IoT Gateways Market

Increased IoT Demand in different industries boosts the market growth.

With the aid of IoT gateways, the IoT device can communicate with the actual environment, including sensors and distant servers. As a result, IoT gateways provide services for various industries, such as health, business operations, transportation, home automation, security, and so forth. A typical gateway is a piece of hardware or software that facilitates the connectivity of devices to the Internet of Things or between devices. Every industrial sector is installing sensors, and twhich a mechanism to link to the server handling data processing.  

Recent developments in the sector have introduced characteristics that simplify industrial activities in general. The Internet of Things gateway can effectively translate protocols, analyze data at the local node, and filter data before transferring it to the external node.       

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. In healthcare globally, only 25% of operations are based on IoT gateways, and there is a huge opportunity of a 75% gap across many developing and developed regions.

IoT Gateways Market Segment Insight

The Global IoT Gateways Market Industry is poised for substantial growth, with projections indicating a market value of 1.56 USD Billion in 2024 and an anticipated increase to 6.41 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 13.69 percent from 2025 to 2035, reflecting the increasing demand for IoT solutions across various sectors. The expansion of smart devices, industrial applications, and government initiatives are likely to contribute to this upward trend, positioning the IoT gateways market as a pivotal component of the broader IoT ecosystem.

The expansion of Industrial IoT (IIoT) applications is significantly influencing the Global IoT Gateways Market Industry. Industries such as manufacturing, energy, and logistics are increasingly adopting IoT solutions to optimize operations and reduce costs. For example, predictive maintenance powered by IoT gateways can lead to a reduction in downtime by up to 30 percent. As industries seek to harness real-time data for decision-making, the market for IoT gateways is expected to grow, with projections indicating a market value of 1.56 USD Billion in 2024, expanding to 6.41 USD Billion by 2035.

The increasing proliferation of smart devices globally is a primary driver for the Global IoT Gateways Market Industry. As more households and businesses integrate smart technologies, the demand for efficient data management and connectivity solutions escalates. For instance, the number of connected devices is projected to reach 75 billion by 2025, necessitating robust IoT gateways to facilitate seamless communication. This trend indicates a growing reliance on IoT gateways to manage data traffic and ensure interoperability among diverse devices, thereby enhancing user experience and operational efficiency.

The increasing concern over data security and privacy is a critical driver for the Global IoT Gateways Market Industry. As IoT devices proliferate, the risk of cyber threats escalates, prompting organizations to seek secure gateway solutions. IoT gateways serve as a first line of defense, providing encryption and authentication features to protect sensitive data. The demand for enhanced security measures is particularly pronounced in sectors such as healthcare and finance, where data breaches can have severe consequences. Consequently, the focus on security is likely to propel the growth of the IoT gateways market as businesses prioritize safeguarding their digital assets.

Government initiatives aimed at promoting smart city projects and digital transformation are driving the Global IoT Gateways Market Industry. Various governments are investing in infrastructure to support IoT deployments, which enhances connectivity and data exchange. For instance, initiatives like the Smart Cities Mission in India aim to improve urban infrastructure through IoT technologies. Such regulatory support not only fosters innovation but also encourages private sector investment in IoT gateways, thereby propelling market growth. The anticipated CAGR of 13.69 percent from 2025 to 2035 underscores the potential for sustained expansion in this sector.

The integration of artificial intelligence (AI) and machine learning (ML) into IoT gateways is transforming the Global IoT Gateways Market Industry. These technologies enable gateways to process data locally, reducing latency and bandwidth usage while enhancing decision-making capabilities. For instance, AI-driven analytics can identify patterns and anomalies in real-time, allowing for proactive responses to potential issues. This trend is particularly relevant in sectors such as agriculture and smart cities, where timely data insights are crucial. As AI and ML continue to evolve, their incorporation into IoT gateways is expected to drive market growth and innovation.

This market has been segmented by region into North America, Europe, Asia-Pacific, and the rest of the world. Asia-Pacific holds most of the market share and is also anticipated to grow at a CAGR of 16.17% from 2023 to 2030. Due to the growing number of connected devices and the widespread use of IoT across several regional industries, this region is experiencing a need for IoT gateways. The region's demand for IoT gateways will directly expand due to the rise in linked devices.

Throughout the projected period, it is anticipated that the IoT node and gateway market in the Asia Pacific will proliferate. Businesses in the Asia Pacific region are concentrating on R&D in the IoT node and gateway sectors.

Due to established economies such as the U.S. and Canada, North America led the worldwide IoT node and gateway market and had a sizable share. Moreover, due to growing awareness of the use of IoT nodes and gateway systems for security purposes, North America is predicted to present significant potential for manufacturers in the area.  

Bharat Sanchar Nigam Ltd. partnered strategically with British satellite communications operator Inmarsat to offer its Internet of Things services in India last year. With the current ELERA L-band services already offered in the nation, Inmarsat satellite-based connectivity for IoT and aggregator devices is now possible thanks to this agreement.      

Governments from all over the world are also funding and supporting IoT research and development to boost productivity. Numerous governments are looking for innovations and developments in critical fields, including intelligent traffic management systems, energy conservation through smart meters, and security system augmentations through intelligent cameras. Several governments, such as China and India, sponsor future IoT research programs to create smart cities. Hence, this would also drive market growth during the forecast period.

Major players in the IoT Gateways Market, including Texas Instruments Incorporated, NXP Semiconductors, TE Connectivity Ltd, Hewlett Packard Enterprise Co., Microchip Technology Inc., Dell Technologies, Aaeon Technology Inc., Nexcom International Co., Ltd., Helium Systems, Inc., STMicroelectronics N.V., Adlink Technology Inc., and Eurotech S.P.A.