Space consulting and market intelligence company Novaspace has released the ninth edition of its Prospect for Direct to Handheld and IoT Markets report. The study projects the direct-to-device satellite connectivity market to grow from $1.5 billion today to nearly $15 billion by 2033. The boom will be fueled by rapid advancements in technology and expanding satellite networks.
According to the report, 425 million monthly users will connect to direct-to-phone services. Direct-to-phone service revenues will see a 33% upward revision, raking in revenues of $42bn alone . In 2024, investments over $1.7bn, and the availability of 20+ satellite-compatible smartphones accelerated the sector’s growth.
Commenting on the report’s findings, Sumaiya Najarali, Novaspace Senior Consultant, said: “The rapid evolution of direct-to-device satellite connectivity marks a transformative shift in global communications. With the potential to connect hundreds of millions of users and generate billions in revenue, this market bridges connectivity gaps and expands networks.”
The report also highlights strong growth in satellite cellular IoT, with hundreds of millions of compatible devices expected by 2029. Emerging D2D markets (direct-to-phone, cellular IoT) are poised for the strongest growth, driven by their large addressable markets which support unmodified devices, increasing affordability and seamlessness of services. Satellite players in the value chain rely on mobile network operator (MNO) partnerships to expand their customer bases and are therefore expected to capture a smaller share of overall service revenues compared to traditional (mobile satellite services) MSS operators. These markets are likely to cannibalise a portion of revenues from traditional phones and legacy satellite IoT services. Traditional handheld phones are projected to decline sharply as emerging satellite-enabled services are adopted.
Add Comment