IoT Node and Gateway Market Size & Share 2024 – 2032
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.
Report ID: GMI8587
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Published Date: March 2024
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Report Format: PDF
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Authors:
Suraj Gujar, Sandeep Ugale
IoT Node and Gateway Market Size
IoT Node and Gateway Market size was valued at USD 280 billion in 2023 and is estimated to register at a CAGR of over 13.5% between 2024 and 2032. IoT nodes are small devices or sensors that collect data from their environment, while IoT gateways serve as intermediaries between these nodes and larger networks. Nodes gather data such as temperature or motion, while gateways organize and transmit this data to central systems efficiently & securely. Together, they form the backbone of the Internet of Things, enabling seamless communication and data exchange in various applications.
IoT Node and Gateway Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The increasing demand for IoT solutions across industries is a significant growth driver for the IoT node and gateway market. As more organizations use IoT technology to improve operational efficiency, make better decisions, and enable new services, the need for nodes & gateways to efficiently collect, process, and transmit data expands. Manufacturing industries, healthcare, transportation, and smart cities are among the industries driving this demand, resulting in the market growth.
For instance, in May 2023, Advantech introduced the MIC-770 V3 Industrial Edge solution, designed to work seamlessly with the NVIDIA L4 Tensor Core GPU, featuring an impressive 7,424 CUDA core & a 24GB GDDR6 GPU memory. Despite its powerful performance, this solution is remarkably energy-efficient, consuming only 72W of power. Combining the NVIDIA L4 GPU with this compact and scalable IPC design creates an AIoT solution that can cater to a wide range of applications such as deep learning & edge inference in factory automation, autonomous vehicles, Automated Optical Inspection (AOI), medical equipment for AI prediction, and video surveillance & transportation systems in smart cities.
Smart city projects rely heavily on the Internet of Things technology to improve urban infrastructure & services such as transportation, energy management, public safety, and environmental monitoring. IoT nodes & gateways collect data from various sensors deployed throughout the city and send it to centralized systems for analysis & decision-making. The growing use of IoT in smart city initiatives drives demand for nodes & gateways to support infrastructure connectivity and functionality, resulting in market growth.
Data privacy concerns have had an enormous effect on the IoT node and gateway market. Customers and businesses are becoming increasingly concerned about potential data breaches and unauthorized access to sensitive information collected by IoT devices. Increased regulatory scrutiny, such as GDPR & CCPA, necessitates stringent compliance measures, which add complexity and cost to IoT deployments. Failure to address these concerns effectively can result in decreased trust, reluctance to adopt IoT solutions, and potential legal liabilities, restricting market growth.
IoT Node and Gateway Market Trends
There is a growing emphasis on edge computing, which involves processing & analyzing data closer to the source, reducing latency and bandwidth usage. Integrating AI and machine learning capabilities into nodes and gateways enables advanced data analytics and edge decision-making. There is a growing emphasis on interoperability and standardization to ensure the seamless integration of various IoT devices and systems. Security remains a top priority with advancements in encryption, authentication, and intrusion detection reducing cyber threats. The integration of IoT with other emerging technologies, such as AI and blockchain technology, is opening new opportunities for automation, predictive analytics, and decentralized data management.
For instance, in July 2023, Microchip Technology Inc. introduced its inaugural lineup of automotive-qualified Ethernet PHYs to offer automotive Original Equipment Manufacturers (OEMs) reliable Ethernet solutions. This family of devices, namely LAN8670, LAN8671, and LAN8672, provides 10BASE-T1S capabilities and holds AEC-Q100 Grade 1 qualification. The LAN8670/1/2 Ethernet PHYs, designed to meet the requirements of ISO 26262 functional safety standards, offer functional safety readiness. With these devices, it is now feasible to integrate low-speed devices, which previously relied on separate communication systems, into a standardized Ethernet network within automotive applications.
Furthermore, the rise of LPWAN technologies enables long-range & low-power connectivity for IoT devices, enabling deployment in remote and resource-constrained environments. Overall, these trends indicate that the IoT node & gateway market is maturing, resulting in increased innovation, efficiency, and scalability in a wide range of industries.
IoT Node and Gateway Market Analysis
Based on the end-use industry, the market is segmented into aerospace & defense, agriculture, automotive & transportation, BFSI, consumer electronics, healthcare, oil & gas, retail, and others. The consumer electronics segment accounted for 18.5% of the market share in 2023.
Based on the connectivity, the IoT node and gateway market is segmented into Bluetooth, Wi-Fi, ZigBee, Z-Wave, and others. The Wi-Fi segment is projected to expand at 14.5% CAGR from 2024 to 2032.
North America IoT node and gateway market held over 30% of the revenue share in 2023. In North America, IoT nodes and gateways are being deployed in a variety of industries including manufacturing, healthcare, transportation, and smart cities. This growth is being driven by increased investments in digital transformation initiatives, advancements in sensor technology, and the proliferation of connected devices.
Companies are using IoT nodes and gateways to collect & analyze real-time data, improve operational efficiency, improve decision-making processes, and provide innovative services to customers. Furthermore, partnerships and collaborations between technology providers, industry players, and government agencies are accelerating the adoption of IoT solutions throughout the region.
IoT Node and Gateway Market Share
Cisco Systems, Inc. and Huawei Technologies Co. holds a significant share of over 6% in the IoT node and gateway industry. It offers a comprehensive portfolio of IoT solutions including IoT gateways and networking infrastructure. By leveraging its expertise in networking technologies, Cisco provides scalable and secure connectivity solutions for IoT deployments. The company’s offerings facilitate data collection, transmission, and management, enabling seamless integration of IoT devices & systems within diverse industries.
Furthermore, major players, such as Cisco Systems, Inc., Dell Technologies Inc., Huawei Technologies Co., Ltd. And Intel Corporation, are constantly implementing strategic measures, such as geographical expansion, acquisitions, mergers, collaborations, partnerships, and product or service launches, to gain market shares.
IoT Node and Gateway Market Companies
Major companies operating in the IoT node and gateway industry are:
IoT Node and Gateway Industry News
The IoT node and gateway market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:
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Market, By Hardware
Market, By Connectivity
Market, By End-use Industry
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
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Trust & credibility
Verified data sources
Trade publications
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Industry databases
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Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
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Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →