IoT Node and Gateway Market Size - By Hardware (Processor, Sensor, Connectivity IC, Memory Device, Logic Device), By Connectivity (Bluetooth, Wi-Fi, ZigBee, Z-Wave, Others), By End-use Industry & Forecast, 2024 - 2032

IoT Node and Gateway Market Size - By Hardware (Processor, Sensor, Connectivity IC, Memory Device, Logic Device), By Connectivity (Bluetooth, Wi-Fi, ZigBee, Z-Wave, Others), By End-use Industry & Forecast, 2024 - 2032

IoT node and gateway market size is estimated to record over 13.5% CAGR from 2024 to 2032, driven by the increasing adoption of IoT technologies across various industries, including manufacturing, transportation, healthcare, and agriculture. For instance, in 2023, IoT Analytics stated that the number of connected IoT devices grew by another 16% compared to 2022 and reached 16.7 billion active endpoints. IoT node and gateway devices serve as essential components of IoT networks for enabling the collection, processing, and transmission of data from sensors and connected devices to centralized cloud platforms or edge computing systems.

Rising advancements in wireless communication technologies, such as Bluetooth Low Energy (BLE), Zigbee, LoRaWAN, and NB-IoT will also drive the market growth for enabling robust and scalable connectivity solutions for IoT deployments. These wireless protocols offer long-range communication, low-power consumption, and secure data transmission, making them well-suited for various IoT applications. The growing adoption of cloud-based IoT platforms and services, coupled with the integration of AI and ML algorithms will further create new opportunities for IoT node and gateway vendors.

The overall industry is classified based on hardware, connectivity, end-use industry and region,

In terms of connectivity, the Z- wave segment in the IoT node and gateway market will record notable growth rate between 2024 and 2032, due to its unique advantages and widespread adoption in smart home and building automation applications. Z-wave technology offers robust wireless communication capabilities with low power consumption for reliable and energy-efficient connectivity between IoT devices, such as sensors, actuators, and smart appliances.

With respect to end use industry, the IOT node and gateway market from the BFSI segment is expected to witness decent growth through 2032, backed by the adoption of IoT technologies for enhancing security, efficiency, and customer experience. In the BFSI sector, IoT nodes and gateways enable the monitoring and management of physical assets, such as ATMs, bank branches, and insurance offices in real-time. These devices also facilitate remote monitoring of equipment health, security surveillance, and environmental monitoring for enhancing operational efficiency and reducing downtime.

Europe IoT node and gateway industry will witness over 14.5% CAGR through 2032, attributed to stringent regulations and standards regarding data privacy and cybersecurity in the region. European enterprises are prioritizing solutions that comply with GDPR and other regulatory requirements, further driving the demand for secure and trustworthy IoT infrastructure. The strong focus on industrial automation and smart manufacturing initiatives, such as Industry 4.0, is also fostering the regional deployment of IoT nodes and gateways for optimizing production processes, improving efficiency, and enabling predictive maintenance.