In the dynamic space technology landscape, satellite-based Internet of Things (IoT) solutions are emerging to offer exciting new capabilities and applications and promising to connect even the most remote corners of the globe. We sat down with Julian Fernandez, CEO of FOSSA Systems, a European satellite manufacturing and IoT solutions company, to gain his insights on the current state and prospects of the growing industry.
The Current IoT Landscape
The IoT market has immense potential for business opportunities and addressing various challenges both in space and on Earth. Julian explains, “IoT is a big and growing market, we’re talking about over a billion dollars now, and it’s projected to hit 1.5 billion next year.”
But it’s not just about the numbers. Julian emphasized the transformative power of IoT across industries. “The real value of IoT lies in how it can revolutionize operations,” he said. “It’s about deploying sensors on assets to improve production, better understand how assets are working, increase revenue, or reduce costs. That’s one of IoT’s most significant but not commonly known benefits.”
Challenges in the IoT Sector
The lack of standardization is a significant hurdle in the satellite IoT industry. While efforts like 5G NTN (Non-Terrestrial Networks) are underway, they face many technical challenges. Fernandez explains, “Recently, there has been an effort to try and standardize the technology, but there has not been a successful player yet.”
FOSSA Systems has taken a unique approach to this problem by leveraging LoRa technology, a standard for low-power communications that is not proprietary. Fernandez states, “That’s one of [FOSSA System’s] biggest differentiators from traditional players in the IoT space – LoRa is an existing open standard that’s already out there, with 260 million devices deployed. It’s a game-changer for interoperability and scalability.” This approach also prioritizes what the end-user often looks for – a system that is capable but also easy to use without hassle.
FOSSA System’s Contribution to the IoT Industry
The space tech industry often experiences a disconnect between technological innovation and practical, customer-focused solutions. FOSSA Systems aims to bridge this gap by combining upstream technological expertise with a deep understanding of end-user needs.
“In the same way that Apple is deploying direct-to-device on their phones – you can just take out your iPhone 14 and send an SMS message – we want to do the same for IoT devices.”
FOSSA also has an ambitious roadmap for reducing latency in their satellite IoT network. Fernandez details their plans:
“Right now, we have latency of around 12 hours, so every device is seen twice per day, anywhere from two to four times per day by satellite. Next year, we hope to reduce that anywhere from six to eight hours. The year after that, we hope to reach near real-time. We’re talking less than five minutes, 99 percent of the time.”
Leveraging Collaboration
The space technology sector is increasingly moving towards a more collaborative model. Fernandez emphasizes the importance of partnerships: “We need to rely on existing IoT device manufacturers and build the ecosystem with them… I think there’s a lot of need for partnering with third parties, with IoT developers and manufacturers.”
Recent collaborations, such as a pilot project with Microsoft, demonstrate this approach. Fernandez mentions, “One of the recent pilots, which I think you covered, was with Microsoft. We did a pilot project with Microsoft. That’s a very important customer for us, which demonstrates the tech and the product market fit.”
The value of partnerships is also evident in FOSSA’s go-to-market strategy. “We can’t do it all ourselves,” Julian states. “Our team has 30 people, but even if we grew to 200 employees overnight, we couldn’t cover the whole market. That’s why we’re leveraging existing IoT ecosystems.” He likened their approach to OpenAI’s plugin platform. “We’re enabling third parties to use our technology. IoT solution providers and device manufacturers can integrate FOSSA’s tech into their products. It’s like we’re providing the engine, and they’re building the cars.” This ‘platformization’, as Julian calls it, is key to FOSSA’s rapid scaling strategy. “The IoT market is huge. By partnering with existing players, we can reach far more customers than we ever could on our own.”
Future Outlook: Direct-to-Device and Emerging Markets
Looking ahead, Fernandez identified several trends shaping the future of the satellite IoT industry. Low Earth Orbit (LEO) satellites have been on the rise (both figuratively and literally) and have resulted in easier-to-close link budgets and much lower capital expenditures required in comparison to Geostationary Earth Orbit (GEO) satellites. These advantages have led to “a shift towards direct-to-device technologies,” says Fernandez. “This is the future of connectivity in general from space.”
An advocate for the many ways IoT can support and optimise a variety of industries and fields, Fernandez also sees a move to educate the general public on how IoT can help. “The sectors that can benefit from IoT are extensive and diverse, from developing countries and rural areas that typically do not have access to connectivity to corporations in industries like oil and gas, energy, and national security.”
For companies looking to make their mark in the IoT industry, Fernandez suggests “the disruptions in the business model will be linked to the downstream applications more than the tech and connectivity itself. Providers will need to focus on how they can deliver that end-to-end solution.”
The coming years will be crucial as companies like FOSSA Systems work to deliver on their ambitious goals and bring the benefits of global, low-latency IoT connectivity to users around the world. As this technology continues to evolve and mature, it has the potential to transform industries, drive economic growth, and connect the unconnected in ways that were previously unimaginable.
Share this article:
