Global IoT Gateway Market Ascends at a CAGR of 13.7%

Introduction

The IoT gateway combines networking protocols, data storage, and edge analytics and simplifies data flow between entry-point edge devices and the cloud. As intelligent gateways and management systems have evolved to connect older equipment and next-generation devices to the IoT, the growing demand for big data analytics has resulted in a greater need for IoT gateways. The expansion of application-specific MCUs, flexible SOC-type designs, and the burgeoning development of smart cities are essential drivers for the IoT gateway market. Building electronic circuits within a system-on-chip (SoC) has numerous advantages, including increased efficiency and compatibility while decreasing space requirements and development time.

Market Dynamics

Growth of Application-Specific MCUs and Flexible SOC-Type Designs Spur the Market for IoT Gateway

Endpoint device interoperability is often achieved by gateways on Internet of Things (IoT) networks. However, gateways are primarily concerned with networking connectivity and lack data logic control skills. Microcontrollers with embedded intelligence are prepared to serve as intermediaries to facilitate endpoint device interconnectivity. A processor or microcontroller, protective circuitry, IoT sensors, connectivity modules such as ZigBee, and Bluetooth, compose IoT gateway hardware. Specific MCU needs for the end application and system requirements and the expansion of application-specific MCUs are positioned to drive their implementation in IoT gateways.

SoC (systems on chip) consume less power than socket PCs but have less computer power. Because SoC designs are tiny, they give substantial flexibility for industrial applications and IoT deployments requiring low-power processing performance. Texas Instruments, for example, uses the AM335x processors in an IoT gateway market design that includes the programmable nature of the real-time unit subsystem and industrial communication subsystem (PRU-ICSS), as well as access to pins, events, and all SoC resources that provide flexibility in implementing real-time, fast responses, specialized data handling operations, and offloading tasks from the SoC's other processor cores.

Adoption of IoT in the Manufacturing Industry Creates Myriad Market Opportunities

The adoption of IoT in the manufacturing business is fast expanding as firms attempt to improve production efficiency, shorten lead times, and deliver customized products to their consumers. Manufacturers are also implementing IoT and other digital transformation technologies to remain competitive in the market. Furthermore, due to the exponential expansion of linked devices, companies are predicted to progressively adopt mobile IoT mobile devices, enabling the digitalization of diverse factory assets such as vehicles, processes, and equipment. IoT is also anticipated to allow industrial communication with third-party suppliers, building a connected ecosystem of smart manufacturing hubs worldwide.

Regional Insights

Asia-Pacific holds the largest market share and is estimated to grow at a CAGR of 14.4% during the forecast period. Due to the increasing number of connected devices and IoT adoption across numerous industries, Asia-Pacific sees a surge in demand for IoT gateways. The increased number of linked devices would directly raise the need for IoT gateways in the region. It is leveraging market expansion with the rise of smart city projects in recent years. This suggests that India has a significant opportunity to enhance its investments in smart buildings over the foreseeable timeframe. This is expected to generate chances for IoT gateway expansion.

North America is estimated to reach USD 1,400 million by 2030, growing at a CAGR of 13.4%. Energy consumption reduction is one of the top priorities for commercial building owners and managers looking to save money. According to the US Energy Information Administration, business and residential buildings consume over 40% of the country's energy. In addition, the leading smart cities in the United States in 2019 have the highest index scores: Boston (7.07), Washington, DC (6.82), Los Angeles (6.81), and New York (6.81). (6.65). With the growing trend of smart building adoptions, IoT gateway specifies its use in various applications, catering to considerable market growth.

Europe is the third-largest region. Germany is a technologically advanced country rapidly adopting the Internet of Things as a way of life in various industries. The government is one of Europe's leaders in IoT adoption. Due to the reliance on gateways for establishing bidirectional communications between the device-to-gateway and gateway-to-cloud, the emergence of IoT has driven the researched market. Furthermore, with the widespread deployment of Industrial IoT across various industries, IoT gateways have grown in popularity in the country. Several significant firms have released gateway devices in response to the increased need for Industrial IoT Gateways. Industry-grade IoT edge gateways are projected to acquire substantial traction over the projection period.

Key Highlights

• The global IoT gateway market was valued at USD 1,325 million in 2021. It is expected to reach USD 4,200 million by 2030, growing at a CAGR of 13.7% during the forecast period (2022–2030).
• By component, the global IoT gateway market is segmented into Processors, Sensors, Memory & Storage Devices, and Others. The Processor segment dominates the market and is estimated to grow at a CAGR of 14.2% during the forecast period. 
• By connectivity, the global IoT gateway market is segmented into Bluetooth, Wi-Fi, Zigbee, Ethernet, Cellular, and Others. The Bluetooth segment dominates the market and is estimated to grow at a CAGR of 17.8% during the forecast period. 
• By end-user, the global IoT gateway market is segmented into Automotive & Transportation, Healthcare, Industrial, Consumer Electronics, BFSI, Oil & Gas, Retail, Aerospace & Defense, and Others. The Industrial segment dominates the market and is estimated to grow at a CAGR of 12.8% during the forecast period. 
• By region, the global IoT gateway market is segmented into North America, Europe, Asia Pacific, and LAMEA. Asia-Pacific commands the maximum market share.

Competitive Players

1. Microchip Technology Inc.
2. Cisco Systems Inc
3. Advantech Co. Ltd
4. Dell Inc
5. Hewlett Packard Enterprise Development LP
6. Huawei Technologies Co. Ltd
7. Samsara Networks Inc.
8. ADLINK Technology Inc.
9. Eurotech Inc
10. Kontron S&T AG.

Recent Developments

Recent Developments

• April 2022 - Advantech (TWSE: 2395), a world leader in Industrial IoT, and Tsai Ying Clean Energy Co., Ltd. (TYCE) signed a letter of intent (LOI) for collaboration in developing the first "Made-in-Taiwan" hydrogen fuel cell electric bus (FCEB) management system and jointly exploring domestic and international markets for it. This was done in response to the goal of bringing global carbon dioxide emissions to be net zero by 2050.
• February 2022 - The Industrial IoT industry's leading company, Advantech (TWSE: 2395), held an online investor conference. Operating revenue and profit for Advantech both reached record highs in 2021, growing by 15% and 14%, respectively, year over year. The consolidated net income after taxes was NT$8.25 billion, the annual EPS was NT$10.67, and the yearly operating gross margin was 37.8% despite component shortages and rising prices.

Segmentation

1. By Component
   1. Hardware
      1. Processors
      2. Sensor
      3. Memory Devices
      4. Connectivity ICs
      5. Enclosures
      6. Power management units
      7. Other Hardware Components
   2. Software
      1. Device management
      2. Analytics
      3. Security
      4. Data processing
      5. Middleware
   3. Firmware
2. By Node
   1. Smart Watch
   2. Camera
   3. RADAR
   4. Thermostat
   5. Actuator
   6. Smart TV
   7. Others
3. By Connectivity
   1. Bluetooth
   2. WiFi
   3. ZigBee
   4. Ethernet
   5. Cellular
   6. Others
4. By Deployment Model
   1. On-Premise
   2. Cloud-Based
5. By End-User
   1. Automotive & Transportation
   2. Healthcare
   3. Industrial
   4. Consumer Electronics
   5. BFSI
   6. Oil & Gas
   7. Retail
   8. Aerospace & Defense
   9. Others
6. By Power Source
   1. Battery-Powered
   2. Wired Power Supply
   3. Hybrid
   4. Solar-Powered 
   5. Other Renewable Sources