3GPP NTN Pulls Satellite IoT Into Cellular Modules, Ending Proprietary Hardware Era

3GPP NTN standardization kills standalone satellite IoT hardware

3GPP Non-Terrestrial Networks (NTN) has moved satellite IoT from proprietary add-on hardware into standard cellular modules, according to IoT Analytics' late-July MWC 2026 networking trends analysis. Satellite connectivity is no longer a separate hardware category requiring dedicated modems and service contracts. Instead, 3GPP Release 17 enables NB-IoT and NR-based devices to connect directly to satellites using standardized waveforms integrated into cellular IoT modules, SIMs, and operator workflows.

Module vendors are now segmenting portfolios into Cat 1 bis for current volume deployments and 5G RedCap/eRedCap as the migration path, with NTN support built into that roadmap. LTE-M and NB-IoT are projected to account for the majority of new cellular IoT module shipments for battery-powered applications by 2026, the same timeframe when NTN-capable modules are being designed in. 5G RedCap consumes roughly 70% less power than standard 5G while offering higher bandwidth than NB-IoT, making it suitable for industrial cameras, telematics, and wearables that also need NTN reach.

Satellite incumbents lose differentiation to cellular module vendors

Proprietary satellite IoT providers—Globalstar, Inmarsat, Iridium, Swarm—historically sold dedicated modems and bundled service contracts. 3GPP NTN shifts satellite connectivity into the domain of cellular module vendors like Quectel, Sierra Wireless, and Telit Cinterion, which now integrate NTN into standard SKUs. Mobile network operators and MVNOs can sell hybrid terrestrial-plus-satellite connectivity under one SIM and contract, reducing the need for standalone satellite hardware.

This change materially affects enterprise hardware strategy. Buyers planning long-lived deployments in logistics, mining, maritime, or energy should avoid locking into proprietary satellite-only modules. Instead, demand a roadmap for NTN-compliant LTE-M, NB-IoT, or RedCap modules. This reduces vendor lock-in and eliminates future module swap costs when satellite coverage becomes a standard cellular feature rather than a separate network.

Consolidating satellite and terrestrial connectivity into a single module and SIM reduces bill-of-materials costs by eliminating separate satellite modems and antennas. It also simplifies certification and inventory costs since the same SKU works across multiple geographies and coverage scenarios. With NTN inside 3GPP, enterprises can treat satellite coverage as a feature of their cellular provider, lowering operational risk around device provisioning, security, and lifecycle management. One stack to patch and monitor instead of two.

SGP.32 eSIM commercialization moves value to orchestration

GSMA SGP.32 v1.2, published in June 2024, enables zero-touch, build-once, ship-anywhere eSIM provisioning for constrained IoT devices with limited CPU and RAM. IoT Analytics' 2026 analysis notes that companies are now commercializing SGP.32, but value is shifting to eSIM orchestration platforms rather than the SIM itself. Multiple connectivity providers and module makers now support SGP.32 profiles, while differentiated value lies in platforms that manage millions of eSIM profiles, policies, and carrier swaps.

ABI Research projects 140 million eSIM-enabled IoT device shipments in 2025, with acceleration in 2026 as SGP.32 moves beyond automotive and utilities into broader verticals. SGP.32 is optimized for constrained devices and supports remote over-the-air profile management across device lifecycles without physical SIM swaps.

IoT module vendors—Quectel, Murata, Thales, Telit Cinterion—are integrating SGP.32 into new modules for large-scale, low-power deployments. eSIM connectivity and MVNO platforms like 1NCE, Soracom, KORE, and Hologram are building SGP.32 support into their orchestration stacks, often combining multi-IMSI and eUICC capabilities. Classical M2M SGP.02 eSIM implementations remain in market but are heavier and less optimized for constrained devices. Physical SIMs are still cheaper per unit for small deployments but offer no carrier agility or remote management at scale.

What to watch: RFP criteria and deferred carrier selection

Enterprises issuing IoT connectivity RFPs should make SGP.32 support a hard requirement for any new battery-powered or globally shipped device programs. This materially affects long-term carrier lock-in risk and total cost of ownership. SGP.32 allows remote profile updates instead of truck rolls for millions of devices, and it enables deferring final carrier selection until after deployment. If you ship devices globally with eSIM profiles pre-loaded, you can activate local carriers in-country without physically touching the device.

Hyperscalers and IoT platforms—AWS IoT, Azure IoT, Cisco IoT—that offer integrated lifecycle management will increasingly compete with standalone connectivity providers for control of the eSIM policy layer. Evaluate whether your connectivity provider's orchestration platform integrates with your existing device management stack or whether you need a separate relationship for eSIM lifecycle management. The cost of split management increases with fleet size.