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The industrial IoT gateway market size is estimated to grow at a CAGR of 19.8% between 2022 and 2027. The market size is forecast to increase by USD 2,288.46 million. 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.
This industrial IoT gateway market report extensively covers market segmentation by connectivity (Bluetooth, wifi, ZigBee, and others), end-user (process industries and discrete industries), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Leveraging manufacturing data for predictive maintenance is driving growth in an industrial IoT gateway 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 an industrial IoT gateway 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 an industrial IoT gateway 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 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 2022 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 shows a gradual increase in the market share of USD 290.63 million in 2017 and continue to grow by 2021. 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.
The process industries segment holds a dominating share in the global industrial IoT gateway market owing to the high installed base of legacy automation systems and instruments. The main growth driver for the large process industries such as oil, gas, chemical and petrochemicals, power or food and beverages was a need to simplify interoperability issues in order to integrate legacy control systems with industry communication systems. The newly launched products are ideal for challenging industrial settings such as cold chain management and food safety, industrial heating and cooling, agricultural humidity and environmental monitoring, and industrial automation/monitoring and control. Thus, owing to such launches, the process industries are expected to increase, which in turn will drive the global industrial IoT gateway market during the forecast period.
The discrete industries segment includes automotive, electronics and semiconductors, healthcare, and heavy machinery. The growing popularity of the Industrial Internet of Things Gateways in various industries can be attributed to automation and increased focus on preventative maintenance. This is because the discrete industry players are facing stiff competition from their peer group. Hence, any breakdown in equipment or systems can affect productivity and raise the overall cost as well as time-to-market for products. Recent product launches are also to blame for the increasing industrial Internet of Things applications in the automobile sector. The sensor uses the IOT Access Controller of Cassia which allows Realtime patient information from sensors to be received and transmitted via a wireless nurse's station that is continuously monitored. This gateway allows up to 40 Bluetooth Low Energy devices to be paired and connected simultaneously while providing the long-range connectivity needed to cover multiple rooms.
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APAC is estimated to contribute 36% 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 forecast period.
In 2020, the regional industrial IoT gateway market witnessed certain challenges, as the COVID-19 pandemic resulted in the temporary shutdown of automobiles, oil and gas, food processing, and chemical plants in the region. However, IoT technology played a vital role in helping regional authorities prevent the further spread of COVID-19 and in treating those who were infected. Kinsa Inc.Kinsa, a public healthcare provider in the United States, has used its configurable thermometers to produce an hourly map showing how many cases of fever have been detected across the country. These connected thermometers used real-time patient data from sensors and transmitted this data wirelessly through IoT gateways to a nurse's station for continuous monitoring.
The Industrial IoT Gateway Market industry 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 growth strategies.
Global Industrial IoT Gateway Market Customer Landscape
Vendors 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The industrial IoT gateway market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Industrial IoT Gateway Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19.8% |
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Market growth 2023-2027 |
USD 2,288.46 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
16.63 |
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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 36% |
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Key countries |
US, Canada, China, Germany, and the UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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, and Market condition analysis for the 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. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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