An IoT gateway is a device that connects IoT devices to the internet or cloud. It acts as a bridge between the physical and digital worlds, enabling data to be collected, processed, and analyzed. IoT gateways are essential for the development and deployment of IoT applications, as they provide the necessary connectivity, security, and scalability.
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Market Size and Growth
The global IoT gateway market is projected to grow from USD 1.86 billion in 2023 to USD 3.51 billion by 2028, at a CAGR of 13.55%. The growth of the market is being driven by the increasing adoption of IoT in various industries, such as manufacturing, healthcare, and transportation.
Mordor Intelligence – Global IOT Gateway Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028)
Market Drivers
The growth of the IoT gateway market is being driven by a number of factors, including:
- The increasing adoption of IoT devices and applications: The number of IoT devices connected to the internet is growing rapidly, and this is driving the demand for IoT gateways. IoT devices are being used in a wide range of applications, such as smart homes, industrial automation, and healthcare.
- The need for security and data management: IoT gateways play an important role in securing IoT networks and managing data. They can encrypt data, filter out malicious traffic, and provide other security features. IoT gateways also help to manage the large amounts of data generated by IoT devices.
- The rise of edge computing: Edge computing is a distributed computing paradigm that brings computing and data storage closer to the edge of the network. This can improve performance and reduce latency for IoT applications. IoT gateways are often used in edge computing deployments.
- The growth of 5G: 5G is the next generation of cellular network technology, and it is expected to offer significant improvements in speed, capacity, and latency. This will make it possible to connect more IoT devices and applications, and it will also drive the demand for IoT gateways.
- The development of new IoT standards: New IoT standards are being developed to improve the interoperability and security of IoT networks. This will help to accelerate the adoption of IoT and drive the demand for IoT gateways.
- The growth of the IoT market in developing countries: The IoT market is growing rapidly in developing countries, due to the increasing availability of affordable IoT devices and the growing demand for automation and efficiency in these countries.
Also Read: IoT Gateway: The Connectivity And Automation Revolution
Market Segmentation
The global IoT gateway market is segmented by type, industry, and region.
By type, the market is segmented into:
- Wired gateways
- Wireless gateways
Wired gateways are connected to the internet using a wired connection, such as Ethernet or fiber optic. They are typically used in industrial and enterprise applications where there is a need for high bandwidth and reliability. Wired gateways are more secure than wireless gateways, as they are less susceptible to interference and hacking. However, they are also more expensive and less flexible.
Wireless gateways are connected to the internet using a wireless connection, such as Wi-Fi or cellular. They are typically used in consumer and commercial applications where there is a need for mobility and flexibility. Wireless gateways are less expensive than wired gateways, but they are also less secure and less reliable.
The choice of whether to use a wired or wireless gateway depends on the specific application requirements. For applications that require high bandwidth, reliability, and security, a wired gateway is the best option. For applications that require mobility and flexibility, a wireless gateway is the best option.
Here are some of the key differences between wired and wireless gateways:
- Bandwidth: Wired gateways typically offer higher bandwidth than wireless gateways. This is because they are not limited by the same wireless constraints, such as interference and signal strength.
- Reliability: Wired gateways are typically more reliable than wireless gateways. This is because they are less susceptible to interference and hacking.
- Security: Wired gateways are typically more secure than wireless gateways. This is because they are less exposed to attack.
- Cost: Wired gateways are typically more expensive than wireless gateways. This is because they require more complex hardware and software.
- Flexibility: Wireless gateways are typically more flexible than wired gateways. This is because they can be moved around more easily.
The following are some of the applications where wired gateways are commonly used:
- Industrial automation
- Building automation
- Healthcare
- Transportation
- Energy
- Utilities
The following are some of the applications where wireless gateways are commonly used:
- Smart homes
- Wearable devices
- Connected cars
- Asset tracking
- Logistics
- Agriculture
Major players in the IoT Gateway Market include
The global IoT gateway market is highly competitive, with a number of major players. The leading players in the market include:
| Company | Headquarters | Website |
| Cisco Systems | San Jose, California, USA | https://www.cisco.com/ |
| IBM | Armonk, New York, USA | https://www.ibm.com/ |
| Intel | Santa Clara, California, USA | https://www.intel.com/ |
| Microsoft | Redmond, Washington, USA | https://www.microsoft.com/ |
| HashStudioz | Noida, India | https://www.hashstudioz.com/ |
| Huawei | Shenzhen, China | https://www.huawei.com/ |
| Dell | Round Rock, Texas, USA | https://www.dell.com/ |
| Oracle | Redwood Shores, California, USA | https://www.oracle.com/ |
| Gemalto | Amsterdam, Netherlands | https://www.gemalto.com/ |
| Sierra Wireless | Vancouver, Canada | https://www.sierrawireless.com/ |
| Telit | London, UK | https://www.telit.com/ |
These companies are constantly innovating and developing new products and services to meet the needs of the market.
Market Trends
The following are some of the key trends in the global IoT gateway market:
- The increasing adoption of edge computing: Edge computing is a distributed computing paradigm that brings computing and data storage closer to the edge of the network. This can improve performance and reduce latency for IoT applications. IoT gateways are often used in edge computing deployments.
- The growth of 5G: 5G is the next generation of cellular network technology, and it is expected to offer significant improvements in speed, capacity, and latency. This will make it possible to connect more IoT devices and applications, and it will also drive the demand for IoT gateways.
- The development of new IoT standards: New IoT standards are being developed to improve the interoperability and security of IoT networks. This will help to accelerate the adoption
Conclusion:
The IoT gateway market is poised for continued growth, driven by the ever-expanding adoption of IoT devices across diverse industries. Hardware and software gateways, various connectivity protocols, and industry-specific applications will continue to play pivotal roles in shaping the market’s trajectory. With the emergence of edge computing and the rollout of 5G, the future of IoT gateways holds promising opportunities for enhanced connectivity, data processing capabilities, and robust security features. Organizations should closely monitor market developments and align their IoT gateway strategies with evolving industry trends to capitalize on the full potential of the IoT ecosystem.
Amit Kumar