IoT gateway market is anticipated to grow at a significant CAGR of 17.3% during the forecast period (2024-2031).  The market growth is attributed to the increasing use of IoT solutions by organizations across diverse industries to enhance decision-making processes to boost business productivity. According to the International Insurance Society, in March 2021, global spending on IoT is forecast to pass $1.0 trillion in 2022, reaching $1.1 trillion in 2023, with a market opportunity of $4.0 trillion by 2025 spread across industrial and consumer ecosystems. IDC further forecasts that the 75 billion IoT-connected devices produce a data volume of 79.4 zettabytes by 2025.

Market Dynamics

Increasing 5G Enabled IoT Applications

5G capable distributed event-driven edge computing service is necessary as IoT applications demand is a very dynamic reaction from the end-to-end IoT system. To swiftly create event-driven edge computer applications running on IoT gateways, IoT application developers require a flexible and agile development environment, such as the cloud-native method. IoT gateways are installed in cars to record telemetry and other diagnostic health data in addition to continuously tracking GPS location. To communicate with a cloud-native IoT application to manage these gateways, adding an extra distributed event processing component at the edge may result in higher latency, which could ultimately cause OT operational problems for the end user.

Growing Expansion of Cloud Computing 

The IoT gateway market is expanding owing to the increasing accessibility of cloud computing platforms. Scalability, flexibility, and cost-effectiveness are just a few advantages that cloud computing platforms offer and are crucial for the proper implementation of IoT solutions. IoT gateway demand is also developing as a result of the growing trend of predictive maintenance and the growing need for cloud-based analytics, which are propelling the adoption of cloud-based IoT platforms. As a central hub, an IoT gateway facilitates the transfer of data to and from devices. The cloud is used for communication between people and other devices. Interact with IoT devices via the gateway by sending and receiving data, such as protocol updates, using cloud-enabled software.

Market Segmentation

• Based on the component, the market is segmented into processor, sensor, and memory and storage devices.

• Based on the connectivity, the market is segmented into Bluetooth, Wi-Fi, ZigBee, ethernet, and cellular.

• Based on the end-user, the market is segmented into automotive and transportation, healthcare, industrial, consumer electronics, BFSI, oil and gas, retail, aerospace and defense.

Bluetooth is Projected to Hold the Largest Market Share

Bluetooth gateways link Bluetooth-enabled products to hardware or other devices. Gateways are made to wirelessly gather data from Bluetooth devices and use internet networks to move it to the cloud. Bluetooth BLE beacons and sensor products send and receive real-time data over routers or gateways. The ability of Bluetooth-enabled IOT gateways to run IOT applications with minimal power consumption is a benefit that encourages the market expansion of Bluetooth-based IOT gateways. Additionally, the market is being driven by the demand for IoT gateways in smart buildings and temperature monitoring in the retail sector. For instance, in October 2023, Nordic Semiconductor, in low-power wireless IoT solutions, announced a significant addition to its nRF54 Series, its fourth generation of Bluetooth Low Energy Systems-on-Chip (SoCs). The first SoC in the nRF54L Series, the nRF54L15, is perfectly suited for the next generation of wireless IoT products. The SoC targets medical/healthcare, smart home, industrial IoT, VR/AR, PC accessories, remote controllers, gaming controllers, and multiple other IoT applications.

Automotive and Transportation Segment to Hold a Considerable Market Share

The factors supporting segment growth include the increasing application of IoT gateway in the transportation sector, including fleet management, vehicle-to-vehicle communication, vehicle infrastructure connectivity, and self-driving cars. The IoT-enabled automobiles manage the vehicle's functions to prevent collisions and lighten the driver's workload. With the advancements in cellular and IoT technologies, manufacturers can unleash their network to take advantage of various performance and business benefits, such as improved operational cost, speed, and efficiency. For instance, in March 2023, Volvo Group implemented a new IoT network to make factories smarter. To proactively monitor the health of the autonomous guided vehicles (AGV) and prevent their shutdown, the IoT team at Volvo Group Digital & IT, supporting the factory in Lyon, envisioned a wireless system for predictive maintenance. 

Regional Outlook

Global IoT gateway market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Growing Demand for IoT Gateway in Asia-Pacific

The regional growth is attributed to the increasing demand for secure data transfer and linked devices. Numerous technology companies that are driving the development of innovative goods and services are based in the region. The region’s high number of tech-savvy customers is also driving IoT gateway demand. Additionally, cohesive government policies in the region to encourage the use of IoT technology further promote regional market growth. 

Global IoT Gateway Market Growth by Region 2024-2031

North America Holds Major Market Share

The regional market growth is attributed to the growing demand for secure data transfer and connected devices, increasing internet penetration rate, and the growing number of loT-enabled gadgets for industrial automation systems, connected automobiles, and smart home appliances. High computational capabilities and integrated memory of IoT gateway promote its usage in digital signage, utilities, renewable energy, industrial automation, and oil and gas applications. For instance, in February 2024, Digi International Inc., a provider of IoT connectivity products and services, introduced Digi IX40, a 5G edge computing industrial IoT cellular router solution. Digi IX40 is purpose-built for Industry 4.0 use cases such as advanced robotics, predictive maintenance, asset monitoring, industrial automation, and smart manufacturing. Fully integrated with Digi Remote Manager, this solution’s capabilities improve security and scalability while ensuring speed, reliability, and efficiency.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the IoT gateway market include Cisco Systems, Inc., Huawei Technologies Co., Ltd., IBM Corp., Intel Corp., and Siemens AG among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. 

Recent Developments

• In February 2024, ADLINK Technology Inc. introduced a new MXA-200 Arm-based 5G IIoT gateway with a 1.6GHz NXP i.MX 8M Plus quad Arm Cortex-A53 processor. The MXA-200 5G IIoT gateway delivers high performance with low power consumption, bundled in a rugged and fanless package with an optional external heatsink, and combined with wireless options for Bluetooth, wireless LAN, 4G, and 5G. The MXA-200 is the ideal choice for remote edge networks in smart manufacturing, renewable energy, and smart city applications.

• In November 2023, Diehl Metering, in smart metering solutions introduced IZAR IoT Gateway Premium, a revolutionary all-in-one outdoor gateway that sets a new standard for multi-connectivity in the IoT landscape. This device combines mioty, LoRaWAN, and M-Bus OMS radio technologies in a single infrastructure, offering unparalleled efficiency and flexibility for smart metering and smart city initiatives.
  

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the IoT gateway market. Based on the availability of data, information related to new products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.