The global IoT gateway market size was valued at USD 2.60 million in 2025 and is projected to grow from USD 2.91 million in 2026 to USD 7.21 million by 2034, registering a CAGR of 12.0% during the forecast period (2026–2034). North America dominated the IoT gateway market with a market share of 38.0% in 2025.
An IoT gateway is a hardware or software device that connects IoT sensors, machines, and connected devices to cloud platforms or enterprise networks by collecting, processing, filtering, and securely transmitting data. It enables protocol conversion, edge computing, device management, and real-time data communication across industrial, commercial, and smart infrastructure applications.
The IoT gateway market demand is driven by IoT device deployment, adoption of edge computing, and demand for real-time data processing and secure connectivity. The expansion of industrial automation, smart buildings, connected vehicles, and 5G networks also contribute to IoT gateway market growth.
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The IoT gateway market is highly exposed to supply chain disruptions because it depends on globally sourced processors, microcontrollers, memory chips, communication modules, sensors, networking components, and electronic assemblies. Disruptions in the supply of these critical components increase manufacturing costs, delay product deliveries, and slow IoT deployments across industrial, commercial, and smart infrastructure applications worldwide. The market is expected to follow a J-shaped recovery, with an initial slowdown followed by accelerated growth as semiconductor availability improves, edge computing adoption expands, and investments in connected infrastructure increase.
Integration of Edge AI into IoT Gateways
The need for faster local decision-making is shifting IoT gateways from basic data forwarding toward on-device AI processing. Gateways can analyze sensor and machine data locally, enabling real-time anomaly detection, predictive maintenance, and quality monitoring without continuously sending raw data to the cloud. This trend is increasing the intelligence and value of gateways within industrial IoT deployments.
Convergence of Legacy OT Protocols with Modern IoT Platforms
The need to connect existing industrial equipment with cloud and IoT platforms is driving gateways to support both legacy OT protocols and modern communication standards. This allows manufacturers to modernize brownfield facilities without replacing installed machines. HMS Networks’ Anybus X-gateway converts Modbus TCP data into OPC UA and MQTT formats, enabling older control systems to communicate with modern IoT platforms. This supports wider IoT adoption by reducing integration barriers in existing industrial environments.
The IoT gateway market forecasts continued investment and funding activity driven by the rapid expansion of connected devices and adoption of edge computing.
Key Investment and Funding Activities in IoT Gateway Market, 2025–2026
DATOMS
USD 2.76 million
In February 2026, DATOMS raised USD 2.76 million in Series A funding to strengthen its industrial IoT platform, expand into new markets, and enhance AI-driven predictive maintenance and automation capabilities.
INLAN
USD 5 million (Series A)
In December 2025, INLAN raised USD 5 million in Series A funding to scale its battery-less IoT hardware and expand the software and data infrastructure supporting industrial and supply-chain IoT applications.
Deployment of Connected Fleet and Mobile Assets and Expansion of Smart Building Infrastructure Drive Market
The spread of connected vehicles and mobile equipment is increasing the need for gateways that collect telemetry from onboard sensors and maintain reliable communication with fleet platforms. According to Microsoft, connected-fleet architectures support OEMs, fleet operators, mobility providers, and fleet-solution companies, expanding gateway use across transportation applications. This enables real-time tracking, vehicle diagnostics, and remote asset management, supporting broader gateway adoption.
The growing use of connected HVAC, lighting, energy, security, and occupancy systems is increasing the need for gateways that aggregate data across building networks. India’s Smart Cities Mission had operational Integrated Command and Control Centres in all 100 participating cities by 2025, using IoT and data technologies for city management. This creates wider opportunities for IoT gateways to connect building systems and support centralized monitoring and control.
Data Volume Management and Physical Security Risks at Unattended Locations Restrain Market Expansion
Large IoT deployments generate continuous streams of sensor and machine data, placing greater processing, storage, and bandwidth requirements on gateways. Gateways must filter and prioritize information without creating local processing bottlenecks or transmission delays. This increases hardware and system-design requirements as deployments scale.
Gateways installed at remote factories, utility sites, vehicles, and other unattended locations can be exposed to tampering, theft, or unauthorized physical access. NIST identifies physical access as an IoT security concern and recommends measures such as secured enclosures, locks, and controls to prevent unauthorized access. These additional protections increase installation and maintenance requirements, making deployments more complex and potentially slowing adoption in remote environments.
IoT Gateways for Renewable Energy Assets and EV Charging Infrastructure Create Growth Opportunities
The rapid build-out of solar, wind, and battery installations is creating an opportunity for IoT gateway providers, renewable energy operators, and grid management companies to connect distributed assets with centralized monitoring platforms. Gateways can aggregate inverter, battery, weather, and equipment data for real-time performance management. According to the IEA, global renewable power capacity is expected to increase by 4,600 GW between 2025 and 2030, expanding the addressable base for connected gateway solutions.
The expansion of charging networks creates opportunities for charging-network operators, utilities, automotive companies, and IoT solution providers to use gateways for charger monitoring, load management, payment connectivity, and remote diagnostics. This positions gateway providers to benefit as charging networks become larger, smarter, and more geographically distributed.
Geographically Distributed Sites and Firmware Fragmentation Hinder Growth
The need to manage gateways across factories, utility sites, vehicles, and remote facilities requires centralized provisioning, monitoring, diagnostics, and software updates. Poor visibility across locations can increase maintenance visits, downtime, and operating costs, making large deployments harder to scale.
Gateways use different processors, operating systems, firmware architectures, and hardware configurations, making it difficult to maintain a common software stack. Manufacturers must adapt updates and security patches across multiple hardware versions, increasing development and testing costs. This fragmentation can slow product upgrades and make large-scale gateway deployments more complex to support.
The hardware segment accounted for a share of 61.8% in 2025 due to the essential role of processors, communication modules, memory, security components, and physical interfaces in gateway deployments. Modern gateways increasingly combine connectivity with local computing and data-processing functions.
The software and platforms segment is expected to grow at a CAGR of 13.5% during the forecast period, driven by the demand for device management, analytics, protocol conversion, cybersecurity, cloud integration, and edge applications.
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The wireless gateways segment accounted for a share of 53.6% in 2025, owing to flexibility in connecting distributed sensors and assets across industrial, commercial, energy, transportation, and smart building environments.
The hybrid gateways segment is expected to grow at a CAGR of 13.6% during the forecast period, fueled by demand for solutions that combine wired industrial interfaces with wireless and cellular connectivity.
The device management and data processing segment accounted for a share of 29.8% in 2025, supported by the need to aggregate, filter, preprocess, secure, and transmit data generated by connected devices.
The predictive maintenance segment is expected to grow at a CAGR of 14.8% during the forecast period, propelled by deployment of connected sensors, equipment monitoring, and edge analytics.
The manufacturing segment accounted for a share of 31.2% in 2025 due to extensive deployment of connected machinery, sensors, PLCs, industrial controllers, and production monitoring systems.
The energy and utilities segment is expected to grow at a CAGR of 12.6% during the forecast period, driven by deployment of connected assets across renewable energy facilities, substations, electricity networks, and distributed energy systems.
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North America: Market Dominance Led by IoT Cybersecurity Guidance and Smart Manufacturing
The North America IoT gateway market accounted for the largest regional share of 38.0% in 2025, driven by strong IoT adoption, edge computing infrastructure, and industrial automation.
The U.S. IoT gateway market is boosted by NIST’s 2026 updated IoT cybersecurity guidance, which emphasizes secure connectivity, maintenance, support, and lifecycle management for connected IoT products. The deployment of connected Industrial Internet of Things (IIoT) devices in U.S. manufacturing is also increasing the need for gateways that securely connect sensors and operational technology networks for real-time data exchange.
Canada’s IoT gateway market is supported by the country’s active Advanced Manufacturing Initiative, which promotes smart manufacturing and digital technologies across transportation and manufacturing sectors. The government also reports that 89% of surveyed Canadian advanced-manufacturing firms have benefited from smart technologies such as Industrial Internet of Things (IIoT), supporting demand for gateways that connect industrial devices, sensors, and networks.
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Asia Pacific: Fastest Growth Driven by 5G Upgrades and Development of Indigenous IoT Gateway Technologies
The Asia Pacific IoT gateway market is expected to grow at a CAGR of 13.7% during the forecast period, showcasing the fastest regional growth. Growth is supported by rapid industrialization, smart-factory deployment, expanding
China’s IoT gateway market is supported by the country’s 2025–2027 “5G+Industrial Internet” upgrade program, which specifically calls for the development and industrialization of industrial 5G gateways and other network products. China is also revising national IoT gateway standards, with a new standard covering gateway requirements for sensing-device access scheduled for development through 2027, supporting standardized deployment of gateway technologies.
The India IoT gateway market is supported by the Telecommunication Engineering Centre’s 2025 formulation of a Generic Requirement (GR) standard specifically for IoT gateways, covering technical requirements for gateway deployment. The government is also developing indigenous IoT gateway technologies through MeitY’s Centre of Excellence in Industrial Internet of Things (IIoT) sensors, where gateways have been integrated with domestically developed sensors and tested through industrial field trials.
The Japan IoT gateway market is supported by the JC-STAR IoT security labeling scheme, with the government planning to incorporate STAR-1 or higher certification into government device procurement criteria and expand the scheme to industrial control equipment. The framework is being expanded through 2026, including higher security requirements for communication devices and planned standards for industrial control equipment, supporting demand for secure IoT gateways in industrial and critical-infrastructure applications.
The IoT gateway market competitive landscape is moderately fragmented, with competition among industrial automation companies, networking equipment manufacturers, IoT platform providers, and edge computing technology companies. Leading players compete through gateway processing capabilities, protocol interoperability, and edge analytics. Emerging companies focus on application-specific gateways, AI-enabled edge processing, and open architectures.
June 2026: MSA Safety launched its FieldServer Modbus IoT Gateway, enabling Modbus RTU/TCP-to-OPC UA/MQTT connectivity for cloud and industrial IoT platforms.
June 2026: ORing Industrial Networking announced IEC 62443-4-2 Security Level 2 certification for its IGMG-P83244GC+-D4G IoT gateway.
May 2026: Lantronix launched the NTC-550 Series Industrial IoT Gateways, combining 5G, Wi-Fi 6, and serial connectivity for industrial applications.
March 2026: Kerlink launched its next-generation Wirnet iStation M2 gateway, designed for remote IoT deployments including mining, smart metering, smart cities, and agriculture.
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Author's Details
Research Analyst
Tejas Zamde is a market research professional with over 2 years of experience in the technology, semiconductor, electronics, and automotive sectors. He specializes in market assessment, competitive intelligence, industry analysis, market sizing, demand analysis, and strategic research.
His experience includes analyzing technology trends, market dynamics, regulatory developments, supply-demand patterns, value chains, and competitive landscapes across global and regional markets. He has supported clients with opportunity assessment, customer segmentation, competitive benchmarking, and growth strategy development.
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