Industrial enterprises are turning to hybrid satellite IoT networks to eliminate operational blind spots in terrestrial-only networks.
Operational technology directors and supply chain executives have long managed two distinct connectivity stacks: cellular for urban or developed areas, and satellite for remote regions. This bifurcation required separate hardware, distinct contracts, and often incompatible data standards.
Direct-to-Device (D2D) technology, supported by 3rd Generation Partnership Project (3GPP) Release 17 standards, now allows standard chipsets to roam between terrestrial and non-terrestrial networks (NTN) without specialised modifications.
Adoption of satellite capabilities within industrial IoT estates is accelerating. In a survey by Viasat of 600 decision-makers across agriculture, energy, transport, mining, and utilities, 55 percent of organisations reported using satellite connectivity in 2025. This is an increase from 41 percent the previous year.
Hybrid models (blending satellite and terrestrial links) outperform terrestrial-only setups. 86 percent of organisations using this approach reported increased progress in their IoT deployments over the last 12 months, compared to 70 percent of those relying solely on terrestrial networks.
Capital allocation reflects shift to hybrid satellite IoT networks
Capital allocation is following the utility of hybrid connectivity. 93 percent of surveyed decision-makers plan to increase IoT spending in the coming year, enabling an average budget rise of 27 percent. Investment intent remains consistent even among organisations reporting little to no recent progress, suggesting connectivity is viewed as a necessity rather than discretionary innovation.
Financial commitment varies by sector, reflecting the differing value of asset tracking and remote monitoring.
Mining organisations – operating in geographically isolated and hazardous environments – report high adoption intent, with 83 percent planning to adopt D2D technology. The energy sector shows a more cautious approach, with 61 percent planning adoption within 12 months, likely due to strict health and safety protocols governing equipment changes at remote sites.
Visibility over assets regardless of location drives this convergence. 90 percent of respondents agree that D2D will accelerate the global rollout of IoT. The integration of satellite protocols into standard mobile “rulebooks” allows devices to switch connectivity modes automatically.
Andy Kessler, Vice President of Enterprise at Viasat, said: “Organisations are rightly excited by the potential for standards-based D2D and are planning to deploy new technology quickly, and at scale. The excitement makes sense because we know new devices can lower the barrier to entry for organisations by reducing the cost, complexity, and physical size of IoT terminals.”
81 percent of transport respondents plan to adopt D2D within the next year, driven by the need for real-time route adjustment and freight tracking.
Hardware constraints also influence the usage of hybrid satellite IoT networks. In transport – where drag and weight affect fuel efficiency – the ability to use compact, standard modules rather than bulky satellite terminals is a practical advantage. Agriculture deployments covering vast areas without cellular infrastructure drive 65 percent of respondents to highlight D2D’s value for areas lacking terrestrial coverage.
Safety applications remain a priority for heavy industry. In mining, automated haulage vehicles represent a beneficial use case for 36 percent of respondents. The technology connects gas, temperature, and vibration sensors directly to control centres, allowing for early risk detection such as collapse or explosion. Removing proprietary gateways simplifies the architecture required to support these safety-critical systems.
Barriers to implementation
While 32 percent of current terrestrial IoT users plan to adopt D2D within six months, 81 percent of respondents believe adoption will only be feasible after 1-2 years.
Integration challenges persist, particularly for those transitioning from terrestrial-only systems. 47 percent of terrestrial-only users cite difficulties linking satellite feeds into existing platforms. For organisations already using hybrid models, managing dual networks and satellite solutions challenges 60 percent of respondents.
Cost inhibits adoption for 69 percent of terrestrial-only respondents. This concern connects to hardware availability; 39 percent of terrestrial users note limited compatible IoT devices, which restricts competition and keeps hardware prices elevated.
A knowledge gap at the decision-making level further complicates adoption. When presented with various technical definitions, 25 percent of IoT decision-makers could not accurately identify the correct definition of D2D technology. This technical lack of clarity likely contributes to internal hesitation; 88 percent note senior leadership requires extensive convincing to approve these projects
Procurement fragmentation
The path to procurement of hybrid satellite IoT connectivity remains seriously fragmented, reflecting a market that has not yet settled on a standard delivery model. Buyers split their preferences across various vendors.
25 percent expect to source solutions through systems integrators or managed service providers, 22 percent look to cloud platforms like AWS or Azure, and 21 percent prefer direct engagement with satellite operators.
Security and compliance rank as the highest priority for procurement (43%), followed by cost-effectiveness (37%). While coverage is the initial draw, D2D viability in an enterprise setting depends on fitting within existing governance and budget frameworks.
89 percent of organisations say they would consider replacing their current IoT connectivity with D2D within 2-3 years, but successful operationalisation will require data integration strategies and security compliance rather than just coverage maps.
See also: Smart city deployments shift to prioritising ROI
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