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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. The growth of the market depends on several factors, including leveraging manufacturing data for predictive maintenance, the increased focus on edge computing, and the ease of converging information and operation technologies. An industrial IoT gateway is a switching device used for aggregating, filtering, and processing sensor data and routing it to the destination node (which could be the cloud or servers). Industrial IoT gateways are used in the industry for important applications such as device connectivity and protocol translation. In an industrial network, the data from the input/output (I/O) device and sensor nodes are in analog form, which is converted to a digital stream using data acquisition systems. The data that is converted from analog to digital is aggregated and sent to the gateway. The gateway routes this aggregated data over LANs or Wi-Fi to servers for data analysis and storage.
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The Industrial IoT Gateway Market is driven by advancements in MCUs (Microcontroller Units) and SOC (System-on-Chip) technologies, enabling robust 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 like MOXA cater to diverse needs, supporting legacy equipment integration with modern sensors and controllers while addressing cybersecurity challenges like cyberattacks and unauthorized access. Solutions from Teltronic 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 robust management systems for both older and emerging industrial IoT infrastructures. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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, vendors 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 vendors that can provide end-to-end services. As vendor 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.
The delays and excess data load is a major challenge in the market. The amount of data that can be stored and the resources required for processing are limited to Gateways. Gateways require a translation algorithm to transfer from one protocol to another. The ability of an Internet Of Things gateway to communicate information has increased as the differences between protocols have become more pronounced, but at the same time, the overall time taken for data packets to move from their origin to the source has also increased.
Although most of the vendors are trying to reduce the problems associated with the use of multiple protocols and systems in a communication network, the overall amount of data that has to be stored in the Industrial Internet of Things Gateways is increasing, which will affect their operation due to a growing number of instruments needed by the industry. Hence, the delay and excess data load can hamper the growth of the global industrial IoT gateway 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 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 vendors 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 report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The Industrial IoT Gateway 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 robust 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.
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Market Scope |
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Report Coverage |
Details |
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Page number |
190 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 23.31% |
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Market growth 2024-2028 |
USD 3.36 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
18.59 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 40% |
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Key countries |
US, China, Germany, Canada, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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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 forecast period |
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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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