Gartner: ANZ LEO satellite direct-to-device connections to reach new highs in 2027

Low-earth orbit (LEO) direct-to-device (D2D) services in Australia and New Zealand are expected to deliver more than 670,000 connections in 2026, up from more than 250,000 connections in 2025, according to Gartner.

By 2027, the number of direct-to-device services in ANZ is expected to top 1.5 million connections.

LEO satellites orbit closer to the Earth than traditional satellite technology, providing faster connections and lower latency. This enables connectivity services to be delivered directly to standard smartphones in large geographies with gaps in mobile coverage and higher premium smartphone penetration.

LEO D2D services bridge the connectivity gap by providing text, voice, and eventually, broadband data to users beyond the reach of traditional terrestrial mobile networks.

Gartner forecasts end-user spending on LEO D2D services in Australia and New Zealand to reach approximately US$23 million (A$32.8 million) in 2026, up from US$5 million (A$7.1 million) in 2025. Spending is projected to reach US$66 million (A$94.3 million) in 2027.

Gartner senior director analyst Khurram Shahzad said Australia and New Zealand are among the early adopters of LEO D2D satellite communications due to the vast remoteness and persistent gaps in terrestrial mobile coverage in both countries.

“Adoption is accelerating rapidly as services move beyond early trials and into broader commercial availability, demonstrating how satellite connectivity can extend mobile coverage without the need for traditional infrastructure,” Shahzad said.

“Current demand for LEO D2D services in Australia and New Zealand is primarily being driven by consumers requiring mobile connectivity in rural and remote areas, particularly for safety, recreation and off-grid travel.

“However, enterprise demand is steadily increasing for field operations in industries such as mining, agriculture, forestry and transportation, where continuous connectivity is critical for operations and worker safety.”

Gartner also predicted 100 per cent geographic outdoor mobile coverage will become a baseline customer expectation within five years, eliminating tier-one communication service providers (CSPs) of their historic infrastructure-based coverage advantages.