Next-Generation Connectivity

The global Low Earth Orbit (LEO) satellite market was valued at just under US$ 4,190 million in 2022. With an expected compound annual growth rate of 18%, this should reach almost $11,348 million by 2028.

While costs remain relatively high, LEO satellites are cheaper than regular satellites and are gaining popularity in Internet of Things (IoT) applications as they provide extensive coverage, reduce delays, and are highly reliable. More and more providers are offering LEO satellite services.

Current applications for these satellites include disaster recovery and resilience in remote areas, providing a resilient communication infrastructure during a natural disaster or other emergencies when terrestrial networks are disrupted. Another important application is IoT and machine-to-machine (M2M) communication, as LEO satellites can provide ubiquitous, low-latency coverage.

Capabilities continue to expand. For example, in early 2024, T-Mobile announced that SpaceX launched the first set of Starlink LEO satellites with direct-to-cell capabilities, meaning communication can be supported even in cellular “dead zones.”

In logistics, maritime shipping is already benefitting from new tracking capabilities and global connectivity to smart containers. In 2023, logistics provider Maersk teamed up with Starlink to use satellite data to track container ships, optimize routes, and improve fuel efficiency, and there are plans to use this connectivity solution to digitize vessel operations.

Next-generation connectivity enables private network sharing and slicing, allowing a single network to be used for multiple purposes by isolating channels to guarantee security and enhanced user experience.

A great example of this is Amazon Sidewalk, designed to extend the coverage and functionality of smart home devices by pooling a small portion of users' internet bandwidth. A similar example of democratization of infrastructure is how Apple AirTags operate – they use the shared network created by all Apple users.

In the context of 5G and beyond, network slicing allows a single physical network infrastructure to be divided into multiple virtual networks, providing greater flexibility in the use and allocation of network resources. This can support a wide range of services and applications, including enhanced mobile broadband, IoT services, mission-critical communications, and industrial automation.

Here at DHL, we anticipate industrial deployments will feature more use of existing networks, infrastructure democratization, and network slicing. All this offers significant benefits for logistics operations, including customized services, quality of service, efficient resource utilization, enhanced security, and resilience.

Recent applications include the Hamburg, Bremerhaven, and Wilhelmshaven Port’s private networks, a solution providing committed network resources for the container terminal operator Eurogate’s internal data traffic. Another example is the final-mile goods tracking application used by logistics company OnAsset Intelligence, which is based on the Amazon Sidewalk mesh network.