IoT Node and Gateway Market - Forecast from 2026 to 2031

IoT Node And Gateway Market, with a 8.44% CAGR, is projected to increase from USD 515.460 billion in 2025 to USD 838.123 billion in 2031.

An IoT gateway functions as a software program connecting IoT devices to the cloud while streamlining their communications and management. Acting as a central hub, it routes data between devices and the cloud, handling both inbound and outbound traffic, and preprocessing data locally at the edge. Some IoT gateways can deduplicate, summarize, or aggregate data to reduce the volume requiring cloud forwarding, improving response times and reducing network transmission costs. IoT gateways can be typical hardware devices or software programs, featuring various characteristics including processor, RAM, supported wireless connections, security modules, and operating systems. They provide additional device security, perform data aggregation, preprocess and filter data, provide local storage as cache/buffer, and compute data at the edge level.

Market Dynamics and Growth Trajectory

The IoT node and gateway market is experiencing rapid expansion showing no signs of deceleration. This burgeoning market owes its growth to multifaceted factors contributing to its upward trajectory. The advent and widespread adoption of 5G technology serves as a primary catalyst. Driving 5G adoption is enabling faster, low-latency connections for IoT devices globally. The ultra-fast and low-latency capabilities of 5G networks have paved the way for more efficient and connected IoT devices and systems, fueling their proliferation.

The market is propelled by the increasing prevalence of wireless smart sensors and networks. Integrating wireless smart sensors is enhancing real-time data collection and device communication. These technologies enable seamless communication and data exchange among various IoT devices, enhancing their functionality and overall utility. The escalating adoption of cloud platforms has created heightened demand for data centers, essential for storing and processing vast amounts of data generated by IoT devices. Expanding cloud platform usage is increasing demand for gateways and data processing infrastructure. This necessity has further driven market growth.

Substantial advancements in telecommunication networks have played pivotal roles in shaping the market landscape. Advancing telecommunication networks are supporting large-scale IoT deployments across multiple industries. These advancements have not only improved connectivity but have also facilitated IoT device deployment and management on larger scales. Sectors such as healthcare and building automation have emerged as significant market players, recognizing IoT technology's potential to enhance patient care, optimize energy consumption, and streamline operations, thereby contributing significantly to overall market share.

Fundamental Growth Drivers

The emergence of 5G technology has accelerated market growth. This revolutionary connectivity leap has become a pivotal force driving IoT ecosystem expansion. With lightning-fast speeds and remarkably reliable connectivity, 5G has ushered in an era where IoT devices can operate with unparalleled efficiency and effectiveness. These advanced networks offer not only faster data transmission but also substantially lower latency, making real-time communication and data processing a reality for countless IoT applications. The adoption of 5G technology has unlocked possibilities for IoT deployments, from smart cities and autonomous vehicles to industrial automation and healthcare, further propelling growth and innovation within the market.

The increasing adoption of wireless smart sensors and networks represents a pivotal catalyst for rapid market growth and evolution. These wireless sensors and networks play pivotal roles in facilitating seamless communication among IoT devices, as well as connecting them to expansive cloud infrastructure, a fundamental component in the entire IoT ecosystem. This connectivity enables efficient collection of vast data volumes, which can subsequently undergo sophisticated analysis processes, ultimately driving innovation, automation, and optimization across numerous industries and applications. By leveraging wireless technology, these sensors and networks empower IoT devices to transcend physical boundaries, providing real-time data insights and enhancing overall efficiency and functionality of interconnected systems.

The rapidly growing market for connected devices constitutes a major growth driver for both IoT nodes and gateway technologies. As society becomes increasingly reliant on interconnected devices, demand for IoT gateways is surging in tandem. These gateways serve as critical intermediaries between the vast network of IoT devices and central data processing infrastructure. They undertake vital tasks of collecting, aggregating, and transmitting data generated by these connected devices, ensuring information flows seamlessly and efficiently. IoT gateways are the linchpin enabling effective management and processing of substantial data influx originating from the ever-expanding ecosystem of connected devices.

The surging demand for data centers is a direct consequence of growing cloud-based platform prevalence, serving as a pivotal catalyst for market expansion. IoT gateways play pivotal roles by serving as crucial intermediaries in the intricate IoT infrastructure ecosystem. These gateways are indispensable for efficiently handling and processing vast data influx generated by myriad IoT devices. Their significance becomes even more pronounced as greater numbers of enterprises and organizations worldwide embrace cloud-based solutions, with IoT gateways serving as the primary means of ensuring data from IoT devices is collected, organized, and optimized before transmission to cloud environments.

The continuous evolution and enhancement of telecommunication networks play pivotal roles in propelling the market forward. These networks serve as the backbone of the IoT ecosystem, and their ongoing improvements translate into substantial benefits for IoT devices and gateways. With relentless progress in telecommunication networks, the connectivity and reliability of IoT devices and gateways are poised to reach unprecedented heights. This heightened connectivity and reliability are paramount for fostering sustained market expansion, ensuring seamless data transmission, reduced downtime, and enhanced overall performance.

Sensors Segment Prominence

The sensors segment stands out as a focal point of substantial growth within the dynamic market landscape. The ever-increasing utilization of sensors in IoT applications serves as a primary catalyst. This surge in adoption is underpinned by cost reduction and miniaturization, alongside continuous technological enhancements. These innovations have made sensors more accessible and versatile, driving their integration into multitude of IoT devices. Sensors, being the bedrock of data collection in the IoT ecosystem, assume pivotal roles in facilitating seamless communication between devices and the cloud, underlining their indispensable nature.

The relentless march of progress in sensor technology plays pivotal roles in propelling segment growth. This pursuit of innovation has yielded new sensor generations characterized by heightened accuracy, enhanced reliability, and cost-effectiveness. These advancements have significantly lowered barriers to entry, empowering companies across industries to readily embrace IoT solutions. A burgeoning desire for smart homes and buildings forms another substantial impetus for sensor segment expansion. Sensors have emerged as linchpins for monitoring and managing various systems within smart residences and commercial structures, encompassing lighting, heating, and security, thereby enhancing energy efficiency and security measures.

Regional Market Dynamics

The Asia Pacific region is poised to exert substantial influence on the market, driven by a confluence of factors underscoring its pivotal role in this burgeoning industry. A key catalyst behind this prominence is the region's remarkable economic growth trajectory. The Asia Pacific region has witnessed remarkable surges in economic prosperity, creating fertile ground for widespread acceptance of IoT solutions across diverse sectors and industries.

The technological landscape has undergone remarkable transformation. A surge in innovation and cutting-edge advancements has paved the way for development and seamless integration of IoT solutions into the fabric of daily life. This technological prowess has not only spurred IoT evolution but has also accelerated its adoption in various applications and use cases. Another compelling driver is the escalating demand for connected devices. As societies across this vast expanse increasingly embrace connectivity benefits, appetite for IoT-enabled gadgets and equipment continues to surge. This heightened demand directly fuels market expansion, as these devices become indispensable in managing and processing voluminous data generated by the ever-growing array of interconnected devices.

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• Historical data from 2022 to 2024 & forecast data from 2025 to 2031
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IoT Node and Gateway Market Segmentation

• By Component
• Sensors
• Processors
• Connectivity IC
• Others
• By Connectivity
• Wi-Fi
• Bluetooth
• Cellular
• Zigbee
• Others
• By Enterprise Size
• Small & Medium Enterprise
• Large Enterprise
• By End-User
• BFSI
• Consumer Electronics
• Manufacturing
• Automotive
• Retail & E-Commerce
• Healthcare
• Others
• By Geography
• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others