IoT Gateway Devices Market Size, Share, Growth, (Consumer IoT Gateway, Industrial/Commercial IoT Gateway) by Application (Consumer Electronics, Healthcare, Automotive & Transportation, Building Automation, Industrial & Others) and Regional Insights and Forecast to 2031

Updated On: 29 April 2024

IOT GATEWAY DEVICES MARKET REPORT OVERVIEW

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The global IoT gateway devices market size was USD 8303.9 million in 2020 and will reach USD 18130 million by 2027, exhibiting a CAGR of 11.8% during the forecast period.

IoT gateway devices act as pivotal bridges between local IoT devices and the cloud, facilitating seamless communication and data transfer. These devices typically integrate various communication protocols, such as Wi-Fi, Bluetooth, Zigbee, or cellular connectivity, ensuring compatibility with a diverse array of IoT devices. They play a vital role in collecting, processing, and transmitting data from sensors and edge devices to centralized cloud platforms for analysis. This enables real-time monitoring, analytics, and control, making IoT gateway devices indispensable in applications ranging from smart cities and industrial automation to healthcare monitoring and smart homes. Their versatility and connectivity features contribute to the widespread adoption across diverse sectors.

The burgeoning growth of the IoT gateway devices market size can be attributed to the escalating demand for interconnected solutions in the expanding IoT landscape. Industries recognize the need for efficient data processing, reduced latency, and enhanced security, driving the adoption of these gateways. The increasing deployment of IoT applications, such as smart infrastructure, industrial automation, and healthcare monitoring, fuels the demand for reliable connectivity and data management. Moreover, businesses seek to harness the benefits of real-time insights and analytics derived from IoT devices, further propelling the market's upward trajectory as organizations across sectors embrace the transformative capabilities of IoT technology.

COVID-19 Impact: Pandemic Caused Disruptions In Manufacturing Processes, Temporarily Affecting Production And Distribution

The COVID-19 pandemic has been unprecedented and staggering, with IoT gateway devices market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic significantly influenced the market, introducing both challenges and opportunities. The global disruptions in supply chains and manufacturing processes caused temporary setbacks, affecting production and distribution. However, the pandemic accelerated the adoption of IoT solutions as businesses sought efficient and remote operational models. The demand for IoT gateways surged in sectors like healthcare, where remote patient monitoring and contactless solutions gained prominence. Additionally, industries focused on enhancing automation and digitization to adapt to the new normal, further driving the market. The pandemic underscored the critical role of IoT in crisis response and resilience, contributing to a long-term positive impact on the market as businesses prioritize resilient and connected infrastructures. 

LATEST TRENDS

"Edge Computing Integration A Pivotal Trend in IoT Gateway Devices"

A notable trend in the IoT gateway devices industry is the emergence of edge computing capabilities within these devices. Leading players are introducing advanced gateway solutions that incorporate edge computing functionalities, allowing data processing closer to the source. This trend enhances real-time analytics, reduces latency, and addresses bandwidth constraints. New products often feature improved security measures, such as hardware-based encryption and secure boot mechanisms. Major industry players like Cisco, Intel, and Dell are investing in research and development to launch cutting-edge gateway technologies. Cisco, for instance, is focusing on integrated security features, while Intel is emphasizing enhanced processing power. This trend underscores the industry's commitment to delivering more sophisticated, secure, and efficient IoT gateway solutions. 

IOT GATEWAY DEVICES MARKET SEGMENTATION

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• By type

Depending on IoT gateway devices market given are types: Consumer IoT Gateway, Industrial/Commercial IoT Gateway. The Consumer IoT Gateway type will capture the maximum market share through 2028.   

The market can be broadly categorized into Consumer IoT Gateway and Industrial/Commercial IoT Gateway segments. Consumer IoT Gateways cater to smart homes, seamlessly connecting various devices like smart thermostats, cameras, and voice assistants. On the other hand, Industrial/Commercial IoT Gateways serve the needs of businesses, facilitating connectivity and data exchange in industrial automation, smart factories, and commercial settings. Each segment addresses specific requirements, with consumer gateways emphasizing user-friendly interfaces, while industrial/commercial gateways prioritize robustness, security, and scalability for complex enterprise applications.

• By Application

The market is divided into Consumer Electronics, Healthcare, Automotive & Transportation, Building Automation, Industrial & Others based on application. The global IoT gateway devices market players in cover segment like Consumer Electronics will dominate the market share during 2022-2028.

The market is segmented across various applications, including Consumer Electronics, Healthcare, Automotive & Transportation, Building Automation, Industrial, and Others. Consumer Electronics encompass smart home applications, connecting devices for seamless automation. Healthcare utilizes IoT gateways for remote patient monitoring and data exchange. Automotive & Transportation integrates gateways for vehicle connectivity and traffic management. Building Automation employs gateways for smart building solutions, while Industrial applications focus on automation and data processing. These diverse segments highlight the versatility of IoT gateways, catering to a wide range of industries and applications.

DRIVING FACTORS

"Increasing Demand for Interconnected and Smart Solutions to Propel the Market Growth"

A key driver propelling the IoT gateway devices market growth is the increasing demand for interconnected and smart solutions across industries. As businesses and consumers embrace the Internet of Things (IoT), the need for seamless connectivity and efficient data processing becomes paramount. IoT gateways serve as crucial enablers by providing a bridge between diverse devices and centralized cloud platforms. This drive towards connectivity is particularly evident in sectors like industrial automation, smart cities, and healthcare, where the integration of IoT gateways enhances operational efficiency, real-time monitoring, and data analytics. The growing recognition of the transformative potential of IoT technology fuels the escalating demand for these gateway devices.

"Escalating Adoption of Edge Computing to Drive the Market Growth"

Another significant driver fueling the growth of IoT gateway devices is the escalating adoption of edge computing. As industries increasingly recognize the importance of processing data closer to the source, IoT gateways with integrated edge computing capabilities gain prominence. This trend minimizes latency, reduces the need for extensive data transmission to the cloud, and enhances real-time analytics. Edge computing in IoT gateways proves especially crucial in applications where immediate decision-making is essential, such as industrial automation and autonomous vehicles. The demand for advanced, edge-enabled IoT gateway solutions reflects the industry's response to the need for faster, more efficient, and decentralized data processing in diverse IoT applications.

RESTRAINING FACTORS

"Cybersecurity Concerns to Hinder Market Growth"

A notable restraining factor impacting the market is the concern over cybersecurity threats. As the number of connected devices increases, the vulnerability to cyberattacks grows, making security a paramount concern for businesses and consumers. The potential risks associated with unauthorized access, data breaches, and manipulation of IoT devices hinder widespread adoption. To address these concerns, the industry must invest in robust cybersecurity measures and standards. The perception of security challenges poses a significant barrier to the rapid expansion of the market, as stakeholders strive to instill confidence in users by implementing effective security protocols and addressing potential vulnerabilities.

IOT GATEWAY DEVICES MARKET REGIONAL INSIGHTS

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"Asia Pacific to Lead the Market due to Rapid Adoption Of Iot In Diverse Sectors "

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America and Middle East & Africa.

Asia Pacific region stands out as the leading hub in the market, demonstrating both substantial market share and promising growth prospects. The region's dominance is attributed to the rapid adoption of IoT across diverse industries, including manufacturing, healthcare, and smart cities. Countries like China, Japan, and South Korea are at the forefront of deploying IoT technologies, driving the demand for efficient connectivity solutions provided by IoT gateways. Additionally, government initiatives supporting digital transformation and smart infrastructure projects contribute to the region's leadership. With a burgeoning tech landscape and a robust appetite for innovation, the Asia Pacific region is poised to maintain its prominence in the evolving IoT gateway devices market share.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

The IoT gateway devices market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in cloth wardrobes, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Cisco (U.S.)
• Huawei (China)
• Dell (U.S.)
• Sierra Wireless (U.S.)
• Advantech (Taiwan)
• HPE (U.S.)
• NXP/Freescale (U.S.)
• Digi International (U.S)
• Multi-Tech Systems (U.S) 
• Eurotech (Italy)
• Samsara (U.S)
• ADLINK Technology (Taiwan)
• AAEON (Taiwan)
• Lantronix (U.S)
• NEXCOM International (Taiwan)       
• Axiomtek (U.S)
• Neousys Technology (Taiwan)

INDUSTRIAL DEVELOPMENT

July 2023: Advantech (TWSE: 2395), a global leader in Industrial IoT, has launched IoTMart International, an innovative cross-border digital commerce platform. This addition to its distribution model targets small and medium-sized customers, anticipating IoTMart to contribute over 10% to Advantech's total revenue. As per Research and Markets, global B2B e-commerce is projected to hit a 21 trillion USD GMV by 2027, with a 7% CAGR. Gartner predicts that by 2025, nearly 80% of B2B transactions worldwide will occur online. Recognizing the evolving landscape, Advantech's move into cross-border e-commerce aligns with the future trends shaping industrial trade markets.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.