Global IoT Gateways Market Segmentation, By Component (MCU, FPGA, Sensor, Memory Others), Node (Smart Watch, Camera, RADAR, Thermostat, Actuator, Smart TV, Others), Connectivity Technology (Bluetooth, Wi-Fi, ZigBee, Ethernet, Z-Wave, Others), Application (Wearable Devices, Healthcare, Automotive and Transportation, Building Automation, Industrial, Consumer Electronics) - Industry Trends and Forecast to 2032
IoT Gateways Market Size
- The Global IoT Gateways Market size was valued at USD 2.35 billion in 2024 and is expected to reach USD 7.60 billion by 2032, at a CAGR of 15.8% during the forecast period[AN1]
- This growth is driven by factors such as the increasing demand for connected devices, edge computing, and real-time data processing across industries.
IoT Gateways Market Analysis
- IoT gateway refers to a physical device which enables software program serving as a connection point among controllers, sensors, clouds and intelligent devices. The IoT gateways structures are found in the shape of building blocks which assist in increasing the wireless sensing application in IoT module.
- The repository and network of edge flow among clouds and devices of the IoT gateways securely provide various functions including security, data filtering, device connectivity and protocol transaction. These gateways are configured with CSPs, NaaS providers and service providers across numerous regions.
- North America dominates the IoT gateways market due to the numerous investments in renovation, capacity addition, automotive industries and upgrading in the oil and gas and power.
- Europe is expected to witness significant growth during the forecast period of 2025 to 2032 because of the increasing government investments in smart infrastructure projects, rapid development of smart infrastructure and presence of major automotive OEMs in the region.
- MCU segment is expected to dominate the market with a market share of 53.34% due to its its cost-effectiveness, low power consumption, and widespread use in managing edge-level data in IoT devices. MCUs are ideal for smart home systems, industrial automation, and wearable tech, as they can efficiently process sensor data and enable real-time decision-making
Report Scope and IoT Gateways Market Segmentation
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Attributes
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IoT Gateways Key Market Insights
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Segments Covered
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Countries Covered
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North America
Europe
Asia-Pacific
Middle East and Africa
South America
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Key Market Players
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Market Opportunities
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Value Added Data Infosets
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In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include import export analysis, production capacity overview, production consumption analysis, price trend analysis, climate change scenario, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
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IoT Gateways Market Trends
“Integration of Edge Computing for Real-Time Data Processing”
- The integration of edge computing into IoT gateways is revolutionizing data processing by enabling real-time analytics closer to the data source. This approach reduces latency, minimizes bandwidth usage, and enhances the responsiveness of IoT systems, making it ideal for applications in smart cities, healthcare, and industrial automation.
- By processing data locally, organizations can make faster decisions, improve operational efficiency, and reduce reliance on centralized cloud infrastructure.
- For instance, In February 2025, Digi International Inc. introduced the Digi IX40, a 5G-enabled industrial IoT cellular router designed for edge computing applications. This device supports advanced robotics, predictive maintenance, and smart manufacturing by processing data at the edge, thereby enhancing speed and reliability in industrial environments.
IoT Gateways Market Dynamics
Driver
“Advancements in Connectivity Technologies”
- Advancements in connectivity technologies, particularly the rollout of 5G networks, are significantly influencing the growth of the IoT Gateway market. 5G technology offers higher data speeds, lower latency, and greater network capacity, which are essential for supporting the increasing volume and complexity of IoT devices and applications.
- IoT gateways equipped with 5G capabilities can handle more data traffic, provide faster response times, and support a larger number of simultaneous connections, making them ideal for applications in smart cities, autonomous vehicles, and industrial automation.
- The integration of 5G technology into IoT gateways is enabling more reliable and efficient communication across IoT networks, thereby accelerating the adoption of IoT solutions across various industries.
For instance,
- In April 2025, Huawei Technologies Co. Ltd. launched its 5G-enabled IoT gateway series, designed to meet the demands of high-speed, low-latency applications in sectors such as transportation and smart infrastructure. These gateways are optimized for 5G connectivity, offering enhanced performance and scalability to support the next generation of IoT deployments. Huawei's introduction of these advanced gateways underscores the industry's focus on leveraging cutting-edge connectivity technologies to drive the evolution of IoT ecosystems
Opportunity
“Expansion of Industrial IoT (IIoT) Applications”
- The Industrial Internet of Things (IIoT) is transforming manufacturing, logistics, and energy sectors by integrating IoT gateways into operational processes.
- These gateways facilitate real-time data collection, predictive maintenance, and automation, leading to enhanced efficiency and reduced downtime. As industries seek digital transformation, the demand for robust IoT gateway solutions continues to rise.
For instance,
- In June 2023, Maxbyte Technologies partnered with Marshal Machine to revolutionize the manufacturing industry by introducing IoT connectivity to CNC machines, demonstrating the growing emphasis on industrial digitalization.
Restraint/Challenge
“Interoperability Challenges Across Diverse IoT Ecosystems”
- The IoT landscape comprises a multitude of devices and protocols, often leading to interoperability challenges. Integrating diverse devices and ensuring seamless communication between them can be complex and time-consuming, hindering widespread adoption of IoT gateways. This fragmentation can lead to increased costs and operational complexity for businesses deploying IoT solutions.
- The lack of uniformity in communication standards and protocols necessitates the development of adaptable and standardized gateway solutions to ensure compatibility across various devices and platforms. Addressing these interoperability issues is crucial for the seamless operation and scalability of IoT networks
For instance,
- In March 2025, Cisco Systems Inc. introduced a new line of industrial IoT gateways designed to support multiple communication protocols, aiming to address interoperability challenges in diverse industrial environments. These gateways are equipped with advanced features to facilitate seamless integration across various IoT devices and platforms, enhancing operational efficiency and reducing deployment complexities. Cisco's initiative underscores the industry's commitment to overcoming interoperability barriers in the IoT ecosystem
IoT Gateways Market Scope
The market is segmented on the basis component, node, connectivity technology and application
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Segmentation
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Sub-Segmentation
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Component
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Node
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Connectivity technology
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Application
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In 2025, the MCU is projected to dominate the market with a largest share in segment
In 2025, the MCU (Microcontroller Unit) segment is projected to dominate the IoT Gateway market with the largest share of 53.34%, driven by its cost-efficiency, compact size, and ability to handle real-time processing for a wide range of connected devices in industries such as automotive, healthcare, and consumer electronics.
The Sensor is expected to account for the largest share during the forecast period in market
The Sensor segment is expected to account for the largest share of 48.31% during the forecast period in the IoT Gateway market, owing to its crucial role in capturing real-time data from connected devices, enabling automation, monitoring, and decision-making across industries like manufacturing, smart homes, and healthcare
IoT Gateways Market Regional Analysis
“North America Holds the Largest Share in the IoT Gateways Market”[AN2]
- North America holds the largest share in the IoT Gateways Market, largely due to its mature technological infrastructure and early adoption of Internet of Things solutions across various sectors. The region, led by the U.S. and Canada, is home to several major IoT gateway manufacturers and tech innovators who continuously invest in advanced R&D. Industries such as automotive, healthcare, manufacturing, and energy are increasingly integrating IoT devices, creating sustained demand for efficient and scalable gateway solutions. The rollout of 5G networks has also accelerated the deployment of high-performance gateways that enable faster and more reliable connectivity.
- In addition, North America benefits from strong cybersecurity frameworks and supportive government policies that encourage IoT adoption. The emphasis on smart city development and industrial automation further strengthens the region’s position.
- Strategic collaborations between enterprises and cloud service providers are enhancing the region's IoT capabilities. All these factors together ensure North America’s leadership in the global IoT Gateways Market.
“Europe is Projected to Register the Highest CAGR in the IoT Gateways Market[AN3] ”
- Europe is projected to register the highest CAGR in the IoT Gateways Market, driven by significant investments in digitalization, smart city projects, and Industry 4.0 initiatives. The region is focusing on enhancing its IoT infrastructure, particularly in sectors such as manufacturing, energy, and transportation, to improve operational efficiency and sustainability. With strong government support for digital transformation and green technologies, European countries are advancing their IoT ecosystem. The growing demand for connected devices and automation in both industrial and consumer applications is further boosting the need for efficient IoT gateways.
- Additionally, the European Union's regulatory framework on data privacy and security is fostering trust and encouraging IoT adoption. The push towards 5G networks and edge computing is accelerating the deployment of advanced gateway solutions. Collaboration between European startups and large tech companies is fueling innovation in IoT gateway technology. All these factors are contributing to Europe’s rapid growth in the IoT gateways market.
IoT Gateways Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
The Major Market Leaders Operating in the Market Are:
- Intel Corporation,
- Mitsubishi Electric Corporation,
- NXP Semiconductors,
- Arm Limited,
- Cisco,
- Hewlett Packard Enterprise Development LP,
- TE Connectivity,
- STMicroeletcronics, A
- dvantech Co., Ltd.,
- Dell,
- EUROTECH,
- AAEON,
- ADLINK Technology Inc.,
- NEXCOM International Co., Ltd.,
- Microchip Technology Inc.,
- Notion Labs, Inc., S
- amsara
- Estimote, Inc.
Latest Developments in Global IoT Gateways Market
- In April 2025, Intel Corporation introduced its latest IoT Gateway System, designed to enhance edge computing capabilities for industrial applications. This new system integrates advanced processing power with robust connectivity options, enabling real-time data processing and analytics at the edge. Intel's IoT Gateway aims to support the growing demand for scalable and secure IoT solutions across various industries
- In March 2025, Mitsubishi Electric Corporation introduced its new IoT gateway solution tailored for smart manufacturing applications. The gateway features advanced data processing capabilities and seamless integration with Mitsubishi's industrial automation systems, enabling real-time monitoring and control of production lines. This innovation supports the industry's push towards Industry 4.0 by enhancing operational efficiency and data-driven decision-making processes
- In February 2025, NXP Semiconductors unveiled its latest IoT gateway module, optimized for low-power wide-area network (LPWAN) connectivity. The module supports multiple LPWAN protocols, including LoRaWAN and Sigfox, and is designed for applications such as smart agriculture and asset tracking. NXP's solution aims to provide reliable and energy-efficient connectivity for IoT devices operating in remote or rural areas.
- In April 2025, Arm Limited announced the launch of its new IoT gateway reference design, built around the Arm Cortex-M55 processor. The reference design offers enhanced security features and supports a wide range of IoT protocols, making it suitable for applications in healthcare, smart homes, and industrial automation. Arm's initiative aims to accelerate the development of secure and scalable IoT solutions by providing developers with a robust foundation for their projects.
- In May 2025, Cisco introduced its next-generation IoT gateway, featuring integrated AI capabilities for edge analytics. The gateway is designed to process data locally, reducing latency and bandwidth usage, which is crucial for time-sensitive applications such as autonomous vehicles and industrial robotics. Cisco's solution aims to empower organizations to leverage real-time insights and make informed decisions at the edge of their networks.
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