of satellite IoT services, often using proprietary communication protocols. On the other hand, dedicated IoT-NTN operators are newer entrants, relying on standardized protocols and cellular ecosystem support, with a focus on satellite IoT-specific applications.
However, the dynamics are changing as legacy players begin offering their own IoT-NTN services, intensifying the competition in this space. ABI Research’s market intelligence highlights key areas where legacy operators are leveraging their strengths to compete with dedicated IoT-NTN players, including cost-sensitive markets, high-bandwidth applications, and mission-critical use cases.
“Legacy LEO-based operators offering an IoT-NTN service like Iridium have a particular advantage in the IoT markets, given that mature LEO satellite constellations offer lower latencies, cheaper connectivity costs, and adaptable coverage. These advantages will likely push other legacy LEO satellite operators, like Globalstar, into the IoT-NTN market.” – Lizzie Stokes, Senior Analyst at ABI Research
Table 1: Legacy and Dedicated IoT-NTN Operator Satellite IoT Connections by Protocol and Satellite Type
World Markets: 2024 to 2032
(Source: ABI Research)
Legacy Satellite Operators Set to Disrupt the IoT Space
One of the main competitive advantages for legacy LEO-based satellite operators, such as Iridium and Globalstar, is the maturity of their satellite constellations. These legacy players are poised to disrupt the IoT-NTN market due to their established infrastructure, which allows them to offer lower latency, more reliable coverage, and cost-effective connectivity compared to the emerging IoT-NTN players.
Iridium’s successful launch of a Narrowband (NB)-IoT NTN service in January 2024 is an example of how legacy satellite operators are quickly adapting to new IoT-NTN standards. As more LEO-based legacy operators follow suit, ABI Research expects the competition to intensify, especially in cost-sensitive markets. This is because cost-sensitive markets offer more mature and expansive satellite constellations capable of supporting large-scale, IoT-specific applications.
Targeting Cost-Sensitive IoT Markets
The IoT-NTN space is particularly valuable for industries that rely on cost-effective, low-power connectivity. Legacy LEO operators have the advantage in markets such as asset tracking, condition-based monitoring, and agriculture, where scalability and coverage are essential. For example, asset tracking applications often require large volumes of connected devices and benefit from cost-efficient, reliable connectivity.
Given the mature constellations and established infrastructure of legacy LEO operators, ABI Research expects these players to become the go-to providers for such applications, especially as dedicated IoT-NTN operators continue to scale their satellite constellations.
Agriculture is another cost-sensitive sector where IoT-NTN technology is proving valuable. Many farmers face high upfront costs when adopting digital technologies, and the affordability of legacy LEO-based IoT-NTN services is likely to drive significant adoption in this sector. However, it’s important to note that while cost-sensitive, the agriculture industry also includes advanced applications, such as autonomous tractors, which demand higher data throughput.
As ABI Research highlights, these higher-bandwidth use cases may still rely on proprietary satellite services, which legacy LEO providers are well-positioned to offer.
High-Bandwidth Applications as a Competitive Edge for Legacy Operators
While many IoT-NTN applications require low-bandwidth connectivity, there are several high-bandwidth use cases where legacy operators are likely to continue holding an edge. Fleet management, for example, will remain a key market for legacy satellite providers. High-bandwidth applications like in-cab dashcam monitoring, as well as fleet tracking and monitoring, require more robust connectivity than what dedicated IoT-NTN operators can provide in the early stages of their development. Additionally, ABI Research notes that heavy equipment operators—which rely on satellite IoT solutions for tracking expensive industrial machinery—will continue to gravitate toward legacy operators offering reliable and secure connectivity.
For high-bandwidth IoT applications in mission-critical industries, legacy satellite providers are poised to maintain a competitive advantage. Indeed, these use cases require connectivity offerings with more established, higher-quality satellite infrastructure. ABI Research expects legacy LEO operators to see success as they offer low-latency solutions that fit well with high-bandwidth requirements in fleet management and heavy equipment sectors.
The Pivotal Role of IoT-NTN Standardization
While legacy operators have the infrastructure and experience to dominate in certain markets, the continued rise of IoT-NTN technologies, supported by standardized protocols, will help shape the competition in the coming years. The emergence of open, standardized protocols is a key differentiator between legacy and dedicated IoT-NTN operators. As ABI Research points out, standardized protocols allow for interoperability between different satellite networks and cellular ecosystems, providing IoT customers with more flexible and scalable solutions.
Legacy LEO operators, however, still face the challenge of transitioning to standardized protocols. While some, like Iridium, have embraced the IoT-NTN standard, other players in the legacy market will need to catch up. The success of these transitions will play a key role in determining whether legacy LEO operators can maintain their competitive advantage in the face of growing demand for flexible, standards-based satellite IoT solutions.
Conclusion
As both legacy and dedicated operators compete for market share, ABI Research anticipates a shift in the competitive landscape, with new opportunities and challenges emerging for both sides. Ultimately, the future of satellite IoT will depend on how well these operators can address market demands for lower latencies, better coverage, and more scalable solutions.
To learn more about the competitive dynamics and opportunities in the satellite IoT market, download ABI Research’s full report: Satellite IoT: A New Era of Competition Between IoT-NTN and Legacy Operators.
