IoT Node and Gateway Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Hardware (Processor, Sensor, Wired, Wireless, Connectivity IC, Memory Device), End User (BFSI, Healthcare, Wearable, Consumer Electronics, Agriculture, Building & Automation), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 0.85 Billion
CAGR (2026-2031)	12.79%
Fastest Growing Segment	Consumer Electronics
Largest Market	North America
Market Size (2031)	USD 1.75 Billion

Market Overview

The Global IoT Node and Gateway Market will grow from USD 0.85 Billion in 2025 to USD 1.75 Billion by 2031 at a 12.79% CAGR. IoT nodes are physical endpoints equipped with sensors or actuators that collect and act on data, while gateways function as critical network bridges that aggregate and transmit this information to central cloud infrastructures. The market is primarily driven by the escalating demand for operational efficiency in industrial automation and the extensive deployment of low-power wide-area networks, which facilitate reliable remote connectivity. Furthermore, the systematic reduction in hardware component costs is a fundamental catalyst, enabling high-volume implementations across diverse sectors such as smart utilities, healthcare, and manufacturing.

According to GSMA Intelligence, in 2024, the global IoT market was projected to continue its expansion, with total connections forecast to reach 38.7 billion by 2030. Despite this growth trajectory, the market faces a significant challenge regarding data security and privacy, as the rapid proliferation of connected endpoints expands the potential attack surface and complicates the maintenance of network integrity for enterprise users.

Key Market Drivers

Rapid deployment of 5G and high-speed network infrastructure is fundamentally reshaping the Global IoT Node and Gateway Market by enabling the ultra-reliable, low-latency communication required for advanced edge applications. This improved connectivity allows gateways to process vast amounts of data from autonomous machinery and smart city sensors in real-time, significantly reducing the dependency on centralized cloud architectures for time-sensitive tasks. As network capabilities expand, the distinction between simple data relay points and intelligent processing nodes is blurring, necessitating upgraded hardware that can handle increased throughput. According to Ericsson, June 2025, in the 'Mobility Report', the number of Broadband and Critical IoT connections was projected to reach 2.6 billion by the end of the year, underscoring the massive shift toward high-performance network nodes capable of supporting these next-generation requirements.

Accelerated adoption of Industry 4.0 and industrial automation is further propelling the market as manufacturers integrate intelligent nodes to optimize production lines and predictive maintenance workflows. The transition to smart factories necessitates robust gateways capable of supporting edge computing and complex algorithms to minimize downtime and enhance operational agility. According to Rockwell Automation, June 2025, in the '10th Annual State of Smart Manufacturing Report', 95% of manufacturers have invested in or plan to invest in artificial intelligence and machine learning, a trend that directly fuels the demand for AI-capable IoT hardware. The scale of this transformation is immense; according to the GSMA, in 2025, the total number of IoT devices worldwide was forecast to exceed 25 billion, creating a substantial market for the nodes and gateways required to manage this expanding ecosystem.

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Key Market Challenges

The challenge of data security and privacy poses a significant threat to the expansion of the Global IoT Node and Gateway Market. As the number of connected endpoints grows, the potential attack surface widens, making it increasingly difficult for enterprises to maintain network integrity. This vulnerability directly hampers market growth because organizations in critical sectors, such as manufacturing and utilities, are often hesitant to integrate new nodes and gateways that could serve as entry points for cyberattacks. The fear of data breaches and the subsequent operational disruption force many businesses to delay deployment or limit the scale of their IoT networks, thereby stalling the overall momentum of market adoption.

This heightened risk environment is confirmed by recent industry findings that highlight a dramatic rise in device susceptibility. According to the IoT M2M Council, in 2024, the number of IoT devices with identified vulnerabilities increased by 136% compared to the previous year. This surge in security risks compels enterprises to divert capital toward defensive measures rather than network expansion, effectively slowing the volume of new node and gateway implementations.

Key Market Trends

The Adoption of Matter Protocol for Enhanced Interoperability is fundamentally altering the market landscape by dismantling the proprietary silos that have historically fragmented the IoT ecosystem. Unlike previous connectivity models that required vendor-specific gateways, this trend standardizes communication at the application layer, allowing nodes from diverse manufacturers to communicate seamlessly within a unified network. This shift is particularly evident in the smart home and building automation sectors, where the demand for cross-platform compatibility is driving a surge in hardware upgrades. Validating this rapid expansion, according to Silicon Labs, May 2025, in the 'Q1 2025 investor update', the company reported that its Home & Life segment revenue increased by 99% year-over-year, a growth trajectory directly attributed to the accelerating deployment of interoperable, standards-based wireless solutions.

Concurrently, the Development of Energy-Harvesting and Sustainable IoT Nodes is emerging as a critical response to the logistical and environmental challenges of battery maintenance in massive-scale deployments. By integrating photovoltaic, kinetic, and thermal harvesting technologies directly into the node architecture, manufacturers are creating self-sufficient endpoints that can operate indefinitely without manual intervention. This innovation not only reduces electronic waste but also significantly lowers the total cost of ownership for large sensor networks in inaccessible locations. Underscoring the market penetration of this technology, according to EnOcean, October 2025, in the 'Sustainability Report 2023/2024', more than 22 million EnOcean energy-harvesting devices have been deployed worldwide, confirming the commercial viability and widespread acceptance of battery-free infrastructure in the global market.

Segmental Insights

The Consumer Electronics segment represents the fastest growing vertical in the Global IoT Node and Gateway Market, fueled by the accelerating adoption of smart home ecosystems and wearable devices. Increasing consumer demand for convenience and energy efficiency is driving the integration of intelligent nodes into everyday appliances, such as smart thermostats, security systems, and entertainment units. Furthermore, improvements in wireless communication standards, including Wi-Fi 6 and Bluetooth, are facilitating reliable device interconnectivity. This trend reflects a broader shift toward automated living environments, compelling manufacturers to scale their IoT capabilities to support robust consumer applications.

Regional Insights

North America holds the leading position in the Global IoT Node and Gateway Market due to the extensive implementation of industrial automation and smart city projects across the United States and Canada. The region benefits from the presence of established technology providers and substantial investments in network infrastructure. Furthermore, supportive frameworks from institutions like the National Institute of Standards and Technology establish clear security and interoperability guidelines, which fosters enterprise confidence in deploying connected systems. This established ecosystem creates a favorable environment for the widespread integration of nodes and gateways across various industries.

Recent Developments

• In October 2024, Qualcomm Technologies and STMicroelectronics revealed a strategic collaboration to develop next-generation industrial and consumer Internet of Things solutions enhanced by edge artificial intelligence. The companies agreed to integrate Qualcomm’s wireless connectivity technologies, starting with a system-on-chip combining Wi-Fi, Bluetooth, and Thread, with STMicroelectronics' market-leading microcontroller ecosystem. This partnership aimed to facilitate the design of secure, power-efficient connected devices by providing developers with seamless software integration and tested hardware combinations. The joint initiative focused on accelerating the adoption of connected intelligent edge devices across various industrial verticals by simplifying the development process.
• In September 2024, Semtech Corporation announced the availability of a new one-channel LoRaWAN hub reference design and evaluation kit intended for small-scale network deployments. The company targeted applications in the smart home and small-to-medium business sectors, such as environmental monitoring and asset tracking. This turnkey solution utilized the company's LoRa sub-GHz transceivers and was designed to provide a cost-effective method for original equipment manufacturers to integrate long-range, low-power connectivity into their products. The release highlighted that the reference design supported the rapid development of private networks in locations lacking extensive cellular or Wi-Fi coverage.
• In April 2024, Silicon Labs introduced the xG26 family of wireless system-on-chips and microcontrollers, which represented the company's highest-performance device family for the Internet of Things at that time. The new product line comprised the multiprotocol MG26 SoC, the Bluetooth LE BG26 SoC, and the PG26 MCU, all designed to future-proof systems for demanding applications like Matter. The manufacturer reported that the xG26 family featured doubled flash and RAM capacity compared to previous generations and included a dedicated hardware accelerator for machine learning, enabling faster processing of AI algorithms at the edge with significantly reduced power consumption.
• In February 2024, Advantech announced the launch of a new series of Industrial Communication Gateways designed to address the specific requirements of the green energy sector. The release included the ECU-1370 and ECU-1260 models, which were engineered to support renewable energy management applications such as solar and wind power systems. The company stated that these gateways featured robust capabilities, including multi-protocol support and high-performance processing, to facilitate seamless edge-to-cloud integration. The devices were equipped with software supporting over 200 operational technology drivers, enabling reliable data flow across diverse industrial protocols in challenging operational environments.

Key Market Players

• Cisco Systems Inc
• Huawei Technologies Co., Ltd
• Intel Corporation
• IBM Corporation
• Texas Instruments Incorporated
• Advantech Co., Ltd.
• Digi International Inc.
• Schneider Electric SE
• Mitsubishi Electric Corporation
• Sierra Wireless Inc

By Hardware	By Region
Processor Sensor Wired Wireless Connectivity IC Memory Device	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global IoT Node and Gateway Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• IoT Node and Gateway Market, By Hardware:

• Processor
• Sensor
• Wired
• Wireless
• Connectivity IC
• Memory Device

• IoT Node and Gateway Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE