IoT gateway devices market projected to reach $16 billion by 2026
IoT gateways key to edge access
According to a recent study from market research firm Global Market Insights, demand for IoT gateway devices is expected to increase rapidly. Gateway devices that are rigged with IoT-enabled sensors and cloud solutions can record real-time data of HVAC/R and other systems across residential, industrial and commercial spaces.
Rising concerns over cybersecurity and advanced network infrastructure protection across businesses have accelerated the adoption of IoT gateway devices that provide end-to-end encryption and multi-level authentication of data.
Robust application in the industrial sector has advocated the development of new IoT gateway devices market. For example, industrial IoT gateway solutions, KUBER-2000 and LYNX-6K series, developed by American Portwell Technology, Inc., offers scalable infrastructure for virtual machines, data, front-end applications and servers. The devices provide benefits like ruggedized design, flexible I/O expansion, fast time-to-market, low power consumption and wireless connectivity for different applications.
Basis of application
According to report author Bipin Bangera, the IoT gateway devices market is mainly bifurcated into healthcare, wearable device, building automation, automotive & transportation, consumer electronics and industrial production. Among these, the healthcare application segment recorded a market share of more than 15% in 2019 and is estimated to register a CAGR of 17% within the predicted timeframe.
On the regional landscape, Europe is considered a lucrative market for IoT gateway device manufacturers. Reports suggest that the market could account for almost 15% CAGR by the end of 2026. Supportive federal initiatives backed by government investments aimed at driving smart infrastructure activities could stir significant growth opportunities for IoT gateway hardware manufacturers. As per the European Commission (EC), the government intends to build over 300 smart cities by 2020.
Additionally, presence of large-scale automotive OEMs like Audi AG, Daimler, and Volkswagen in Europe could broaden the industry landscape for IoT companies. Automakers are focusing on incorporating IoT systems like advanced sensors and ADAS solutions to enhance vehicle safety and performance.
Companies functioning in the IoT gateway devices market are emphasizing on forming strategic alliances to bring in new technologies and product launches to expand their market presence and consumer base. Taking August 2020 for instance, Semtech Corporation partnered with TensorIoT and Amazon Web Services (AWS) to streamline the development of IoT solutions by delivering Smart Building Kits and Asset Tracking.