News provided byTechnavio
Aug 12, 2024, 18:35 ET
NEW YORK, Aug. 12, 2024 /PRNewswire/ — The global industrial IoT gateway market size is estimated to grow by USD 3.36 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 23.31% during the forecast period. Leveraging manufacturing data for predictive maintenance is driving market growth, with a trend towards increasing focus on providing end-to-end service . However, high installation cost due to the need for multiple gateways poses a challenge. Key market players include 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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| Industrial Iot Gateway Market Scope | |
| Report Coverage | Details |
| Base year | 2023 |
| Historic period | 2018 – 2022 |
| Forecast period | 2024-2028 |
| Growth momentum & CAGR | Accelerate at a CAGR of 23.31% |
| Market growth 2024-2028 | USD 3364.3 million |
| Market structure | Fragmented |
| YoY growth 2022-2023 (%) | 18.59 |
| Regional analysis | North America, APAC, Europe, South America, and Middle East and Africa |
| Performing market contribution | APAC at 40% |
| Key countries | US, China, Germany, Canada, and UK |
| 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. |
Market Driver
The industrial IoT market has experienced significant growth, with a double-digit year-over-year increase. Driving this adoption is the need to enhance manufacturing processes and decrease operational expenses and time-to-market. Industrial IoT involves hardware, software, and IoT platform providers. The market is fragmented, with vendors expanding offerings through acquisitions and vertical integration. However, implementing IoT projects in industrial sectors is challenging due to legacy technologies. To address this, vendors offering end-to-end services are preferred. Major players like Advantech, HPE, and Moxa provide comprehensive hardware and software packages, with some even offering online consulting services. As competition intensifies and IoT adoption grows, vendors will increasingly focus on end-to-end services, leading to market expansion during the forecast period.
The Industrial IoT (IIoT) gateway market is experiencing significant growth due to the widespread adoption of IoT in various industries, particularly manufacturing. IIoT is revolutionizing production efficiency, reducing lead times, and enabling customized products for businesses. Digital transformation technologies like linked devices, mobile IoT, and edge computing are driving this trend. Gateway devices, including those using processors and memory storage devices, facilitate bidirectional communications between factory assets and the cloud. IIoT is benefiting sectors like automotive transportation, healthcare, consumer electronics, and aerospace defense. Energy consumption reduction is a key advantage, with commercial building owners also embracing IIoT for smart lighting, heating, and security. Gateway technologies support various communication protocols such as Bluetooth, Ethernet, and cellular. Component shortages and security concerns are challenges, but innovations like MCUs (Microcontroller Units) and SOC (System-on-Chip) are addressing these issues. Hydrogen fuel cells and carbon dioxide emissions reduction are emerging applications, offering potential for increased profits. Major players in the IIoT gateway market include Advantech and MOXA, offering solutions for legacy equipment, sensors, controllers, and more. The future of IIoT is bright, with continuous advancements in technology and applications.
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Market Challenges
- The integration of information technology and operation technology in industries can be achieved through edge computing and industrial IoT gateways. However, the implementation of IoT projects in process and discrete industries poses challenges. The primary concerns are data loss and security during the integration of IoT devices. While small-scale industries can easily adopt IoT gateways, large industrial premises with multiple divisions require a mesh network of multiple gateways, increasing overall costs. Data loss often occurs due to connectivity issues in IoT devices and faults in gateways. The high cost of installing multiple gateways may hinder the growth of the industrial IoT gateway market. Despite the advantages of IoT gateways, many industries still rely on wired gateways due to their reliability, low data loss, and lower cost. Thus, resistance to change from wired communication protocols to wireless ones hinders the adoption of industrial IoT gateways in the manufacturing industry.
- The Industrial IoT Gateway market is experiencing significant growth as businesses seek to connect and manage their legacy equipment with next-generation devices. However, challenges persist in implementing edge computing, ensuring security, and selecting the right hardware like MCUs and SOCs. Communication protocols such as Bluetooth and ZigBee are common, but challenges remain in endpoint device interoperability and networking connectivity. Manufacturing industries face cyberattacks and unauthorized access, necessitating protective circuitry and virtualization. Cloud integration, data storage, and edge analytics are crucial, but power consumption is a concern for microcontrollers and older equipment. Flexible SOC-type designs from companies like Advantech and MOXA are addressing these challenges, enabling smart lighting, healthcare, buildings, and even smart cities. MCUs need efficient SoC designs, and Texas Instruments offers solutions. Sensors and controllers require pins and socket PCs for connectivity. Cybersecurity threats demand attention, with cyberattacks targeting manufacturing and smart cities. Networking protocols and data storage are essential, but managing these systems can be complex. Overall, the Industrial IoT Gateway market requires innovative solutions to address these challenges and unlock the potential of big data analytics.
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Segment Overview
This industrial iot gateway market report extensively covers market segmentation by
- Connectivity
- 1.1 Bluetooth
- 1.2 Wifi
- 1.3 Zigbee
- 1.4 Others
- End-user
- 2.1 Process industries
- 2.2 Discrete industries
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and Africa
1.1 Bluetooth- The Industrial IoT Gateway market is experiencing significant growth due to the increasing adoption of IoT technologies in industries. These gateways facilitate seamless communication between IoT devices and the cloud, enabling real-time data processing and analysis. Companies are investing in IoT gateways to improve operational efficiency, reduce costs, and enhance productivity. The market is expected to continue growing as more industries embrace digital transformation.
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Research Analysis
The Industrial IoT (IIoT) Gateway market is witnessing significant growth due to the increasing adoption of edge computing in industrial automation. Edge computing allows data processing and analysis at the source, reducing latency and bandwidth requirements. Security is a major concern in IIoT, with gateways playing a crucial role in securing communication between sensors, controllers, and the cloud. MCUs (Microcontroller Units) and SOC (System-on-Chip) are popular choices for building IIoT gateways. Bluetooth gateways are gaining popularity for connecting legacy equipment, while networking protocols like MQTT and CoAP are commonly used for communication. Sensors and controllers generate vast amounts of data, which requires efficient data storage and edge analytics. Next-generation devices are incorporating flexible SOC-type designs, while management systems ensure seamless integration with cloud platforms. However, cyberattacks and unauthorized access pose significant challenges, requiring robust security measures. Companies are investing in advanced security features, such as encryption, access control, and intrusion detection. Belden and Kubernetes are also making strides in the IIoT gateway market.
Market Research Overview
The Industrial IoT (IIoT) Gateway market is witnessing significant growth due to the increasing adoption of edge computing in various industries. Edge computing enables real-time data processing and analysis at the source, reducing the need for large amounts of data to be transmitted to the cloud. IIoT gateways act as intermediaries between sensors, controllers, and the cloud, ensuring secure and reliable communication using various networking protocols like Bluetooth, ZigBee, Ethernet, Cellular, and others. IIoT gateways are essential for connecting legacy equipment and older devices to the IoT ecosystem. They come in various forms, including MCUs (Microcontroller Units) and SOC (System-on-Chip) designs, which offer flexible and power-efficient solutions. The market is driven by the need for security, as IIoT gateways provide protective circuitry to prevent cyberattacks and unauthorized access. IIoT gateways are used in various applications, including smart lighting, smart healthcare, smart buildings, manufacturing, and smart cities. They enable virtualization and networking connectivity, making it easier to manage and monitor linked devices.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Connectivity
- Bluetooth
- Wifi
- Zigbee
- Others
- End-user
- Process Industries
- Discrete Industries
- Geography
- North America
- APAC
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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