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The industrial IoT gateway market size is estimated to grow by USD 3.36 billion at a CAGR of 23.31% between 2023 and 2028. In today's manufacturing landscape, predictive maintenance has emerged as a critical strategy to optimize operations and minimize downtime. By leveraging real-time data from the factory floor, predictive maintenance enables early identification and resolution of potential equipment failures. This approach not only reduces maintenance costs but also improves overall equipment effectiveness. Another trend shaping the manufacturing industry is the increased focus on edge computing. Edge computing allows data processing to occur closer to the source, reducing latency and enabling real-time analysis. This is particularly important in manufacturing, where quick responses to changing conditions can make a significant difference. Furthermore, the convergence of information and operational technologies (IT/OT) is simplifying the integration of data from various sources and systems. This convergence is facilitated by industrial IoT platforms, which provide a unified view of manufacturing data and enable advanced analytics and predictive maintenance capabilities. By harnessing the power of these technologies, manufacturers can gain valuable insights into their operations and make data-driven decisions to improve efficiency and productivity.
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The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth by the Bluetooth segment will be significant during the forecast period. The Bluetooth connectivity segment is the largest segment in terms of market share in 2023 and is expected to continue dominating the market during the forecast period owing to cutting-edge features such as low battery consumption, faster data transfer speed, and cutting-edge encryption for device pairing. Bluetooth provides the building automation sector with seamless connectivity and a good level of data security.
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The Bluetooth segment showed a gradual increase in the market share of USD 324 million in 2018. Bluetooth communication is expected to evolve technologically with advanced features and protocols to meet market demand. In addition, this connectivity is capable of transmitting data without changes and can be highly accurate in monitoring, which drives the Bluetooth connectivity segment, which in turn will fuel the growth of the global industrial IoT gateway market during the forecast period.
The Wi-Fi connectivity segment is the second-largest segment in terms of share in the global industrial IoT gateway market. Using Wi-Fi, an Internet of Things system is connected to a gateway and then sends the data from your IOT device to the cloud. Wi-Fi has played a major role in enabling innovation on the Internet of Things, providing widespread connectivity to connect multiple devices to each other, and to the Internet, and there are around 19.5 billion Wi-Fi devices around the world. The growth in this segment of WiFI connectivity is being driven by its high security, flexibility, and paramount connection, which in turn will drive the global industrial IoT gateway market during the forecast period.
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APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is North America. North America is a hub for the automotive industry, with key manufacturing facilities in the US and Mexico. The demand for an Industrial Internet of Things gateway in this area will be driven by the increasing need to increase automation, leading to increased productivity throughout the production process at car manufacturers. Factors such as rising investments in capacity addition, renovation, and upgrades in the oil and gas, power, and automotive industries, especially in the US, are expected to fuel the demand for industrial IoT gateways in North America during the market forecast period.
The market is driven by advancements in MCUs (Microcontroller Units) and SOC (System-on-Chip) technologies, enabling rugged communication protocols like Bluetooth gateway and BLE (Bluetooth Low Energy). Innovations such as Radio Direction Finding (RDF) and Received Signal Strength Indicator (RSSI) enhance connectivity and data transmission reliability. Companies cater to diverse needs, supporting legacy equipment integration with modern sensors and controllers while addressing cybersecurity challenges like cyberattacks and unauthorized access. Solutions integrate various networking protocols and enable efficient data storage and edge analytics at entry-point edge devices. The market embraces next-generation devices with capabilities for big data analytics and flexible SOC-type designs supported by technologies such as Kubernetes and edge computing. Belden plays a crucial role in providing potent management systems for both older and emerging industrial IoT infrastructures.
Leveraging manufacturing data for predictive maintenance is driving growth in the market. The need for data collection and analysis to solve complex maintenance tasks is increasing demand for IoT-enabled devices. IoT-enabled devices such as wireless acoustic transmitters and steam trap monitors are helping monitor the complete plant operations. As it contributes to the reduction of total production interruptions, as well as increasing operational efficiency, end users shift their focus towards preventive maintenance.
Moreover, IoT-enabled devices are particularly helpful in industries that use a substantial number of automation control solutions and instruments in their operations. As a consequence, industrial operators are faced with the task of monitoring their automation systems and instruments. The requirement for gateways is highly essential to enhance the effective interaction between machines with increased data sets, driving the global industrial IoT gateway market during the forecast period.
The increasing focus on providing end-to-end service is a primary trend in the market. Demand for industrial IoT shows double-digit year-over-year growth. A key driver behind the adoption of IoT in industrial facilities has been the need to improve manufacturing processes and reduce the total cost of ownership and time to market. Although the IoT market is fragmented, companies are trying to expand their product offerings by acquiring peer companies and increasing vertical integration to improve their product development processes.
Moreover, the development of IoT projects in industrial sectors is difficult due to the strong installed base of legacy operation technologies. Hence, industrial operators depend on companies that can provide end-to-end services. As company competition increases, and the growing use of the Internet of Things in industry premises requires more end-to-end services rather than only hardware or platforms, market participants will gradually be shifting into a new era of service delivery. Therefore, increasing focus on providing end-to-end service will drive the global industrial IoT gateway market during the forecast period.
High installation cost due to the need for multiple gateways is the major challenge that affects the growth of the market. Industrial IoT gateways play a pivotal role in the integration of information technology and operational technology through edge computing. These gateways facilitate communication between various sensors, controllers, and legacy equipment using advanced technologies such as edge analytics, entry-point edge devices, and management systems. However, the adoption of Industrial IoT gateways is still limited due to challenges in data loss reduction and ensuring security during implementation. Edge computing enables real-time data processing and analysis at the source, reducing the need for data transmission to the cloud. Security is a significant concern in IoT projects, with potential threats such as cyberattacks and unauthorized access. To mitigate these risks, Industrial IoT gateways incorporate protective circuitry and endpoint device interoperability. MCUs (Microcontroller Units) and SOC (System-on-Chip) are essential components of Industrial IoT gateways. These devices offer flexible designs, low power consumption, and high processing power, making them suitable for various applications such as smart lighting, smart healthcare, and smart buildings.
Communication protocols such as Bluetooth, ZigBee, and Ethernet are used to ensure networking connectivity. Legacy equipment, sensors, and controllers require integration with next-generation devices to leverage the benefits of IoT. Industrial IoT gateways provide a solution by offering compatibility with various networking protocols and data storage options. Virtualization and cloud technologies enable scalability and flexibility in IoT projects. The implementation of Industrial IoT projects in manufacturing industries requires addressing challenges such as data loss, security, and interoperability. Edge computing and Industrial IoT gateways offer a viable solution by enabling real-time data processing, reducing power consumption, and ensuring secure communication. The use of advanced technologies such as MCUs, SoC, and communication protocols enables the integration of various devices and systems, making Industrial IoT gateways an essential component of modern industrial automation systems. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ADLINK Technology Inc. - The company offers industrial IoT gateway such as MXE-110i, MXE-202i, and MXE-5400.
Advantech Co. Ltd. - The company offers industrial IoT gateway such as UTX 3117, EPC R3220, UBC 220, WISE 3310, and ARK 1551.
ASUSTeK Computer Inc. - The company offers industrial IoT gateway such as PE100A, PE200 Series, and PE400D.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is pivotal in facilitating seamless connectivity and communication across diverse sectors like smart healthcare, smart buildings, and smart cities. It leverages advanced technologies such as system-on-chip (SoC) for efficient virtualization and supports older equipment integration through strong communication protocols. IoT sensors and microcontrollers enable precise data collection, enhanced by endpoint device interoperability and bidirectional communications via gateway devices. This market addresses varying needs in manufacturing business and commercial building sectors, optimizing production efficiency and energy consumption reduction. Technologies like ethernet and cellular ensure reliable networking connectivity, while digital transformation technologies drive innovation in customized products and linked devices. As global demand rises, challenges like component shortages and carbon dioxide emissions underscore the importance of sustainable practices and operational efficiency in the global IoT gateway market.
Market Scope |
|
Report Coverage |
Details |
Page number |
190 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.31% |
Market Growth 2024-2028 |
USD 3.36 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
18.59 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, China, Germany, Canada, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADLINK Technology Inc., Advantech Co. Ltd., Alten SA, ASUSTeK Computer Inc., Cisco Systems Inc., Dell Technologies Inc., EUROTECH Spa, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Intel Corp., Intuz Inc., iWave Systems Technologies Pvt. Ltd., NEXCOM International Co. Ltd., NXP Semiconductors NV, PHYTEC Messtechnik GmbH, Semtech Corp., Siemens AG, Super Micro Computer Inc., TE Connectivity Ltd., and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Connectivity
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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