IoT node and gateway market to be US$726.7 million by 2030
According to the Market Statsville Group (MSG), the global IoT node and gateway market size is expected to grow from USD 412.3 million in 2021 to USD 726.7 million by 2030, at a CAGR of 6.5% from 2022 to 2030.
Internet of Things (IoT) gateway connects controllers, sensors, and intelligent devices to the cloud.
The most significant type of device in the IoT is the node. The node is the physical device that connects to the IoT and operates in coordination with each other. It is the devices that provide sensor data that is controlled by the cloud.
Nodes tend to be either lightweight sensor devices, which primarily collect status information over a pre-programmed interval, or middleweight devices that offer controllable functions, for instance, door locks, security sensors, and temperature sensors.
The surging penetration of the internet has been increasing over the last couple of years. The upcoming launch of the fifth generation of cellular mobile communications, 5G, will probably reflect positively on the IoT market. It is primarily because 5G networks will improve the performance and reliability of these connected devices. In addition, 5G will manage the need for a faster network with higher capacity to serve connectivity needs. This factor will drive the growth in the market in the upcoming year.
COVID-19 had a negative impact on the IoT node and gateway markets, as companies are reducing their investment in the latest technologies and services to uphold themselves in the competitive market. However, the pandemic strikes it only temporarily because the production and supply chain is disrupted. After the post-pandemic, the situation improves, and production, supply chains, and demand for the IoT node and gateway will increase in the forecast period.
MSG study categorizes the IoT node and gateway market based on hardware and end-user at the regional and global levels.
Based on hardware, the global IoT node and gateway market is divided into the processor, connectivity IC, sensor, and the memory device.
In 2021, the connectivity IC segment accounted for the largest market share in the global IoT node and gateway market. Connectivity ICs are important for wireless technologies, including wireless local area network (WLAN), WiFi, Bluetooth, cellular, and low-power wireless. In addition, a rise in demand for better connectivity products will lead the market in the forecast period.
Based on the regions, the global IoT node and gateway market has been segmented across North America, Asia-Pacific, Europe, South America, the Middle East and Africa.
Asia Pacific is estimated to hold the highest CAGR in the global IoT node and gateway market during the forecast period. The region includes the countries such as China, India, Japan, South Korea, Australia, Southeast Asia, and the Rest of Asia-Pacific. The region's growth is primarily due to strong economic growth, such as increasing internet penetration, a huge customer base, growing adoption of cloud-based services among small and medium enterprises, increasing disposable income, and government policies to promote digitalization and smart-city developments.
In addition, the rise in digital awareness toward IoT nodes will lead to a massive demand for IoT nodes and gateway technologies in Asia-Pacific.
The global IoT node and gateway market are highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
The global IoT node and gateway market major players are Hewlett Packard, Cisco, Dell, Huawei, Advantech B+B Smartworx, ADB, Samsara, Eurotech, and Texas Instruments.
In May 2022, ADB launched LINC Node, a gateway to the IoT for airfield ground lighting infrastructure. It is wireless and wirelessly streams telemetry and status monitoring to the cloud. In addition, LINC Node connects airfield ground lighting devices such as CCRs and ILCMS units to the mobile device or HMI.
In June 2021, Cisco acquired Sedona Systems. Sedona Systems is a technology company that offers a leading multi-vendor, cross-domain network controller. This acquisition provides visibility and manages multi-vendor, multi-layer optical and IP networks.