IoT Gateway Market Size, Share, Growth, and Industry Analysis, By Type (Consumer IoT, & Business IoT), By Application (Home Automation, Wearable Technology, Smart City, Industrial Automation, Connected Transportation, Healthcare, & Others) and Regional Insights and Forecast to 2031

Updated On: 06 May 2024

IoT GATEWAY MARKET REPORT OVERVIEW

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The global IoT gateway market size was USD 9286.3 million in 2021 and the market is projected to touch USD 20190 million by 2028, exhibiting a CAGR of 11.6% during the forecast period.

The IoT gateway market is growing fast because more and more industries are using the Internet of Things (IoT) solutions. Companies are starting to use IoT technology to keep an eye on things remotely, gather data, and make processes automatic which boosts the need for IoT gateways. On top of that, governments are really pushing for digital and smart upgrades, creating big chances for businesses in the booming IoT market.

Also, there's a surge in IoT gadgets and apps in areas like health care, and smart cities, which is pushing the market even bigger. IoT gateways are super important because they help devices talk smoothly with cloud platforms, letting people make smart decisions and get useful information on the fly. With companies pumping money into IoT systems to work better and give customers more, these opportunities can't be ignored. Despite bumps in the road, the overall outlook on the market remains optimistic regarding the future of the IoT gateway market.

COVID-19 Impact: Market Growth Boosted by Pandemic due to Increased Demands

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The market growth reflected by the rise in CAGR is attributable to market’s growth and demand continuing to maintain levels similar to pre-pandemic period.

It's becoming a hotbed for creativity and growth. We first noticed setbacks when the world's manufacturing and supply chains hit snags. This meant we had to wait longer for IoT gateways to be made and put to use. On the flip side, these tough times actually sped up how fast IoT tech got picked up, especially in places like hospitals, factories, and shops. They needed ways to check in on things without being there, keep tabs on items, and get machines to do more work with fewer people around. Sure, there were obstacles, but the spark of interest in IoT tools didn't die down because they really came in handy during the crisis. All in all, it was a win for the IoT gateway scene, sparking new ideas and broader horizons.

LATEST TRENDS

"Edge Computing Integration to Reshape the Market"

A new trend in the world of IoT gateways is adding edge computing features. This means that data can be processed and analyzed right where it's collected. This is important because more and more users need quick, realtime data analysis and swift responses from their IoT devices. IoT gateways with edge computing can help by making the delay in sending data very short, cutting down on how much data needs to be sent over the network, and making data more secure and private. This method also makes it easier for organizations to sort through and combine data, helping them spot important information within the huge amounts of data created by IoT devices. As more people start using edge computing, IoT gateways with these features will become essential in connecting the edge of networks to the cloud and bringing new developments to IoT setups.

IoT GATEWAY MARKET SEGMENTATION

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By Type

Based on type the global market can be categorised into Consumer IoT, & Business IoT.

• Consumer IoT: These gateways cater to households and individuals, facilitating connectivity and control of smart home devices such as thermostats, lights, security cameras, and appliances. These gateways often prioritize ease of use, seamless integration with popular smart home ecosystems, and consumer-friendly features such as voice control and mobile app interfaces.

• Business IoT: These gateways serve commercial and industrial applications, providing connectivity and data management solutions for a wide range of sectors including manufacturing, healthcare, retail, and logistics. These gateways are designed to handle large-scale deployments, support diverse IoT protocols and standards, and offer advanced security and customization options tailored to enterprise requirements.

By Application

Based on application the global market can be categorised into Home Automation, Wearable Technology, Smart City, Industrial Automation, Connected Transportation, Healthcare, & Others.

• Home Automation: IoT gateways facilitate connectivity and control of smart domestic gadgets, enhancing convenience and electricity performance for house owners.

• Wearable Technology: IoT gateways allow seamless communication between wearable devices and cloud systems, helping fitness monitoring, health tracking, and personal protection packages.

• Smart City: IoT gateways are leveraged to connect sensors and gadgets throughout city infrastructure, enabling statistics-pushed decision-making and improving public services and sustainability initiatives.

• Industrial Automation: IoT gateways play a vital position in connecting and handling business sensors and gadgets, optimizing production approaches, and allowing predictive preservation and far flung monitoring.

• Connected Transportation: It is based on IoT gateways to facilitate car-to-car and automobile-to-infrastructure communique, improving visitors control, automobile safety, and performance.

• Healthcare: IoT gateways enable far off affected person monitoring, asset monitoring, and medicine control, improving patient care and operational efficiency for healthcare providers.

• Others: This class encompasses numerous niche packages, such as agriculture, schooling, and leisure, wherein IoT gateways help numerous use cases and industry-specific necessities.

DRIVING FACTORS

"Rapid Growth of Internet of Things (IoT) Adoption to Fuel the Market Growth"

The booming interest in the Internet of Things (IoT) across different business areas is a key reason for the IoT gateway market growth. As more companies look to use data to make smart choices, finetune their workflows, and add automation, they need more IoT (Internet of Things) gateways. There’s a boom in the number of devices, sensors, and machines that connect and talk to each other, which creates a huge pile of data. This data must be gathered, sorted, and sent out in an effective way, which is why strong IoT gateway systems are essential. On top of that, as IoT tech gets better, and provides improved ways for devices to connect wirelessly, more and more industries are jumping on the IoT bandwagon and using gateways in different ways.

"Rising Demand for Edge Computing Capabilities to Drive Demand in the Market"

The other driver of the IoT gateway market is the growth of edge computing. The demand for data processing and analytics is growing rapidly with the expansion of the data sources through the Internet of Things devices. Organizations prefer data processing at the source due to the need to reduce latency, enhance the real-time responsiveness as well as to improve the data privacy and security. For organizations, Indoor location technologies (IoT) Gateways that feature edge computing capabilities enable data processing and analysis at the edge of the network and thus, they are able to derive actionable insights and make informed decisions within a short time. By this trend toward edge computing integration, edge-enabled gateways are to gather popularity; therefore, innovation in the IoT ecosystem is probably encouraged and the market is enriched..

RESTRAINING FACTORS

"Interoperability Challenges and Fragmented Standards to Impede the Market Expansion"

A noteworthy hindering factor of the IoT gateway market is the existence of interoperability challenges and the multiplicity of standards among various manufacturers. Nowadays IoT devices with different platforms and protocols are operated in large amounts; integration and connectivity of data occurs is one of the main problems for organizations. Inter Accessibility of the devices and legacy protocols that are not standardized are the major obstacles for which the devices cannot cooperate. The integration of such systems is becoming complicated and this happens also adding the cost while reducing the scalability. Lastly, the non-unified regulation and the lack of common standards in this era of IoT bring about market fragmentation that slows down the IoT gateway solutions adoption and the overall growth of the IoT industry. Dealing with interoperability issues and establishing standardized specifications will have a high priority for the potential of the market to exploit a complete value of IoT gateway.

IoT GATEWAY MARKET REGIONAL INSIGHTS

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"North America Leads the Market with Advanced Communication Infrastructure"

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

The region of North America is the most dominant in the IoT gateway market share, among the other reasons that enhance the supremacy of the market share of this region. By providing an established IoT ecosystem with a long track record of device adoption and communication infrastructure, the region gets to benefit in this. Beyond this, North America has the largest number of companies and startups that are solely focused on the IoT industry and would be the engines of innovation and market growth. That is also why preferable regulatory frameworks, government programs encouraging digitalization and strong research and development investments increase the leadership of North America through this technology standpoint. This environment concussive to IoT adoption, together with the highly developed technical power and regional influence as leader, would make North America a front runner in developing the concepts for IoT gateway deployment on the global scale.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Many main industry incumbents are taking the mantle for innovation and reshaping the IoT gateway market. Major organizations demonstrate front-runners with IoT gateway technology improving and Forefronting market reach. They offer a wide range of products, including hardware, software, and services, which address various sector verticals and applications, thus facilitating proliferation of the market. Consequently, their actions promote market expansion. Additionally, these players are tying up with strategic partners, collaborators, and making acquisitions that provide them with a complete portfolio of IoT solutions that integrate edge computing, connectivity, security, and analytics technologies. Leveraging their global presence as well as the tech and market leadership, they take the most active part in setting trends for IoT gateway deployment, bringing innovations to the overall IoT ecosystem.

List of Market Players Profiled

• PTC (U.S.)
• Cisco (U.S.)
• Microsoft (U.S.)
• Google (U.S.)
• IBM (U.S.)
• Intel (U.S.)
• SAP (Germany)
• Oracle (U.S.)

INDUSTRIAL DEVELOPMENT

October 2020: One recent innovation in the market is the emergence of AEdge computing. It performs real-time data analysis and decision-making on the gateway itself, reducing latency and bandwidth requirements by only sending processed data to the cloud.

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 time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.