IoT Gateways Market Size

IoT Gateways Market Overview

IoT Gateways Market Size was valued at USD 1.2 Billion in 2022. The IoT Gateways market industry is projected to grow from USD 1.398 Billion in 2022 to USD 3.40 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 13.53% during the forecast period (2024 - 2030). The technological shift from 4G to 5G, Increased consumer spending on smart products, and required for better interface for end products drives the market for IoT Gateways.

Figure 1: IoT Gateways Market Size, 2023-2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

IoT Gateways Market Trends

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.       

Figure 2: IOT Market penetration in different industries

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

As per the figure above, there is a massive opportunity in retail, BFSI, healthcare, consumer electronics, and other sectors. Oil and gas, as well as the industrial sector, is witness to show commendable growth due to the implementation of technologies such as hyperautomation, artificial intelligence, and machine learning. 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

IoT Gateways by Component Type Insights

Based on component type, the IoT Gateways Market segmentation includes a processor, sensor, memory, and storage device, among other components. The processor segment dominated this market over the past few years and is also expected to grow at a CAGR of 40.3% through the forecast period. The recently released IoT gateways include strong Intel microprocessor integration. The Intel Company develops and produces integrated processors, platforms, chipsets, circuits, and products such as embedded software and Intel Security. Desktops, tablets, SSDs, boards & kits, server solutions, Intel gateways, modems, and RF transceivers are just a few goods the company sells. It offers embedded application solutions for the healthcare, automotive, energy, and retail markets.     

The Internet of Things is quickly gaining ground in several global businesses. IoT gateways are critical for integrating current and upcoming devices into the Internet of Things. The tasks carried out by IoT gateways include data filtering, device connectivity, and security, protocol translation, to name just a few.         

Figure 3: IoT Gateways Market, by Component Type, 2021 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The sensor segment is the second-largest category, with significant growth of 30.2% through the forecast period. IoT gateways, including the Dell Edge gateway 3000 series, include integrated MEMS sensors, GPS, pressure, temperature, humidity, and accelerometer. IoT gateways typically have to be wireless and powered by batteries. Hence, any decrease in power consumption increases the lifespan of the gadgets. MEMS sensors drastically lower their power consumption without sacrificing functionality by utilizing several forces found in electromagnetism or fluid dynamics. These elements fuel the segment's expansion.        

February 2023: - At the IoT Solutions World Conference in Barcelona, HARDWARIO announced the launch of the new expansion module CHESTER-V1 for its IoT gateway CHESTER. A vital IoT gateway called Chester makes connecting and communicating with various sensors and devices simple. Customers can connect to the Astrocast satellite network using this new satellite module, enabling data transmission from even the most remote and difficult-to-reach areas.   

February 2023 - Using LoRaWAN, an open, cloud-based protocol that enables sensors and internet of things (IoT) devices to communicate wirelessly using the LoRa wireless modulation technique, Singaporean technology provider SPTel has built Singapore's first sensor network.      

IoT Gateways by Connectivity Insights

Based on connectivity type, the IoT Gateways Market segmentation includes Bluetooth, Wi-Fi, ZigBee, Ethernet, cellular, and others. The Bluetooth category dominates the market, with a share of 32.5% in 2022. Power usage is one of the most critical problems with short-range wireless communication technology. A gadget with high power consumption must be operated with a steady power source rather than a battery for mobile applications.

The second-largest connectivity segment is Wi-Fi. Due to the importance of coverage with in-building Wi-Fi, Wi-Fi is a natural choice for IoT connectivity. Building and home automation, as well as in-home energy management, are examples of explicit scenarios where a Wi-Fi system that has been built can be used as a communication channel, and devices can be connected to electrical outlets.     

Additionally, China's mobile operators, Telecom and Unicom, are forming domestic and international alliances with suppliers and producers to benefit a variety of equipment, cars, and gadgets from connectivity.   

IoT Gateways End-User Insights

Based on end-user type, the IoT Gateways Market segmentation includes automotive & transportation, healthcare, industrial, consumer electronics, BFSI, oil & gas, retail, aerospace & defense, and others. The industrial segment accounted for the largest share of this market and is also estimated to grow at a CAGR of 13.4% through the forecast period. The increase in linked devices across all industrial sectors has significantly fueled the need for IoT gateways need for enhanced security protocols. Cyber protection has grown recently due to the industrial sector's massive data generation. The demand for IoT gateways in the industrial sectors has expanded due to these considerations. Additionally, IoT gateways have become essential to the entire industrial ecosystem due to the growing emphasis on Industry 4.0 and intelligent technologies. Due to rising demand, vendors in the market are releasing more improved versions of IoT gateways.        

Furthermore, the healthcare segment is also anticipated to grow at the fastest CAGR of 14.9% through the forecast period. As hospitals, laboratories, and medical device makers work to maintain excellent patient care while facing primary cost containment or even cost-cutting demands, the healthcare sector is anticipated to experience significant growth. The IoT gateway in healthcare is transforming the healthcare sector through real-time data gathering, remote connectivity of medical devices, and expanded access to time monitoring and analysis.       

Moreover, IoT gateways in the healthcare industry are revolutionizing by enabling clinicians to collect real-time data, remotely monitor patient health using connected medical devices, and have more time to monitor and analyze data. For instance, air quality monitors have specially created the Internet of Things gadgets that increase the safety of patients admitted for surgical procedures. On a mesh network, sensor modules are positioned, and at regular intervals, they transmit data to an internal gateway device.         

IoT Gateways Regional Insights

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.  

Figure 4: IOT GATEWAYS MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

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.      

IoT Gateways Key Market Players & Competitive Insights

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.    

Key Companies in the IoT Gateways market includes.

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  Texas Instruments Incorporated

  
  


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  NXP Semiconductors

  
  


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  TE Connectivity Ltd,

  
  


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  Hewlett Packard Enterprise Co.

  
  


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  Microchip Technology Inc.

  
  


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  Dell Technologies

  
  


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  Aaeon Technology Inc.

  
  


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  Nexcom International Co., Ltd.

  
  


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  Helium Systems, Inc.

  
  


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  STMicroelectronics N.V.

  
  


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  Adlink Technology Inc.

  
  


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  Eurotech S.P.A. ZeroStack, Inc

  
  


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  Cisco Systems, Inc.

  
  


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  Advantech Co., Ltd.

  
  


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  Huawei Technologies Co., Ltd.

  
  

IoT Gateways Industry Developments

On Apr.03, 2023, Renesas announced that its RZ/G2L CPU module, MYIR MYC-YG2LX, could target HMI and IoT gateway applications. Renesas RZ/G2L CPU module is designed for advanced IoT edge gateways, HMI, and other embedded devices with video capabilities. It comes with up to 32GB eMMC flash, 4GB DDR4, and various I/Os such as USB 2.0, gigabit Ethernet, and camera & display interfaces accessible through 222 castellated holes.

On Mar.30, 2023, Primax announced a reference design partnership with Qualcomm for the IoT gateway platform. The QCS6490-based IoT gateway platform is specifically designed for fleet and industrial IoT applications, while new IoT processors are designed to support four major operating systems. High compute capabilities with a strong feature set make the QCS6490 a versatile solution for next-generation edge processing devices such as gateways, cameras, autonomous mobile robotics, industrial automation equipment (IPC, PLC), and more.

On Dec.30, 2022, Ground Control announced the development of a new satellite IoT Gateway for larger data payloads in remote locations following the launch of the Iridium Messaging Transport (IMT) satellite service. Ground Control provides satellite-focused, IoT, and M2M critical communications connectivity. The new satellite IoT gateway will enable the more efficient transmission of even larger data payloads from remote locations.

On Nov.11, 2022, OneWeb, a leading satellite connectivity provider and a joint venture of the British government and India's Bharti Global, announced signing a multi-year agreement with Paratus Systems (India), a leading IT services provider, to build a satellite gateway services in Luanda, Angola. 

The gateway will provide low-Earth orbit (LEO) satellite services to several African countries, facilitating high-speed, low-latency connectivity supply to various organizations. The Luanda project is the first of several planned OneWeb gateways projects. Paratus recently launched a fiber connection in the Democratic Republic of Congo and inaugurated data centers in Zambia and Namibia.

On Mar. 22, 2022 Lantronix Inc., a leading global provider of secure turnkey solutions for IIoT and Intelligent IT, demonstrated the industry's first DOT/Smart City solutions with Lantronix ConsoleFlow centralized device management. Integrating Lantronix's ConsoleFlow, Ethernet PoE switches, and IoT cellular gateways enables true zero-touch automation and a single pane of glass management to its smart city solution.

February 2023, New LoRaWAN solutions from TEKTELIC will be unveiled at MWC Barcelona in 2023. The Mobile World Congress, the world's largest mobile industry trade show, brings together influential businesses and technologists to talk about the effect of mobile technology and potential future opportunities.    

February 2023, The LEXI IoT Gateway with support for LoRaWan is currently delivering to clients, according to the firm behind the sector's most comprehensive IoT platform, which is revolutionizing how both businesses and consumers manage and automate their Smart Spaces. The inclusion of LoRaWan on the all-purpose LEXI platform increases market potential by integrating smart building and smart home technologies into a single multi-protocol gateway.

IoT Gateways Market Segmentation

IoT Gateways Component Outlook

• Processor


• Sensor


• Memory and Storage Device


• Others Components

IoT Gateway Connectivity Outlook

• Bluetooth


• Wi-Fi


• ZigBee


• Ethernet


• Cellular


• Other Connectivity Types

IoT Gateways End-User Outlook

• Automotive and Transportation


• Healthcare


• Industrial


• Consumer Electronics


• BFSI


• Oil & Gas


• Retail


• Aerospace & Defense


• Others

IoT Gateways Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America