IoT node and gateway market to reach US$727 million by 2030
The global IoT node and gateway market is expected to grow from USD$412.3 million in 2021 to USD$726.7 million by 2030, at a CAGR of 6.5% from 2022 to 2030, according to new forecasts from the Market Statsville Group.
The Internet of Things gateway connects controllers, sensors, and intelligent devices to the cloud. The most significant type of device in the IoT is the node. The node is the physical device that connects to the IoT and operates in coordination with each other.
It is the device that provide sensor data that is controlled by the cloud. Nodes tend to be either lightweight sensor devices, which primarily collect status information over a pre-programmed interval, or middleweight devices that offer controllable functions – for instance, door locks, security sensors, temperature sensors, etc.
According MSG, the surging penetration of the internet has been increasing over the last couple of years. The upcoming launch of the fifth generation of cellular mobile communications, 5G, will probably reflect positively on the IoT market. It is primarily because 5G networks will improve the performance and reliability of these connected devices. 5G will manage the need for a faster network with higher capacity that can serve connectivity needs. This factor will drive the growth in the market in the upcoming year.
COVID-19 Impact on the Global IoT Node and Gateway Market
COVID-19 had a negative impact on the IoT node and gateway markets, as companies are reducing their investment in the latest technologies and services to uphold themselves in the competitive market, according to the forescast.
The pandemic strikes it only temporarily because the production and supply chain is disrupted. Post-pandemic, the situation improves, and production, supply chains, and demand for the IoT node and gateway will increase in the forecast period.
Connectivity IC segment is projected to account for the largest market share, by hardware
Based on hardware, the global IoT node and gateway market is divided into processor, connectivity ic, sensor, and memory device. In 2021, the connectivity IC segment accounted for the largest market share in the global IoT node and gateway market. Connectivity ICs are important for wireless technologies, including wireless local area network (WLAN), WiFi, Bluetooth, cellular, and low-power wireless. In addition, a rise in demand for better connectivity products will lead the market in the forecast period.
Asia Pacific accounts for the highest CAGR during the forecast period
Based on the regions, the global IoT node and gateway market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa.
Globally, Asia Pacific is estimated to hold the highest CAGR in the global IoT node and gateway market during the forecast period. The region includes the countries such as China, India, Japan, South Korea, Australia, Southeast Asia, and the Rest of Asia-Pacific. The region's growth is primarily due to strong economic growth, owing to factors such as increasing internet penetration, huge customer base, growing adoption of cloud-based services among small and medium enterprises, increasing disposable income, and government policies to promote digitalisation and smart-city developments.
In addition, the rise in digital awareness toward IoT nodes will lead to a huge demand for IoT nodes and gateway technologies in Asia-Pacific.
Key Market Players in the Global IoT Node and Gateway Market
The global IoT node and gateway market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.