Global IoT node and gateway market shows massive growth potential through 2027
The IoT node and gateway market was valued at US$387bn (€332.6bn) in 2020 and is projected to reach US€566.4bn by 2027, according to a new study by ResearchAndMarkets. The market is expected to grow at a CAGR of 6.7% from 2021 to 2027.
The key factors driving the growth of the IoT node and gateway market include emergence of 5G technology, growing use of wireless smart sensors and networks, growing market for connected devices, increasing necessity of data centres due to rising adoption of cloud platforms, and others.
The IoT node and gateway market includes major Tier I and II suppliers such as Intel Corporation, Huawei Technologies Co., Ltd., NXP Semiconductor N.V., Texas Instruments Incorporated, Cisco Systems, Inc., Hewlett Packard Enterprise, and so on. These suppliers have their manufacturing facilities spread across various countries across North America, Latin America, Europe, APAC, and RoW. COVID-19 has impacted their businesses as well.
Connectivity IC segment to account for the largest share of IoT node and gateway market during the forecast period
On the basis of Hardware, the IoT node and gateway market has been segmented into processor, sensor, connectivity IC, memory device, and logic devices. The connectivity IC segment held the largest share of the overall IoT node and gateway market, in terms of volume. The increasing demand for better edge devices connectivity and significant developments in low-power connectivity technologies, such as Wi-Fi, Bluetooth, and Bluetooth Low Energy (BLE), are the key factors supporting the growth of the connectivity IC segment.
Consumer applications to account for the largest share of IoT node and gateway market during the forecast period
Based on end-use applications, the IoT node and gateway market has been segmented into industrial and consumer categories. Consumer application held the largest share of the overall IoT node and gateway market to during the forecast period. With the evolution of a number of consumer appliances that can connect to the Internet and smartphones, the growth of IoT technology in the consumer electronics segment is expected to receive a boost.
APAC is expected to register the highest growth of IoT node and gateway market during the forecast period
APAC is expected to register the highest growth in the IoT node and gateway market during the forecast period from 2021 to 2027. The growing penetration of the internet across commercial as well as residential spaces, broad consumer base, increasing disposable income, and improving IT infrastructure are some of the key determinants supplementing the growth of the IoT node and gateway market in APAC. Moreover, the adoption of cloud-based services and rising trend of industrial automation are the key growth drivers for the IoT node and gateway market for commercial applications in countries such as China, South Korea, and Japan.
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