Global IOT Gateway Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global IOT Gateway Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global IoT Gateway Market was valued at USD 1314.2697 million in 2022, and it is expected to register a CAGR of 12.5% during the forecast period. Over the next five years, edge deployments will become a key component of IoT integration and working with connected devices.

Key Highlights

• Edge Computing is specifically designed to overcome the challenges of IoT connectivity. Users will be able to connect simple devices and sensors directly to an edge ecosystem, given that the edge network is close enough and can support the user's requirements. Further, edge and 5G can act as the new IoT Gateway, where the systems are designed to support connected devices and M2M communication and are capable of advanced data ingestion and processing.
• The Asia-Pacific region is witnessing increased demand for IoT gateway due to the rising number of connected devices and IoT adoption across several industries. According to GSMA, APAC has the most significant IoT market globally and will reach 11 billion connections by 2025. As a result of the increase in connected devices, it will directly augment the need for IoT gateways in the region.
• Processors act as a central component of the IoT gateway. Companies like TI are offering the TM4C129x family of IoT microcontrollers (MCUs). The TM4C129x MCUs simplify IP connectivity for gateways by combining multiple key technologies. With its TLS/SSL stack and hardware-based cryptographic acceleration, the TM4C129x MCUs enable OEMs to implement robust security mechanisms with low overhead to maximize data protection and minimize threats.
• The outbreak of COVID-19 at the beginning of 2020 caused a significant increase in the manufacturing time of IoT gateway hardware systems due to lockdowns implemented in several regions. However, IoT-connected platforms are significantly being utilized to detect and prevent COVID-19, which increased the usage of IoT gateways that preprocess data and could respond quickly using other resources in the platform.
• The factors challenging the growth of the IoT gateway market include concerns regarding the security and privacy of user data and the lack of common protocols and communication standards of IoT technology. The standardization communication protocols of IoT technology are at a developing stage. However, the standard protocols are expected to happen in the next few years, making the impact of the challenge gradually low in the next few years.

Key Market TrendsHealth Care Segment to Witness a Significant Growth

• IoT gateway in healthcare is revolutionizing the healthcare industry by enabling providers to monitor patient health through remotely connected medical solutions, real-time data collection, and extended access to time monitoring and analysis.
• Custom-designed IoT devices, such as air quality sensors, improve the safety of patients admitted for surgical cases. The sensor modules are deployed on the mesh network and transmit data to an internal gateway device at specified intervals. It provides dashboards on hygiene and safety parameters inside the operation theatre. It can be further connected with data visualization tools that provide insights into the compliance, operations, and maintenance departments.
• A worldwide shortage of healthcare workers is another parameter influencing the market. The United States is projected to face a shortage of 124,000 physicians by 2025, much less than the anticipated scarcity in Asia and Africa. These factors indicate the need for upgraded medical facilities and improvements in the healthcare sector, which, in turn, is expected to drive the market, as advanced and connected medical equipment are likely to experience more demand.
• These solutions provide healthcare workers with data and insight into community health, allowing more optimized workflows to distribute efficient healthcare services during the ongoing COVID-19 pandemic.​

Asia Pacific Expected to Witness Significant Growth

• The Asia Pacific is anticipated to cater to a significant share of the IoT gateway market. Advancement in research and development in the IoT space to get smaller, cheaper, and improved devices is an important factor contributing to the growth of the IoT gateway market in the Asia Pacific.
• Moreover, government organizations collaborate with Enterprises and SMBs to establish IoT-enabled ecosystems in India. For instance, According to ASSOCHAM, IoT is expected to reach an estimated 2 billion connections in a hyper-connected India, unlocking revenues of USD 11.1 billion by 2022.
• Further, China's mobile operators, Telecom and Unicom, are forging domestic and international partnerships with vendors and manufacturers to bring connectivity benefits to a wide range of machines, vehicles, and devices.
• Although IoT relies on many different types of connectivity, including Bluetooth, Wi-Fi, ZigBee, and other short-range wireless technologies, mobile networks play a vital role in delivering IoT services in China, particularly in the automotive and fleet management sectors.
• In addition, the Korea KC Certification is a mandatory certification scheme imposed on electrical and electronic products entering South Korea. The scheme tests and verifies the product's safety, electromagnetic compatibility (EMC), and radiofrequency (RF) features. With the increasing number of IoT gateway certifications, the demand and supply from various end-users would increase significantly. Recently, in March 2021, IG902 of InHand Networks fully met Korea's product safety requirements.

Competitive Landscape

The Global IoT gateway market is moderately competitive, with a considerable number of regional and global players. Market vendors focus more on the growth prospects in the fast-growing segments to make the most of the opportunities through collaborations, innovations, and mergers.

• September 2022 - Veolia Water Technologies announced that it had signed an agreement with Orange Business Services to support the growth of Hubgrade, its smart digital platform, and to develop a universal multi-protocol and multi-connectivity IoT gateway, as well as the exploration of services around machine learning on edge devices for its customers worldwide.
• August 2022 - Siemens and Softdel shared a joint statement announcing a new partnership. Softdel's globally recognized EdificeEdge IoT gateway platform solution has joined the thriving Siemens Connect Ecosystem .this collaboration will bring together experts in software development, IT, cybersecurity, remote and digital services, and business intelligence to bring a vast array of IoT devices and sensors ranging from a temperature, humidity, air quality, fire & smoke, lighting in building areas and at the same time seamlessly integrates with Siemens' platforms,
• August 2022 - Check Point Software Technologies Ltd., a leading global provider of cyber security solutions, announced a new collaboration with Intel Corporation. Check Point Quantum IoT Protect will be available within Intel's new platform for IoT device developers – Intel® Pathfinder for RISC-V*, enabling IoT device developers to integrate cybersecurity easily without impacting product performance.
• May 2022 - Bharat Sanchar Nigam Limited (BSNL) has entered into a strategic partnership with British satellite communications provider Inmarsat to offer its Internet of Things services in India. This collaboration Inmarsat satellite-based connectivity can now be provided for IoT and aggregator devices, in addition to the existing ELERA L-band services already available in the country.

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• The market estimate (ME) sheet in Excel format
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