IoT Node and Gateway Market Size, Growth Analysis

Updated on : Oct 22, 2024

IoT Node and Gateway Market Market Size & Share

The global IoT Node and Gateway market size was valued at USD 424.6 billion in 2024 and is estimated to reach USD 604.7 billion by 2029, growing a CAGR of 7.3% during the forecast period from 2024 to 2029

The growth of market is driven by the emergence of 5G technology, the Rising use of wireless smart sensors and networks, the Provision of increased IP address space through IPv6, and the Increasing need for data centers.

IoT Node and Gateway Market Forecast to 2029

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IoT Node and Gateway Market Trends:

Drivers: Rising use of wireless smart sensors and networks

Growing popularity of smart wearable devices and various smart consumer electronics such as smart meters, smart locks, and smart lighting in recent years, sensors such as proximity sensors, accelerometers, and camera modules entered the consumer electronics market. The array of sensors is now rapidly expanding beyond motion and image sensing to include those that measure humidity, altitude, food calorie composition, and human health.

According to the World Health Organization, the global elderly population aged 60 or older is expected to reach 2 billion by 2050. This demographic shift increases the prevalence of chronic conditions, falls, and disabilities, necessitating preventive interventions.

Smart wearables offer solutions across healthcare domains, from monitoring physical activity and mental status to managing chronic diseases like diabetes and heart disorders. These devices enhance patient management, improve disease management, and facilitate remote monitoring, thereby driving demand for IoT nodes and gateways to support data transmission, analysis, and integration in healthcare systems.

Restraint: High power consumption by wireless sensor terminals and connected devices

High power consumption directly translates to increased operational costs for businesses deploying IoT solutions. Devices like High-Powered Sensor Nodes, LoRaWAN gateways, Edge Computing Device, and Industrial IoT (IIoT) Gateways require frequent battery replacements or consume substantial amounts of electricity; this can lead to higher maintenance expenses, reducing the overall cost-effectiveness of IoT deployments.

As a result, organizations may hesitate to invest in IoT node and gateway solutions, hindering market expansion. High-power IoT devices also contribute to environmental degradation by consuming excessive energy, leading to increased carbon emissions and energy consumption. As businesses and governments face mounting pressure to moderate their environmental footprint and mitigate climate change, the adoption of energy-efficient technologies becomes imperative. Companies seeking to align with sustainability goals may prioritize low-power alternatives to IoT nodes and gateways to minimize their environmental impact.

Opportunities: Accelerated IoT adoption in healthcare sector.

The integration of Internet-connected robots, known as medical robotics, in surgery signifies a significant IoT advancement in healthcare. Equipped with sensors and cameras, these robots enable precise procedures and real-time data transmission to surgeons for remote monitoring and adjustments.

As medical robotics continue to revolutionize healthcare, the role of IoT nodes and gateways becomes paramount in enabling seamless connectivity and real-time data transmission, steering precision and efficiency in surgical procedures. Transenterix develops robotic surgery systems for minimally invasive procedures, Myomo creates neuro-robotic devices aiding those with upper-limb paralysis, Rewalk Robotics offers exoskeletons for mobility assistance, and Diligent Robotics produces autonomous robots for healthcare tasks.

Challenge: Requirement for wireless spectrum and licensed spectrum

The requirement for wireless spectrum and licensed spectrum depicts a significant challenge for the growth of the IoT node and gateway industry. The limited availability of wireless spectrum can constrain the deployment of IoT devices, particularly in densely populated urban areas where spectrum congestion is more prevalent.

According to Global Mobile Suppliers Association (GSA), in January 2023, the rise of wireless spectrum saw significant growth, with the total number of spectrum bands globally reaching 568, an increase of 6.5% compared to January 2022. Specifically, the number of licensed spectrum bands increased by 11.2% to reach 434 bands, while the number of unlicensed spectrum bands grew by 0.9% to reach 134 bands. The demand for spectrum is expected to exceed supply in many regions, leading to spectrum scarcity and increased competition for available frequencies. This scarcity of spectrum can impede the expansion of IoT networks, limiting their scalability and coverage.

IoT Node and Gateway Industry Ecosystem

IoT Node and Gateway Market Segmentation

The market for Connectivity IC segment to hold largest market share during the forecast period.

Connectivity IC accounts for major share in the IoT Node and Gateway market in the forecast period. Connectivity ICs are increasingly integrating sensor interfaces, allowing for simplified data acquisition and processing, which is particularly useful in IoT sensors and wearable devices for monitoring environmental conditions, health parameters, and activity tracking.

In July 2023, Nordic Semiconductor introduced the nPM1300 PMIC, featuring two buck converters, two load switches/LDOs, and integrated battery charging, streamlining battery-operated applications. This IC reduces BoM by consolidating multiple discrete components into one chip.

The nPM1300 PMIC serves as a connectivity IC, enhancing power management efficiency in various battery-operated applications such as wearable devices, IoT sensors, smart home devices, and portable electronics.  Its integration with Bluetooth Low Energy (BLE) and other wireless protocols enhances interoperability and connectivity options for IoT nodes and gateways, facilitating seamless communication and data exchange in IoT ecosystems.

Consumer electronics segment in end-use application held highest market share of the IoT Node and Gateway market during the forecast period.

The proliferation of smart televisions, smart home devices, and IoT gadgets indicates the growing trend towards smart consumer electronics. These devices leverage advanced technologies such as sensors, embedded systems, and actuators, to provide users with intelligent features such as voice recognition, biometric authentication, gesture control, and real-time data monitoring.

Smart appliances, also known as intelligent appliances, have the ability to measure and control their energy usage and communicate the same to homeowners. These appliances can be linked to smart energy meters or home energy management systems which can further help to reduce electricity usage during off-peak hours. The evolution of a number of consumer appliances with improved internet connectivity and smartphones, leverage the market for IoT nodes and gateway in the consumer electronics.

IoT Node and Gateway Industry Regional Analysis

The IoT Node and Gateway market in North America is estimated to account for largest share during the forecast period.

North American cities are transforming into hubs of innovation with a focus on smart infrastructure. This push for smarter systems heavily relies on networks of IoT nodes and gateways, acting as the backbone for data collection, communication, and analysis.

According to reviews.org data of September 2023, an average American owns eight smart devices and intends to purchase four new ones within the next year. Personal electronics like phones, computers, and wearables are currently the most popular, but standalone smart home devices such as smart video doorbells, cameras, and light bulbs are gaining traction, especially considering the 35.6% ownership of smart speakers.

IoT Node and Gateway Market by Region

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Top IoT Node and Gateway Companies - Key Market Players

Major vendors in the IoT Node and Gateway market companies

• Intel Corporation (US),
• Qualcomm Technologies, Inc. (US),
• Texas Instruments Incorporated (US),
• STMicroelectronics (Switzerland),
• Microchip Technology Inc. (US),
• Huawei Technologies Co., Ltd. (China),
• NXP Semiconductors N.V. (Netherlands),
• Cisco Systems, Inc. (US),
• Hewlett Packard Enterprise Development LP (US),
• TE Connectivity Ltd (Switzerland),
• Advantech Co., Ltd. (Taiwan),
• Dell Technologies (US), among others.

Apart from this, Siemens (Germany), Helium Systems Inc. (US), Samsara Networks Inc. (US), Beep Inc. (US), Estimote Inc. (US), AAEON Technology Inc. (Taiwan), Nexcom International Co., Ltd. (Taiwan), Eurotech (Italy), ADLINK Technology Inc. (Taiwan), VOLANSYS  (US), Embitel Technologies (India), Mitsubishi Electric Corporation (Japan), Lantronix, Inc. (US), Cradlepoint, Inc (US), are among a few emerging companies in the IoT Node and Gateway market.

IoT Node and Gateway Market Report Scope

IoT Node and Gateway Market Highlights

This research report categorizes the IoT Node and Gateway market into Hardware, End-use Application, and Region.

Recent Developments in IoT Node and Gateway Industry

• In January 2024, STMicroelectronics introduced a long-range, low-power IoT System-in-Package programmable module built with dual-core STM32WL55JC wireless system-on-chip (SoC). The module saves bill-of-materials costs and time to market for remote metering, monitoring, and smart-sensing devices – enabling simple, immediate and effective LPWAN wireless connectivity.
• In December 2023, Siemens (Germany) and Intel Corporation (US)collaborated to enhance semiconductor manufacturing efficiency and sustainability across the value chain. Leveraging IoT and automation solutions, they aim to drive digitalization and resilience in microelectronics manufacturing.

Key Questions Addressed in the Report:

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