PUBLISHER: The Business Research Company | PRODUCT CODE: 1499869
PUBLISHER: The Business Research Company | PRODUCT CODE: 1499869
An IoT (Internet of Things) gateway functions as a physical device or virtual platform that acts as a intermediary between IoT devices and cloud or other data processing systems. Serving as a central hub, it facilitates data processing, monitoring, and management of IoT devices, thereby enabling efficient and secure data management, device connectivity, and communication in IoT systems. This, in turn, allows for the development of smarter and more responsive IoT applications.
The primary components of IoT gateways include processors, sensors, memory and storage devices, among others. Processors, integral to computers, perform calculations and data manipulations. They feature various types of connectivity options such as Bluetooth, Wi-Fi, Zigbee, Ethernet, cellular, and others. IoT gateways find application across a wide range of end-user industries including automotive and transportation, healthcare, industrial sectors, consumer electronics, banking and financial services, insurance (BFSI), oil and gas, retail, aerospace and defense, among others.
The IoT gateways market research report is one of a series of new reports from The Business Research Company that provides IoT gateways market statistics, including IoT gateways industry global market size, regional shares, competitors with a IoT gateways market share, detailed IoT gateways market segments, market trends and opportunities, and any further data you may need to thrive in the IoT gateways industry. This IoT gateways market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The IoT gateways market size has grown rapidly in recent years. It will grow from $1.70 billion in 2023 to $1.99 billion in 2024 at a compound annual growth rate (CAGR) of 17.0%. The expansion observed during the historical period can be attributed to several factors, including the proliferation of IoT devices, the growing demand for edge computing capabilities, the integration of cloud services, efforts towards cost reduction, and increasing requirements for real-time insights.
The IoT gateways market size is expected to see rapid growth in the next few years. It will grow to $3.77 billion in 2028 at a compound annual growth rate (CAGR) of 17.4%. The anticipated growth in the forecast period can be attributed to various factors, including the acceleration of edge artificial intelligence (AI) and machine learning (ML), integration of blockchain technology, the continuum from edge to cloud computing, emphasis on environmental monitoring and sustainability initiatives, customization and modularity in IoT solutions, and the focus on lifecycle management and maintenance. Key trends expected during this period encompass the integration of AI and machine learning technologies, the development of interoperability standards, the adoption of hybrid cloud and edge deployments, the demand for low-power solutions, and the emergence of vertical-specific IoT solutions.
The increased connectivity of the internet is poised to drive the expansion of the IoT gateways market in the coming years. Internet connectivity refers to the capacity of devices to link and communicate with each other via the Internet, facilitating data exchange and communication. The growing internet connectivity can be attributed to various factors, including economic incentives, policy initiatives, rising demand for digital services, and evolving consumer behaviors. IoT gateways play a crucial role in ensuring reliable and secure connections between IoT devices and systems, managing data efficiently, and maintaining essential communications, all essential for unlocking the full potential of IoT solutions across different sectors. For instance, in November 2022, as reported by the International Telecommunication Union, approximately 5.3 billion individuals, accounting for 66% of the global population, were internet users in 2022, marking a 6.1% increase compared to 2021. Hence, the heightened internet connectivity is propelling the growth of the IoT gateways market.
Key players in the IoT gateways market are focusing on the development of technologically advanced products, such as automotive-qualified Ethernet PHYs, to drive revenue growth. The automotive-qualified Ethernet PHY (physical layer) plays a crucial role within IoT gateways, facilitating high-speed communication and data transfer between IoT devices and the cloud. For instance, in July 2023, Microchip Technology, a US-based manufacturer of specialized semiconductor products, introduced its automotive-qualified Ethernet PHYs, specifically the LAN8670/1/2 10BASE-T1S devices. These devices boast advanced features such as enhanced EMC/EMI performance, sleep/wake functionality, and support for time-sensitive networking to ensure precise time synchronization. Significantly, they offer advanced PHY diagnostics and support multiple Ethernet PHYs on a shared bus line, effectively reducing cabling and switch ports while ensuring readiness for functional safety applications compliant with ISO 26262.
In March 2023, Wireless Logic, a US-based provider of IoT platforms, acquired Blue Wireless for an undisclosed sum. This acquisition is expected to bolster Wireless Logic's presence in the Asia-Pacific region and the United States. Blue Wireless, based in Singapore, specializes in manufacturing IoT gateways.
Major companies operating in the IoT gateways market are Dell Inc., Huawei Technologies Co. Ltd., Hewlett Packard Enterprise Co., Cisco Systems Inc., Texas Instruments Incorporated, STMicroelectronics N.V., TE Connectivity Ltd., Eurotech Inc., NXP Semiconductors, Harman International Industries Inc., Microchip Technology Inc., Super Micro Computer Inc., Advantech Co. Ltd., Kontron S&T AG, Pepperl+Fuchs Inc., Banner Engineering Corp., Samsara Networks Inc., ADLINK Technology Inc., Aaeon Technology Inc., Softing Industrial Automation GmbH, Multi-Tech Systems Inc., Helium Systems Inc., Winmate Inc., Rigado LLC, ClearBlade Inc.
North America was the largest region in the IoT gateways market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the IoT gateways market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the IoT gateways market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The IoT gateways market consists of sales of industrial IoT gateways, cloud-based gateways, edge gateways, and protocol gateways. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
IoT Gateways Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on IoT gateways market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for IoT gateways? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The IoT gateways market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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