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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.
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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.
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.
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.
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.
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
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:
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.
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 |
What is the expected growth of the Industrial IoT Gateway Market between 2025 and 2029?
USD 3.41 billion, at a CAGR of 20.9%
What segmentation does the market report cover?
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)
Which regions are analyzed in the report?
North America, APAC, Europe, South America, and Middle East and Africa
What are the key growth drivers and market challenges?
Leveraging manufacturing data for predictive maintenance, High installation cost due to the need for multiple gateways
Who are the major players in the Industrial IoT Gateway Market?
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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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Connectivity
9 Market Segmentation by End-user
10 Market Segmentation by Processing Capability
11 Customer Landscape
12 Geographic Landscape
13 Drivers, Challenges, and Opportunity/Restraints
14 Competitive Landscape
15 Competitive Analysis
16 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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