Global IOT Gateway Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Global IOT Gateway Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Global IOT Gateway Market size is expected to grow from USD 1.86 billion in 2023 to USD 3.51 billion by 2028, at a CAGR of 13.55% during the forecast period (2023-2028).

Over the next five years, edge deployments will become a key component of IoT integration and working with connected devices. IoT is a growing technology that is being rapidly adopted around the world. IoT gateways are critical for connecting traditional and next-generation devices to the Internet of Things. Protocol translation, device connectivity, data filtering, and security are all activities performed by IoT gateways. The rising demand for IoT-enabled devices and personalized technologies is driving the worldwide IoT gateways market forward.

Key Highlights

• Commercial organizations' development of connected appliances is accelerating, as is the entire ecosystem surrounding them. As the IoT gateway is the central component in the IoT building block, the rapid development of connected appliances is boosting the growth of the IoT gateway market.
• 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.

IOT Gateway Market Trends

Health 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 COVID-19 pandemic.​
• Moreover, the widespread use of IoT gateway technology as a conduit for remote health-care delivery has the potential to further transform how patients engage with medical providers. The adoption of IoT gateway applications, such as those exhibited at National Taiwan University Hospital (NTUH), Hsin-Chu Branch, as a risk-free, efficient, and effective means to engage the needs of vulnerable patients, can make health care more agile, inclusive, and safe.

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.
• Also, In May 2022, Bharat Sanchar Nigam Limited (BSNL) 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.
• 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.

IOT Gateway Industry Overview

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.

• June 2023 - METCAL, a benchtop soldering system provider, has announced the availability of their new CV-IOT Gateway Module and desktop application, which allows operations management to collect advanced soldering data from any benchtop station on their network. Operations can increase process control and efficiency in the soldering process by connecting the CV-IOT gateway to a Metcal Connection Validation (CV) soldering equipment and a computer or network.
• 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,

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