IoT Gateway Devices Market Size - By Connectivity Technology (Bluetooth, Wi-Fi, ZigBee, Ethernet, LoRaWAN, NB-IoT, 5G, Others), By Application, By Function, By Power Source, By Component, By End Use Industry, By Deployment & Forecast, 2024 – 2032

IoT Gateway Devices Market Size

IoT Gateway Devices Market size was valued at USD 11.1 billion in 2023 and is anticipated to grow at a CAGR of over 10% between 2024 and 2032. The proliferation of connected devices, driven by the Internet of Things (IoT), is transforming various industries by enabling real-time data collection, enhanced operational efficiency, and improved decision-making. Advancements in network technologies, including the rollout of faster and more reliable network standards such as 4G LTE Cat 6, carrier aggregation, and 5G, significantly impact the IoT gateway market.
 

For instance, in June 2024, TELTONIKA introduced the new TRB160 IoT gateway device, which is equipped with 4G LTE Cat 6 and carrier aggregation. This advanced technology allows mobile devices to utilize more bandwidth, achieve faster Internet speeds, and enhance network capacity and efficiency. It offers cellular speeds of up to 150 Mbps, making it twice as fast as its predecessor, the TRB140, which supports 4G LTE Cat 4.
 

In many applications, especially those involving IoT, real-time data analysis is crucial for making timely and informed decisions. The ability to process and analyze data as it is generated enables businesses and organizations to respond swiftly to changing conditions, optimize operations, and enhance user experiences. To support real-time analysis, many IoT gateways are integrating edge computing capabilities.
 

In industrial settings, real-time data analysis allows for immediate detection of equipment malfunctions or inefficiencies. IoT gateways process data from sensors on machinery to trigger alerts and automated responses, minimizing downtime and enhancing productivity. The need for real-time decision-making is driven by the necessity to adapt quickly to changing conditions, whether in business operations, consumer interactions, or operational environments. Real-time data enables more accurate and timely decisions, leading to improved outcomes and efficiency.
 

Interoperability and standardization are significant hurdles for IoT gateway devices. The IoT ecosystem comprises a wide range of devices, protocols, and standards, which lead to compatibility issues and integration challenges. IoT devices often use different communication protocols such as MQTT, CoAP and standards such as ZigBee, LoRaWAN. IoT gateways must support multiple protocols and standards to ensure seamless communication and integration. To cater these challenges promoting and adopting common standards and protocols, such as those from organizations like the Open Connectivity Foundation (OCF) or the International Organization for Standardization (ISO), to enhance interoperability.
 

IoT Gateway Devices Market Trends

The evolution of wireless connectivity standards, such as 5G, Wi-Fi 6, and Low Power Wide Area Network (LPWAN) technologies, is enhancing the capabilities and performance of IoT gateway devices. Enhanced versions of 4G LTE, such as LTE Cat 6 and LTE Cat 12, provide higher speeds and better network performance. IoT gateways with these advancements can deliver improved connectivity for a range of applications, from remote monitoring to mobile asset tracking.
 

For instance, in June 2022, Monnit introduced its new ALTA Wireless IoT Gateway, designed to maintain robust connectivity for ALTA Wireless Sensor networks across various environments and remote locations. The ALTA IoT Gateway features a cellular engine supporting 4G Long-Term Evolution (LTE) Category M1 (CAT-M1) and NarrowBand Internet of Things (NB-IoT) 2 (NB2) technologies.
 

As IoT gateways serve as crucial intermediaries between connected devices and external networks, they are prime targets for cyber-attacks. The integration of robust security measures in these devices is essential to protect against unauthorized access, data breaches, and malicious activities. IoT gateways now incorporate advanced encryption protocols, such as AES-256, to ensure that data transmitted between devices and networks is secure.
 

Multi-factor authentication (MFA) and secure access controls are also employed to prevent unauthorized access to the gateway and its connected systems. IoT gateways are increasingly designed to adhere to principles of data minimization, ensuring that only necessary data is collected and transmitted. This approach reduces the risk of exposing excessive personal information and complies with privacy regulations.
 

IoT Gateway Devices Market Analysis

Based on the connectivity technology, the IoT gateway devices market is segmented Bluetooth, Wi-Fi, ZigBee, Ethernet, LoRaWAN, NB-IoT, 5G, and others. The Wi-Fi segment represents the fastest growing segment, with a CAGR of over 14.5% between 2024 and 2032.
 

• The adoption of Wi-Fi 6 (802.11ax) and Wi-Fi 6E technologies is a prominent trend within the Wi-Fi segment of the market. These advancements in Wi-Fi technology provide significant improvements in performance, efficiency, and capacity, which are essential for supporting the increasing number of connected devices and the growing demand for high-speed data transmission.
   
• Mesh networking allows multiple Wi-Fi access points to work together to extend coverage and improve network reliability. This is particularly valuable in large or complex environments where traditional Wi-Fi networks may struggle with coverage and connectivity.
   

Based on the deployment, the market is segmented into on-premises, cloud, and hybrid. The on-premises segment dominated the market in 2023 and is expected to reach over USD 15 billion by 2032.
 

• Edge computing is becoming a significant trend within the on-premises segment of IoT gateway devices. This trend involves processing data locally at or near the source of data generation, rather than relying solely on centralized cloud servers. As IoT applications become more complex and data-intensive, the need for real-time processing and decision-making has driven the adoption of edge computing solutions in on-premises IoT gateways.
   
• The integration of advanced analytics and artificial intelligence (AI) into on-premises IoT gateway devices is a growing trend. These capabilities allow gateways to perform complex data analysis and generate actionable insights locally, without relying on external cloud servers. This trend reflects a shift towards more intelligent and autonomous IoT systems.
   

The North America IoT gateway devices market is expected to reach USD 13 billion by 2032, due to the region's strong technological infrastructure and early adoption of IoT technologies. The demand for IoT gateways in the U.S. is driven by the need for advanced connectivity solutions in industries such as healthcare, automotive, and smart cities.

The UK IoT gateway devices market is driven by government initiatives such as the National IoT Strategy. Recent news highlights significant investments in smart city projects, with cities like London and Manchester deploying IoT gateways for traffic management, environmental monitoring, and public safety. This strategic focus on IoT integration aims to enhance urban living and infrastructure efficiency.

Netherlands IoT gateway devices market has emerged as a hub for innovation, with a strong focus on smart agriculture and logistics. The Dutch government’s proactive approach to IoT adoption, coupled with a well-developed digital infrastructure, supports the growth of IoT gateway devices. Recent advancements include the deployment of IoT gateways in precision farming to optimize crop management and resource use, as well as in logistics to enhance supply chain efficiency.
 

The Asia Pacific IoT gateway devices market is witnessing exponential growth, driven by rapid urbanization, technological advancements, and increasing adoption of IoT across various sectors. Countries like China, Japan, and South Korea are leading the charge, making substantial investments in IoT infrastructure and smart city projects.
 

China's IoT gateway devices market is booming, driven by rapid urbanization, industrial growth, and substantial government support. The "Made in China 2025" initiative and "Internet Plus" strategy emphasize integrating IoT technologies to enhance efficiency and innovation across sectors. In March 2023, China’s Quectel Wireless Solutions announced the launch of its FGH100M Wi-Fi HaLow module, providing long range data transmission, low power consumption, less complexity as well as improved penetration through walls and other obstructions for a wide range of IoT applications.
 

Japan IoT gateway devices market is influenced by the country's pioneering role in IoT technology, with notable advancements in robotics, automation, and smart technologies. The Japanese government's "Society 5.0" initiative aims to create a super-smart society by integrating IoT across various sectors, including manufacturing, healthcare, transportation, and disaster management.
 

South Korea IoT gateway devices market is driven by a robust digital infrastructure and proactive government initiatives. The government’s IoT Master Plan aims to integrate IoT across various sectors, enhancing the country’s technological landscape and improving quality of life. Recent advancements include significant investments in smart city projects and industrial IoT applications, which are supported by the country's commitment to developing cutting-edge technologies and fostering innovation.
 

IoT Gateway Devices Market Share

Toshiba Corporation and Siemens AG collectively held a significant share of the IoT gateway devices industry in 2023. Toshiba Corporation, a global technology leader based in Japan, is renowned for its wide range of innovative products and solutions across various sectors, including electronics, IT services, and infrastructure. In the realm of IoT gateway devices, Toshiba has made significant strides by leveraging its expertise in semiconductor technology, data processing, and connectivity solutions to address the growing demands of the IoT ecosystem.
 

Siemens AG, a global technology powerhouse based in Germany, is a leading player in the industrial and digitalization sectors. Siemens is renowned for its extensive portfolio that spans automation, digitalization, energy, and healthcare. Within the realm of IoT gateway devices, Siemens leverages its expertise in industrial automation and digital infrastructure to deliver innovative solutions that drive connectivity and efficiency across various industries.
 

IoT Gateway Devices Market Companies

Major players operating in the IoT gateway devices industry are:

• Toshiba Corporation
• Siemens AG
• Huawei Technologies Co. Ltd.
• Fujitsu Ltd.
• Sierra Wireless, Inc.
• Eurotech SPA
• Cisco Systems, Inc.
   

IoT Gateway Devices Industry News

• In January 2024, Teltonika Networks introduced the TRB256, a versatile NB-IoT gateway designed to offer dependable connectivity across a range of networking solutions. The TRB256 supports 4G LTE Cat M1 mobile connectivity, along with compatibility with NB1, NB2, and LTE-M IoT technologies, enhancing its applicability and performance in various IoT applications.
   
• In June 2022, Moxa unveiled its new AIG-300 Series of industrial IoT gateways, which are optimized for seamless integration with the Microsoft Azure IoT Edge computing platform. These gateways are engineered to deliver stable connectivity essential for Industrial IoT applications in distributed and unmanned environments. The AIG-300 Series is designed to efficiently collect, store, process, and analyze operational data from sensors and other IoT devices, enhancing the reliability and functionality of industrial IoT networks.
   

The IoT gateway devices market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Connectivity Technology

• Bluetooth
• Wi-Fi
• ZigBee
• Ethernet
• LoRaWAN
• NB-IoT
• 5G
• Others

Market, By Application

• Wearable devices
• Healthcare
• Automotive & transportation
• Building automation
• Industrial IoT
• Consumer electronics
• Smart cities
• Environmental monitoring
• Agriculture
• Energy management
• Other

Market, By Function

• Control gateways
• Data gateways
• Communication gateways
• Security gateways
• Edge computing gateways

Market, By Power Source

• Battery-powered
• Wired power supply
• Hybrid (battery with backup power)
• Solar-powered
• Other renewable sources

Market, By Component

• Hardware
  • Processors
  • Sensors
  • Memory devices
  • Connectivity ICs
  • Enclosures
  • Power management units
  • Other hardware components
• Software
  • Device management
  • Analytics
  • Security
  • Data processing
• Firmware

Market, By End Use Industry

• Automotive & transportation
• Healthcare
• Retail
• Manufacturing
• Building automation
• Consumer electronics
• Agriculture
• Energy & utilities
• Defense and security
• Logistics
• Hospitality
• Other industries

Market, By Deployment

• On-premises
• Cloud
• Hybrid

Market, By Enterprise Size

• Small and Medium Enterprises (SME)
• Large enterprises

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA