IoT Gateway Devices Market worth over $16bn by 2026

IoT Gateway Devices Market size is set to surpass USD 16 billion by 2026, according to a new research report by Global Market Insights, Inc.
 

The IoT gateway devices are witnessing a significant adoption over the coming years owing to rising development in internet connectivity and increasing number of connected devices. The growing penetration of smart devices, such as smartphones, smart wearables, and smart home devices, is generating a high demand for wireless interconnected devices to transfer data over cloud platforms. The ability of IoT gateways to facilitate reliable, highly secure, and quick transfer of high volumes of data to the cloud is enhancing their adoption.

 

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The growing implementation of IoT technologies in smart factories across the globe is driving the IoT gateway devices market demand. The integration of IoT technology into smart factories helps to achieve high productivity and increased operational efficiency. For instance, in June 2019, Schneider Electric launched its first smart factory in the U.S. based on the ExoStructure platform, which leverages industrial internet of things (IIoT) to drive the process optimization. The implementation of IIoT technology in smart factory has enabled the company to achieve 20% reduction in time to repair equipment and increase productivity. Similar smart factory launch by other companies will fuel the adoption of the IoT gateway devices.

The rising number of cyber-attacks and concerns regarding data protection are restricting the market growth. Several manufacturers and government organizations are implementing Industrial IoT and cloud technologies over IoT gateways to increase the functionality in terms of data access, monitor, and control. However, this exposes the critical data from IoT ecosystems to cyber-attacks, giving rise to security concerns.
 

Due to recent outbreak of COVID-19 pandemic, the global supply chains are severely impacted. The pandemic is causing a decline in domestic unit shipments of IoT gateway devices and networking systems in several countries across the globe. It has restricted the movement of goods, forcing manufacturers to procure raw materials and components required for producing IoT-gateway devices from local suppliers to overcome the shortage in the market.
 

Growing demand for IoT solutions across diverse industry verticals is expected to propel the Wi-Fi technology segment

IoT Gateway Device Market

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The Wi-Fi connectivity technology segment held a market share of around 31% in 2019 driven by increasing adoption of Wi-Fi technology across diverse industrial verticals including commercial, residential, and industrial. The manufacturers of IoT gateway devices are heavily relying on Wi-Fi technology to introduce gateways compatible with connectivity technology. For example, in March 2020, Laird Connectivity launched a multi-wireless gateway device, which connects Bluetooth sensors to the cloud with the help of Wi-Fi. The gateway uses a combination of Bluetooth and Wi-Fi and allows customers to capture data from Bluetooth-sensors, add edge intelligence, and send that data to the cloud over high-performance Wi-Fi network. Moreover, several advantages including cost-effective IoT implementation and secure data exchange are contributing to the adoption in the market.
 

Rising need for temporary storage in IoT gateways is anticipated to spur the demand for memory components

The memory component segment in the IoT gateway devices market is projected to observe  15% growth rate till 2026 led by increasing integration of semiconductor memory chips into IoT-gateway devices for data retention and safety applications. In case of inconsistent internet connectivity and fluctuating transmission speed, the memory component helps IoT gateway devices to store critical information within gateway devices for a limited period of time. The integration of memory components with IoT gateways helps enterprises in preventing unprecedented data losses. Furthermore, innovations in memory devices, such as micro SD cards and universal flash storages (UFS), are poised to fuel the market revenue.   
 

Browse key industry insights spread across 310 pages with 305  market data tables and 33 figures & charts from the report, “IoT Gateway Devices Market Size, By Connectivity Technology (Bluetooth, Wi-Fi, ZigBee, Ethernet, Z-Wave), By Component (Multipoint Control Unit (MCU), Field Programmable Gate Array (FPGA), Sensor, Memory), By Application (Wearable Device, Healthcare, Automotive & Transportation, Building Automation, Industrial, Consumer Electronics), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 - 2026”in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/iot-gateway-devices-market
 

Increasing integration of telematics and ADAS systems into commercial vehicles to boost the demand for IoT gateway devices

The automotive & transportation application accounted for 20% of the market share in 2019 and is estimated to expand at 10% CAGR through 2026 on account of stringent government rules mandating telematics in commercial automotive vehicles for safety of goods as well as passengers.
 

Automotive and transportation industries are rapidly adopting the technology due to the growing demand for assisted and automated driving in the market. The integration of IoT with ADAS enhances the passenger and pedestrian safety through real-time alerts. In addition, the IoT gateway devices also support in-vehicle infotainment (IVI) features such as connectivity to smartphones, managing audio and video entertainment, navigation system while driving, among others.
 

Rising adoption of industry 4.0 and development in IoT technologies in North America

North America IoT gateway devices market dominated around 35% of the revenue share in 2019 impelled by extensive development in IoT technologies and industrial infrastructures across the region. The companies operating in the region are emphasizing on the development of advanced IoT solutions to provide improved functional capabilities to manufacturing and production sectors. For instance, in August 2020, IOT-eq launched USB drive recording and remote logging capabilities for its SG-600 5G-enabled IoT gateways. With these capabilities, IoT gateways can communicate with other equipment using multiple M2M protocols. Furthermore, government investments to develop and modernize the industrial infrastructure in the region are prime factors enabling the demand for IoT gateway devices.
 

The government in the region is also focusing on establishment of new laws and regulations related to IoT and cyber security. The IoT gateway helps to reduce cyber security attacks and hacking incidents over IoT networks. The introduction of new laws and regulations is expected to increase the deployment of IoT gateways in the region.
 

Key players operating in the IoT gateway devices market are Advantech Co., Ltd., Intel Corporation, Cisco Systems Inc., Dell Technologies, Inc., Huawei Technologies Co., Ltd., Amazon Web Services, Inc. (AWS) among others. They are investing extensively in R&D activities and view product development and innovation as a lucrative path for market expansion. For instance, in June 2020, Huawei Technologies Co., Ltd. launched a new edge-computing IoT gateway, ‘AR502H’, to assist its partners and customers in building an open and intelligent edge-IoT system. The new gateway model provides open-edge computing architecture, enhanced AI-computing power, and IoT interface including IP-based PLC and 5G uplink.
 

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