North America and Europe IoT Gateway Market Size (2024 - 2029)

North America & Europe IoT Gateway Market Analysis

The North American and European IoT Gateway Market are expected to record a CAGR of 8.2% over the forecast period (2022 - 2027). The outbreak of COVID-19 at the beginning of 2020 caused a significant increase in the manufacturing time of IoT gateway hardware systems due to lockdowns implemented in these regions, which are eventually reopening. However, IoT-connected platforms are significantly being utilized for detecting and preventing COVID-19, which increased the usage of IoT gateways that preprocess data and could respond quickly using other resources in the platform.

The IoT gateway functions by integrating protocols for networking, managing storage, and edge analytics of the data and facilitating data transfers between the entry-point edge devices and the cloud. As intelligent gateways and management systems have emerged to bring and connect legacy equipment and devices and next-generation devices to the IoT, the increasing demand for big data analytics has led to a more significant requirement for IoT gateways.

The key drivers for the IoT gateway market include the growth of application-specific MCUs, flexible SOC-type designs, and the emerging development of smart cities. Building electronic circuits within a system-on-chip (SoC) has significant benefits, such as improving efficiency and compatibility while reducing space requirements and development speed. IoT with SoC, including wireless technology, helps prevent the implementation challenges, such as network integration, incompatibility, and reliability issues.

Processors act as a main component of the IoT gateway. Companies like TI are offering the TM4C129x family of IoT microcontrollers (MCUs). The TM4C129x MCUs simplify IP connectivity for gateways by combining multiple key technologies. With its TLS/SSL stack and hardware-based cryptographic acceleration, the TM4C129x MCUs enable OEMs to implement robust security mechanisms with low overhead to maximize data protection and minimize threats.

Some IoT gateways are designed for vertical usage in fields such as smart city, fleet management, and infotainment, or for Industrial Internet of Things (IIoT) applications in robotics, smart grid, or factory automation. The healthcare industry is expected to witness considerable growth as hospitals, laboratories, and medical device manufacturers strive to maintain quality and patient care while under primary cost containment or even cost-cutting pressures. IoT gateway solutions safeguard and automate data collection and dissemination and facilitate remote patient monitoring, reduced service costs, and asset tracking.

Further, the factors challenging the growth of the IoT gateway market include the concerns regarding the security and privacy of the user data and the lack of common protocols and communication standards of IoT technology. The standardization communication protocols of IoT technology are at a developing stage. However, the standard protocols are expected to happen in the next few years, making the impact of the challenge gradually low in the next few years.

North America & Europe IoT Gateway Industry Segmentation

An IoT Gateway is a bridge between IoT devices and the cloud or data center-based IoT platform or applications that consume the IoT device data. The IoT gateway provides critical functions within an IoT solution. It provides the link from the IoT devices to the required data. It also provides processing power to allow the data captured to be changed based on the input, pushing out the intelligence of expert systems into the field near the sensors and devices.

The North American and European IoT Gateway Market is segmented by Application (Home Automation and Security, Mobility and Transportation, Industrial and Infrastructure), by End-user Industry (Automotive and Transportation, Industrial, Oil & Gas, Retail, BFSI, Aerospace & Defense).

Moreover, the market study focuses on trends affecting the market in the major countries across NorthAmerica, and Europe. The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry. The study tracks the impact of COVID-19 on the overall IoT gateway industry and its performance.