Industrial IoT Gateway Market Size 2025-2029
The industrial IoT gateway market size is valued to increase USD 3.41 billion, at a CAGR of 20.9% from 2024 to 2029. Leveraging manufacturing data for predictive maintenance will drive the industrial IoT gateway market.
Major Market Trends & Insights
- APAC dominated the market and accounted for a 39% growth during the forecast period.
- By Connectivity - Wired IoT Gateway segment was valued at USD 364.70 billion in 2023
- By End-user - Process industries segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 434.36 million
- Market Future Opportunities: USD 3410.30 million
- CAGR : 20.9%
- APAC: Largest market in 2023
Market Summary
- The market is a dynamic and continually evolving landscape, driven by the increasing adoption of core technologies such as edge computing and wireless communication. These technologies enable the collection, processing, and transmission of data from industrial IoT devices, facilitating applications like predictive maintenance and real-time monitoring. According to a recent study, the market for industrial IoT gateways is projected to account for over 30% of the total IoT gateway market share by 2025. However, the high installation cost due to the need for multiple gateways and the increasing focus on providing end-to-end services remain significant challenges.
- Regulations, such as those related to data security and privacy, also play a crucial role in shaping the market. Despite these challenges, opportunities abound, particularly in sectors like manufacturing and energy, where the potential for operational efficiency gains and cost savings is significant.
What will be the Size of the Industrial IoT Gateway Market during the forecast period?
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How is the Industrial IoT Gateway Market Segmented and what are the key trends of market segmentation?
The industrial iot gateway industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Connectivity
- Wired IoT Gateway
- Wireless IoT Gateway
- End-user
- Process industries
- Discrete industries
- Processing Capability
- Edge IoT Gateway
- Standard IoT Gateway
- Geography
- North America
- US
- Canada
- Europe
- France
- Germany
- Italy
- UK
- APAC
- China
- India
- Japan
- South America
- Brazil
- Rest of World (ROW)
- North America
By Connectivity Insights
The wired IoT gateway segment is estimated to witness significant growth during the forecast period.
The market is experiencing significant growth, with the Bluetooth segment currently holding a substantial market share of around 45%. This dominance is attributed to Bluetooth's advanced features, including low power consumption, faster data transfer speeds, and robust encryption for device pairing. Operating in the frequency range of 2,402 GHz to 2,480 GHz, Bluetooth is ideal for short-range communications, making it a preferred choice for the building automation industry due to its close connectivity and high data security. Looking ahead, the market is expected to expand further, with the wireless communication segment projected to grow by approximately 30% in the next five years.
This growth is driven by the increasing adoption of wireless technologies in various industries, such as manufacturing, transportation, and energy, for real-time data processing and predictive maintenance models. Moreover, the market is witnessing the integration of various industrial communication protocols, including MQTT, OPC UA, Modbus, and SCADA, enabling seamless data acquisition and exchange between industrial automation systems and control systems. These integrations are essential for industrial IoT gateways to provide data visualization dashboards, remote monitoring systems, and data logging capabilities, enhancing operational efficiency and productivity. In terms of security, industrial IoT gateways are equipped with advanced network security protocols, such as TLS/SSL, VPN, and firewalls, ensuring data protection and privacy.
The Wired IoT Gateway segment was valued at USD 364.70 billion in 2019 and showed a gradual increase during the forecast period.
Additionally, edge computing devices, API integrations, and predictive maintenance models are becoming increasingly popular, enabling real-time data processing and remote diagnostics capabilities. The market's growth is further fueled by the integration of various industrial ethernet standards, including EtherNet/IP, PROFINET, and Modbus TCP, which facilitate communication between devices and systems. These standards ensure interoperability and compatibility, enabling seamless integration of various industrial control systems and data analytics platforms. In conclusion, the market is a dynamic and evolving landscape, with ongoing advancements in technology, integration, and security driving its growth. The market's continuous expansion is essential for businesses seeking to optimize their operations, enhance productivity, and improve overall efficiency.
Regional Analysis
APAC is estimated to contribute 39% 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.
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In North America, the automotive industry's shift towards automation fuels the demand for industrial IoT gateways. This trend is particularly prominent in the US and Mexico, where significant manufacturing facilities are located. Factors such as capacity addition, renovation, and upgrades in industries like oil and gas, power, and automotive are expected to boost demand. Notably, the increasing focus on eco-friendly vehicles, with leading automotive companies engineering electric vehicles (EVs) in plug-in, hybrid, and fully electric variants, further contributes to this growth.
Industrial IoT gateways enable seamless connectivity between various devices and systems, enhancing productivity and efficiency across industries. This adoption is a strategic response to the region's industrial evolution, ensuring a competitive edge in the global market.
Market Dynamics
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The Industrial IoT (IIoT) gateway market is witnessing significant growth due to the increasing adoption of data security implementation in remote monitoring systems. IIoT gateways serve as the bridge between various industrial devices and the cloud, enabling real-time data analytics for predictive maintenance and improving operational efficiency. Selecting the right edge computing device for IIoT gateway deployments is crucial for efficient data aggregation techniques. IIoT gateways must ensure secure network security protocols, such as Transport Layer Security (TLS) and Secure Sockets Layer (SSL), to mitigate cybersecurity vulnerabilities. Moreover, optimizing power consumption and implementing scalable architectures are essential considerations for industrial IoT gateway deployments.
The industrial application segment accounts for a significantly larger share in the IIoT gateway market compared to the academic segment, as industries seek to enhance their manufacturing processes and improve productivity. Fault detection algorithms and system integration services play a vital role in industrial automation systems, enabling real-time diagnostic capabilities for industrial equipment. The implementation of OPC UA protocol and industrial ethernet standards facilitates efficient communication between devices and gateways. Time-series databases, such as InfluxDB and OpenTSDB, are increasingly being adopted for IoT data management due to their ability to handle large volumes of data and provide real-time analytics.
The market for IIoT gateways is expected to witness increased competition, with a minority of players, less than 15%, dominating the high-end instrument market. Adoption rates for IIoT gateways in the manufacturing sector are nearly double those in the energy sector, reflecting the industry's focus on optimizing production processes and enhancing operational efficiency. Gateway firmware updates play a crucial role in maintaining system performance and ensuring compatibility with new technologies and protocols. Sensor integration methods, such as MQTT and CoAP, are essential for improved data acquisition and reducing latency in IIoT environments. Data validation processes are crucial for enhancing data quality and ensuring the accuracy of real-time analytics.
The industrial IoT gateway market is advancing rapidly as manufacturers prioritize connectivity, efficiency, and security in smart factory environments. A critical focus is on industrial IoT gateway data security implementation, supported by robust network security protocols for industrial IoT gateways to protect sensitive operational data. Remote monitoring system integration challenges continue to arise, requiring scalable architecture for industrial IoT gateway deployments and tailored system integration services for IIoT gateways. Selecting the right edge computing device selection criteria and comparison is essential for performance optimization, especially when combined with efficient data aggregation techniques in IIoT gateways. Improving data transmission rates in IIoT environments remains a priority, along with optimizing power consumption in industrial IoT gateways for energy-efficient operations. To enhance real-time decision-making, data visualization dashboard design for industrial applications is increasingly adopted. Additionally, fault detection algorithms for industrial automation systems support predictive maintenance and minimize downtime.
What are the key market drivers leading to the rise in the adoption of Industrial IoT Gateway Industry?
- Utilizing manufacturing data effectively for predictive maintenance is a primary market trend and driver, enhancing operational efficiency and reducing downtime.
- The escalating demand for Internet of Things (IoT)-enabled devices is predominantly fueled by the requirement for data collection and analysis to tackle intricate maintenance issues in industrial environments. IoT technologies, including wireless acoustic transmitters and steam trap monitors, facilitate plant operations by gathering data from machinery and systems. This data enables industrial operators to assess the efficiency and productivity of equipment, thereby enabling them to schedule maintenance activities effectively and minimize unplanned downtime caused by unexpected machine malfunctions. The transition towards predictive maintenance has gained significant traction, as it allows businesses to anticipate equipment failures and execute maintenance proactively, thereby reducing production downtime and enhancing operational efficiency.
- Predictive maintenance leverages data-driven insights to forecast equipment failures and optimize maintenance strategies accordingly.
What are the market trends shaping the Industrial IoT Gateway Industry?
- The increasing emphasis on end-to-end services is a notable market trend. End-to-end services refer to the provision of comprehensive solutions that cover all aspects of a business process or project, from start to finish. This trend reflects the growing demand for streamlined and efficient business operations.
- The industrial Internet of Things (IoT) market experiences a significant year-on-year expansion, with double-digit growth rates. The primary motivation for IoT implementation in industrial settings is the desire to enhance manufacturing processes and decrease operational expenses (OPEX) and time-to-market. Industrial IoT encompasses hardware, software, and IoT platform providers. Despite market fragmentation, companies are broadening their offerings through mergers and acquisitions and vertical integration to expedite product innovation.
- However, the implementation of IoT projects in industrial sectors encounters challenges due to the prevalence of legacy operational technologies. Consequently, industrial operators rely on companies that can deliver comprehensive end-to-end services to overcome these obstacles.
What challenges does the Industrial IoT Gateway Industry face during its growth?
- The high installation cost resulting from the requirement for multiple gateways represents a significant challenge impeding industry growth.
- The industrial landscape continues to evolve, with a significant portion of industries relying on legacy networking protocols like Fieldbus and ethernet. Approximately 90% of the industry still adheres to these traditional methods. Industrial IoT gateways present advantages, yet their adoption is restrained due to data loss issues and higher costs compared to wired alternatives. Integrating information technology and operation technology is achievable through edge computing and industrial IoT gateways.
- However, the primary hurdle lies in minimizing data loss and ensuring secure integration during the implementation of IoT projects in process and discrete industries. Despite these challenges, the integration of IT and OT remains a crucial step towards digital transformation in industries.
Exclusive Technavio Analysis on Customer Landscape
The industrial iot gateway market forecasting 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 industrial iot gateway market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Industrial IoT Gateway Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, industrial iot gateway market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
ADLINK Technology Inc. - This industrial IoT solutions provider introduces innovative gateways, including the MXE-110i, MXE-202i, and MXE-5400, enabling seamless connectivity between industrial devices and the cloud for optimized operations and data analysis.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- ADLINK Technology Inc.
- Advantech Co. Ltd.
- Cisco Systems Inc.
- Dell Technologies Inc.
- EUROTECH Spa
- Hewlett Packard Enterprise Co.
- Huawei Technologies Co. Ltd.
- Intel Corp.
- NEXCOM International Co. Ltd.
- NXP Semiconductors NV
- PHYTEC Messtechnik GmbH
- Semtech Corp.
- Siemens AG
- Super Micro Computer Inc.
- TE Connectivity Ltd.
- Texas Instruments Inc.
- KUNBUS GmbH
- Moxa Inc.
- Kontron AG
- Beckhoff Automation GmbH
- Pepperl+Fuchs SE
- Red Lion Controls Inc.
- Schneider Electric SE
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Industrial IoT Gateway Market
- In January 2024, Schneider Electric, a leading energy management and automation company, launched its new EcoStruxure IoT-enabled Edge Control, an industrial IoT gateway designed to optimize energy efficiency and asset performance for industries (Schneider Electric Press Release, 2024).
- In March 2024, Siemens and Microsoft announced a strategic partnership to integrate Siemens' MindSphere industrial IoT platform with Microsoft Azure, allowing seamless data transfer and analysis for industrial customers (Microsoft News Center, 2024).
- In May 2024, Bosch Software Innovations, a Bosch subsidiary, raised € 100 million in a funding round to expand its IoT business and further develop its IoT gateway solutions (BusinessWire, 2024).
- In February 2025, Honeywell and Cisco Systems announced a collaboration to integrate Honeywell's Forge industrial IoT platform with Cisco's IoT gateways, enabling better data processing and analytics for industrial customers (Cisco Newsroom, 2025).
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Industrial IoT Gateway Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
208 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 20.9% |
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Market growth 2025-2029 |
USD 3410.3 million |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
19.3 |
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Key countries |
US, China, Germany, Canada, France, UK, India, Japan, Brazil, and Italy |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The Industrial IoT (IIoT) gateway market is a dynamic and evolving landscape, characterized by continuous advancements in technology and increasing adoption across various industries. IIoT gateways serve as the bridge between industrial sensors and the cloud, enabling real-time data processing and transmission. Network bandwidth requirements for IIoT gateways have become a significant consideration due to the increasing volume of data generated by sensors. Cloud connectivity options, such as Wi-Fi, cellular, and satellite, offer flexibility in data transmission, while power consumption metrics are crucial for ensuring efficient operation in remote locations. MQTT (Message Queuing Telemetry Transport) and OPC UA (Open Platform Communications Unified Architecture) are popular industrial IoT protocols that facilitate seamless communication between gateways, sensors, and applications.
- Network security protocols, such as SSL/TLS and VPN, are essential for safeguarding data transmitted over IIoT networks. IIoT gateways consist of various hardware components, including processors, memory, and connectivity modules. System integration services ensure seamless integration with industrial automation and control systems, such as SCADA (Supervisory Control and Data Acquisition) and DCS (Distributed Control Systems). Data visualization dashboards and data analytics platforms enable real-time monitoring and analysis of IIoT data, while data acquisition units and device management platforms facilitate efficient device onboarding and management. Edge computing devices and remote diagnostics capabilities enhance the functionality of IIoT gateways, enabling predictive maintenance models and fault detection algorithms.
- Industrial IoT gateways support various communication interfaces, including Modbus, IIoT security standards, and API integrations, ensuring compatibility with a wide range of industrial systems and applications. Data logging capabilities and real-time data processing enable efficient data handling and analysis, while wireless communication and ethernet communication options cater to diverse industrial requirements. In conclusion, the IIoT gateway market is a dynamic and evolving landscape, characterized by ongoing advancements in technology and increasing adoption across various industries. The market is driven by the need for efficient data handling, real-time processing, and secure communication in industrial applications.
What are the Key Data Covered in this Industrial IoT Gateway Market Research and Growth Report?
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What is the expected growth of the Industrial IoT Gateway Market between 2025 and 2029?
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USD 3.41 billion, at a CAGR of 20.9%
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What segmentation does the market report cover?
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The report segmented by Connectivity (Wired IoT Gateway and Wireless IoT Gateway), End-user (Process industries and Discrete industries), Geography (North America, APAC, Europe, South America, and Middle East and Africa), and Processing Capability (Edge IoT Gateway and Standard IoT Gateway)
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Which regions are analyzed in the report?
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North America, APAC, Europe, South America, and Middle East and Africa
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What are the key growth drivers and market challenges?
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Leveraging manufacturing data for predictive maintenance, High installation cost due to the need for multiple gateways
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Who are the major players in the Industrial IoT Gateway Market?
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Key Companies ADLINK Technology Inc., Advantech Co. Ltd., Cisco Systems Inc., Dell Technologies Inc., EUROTECH Spa, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Intel Corp., NEXCOM International Co. Ltd., NXP Semiconductors NV, PHYTEC Messtechnik GmbH, Semtech Corp., Siemens AG, Super Micro Computer Inc., TE Connectivity Ltd., Texas Instruments Inc., KUNBUS GmbH, Moxa Inc., Kontron AG, Beckhoff Automation GmbH, Pepperl+Fuchs SE, Red Lion Controls Inc., and Schneider Electric SE
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Market Research Insights
- The market encompasses a range of technologies and services that enable the seamless integration of remote asset monitoring and industrial data acquisition into enterprise networks. With the increasing adoption of IoT in industries, the market has experienced significant growth. According to a recent estimate, the global market size for Industrial IoT gateways is projected to reach USD 25.4 billion by 2026. Network topology design plays a crucial role in ensuring reliable and secure data transfer between edge devices and the cloud. Gateways facilitate remote software updates, system uptime monitoring, and sensor calibration methods, addressing cybersecurity vulnerabilities and ensuring data integrity assurance.
- Real-time monitoring dashboards and cloud-based analytics provide valuable insights for predictive maintenance solutions, while protocol compatibility and data visualization tools enhance system performance optimization. Scalability requirements and data redundancy strategies are essential considerations for industrial IoT gateways, which must support system reliability metrics and data security measures. Gateway firmware updates and interoperability standards help maintain system failover mechanisms and address network latency issues. As the market continues to evolve, advancements in data encryption techniques, device configuration settings, and edge device management will further strengthen the role of Industrial IoT gateways in optimizing industrial operations.
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