IoT Node and Gateway 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, 2024 - 2032

IoT Node and Gateway 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, 2024 - 2032

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.

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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.

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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

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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.

• The integration of IoT nodes and gateways is transforming the consumer electronics industry. These devices allow connectivity and data exchange between various consumer electronics products, resulting in improved functionality, automation, and personalized experiences for users. Smart home devices, wearables, and connected appliances are becoming increasingly popular as a result of the Internet of Things technologies. Manufacturers are investing in IoT features to differentiate their products and increase IoT node and gateway market share.
• Furthermore, the proliferation of IoT ecosystems and standards promotes interoperability and drives innovation in the consumer electronics industry. As a result, consumers are increasingly adopting IoT-enabled devices, creating significant growth opportunities, and changing the landscape of the consumer electronics industry.

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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.

• Wi-Fi connectivity is rapidly evolving with the increasing number of IoT nodes and gateways. As IoT devices become more common in domains such as smart homes, industries, and cities, Wi-Fi networks are evolving to meet their connectivity requirements. Modern Wi-Fi standards such as Wi-Fi 6 and emerging technologies such as Wi-Fi 6E provide greater bandwidth, lower latency & increased reliability, which is critical for handling the diverse data streams generated by IoT devices.
• Advancements in mesh networking and edge computing enable Wi-Fi networks to efficiently manage several IoT nodes & gateways, improving scalability and resilience. Overall, Wi-Fi's evolution is critical in enabling seamless connectivity and communication among IoT devices, thereby driving innovation & efficiency throughout industries.

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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

• Cisco Systems, Inc.
• Dell Technologies Inc.
• Helium
• Hewlett Packard Enterprise
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Intel Corporation
• Laird Connectivity
• NXP Semiconductors N.V.
• Particle Industries Inc.
• Robert Bosch GmbH
• Sierra Wireless
• STMicroelectronics N.V.
• TE Connectivity Ltd.
• Texas Instruments Incorporation

IoT Node and Gateway Industry News

• In April 2021, Intel Corporation launched new 3rd Generation Intel Xeon Scalable processors, combined with Intel's portfolio of Intel Optane persistent memory & storage, Ethernet adapters, FPGAs, and optimized software solutions-deliver performance & workload optimizations across hybrid-cloud, High-Performance Computing (HPC), networking, and intelligent edge applications.
• In February 2021, Huawei Technologies and China Mobile deployed the world's first 4.9 GHz commercial LampSite network in Shanghai, China. This was the first time that an aggregate bandwidth of 200 MHz on the 2.6 & 4.9 GHz bands and distributed Massive MIMO were simultaneously implemented in digital indoor networks.

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

• Processor
• Sensor
• Connectivity IC
• Memory Device
• Logic Device

Market, By Connectivity

• Bluetooth
• Wi-Fi
• ZigBee
• Z-Wave
• Others

Market, By End-use Industry

• Aerospace & Defense
• Agriculture
• Automotive & Transportation
• BFSI
• Consumer Electronics
• Healthcare
• Oil & Gas
• Retail
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA

Frequently Asked Questions (FAQ)

How big is the IoT node and gateway market?

The market size of IoT node and gateway reached USD 280 billion in 2023 and is set to witness 13.5% CAGR between 2024 and 2032, led by the increasing demand for IoT solutions across industries.

How will Wi-Fi connectivity segment influence the growth of IoT node & gateway industry?

Wi-Fi connectivity segment is estimated to register a significant growth rate of over 14.5% during 2024 to 2032, as it enables seamless connectivity and communication among IoT devices.

What factors are pushing the growth of North America IoT node and gateway market?

North America IoT Node and Gateway Market held a significant share of over 30% in 2023 and is set to register a notable growth through 2032, fueled by increased investments in digital transformation initiatives, advancements in sensor technology, and the proliferation of connected devices.

Which companies define the competitive landscape of IoT node and gateway industry?