IoT Routers Market Report: Trends, Forecast and Competitive Analysis to 2030

IoT Routers Trends and Forecast

The future of the global IoT routers market looks promising with opportunities in the industrial automation, transportation, medical, smart grid, and ATM markets. The global IoT routers market is expected to reach an estimated $6.8 billion by 2030 with a CAGR of 18.2% from 2024 to 2030. The major drivers for this market are growing number of internet users, increasing adopting IIOT for remote monitoring, and on-going development of smart city projects.

Lucintel forecasts that 4G/LTE connectivity will remain the larger segment over the forecast period due as it is widely available and provides good coverage, thus making them ideal for a variety of IOT applications.

Within this market, industrial automation is expected to remain the largest segment due to rising demand for remote monitoring and control of machinery and equipment, and for data collection and analysis, and predictive maintenance.

APAC will remain the largest region during the forecast period due to increasing demand for IOT devices and solutions in a variety of industries, such as medical, transportation, and industrial applications.

Emerging Trends in the IoT Routers Market

The internet of things (IoT) routers market is rapidly evolving as technology advances and the demand for seamless connectivity across various applications increases. Emerging trends in this market reflect the growing need for enhanced performance, security, and integration with new technologies. These trends are driven by the expansion of smart infrastructure, the rise of industrial automation, and the proliferation of connected devices. Understanding these trends is crucial for stakeholders to capitalize on opportunities and address the challenges in this dynamic sector.

• Integration with 5G Technology: The integration of 5G technology into IoT routers is a significant trend, driven by the need for higher data transfer rates and lower latency. 5G-enabled IoT routers provide faster and more reliable connectivity, supporting the increasing data demands of smart cities, industrial automation, and advanced consumer applications. This trend enhances the performance of IoT systems, enabling real-time data processing and improved network efficiency. As 5G networks continue to roll out globally, the adoption of 5G-compatible IoT routers will become more prevalent, driving innovation and expanding use cases.
• Edge Computing Capabilities: The incorporation of edge computing capabilities into IoT routers is gaining momentum as businesses seek to process data closer to the source. Edge computing reduces latency by handling data processing locally rather than relying on centralized cloud servers. This trend is crucial for applications requiring real-time responses, such as autonomous vehicles and industrial automation. IoT routers with edge computing support enable faster decision-making and reduced data transmission costs, making them ideal for environments where quick and efficient data processing is essential.
• Enhanced Security Features: As cyber threats become more sophisticated, enhanced security features in IoT routers are increasingly important. This trend includes the implementation of advanced encryption, secure boot processes, and real-time threat detection mechanisms. IoT routers with robust security measures help protect sensitive data and ensure the integrity of connected networks. With the rising number of connected devices and the potential for security breaches, investing in IoT routers with comprehensive security features is crucial for safeguarding against cyber-attacks and ensuring reliable operation.
• Support for Low Power Wide Area Networks: The growing use of Low Power Wide Area Networks (LPWAN) technologies, such as LoRaWAN and NB-IoT, is influencing the design of IoT routers. LPWAN provides long-range connectivity with low power consumption, making it suitable for applications like smart agriculture, smart metering, and environmental monitoring. IoT routers supporting LPWAN enable efficient communication for devices that need to operate over extended distances with minimal energy use. This trend caters to the needs of IoT deployments in remote or rural areas where traditional connectivity options are limited.
• Focus on Scalability and Modularity: Scalability and modularity are becoming key considerations in IoT router design as the number of connected devices continues to grow. Routers that offer modular components and scalable features can adapt to varying network demands and expand as needed. This trend is particularly relevant for large-scale IoT deployments in smart cities and industrial settings. By providing flexible and scalable solutions, IoT routers can support diverse applications and accommodate future growth, making them more versatile and cost-effective for enterprises and service providers.

The new developments in the IoT routers market point out the development of more sophisticated technologies and solutions for connectivity and data management. The future of IoT routers is influenced by several factors including 5G integration, edge computing, security enhancements, LPWAN capability, and emphasis on scalability and modularity. These trends are indicative of the growing demand for quicker, more dependable and robust, safe connection services thus establishing IoT routers as a necessity within the ever growing Internet of Things.

Recent Developments in the IoT Routers Market

The IoT routers market is rapidly evolving, driven by the increasing demand for connectivity solutions that support a growing number of connected devices across various applications. Recent developments in this sector reflect advancements in technology, enhanced performance capabilities, and a focus on addressing new challenges and opportunities in the Internet of Things (IoT) ecosystem. These developments are shaping the market landscape and setting new standards for connectivity, security, and efficiency.

• Integration of 5G Technology: The integration of 5G technology into IoT routers represents a major development, driven by the need for higher data speeds and reduced latency. 5G-enabled routers provide significant improvements in connectivity, supporting more devices simultaneously with faster data transfer rates. This advancement is critical for applications requiring real-time data processing, such as autonomous vehicles and smart city infrastructure. As 5G networks continue to expand, IoT routers equipped with 5G capabilities will become increasingly prevalent, offering enhanced performance and future-proofing for a wide range of IoT applications.
• Advancements in Edge Computing: The adoption of edge computing within IoT routers is transforming how data is processed and managed. Edge computing allows data to be processed locally on the router, rather than being sent to centralized cloud servers. This reduces latency, improves response times, and decreases the load on network infrastructure. Edge-enabled IoT routers are particularly beneficial for applications that require immediate data analysis, such as industrial automation and smart grid management. This development enhances the efficiency and speed of IoT systems by enabling faster decision-making and reducing reliance on distant data centers.
• Enhanced Security Features: With the increasing number of connected devices, security has become a major focus in IoT routers. Recent developments include the incorporation of advanced security features such as robust encryption protocols, secure boot processes, and real-time threat detection. These enhancements help protect sensitive data and prevent unauthorized access to IoT networks. As cyber threats continue to evolve, IoT routers with improved security measures are essential for safeguarding against potential vulnerabilities and ensuring the integrity of connected systems and devices.
• Support for Low Power Wide Area Networks (LPWAN): IoT routers are increasingly supporting Low Power Wide Area Networks (LPWAN) technologies, such as LoRaWAN and NB-IoT. LPWAN provides long-range connectivity with minimal power consumption, making it ideal for applications in remote or hard-to-reach areas. This development is significant for use cases such as smart agriculture, environmental monitoring, and smart metering, where devices need to operate efficiently over extended distances. By integrating LPWAN capabilities, IoT routers offer greater flexibility and coverage for a wide range of IoT applications.
• Increased Focus on Scalability and Modularity: The demand for scalable and modular IoT routers is growing as the number of connected devices and the complexity of IoT deployments increase. Manufacturers are designing routers that can be easily scaled and customized to meet varying network requirements. This trend allows for more flexible deployments, enabling organizations to expand their networks and add new functionalities without significant overhauls. Scalable and modular routers are particularly useful for large-scale IoT implementations in smart cities and industrial settings, where adaptability and growth potential are crucial.

Recent developments in the IoT routers market highlight significant advancements in connectivity, data processing, and security. The integration of 5G, edge computing, enhanced security features, support for LPWAN, and a focus on scalability and modularity are reshaping the market and addressing the evolving needs of IoT applications. These developments reflect the ongoing evolution of IoT technology, driving improvements in performance, efficiency, and flexibility, and positioning IoT routers as vital components in the expanding Internet of Things ecosystem.

Strategic Growth Opportunities for IoT Routers Market

As industries keep embracing IoT solutions to improve operations, connectivity, and data management, the IoT routers market has several strategic growth avenues. The opportunities emanate from the varying uses that IoT routers, which are responsible for interconnectivity across all those fields, create. The changing state of technology and connection is changing such dynamics by providing opportunities especially because of bettering the network systems, the need for instant information processing, and having expanded and secured options. Nakagawa and mechtilde regained their perspective and concentration after five absences, the following growth potentials were identified in the IoT routers market relating to different usage scenarios:

• Smart Cities: The growth of smart cities presents IoT routers with tremendous growth potentials. As cities continue to extend their use of sensors and other digital devices to oversee infrastructure, traffic, and public utility services, the demand for dependable IoT routers of high performance increases. This helps in reducing the bottleneck created by multiple devices in the case of data collection, as well as communication through devices for intelligent applications such as intelligent transportation, smart lighting and environmental monitoring. Thus, as investments in smart city projects increase at the international level, there is a need for IoT routers designed for urban setups which will help in enhancing connectivity and data management improvement.
• Industrial Automation: IoT routers are an essential element in providing connectivity among machines, sensors, and control systems in industrial automation. The need for robust and secure IoT routers for real-time data processing and machine-to-machine communication has been necessitated by the advent of Industry 4.0 and smart manufacturing. Such routers enhance monitoring, predictive maintenance, and optimization of processes which leads to higher productivity and lower operating costs. The automation and growing usage of IT in industries means more demand for IoT router which is capable of overcoming inter industrial networking and efficiency of operations.
• Healthcare and Remote Monitoring: The healthcare market is innovating at a rapid pace with remote monitoring and telehealth applications which presents the business opportunities for IoT routers. These routers make it possible to connect medical devices, wearables and patient monitoring systems for data transfer to and from patients in real time. IoT routers when integrated with the healthcare solutions assist service providers in improving the patient's condition, accuracy of monitoring, and performing timely action. The increasing use of telemedicine and healthcare monitoring systems explains the need for dependable and safe IoT routers for the ever-expanding needs of the healthcare sector.
• Agriculture and Smart Farming: Routers are now a part of smart farming and precision agriculture as they support connecting a number of different agricultural sensors and devices. These routers are used in soil monitoring systems, weather forecasting systems, automated irrigation systems and help farmers manage their need for various resources and improve on production. Digitalization of agriculture and the transition to smart farming brings along the requirement of routers for the IoT able to carry out remote collection and communication of data in harsh conditions. Increased activity in this direction creates demand for IoT routers, which properly assist the development of advanced and efficient agriculture.
• Retail and Smart Logistics: IoT routers enable the interconnection of the various systems for inventory management point, sales system and management information system for supply chain tracking in the sectors of retail and logistics. These routers allow faster information circulation with data analytics provided in the process to prevent shortages of stock and therefore improve sales including customer experience and general business operations. For logistics organizations, IoT routers are indispensable for shipment tracking, condition tracking, and fleet control. The connection in the retail and logistics industry is in prognosis likely to witness more IoT exposure, hence more IoT routers which can accommodate the staying scope of application within the two industries.

A number of important applications present opportunities for growth of the IoT routers market owing to rising use of smart devices and desire for better connectivity options. Although conceptualized as means for communications, development of IoT routers offers strategic opportunities across smart cities, industrial sectors, health care, agriculture, and retail/logistics services. As technology continues to develop, the IoT routers will be the in-fusion devices cross-linking all these sectors, creating room for innovation and market development.

IoT Routers Market Driver and Challenges

There are many elements such as technology, economy and regulations that are related to the IoT routers market, that seek for elevation and also present challenges. The performance and integration of the IoT routers is affected by the changes in the technologies, the economies of different regions and the regulatory frameworks that are put in place. Understanding these drivers and challenges is important for stakeholders as industries continues to adopt IoT solutions for various applications in this era where opportunities exist and challenges do not make it favorable to tap into such opportunities.

The factors responsible for driving the IoT routers market include:

1. Advancements in 5G Technology: The introduction of 5G technology is one of the factors driving the IoT routers market due to the higher data speeds and lower latency that have never been offered previously. This together with the availability of many IoT devices enables efficient communication between the devices which allows applications that requires timely information and more bandwidth. 5G connectivity further improves the capacity of IoT networks for more goals since larger amounts of data and more devices will be interconnected. With 5G infrastructure fast spreading around the world, the market concerning 5G compatible IoT routers will be expected to grow.

2. Increased Adoption of Smart Cities and Industrial IoT: The increasing implementation of smart city projects and the use of integrated solutions of the industrial Internet of Things creates an opportunity for the increase in demand for IoT routers. As the city utilization of the IoT technology aids the improvement in managing traffic and public facilities and services, industrial IoT advances the use of automation and surveillance in manufacturing and logistics. In addition, IoT routers also aid in the connecting and controlling numerous devices and sensors that are used in these spheres. The latter facilitates the heightening of IoT router provision meant to cater for such integrated technologies within the context of sweeping urban projects and Industry 4.0 age.

3. Growth in Remote Monitoring and Telehealth: There is an increasing demand for IoT routers as the healthcare industry is becoming more dependent on remote monitoring and telehealth services. These routers are designed to provide connectivity to medical and wearable devices and remote monitoring devices facilitating telemedicine and instant data transfer. The increase in chronic diseases, the aging population and the push for more health care seeking behavior creates more consumer demand for IoT routers within the healthcare space. This brings about potential for innovation and growth in IoT router solutions that are designed for the world of health.

4. Restructuring the Integration of Edge Computing: The incorporation of edge computing with Internet of Things (IoT) routers is improving the functions of the routers by facilitating edge data computation. With edge computing, much bandwidth is saved on data that is traveling across the network as data can be processed where its being collected - very critical for time-sensitive tasks like for selbstfahrender automobile industry or in automating factories. With edge computing, IoT routers are able to undertake such processing tasks faster and better and therefore foster more complicated applications as well as optimizing network performance. This push is fostering the creation of high end IoT routers with better processing capabilities and functionality.

5. Growth in the Need for Extra Security London: Given the current sophistication of cyber threats, there is a growing demand for sophisticated IoT routers. It is essential to employ security measures such as encryption, secure boot and threat prevention strategies to shield sensitive information and IoT networks infrastructure. There are ever increasing connected appliances and data security breaches captures the need for IoT routers that offer protection from such attacks. This driver is making manufacturers to advance and elaborate security in their offered IoT router solutions.

Challenges in the IoT routers market are:

1. Security Vulnerability and Threats From Cyber-Attacks: In the current competitive times, one of the most critical dilemmas prevailing in the IoT routers market is the issue of managing security vulnerabilities and risks emerging from cyber threats. IoT routers are such important devices in a connected network that they can also be the target of hackers. It is critical for the IoT router manufacturers to incorporate in their devices features such as encryption and real time threat detection in order to block unauthorized accesses and data losses. Since the threats have been evolving and due to the fact that new hostile parties will arise, it means the IoT router security will need constant alteration and update which is a huge challenge to both the manufacturers and the users.

2. Interoperability and Standardization Issues: One more issue, namely interoperability and standardization, continues to undermine the IoT routers market. The absence of particular uniform standards may cause interoperability difficulties when different devices/systems need to communicate and work with each other. Broadening the capabilities of IoT routers so that they are operable with different devices and a set of protocols is vital for the smooth operation of the network and the reliability thereof. The lack of common definitions can limit the economic development of the relatively new market and increase the complexity of implementing IoT concepts in various verticals.

3. High Cost of Advanced IoT Routers: The quoted price of advanced IoT routers, especially those that boast of advanced features like 5G capability, and edge computing may prove to be a hurdle to the market. The high costs may only be affordable or acceptable by small to middle level enterprises and therefore speed of deployment of IoT solutions may be limited. There is a need to seek a trade-off between the high level of design requirements needed to achieve advanced features and the price level in order to enhance universality and mass use of IoT routers. This challenge calls for invention of the innovative strategies of ideas and the innovative value based strategies

The IoT routers market is influenced by the rapid evolution of the technologies, growing number of smart and industrial applications, and the efficient security systems and performance enhancements. Nonetheless, the circumstances such as security threats, interoperability, high cost factors and etc still needs to be resolved in order to realize the full benefits of these possibilities. Today, effective implementation of these drivers and challenges constructs is of great importance to all stakeholders in order to take advantage of the future expansion of the IoT routers market and ensure effective implementation and maintenance of the connected solutions.

List of IoT Routers Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies IoT routers companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the IoT routers companies profiled in this report include-

• Cisco
• MTX
• Cradlepoint
• Robustel
• Huawei
• Teltonika
• Shen Zhen Azroad Technology

IoT Routers by Segment

The study includes a forecast for the global IoT routers by type, application, and region.

IoT Routers Market by Type [Analysis by Value from 2018 to 2030]:

• 4G/LTE Connectivity
• 5G Connectivity

IoT Routers Market by Application [Analysis by Value from 2018 to 2030]:

• Industrial Automation
• Transportation
• Medical
• Smart Grid
• ATM
• Others

IoT Routers Market by Region [Shipment Analysis by Value from 2018 to 2030]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the IoT Routers Market

The internet of things (IoT) routers market is rapidly evolving as businesses and consumers increasingly deploy IoT devices for smart homes, industrial automation, and connected cities. Recent developments in this market reflect technological advancements, growing demand for reliable and high-performance connectivity, and regional variations in adoption and innovation. The IoT routers market is influenced by factors such as advancements in network protocols, increasing investment in smart infrastructure, and the need for enhanced security features. Here's an overview of recent developments in the IoT routers market across the United States, China, Germany, India, and Japan.

• United States: In the US, the market for IoT routers is gaining traction on back of the 5G technology development and growing usage of smart home and industrial IoT applications. Businesses are placing their resources in powerful routers that are compatible via enhancing connection, minimizing loss and boosting capacity. The demand for complex data transactions is met through advanced technologies combining edge computing and other features that are inclusive of comprehensive security provisions. The market in the U. S. is witnessing a high demand of IoT routers for deployment in smart city projects where affordability as well as strong scalability is required.
• China: The expansion of smart infrastructure and industrial IoT applications in China makes it a dominant player in the IoT routers market. The Chinese government's policies aimed at building smart cities and providing better network connectivity creates demand for high performance IoT routers. Businesses are now focusing on the development of ai and machine learning capabilities on the router to improve on the router performance as well as the security of the routers. Also, the market is driven by the growth of 5G technology the country has plans of deploying IoT routers which will facilitate higher data rates, network reliability and will help China achieve its digital transformation strategy.
• Germany: The trend of Industry 4.0 and smart manufacturing in Germany is a major driver of the IoT routers market in Germany. The integration of IoT routers in industrial applications where dependable and secure connectivity is needed is on a steep rise. Progress made on the incorporation of IoT routers into Industry 4.0 capabilities, such as M2M communication and self-organising networks, have also been made. There are also innovations focusing on enhancing the security of IoT routers in Germany due to the fear of data loss or hacking. The demand for dependable and secure connectivity solutions is critical to facilitating the operation of the architecturally advanced and IoT dominated nature of connection of industries in Germany.
• India: As in India, there is also significant growth in the IoT routers market as the government efforts are directed towards digital transformation and smart city programs in the country. The IoT router market is buoyed by the development plans of the country which are seeks to improve urban settings and enhance connectivity. New trends are the introduction of inexpensive and lightweight routers with less fan noise particularly for an urban setting where a high density of connected devices is found. Besides, the companies are also developing products targeting the specific aspects of a big and growing market in India such as making the network scalable and energy scalable for the growing IoT business.
• Japan: The market of IoT routers in Japan has witnessed a great transformation with the technological development and the adoption of IoT solutions across industries such as health care, manufacturing, and transportation. Among the recent one, the deployment of latest designs of IoT routers which have an ability of performing high data throughput and connectivity has been noted. There is also more focus in Japan on the embedding of the IoT routers within robotics and automation. Apart from that, with the Japanese concern regarding cyber security, routers have been developed with enhanced security features to secure sensitive information and guarantee operation in mission-critical environments.

Features of the Global IoT Routers Market

Market Size Estimates: IoT routers market size estimation in terms of value ($B).

Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.

Segmentation Analysis: IoT routers market size by type, application, and region in terms of value ($B).

Regional Analysis: IoT routers market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the IoT routers market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the IoT routers market.

Analysis of competitive intensity of the industry based on Porter's Five Forces model.

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FAQ

Q.1 What is the IoT routers market size?

Answer: The global IoT routers market is expected to reach an estimated $6.8 billion by 2030.

Q.2 What is the growth forecast for IoT routers market?

Answer: The global IoT routers market is expected to grow with a CAGR of 18.2% from 2024 to 2030.

Q.3 What are the major drivers influencing the growth of the IoT routers market?

Answer: The major drivers for this market are growing number of internet users, increasing adopting IIOT for remote monitoring, and on-going development of smart city projects.

Q4. What are the major segments for IoT routers market?

Answer: The future of the IoT routers market looks promising with opportunities in the industrial automation, transportation, medical, smart grid, and ATM markets.

Q5. Who are the key IoT routers market companies?

Answer: Some of the key IoT routers companies are as follows:

• Cisco
• MTX
• Cradlepoint
• Robustel
• Huawei
• Teltonika
• Shen Zhen Azroad Technology

Q6. Which IoT routers market segment will be the largest in future?

Answer: Lucintel forecasts that 4G/LTE connectivity will remain the larger segment over the forecast period due as it is widely available and provides good coverage, thus making them ideal for a variety of IOT applications.

Q7. In IoT routers market, which region is expected to be the largest in next 5 years?

Answer: APAC will remain the largest region during the forecast period due to increasing demand for IOT devices and solutions in a variety of industries, such as medical, transportation, and industrial applications.

Q.8 Do we receive customization in this report?

Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 11 key questions:

• Q.1. What are some of the most promising, high-growth opportunities for the IoT routers market by type (4G/LTE connectivity and 5G connectivity), application (industrial automation, transportation, medical, smart grid, ATM, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
• Q.2. Which segments will grow at a faster pace and why?
• Q.3. Which region will grow at a faster pace and why?
• Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
• Q.5. What are the business risks and competitive threats in this market?
• Q.6. What are the emerging trends in this market and the reasons behind them?
• Q.7. What are some of the changing demands of customers in the market?
• Q.8. What are the new developments in the market? Which companies are leading these developments?
• Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
• Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
• Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
• Market Report