IoT Node and Gateway Market Size, Share and Trends 2025 to 2034

IoT Node and Gateway Market Size and Forecast 2025 to 2034

The global IoT node and gateway market size was calculated at USD 537.18 billion in 2024 and is predicted to reach around USD 1,846.21 billion by 2034, expanding at a CAGR of 13.14% from 2025 to 2034. The rise in digitization, automation, wireless communication technologies, and integration of AI is enhancing the market's growth.

IoT Node and Gateway Market Key Takeaways

• North America dominated the global market with the largest market share of 37% in 2024.
• Middle East and Africa will witness significant growth during the forecast period.
• By component, the hardware segment contributed the highest market share of 59% in 2024.
• By component, the service segment is expected to grow at the fastest CAGR of 15.03% during the forecast period.
• By connectivity, the wi-fi segment contributed the highest market share of 37% in 2024.
• By connectivity, the Z-wave segment is expected to grow at the fastest CAGR of 14% during the forecast period.
• By end-use, the consumer electronics segment generated a major market share of 20% in 2024.
• By end-use, the aerospace and defense segment is projected to grow at a significant CAGR of 13.94% during the forecast period.

How Can Artificial Intelligence (AI) Impact the IoT Node and Gateway Market?

The integration of artificial intelligence into the IoT node and gateway market is revolutionizing industries, enhancing the smart environment, and accelerating innovations. AI enhanced the IoT gateway functionality, including data analysis, edge computing, adaptive protocol management, and security enhancements.  AI integrated IoT gateaway used in the wide range of industries including smart homes, industrial IoT, healthcare, and smart cities.

• In September 2024, BT Group’s Digital Unit launched the innovative internal platform that aims to help organizations tap into the power of large language models, including Meta, Anthropic, Cohere, Claude, and Amazon.

U.S. IoT Node and Gateway Market Size and Growth 2025 to 2034

The U.S. IoT node and gateway market size was exhibited at USD 139.13 billion in 2024 and is projected to be worth around USD 478.17 billion by 2034, growing at a CAGR of 13.35% from 2025 to 2034.

North America dominated the IoT node and gateway market in 2023. The increasing technological advancements and infrastructure development are driving the growth of the market. Regional countries like the United States and Canada are early adopters of the technology, and technological shift acceptance is contributing to the higher demand for the IoT node and gateway. The rising demand for advanced consumer electronics, the integration of IoT sensors in devices, and the increasing presence of technology leaders in the United States are accelerating the growth of the market in the region.

Middle East and Africa will witness significant growth in the IoT node and gateway market during the forecast period. The fast-paced development of smart cities and the integration of cutting-edge technologies into the cities are accelerating the demand for the market. The increasing government intervention in the development of tourism and other industries, including transportation, energy management, and healthcare.

Market Overview

The IoT gateaways are the efficient tool or the technology that is used in the connecting the Internet of Things (IoT) sensors and devices to the data processing and cloud computing. The advancement in the IoT gateaways offers the bidirectional data flow between the cloud and IoT devices. The increasing adaptation of the IoT technology into the industries are accelerating the growth of the IoT node and gateway market.

IoT Node and Gateway Market Growth Factors

• Increasing digitization in industries: The increasing digitization and automation in industries and continuous investment in the development of industrial infrastructure, such as the development of manufacturing, healthcare, smart cities, and agriculture, is driving the demand for the IoT node and gateway market.
• Advancements in technology: Continuous investment in the advancements in the technology for the industrial revolution and connected devices and data communications. The integration of IoT into various devices and environments increases the battery lifecycle and reduces maintenance costs.
• The rise in 5G connectivity: The evaluation of 5G connectivity and the rising adoption of 5G connectivity in different industrial or personal usage for its benefitting properties such as enhanced speed, increased data availability, and reduced latency is driving the advancement in the IoT node and gateway.

Market Scope

Market Dynamics

Driver

Benefits associated with the IoT node and gateway

The rising adaptation of the IoT node and gateway market in a wide range of industries enhances operations and versatility. The inclusion of IoT nodes and gateways into smart homes, industrial automation, agriculture, healthcare, and transportation for enhancing security, connectivity, data management, remote monitoring and management, and cost-effectiveness in operations are driving the growth of the IoT node and gateways market.

Restraint

Data privacy and security

There are significant challenges associated with the implementation of IoT in the organization, such as security issues, privacy concerns, data management, and others restraining the growth of the IoT node and gateway market.

Opportunity

Increasing development in the IoT infrastructure

The IoT node and gateway market is an important part of the IoT infrastructure that helps efficiently manage different applications, such as data transmission in the cloud and devices, which enhance the overall system security and efficiency. The IoT node and gateway provide an important foundation for small and larger industrial IoT ecosystems.

Component Insights

The hardware segment led the global IoT node and gateway market in 2023. The increasing adoption of the IoT hardware segment in organizations is driving the growth of the segment. The advancement in the hardware components of the Internet of Things. Leading manufacturing industries are investing in technological advancements in hardware components, which are driving the growth of the segment. The IoT hardware component is one of the important parts of any kind of industry, including sensors, microcontrollers, wearable devices, basic devices, integrated circuits, datasheets, and others.

The service segment is expected to grow at the fastest rate in the IoT node and gateway market during the forecast period. The IoT node and gateway are used as important parts of the cloud and data processing infrastructure for connecting different devices and systems. The evolution of smart enterprises and smart living, which delivers connected experiences by integrating the different assets and services in organizations, contributes to the expansion of the segment.

Connectivity Insights

The wi-fi segment dominated the IoT node and gateway market in 2023. The increasing infrastructure and the growing investment in the development of advanced and smart technology, digitization, and other advancements are accelerating the growth of the wi-fi technology. Wi-Fi is one of the important parts of delivering several advantages to IoT devices, such as offering seamless communication and connecting devices. Wi-Fi helps enhance and optimize performance and ensure seamless assurance of IoT projects. 

The Z-wave segment will witness the fastest growth in the IoT node and gateway market during the predicted period. The Z-wave applications are used in different applications; the Z-wave is the wireless communications system that is used in automatic and automobile appliances for communications and connection purposes. The Z-wave is used in several applications, such as home automation devices, which offer the Z-wave devices for communicating devices with each other. 

End-use Insights

The consumer electronics segment dominated the IoT node and gateway market in 2023. The increasing population and the rising lifestyle in the people due to the in increasing disposable income is driving the growth of the consumer electronics industry. The increasing adoption of the IoT and sensor technology in consumer electronics products. Consumer electronics are used in a wide range of applications, including wearable devices, streaming devices, home management devices, voice command systems, and other electronic devices segment.

The aerospace & defense segment is anticipated to witness the fastest growth in the IoT node and gateway market during the anticipated period. The increasing adoption of the IoT node and gateways in aerospace and defense for different applications such as maintenance of the airport infrastructure, passenger experience, baggage handling, battlefield monitoring, cost reduction, effective and enhanced maintenance, inventory management, fleet management, operational efficiency, and other applications. 

IoT Node and Gateway Market Companies

• Intel Corporation
• IBM Corporation
• Huawei Technologies Co. Ltd.
• Dell Technologies Inc.
• Advantech Co. Ltd.
• Cisco Systems Inc.
• Sierra Wireless
• NXP Semiconductors N.V.
• Eurotech
• Particle Industries Inc.
• Helium
• Laird Connectivity
• Robert Bosch GmbH
• STMicroelectronics N.V.
• Texas Instruments Incorporation

Latest Announcement by Industry Leaders

• In September 2024, Intel announced its support towards the turnaround efforts under CEO Pat Gelsinger.
• In April 2024, Huawei and EDMI signed a patent license agreement under reasonable, fair, and non-discriminatory (FRAND) conditions. Huawei grants a cellular IoT Standard Essential Patents (SEPs) license, consisting of LTE-M, NB-IoT, and LTE Cat.

Recent Developments

• In December 2024, the Indian Institute of Technology (IIT) Ropar launched the Bluetooth Low Energy (BLE) Gateway and Node System under the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS) through iHub – AWaDH (Agriculture and Water Technology Development Hub). The launch is funded by the Department of Science and Technology (DST) with an investment worth INR 100 crore; the launch is established towards India’s commitment to cutting-edge technology for sustainable development.
• In January 2024, WISeKey, a leading player in cybersecurity, AI, and the Internet of Things (IoT), confirms the upcoming launch of its subsidiary WISeSat.Space’s in partnering with the SpaceX.
• In December 2024, SEE ID, Inc., works on the Dot Ai (‘Dot Ai’), a revolutionizing startup in the asset intelligence technology space, launched its IoT tracking hardware, ZiM (Zero Infrastructure Mesh, or ‘ZiM’) from Dot AI, that helps in enhancing the asset tracking in logistics and supply chain management.
• In December 2024, Vodafone launched the AI anomaly detection tool for IoT, which uses machine learning algorithms for detecting anomaly services in real-time. 

Segments Covered in the Report  

By Component

• Hardware
  • Connectivity Integrated Circuited (ICS)
  • Logic Devices
  • Memory Devices
  • Processors
  • Sensors
    • Temperature Sensors
    • Motion Sensors
    • Light Sensors
    • Others
• Software
• Services

By Connectivity

• Zigbee
• Wi-Fi
• Bluetooth
• Z-Wave
• Others

By End-use 

• Consumer Electronics
• Wearable Devices
• Automotive and Transportation
• BFSI
• Healthcare
• Retail
• Building Automation
• Oil and Gas
• Agriculture
• Aerospace and Defense
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa