IoT Node and Gateway Market Size

IoT Node and Gateway Market Size

IoT Node and Gateway Market size was valued at USD 280 billion in 2023 and is estimated to register at a CAGR of over 13.5% between 2024 and 2032. IoT nodes are small devices or sensors that collect data from their environment, while IoT gateways serve as intermediaries between these nodes and larger networks. Nodes gather data such as temperature or motion, while gateways organize and transmit this data to central systems efficiently & securely. Together, they form the backbone of the Internet of Things, enabling seamless communication and data exchange in various applications.

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The increasing demand for IoT solutions across industries is a significant growth driver for the IoT node and gateway market. As more organizations use IoT technology to improve operational efficiency, make better decisions, and enable new services, the need for nodes & gateways to efficiently collect, process, and transmit data expands. Manufacturing industries, healthcare, transportation, and smart cities are among the industries driving this demand, resulting in the market growth.
 

For instance, in May 2023, Advantech introduced the MIC-770 V3 Industrial Edge solution, designed to work seamlessly with the NVIDIA L4 Tensor Core GPU, featuring an impressive 7,424 CUDA core & a 24GB GDDR6 GPU memory. Despite its powerful performance, this solution is remarkably energy-efficient, consuming only 72W of power. Combining the NVIDIA L4 GPU with this compact and scalable IPC design creates an AIoT solution that can cater to a wide range of applications such as deep learning & edge inference in factory automation, autonomous vehicles, Automated Optical Inspection (AOI), medical equipment for AI prediction, and video surveillance & transportation systems in smart cities.
 

Smart city projects rely heavily on the Internet of Things technology to improve urban infrastructure & services such as transportation, energy management, public safety, and environmental monitoring. IoT nodes & gateways collect data from various sensors deployed throughout the city and send it to centralized systems for analysis & decision-making. The growing use of IoT in smart city initiatives drives demand for nodes & gateways to support infrastructure connectivity and functionality, resulting in market growth.
 

Data privacy concerns have had an enormous effect on the IoT node and gateway market. Customers and businesses are becoming increasingly concerned about potential data breaches and unauthorized access to sensitive information collected by IoT devices. Increased regulatory scrutiny, such as GDPR & CCPA, necessitates stringent compliance measures, which add complexity and cost to IoT deployments. Failure to address these concerns effectively can result in decreased trust, reluctance to adopt IoT solutions, and potential legal liabilities, restricting market growth.