The IoT gateway devices market is expected to witness substantial growth by 2027 driven by proliferating demand for network connectivity across diverse applications. Additionally, advances in the IoT technology are projected to further fuel market development over the forecast period.

IoT (Internet of Things) gateway devices create an IoT network that connects devices and collect data from IoT devices like beacons and sensors. Recently, with the advent of the Industrial Internet of Things (IIoT) technology, there has been a rise in product penetration in the sector, which has created massive growth potential for market players in key regions.

For instance, in June 2021, Cisco, the leading American tech conglomerate, presented its series of Catalyst routers as well as IoT gateways developed specifically for industrial environments. These routers support 4G LTE, 5G, Wi-Fi 6, public safety, and private networks and have been designed to simplify business demands for IoT connectivity at the network edge.

The routers, which have been built on the company's IOS XE operating system, can be configured for fixed or mobile assets to efficiently expand an organization's network, along with SD-WAN, to the edge. Thus, increasing emphasis of companies on product innovation has positively impacted industry expansion.

Notably, while IoT devices run on low-energy consumption technology and derive fairly less electricity produced by tiny batteries or solar panels, they still need a power source similar to that used by generic home appliances. To that effect, researchers have been focusing on improving product efficiency by optimizing energy consumption of the devices, which has been favorable for market adoption across the globe. To cite an instance, in July 2021, researchers from a state research institute in South Korea developed an IoT gateway that could leverage an energy-harvesting technology to support the expansion of mega-sized IoT networks.

The IoT gateway devices market has been segmented based on connectivity technology, application, component, and region. In terms of connectivity technology, the market has been divided into Wi-Fi, Z-wave, Bluetooth, Ethernet, Zigbee, and others.

In 2020, the Z-wave sub-segment contributed to over 7% of the IoT gateway devices market revenue and is estimated to observe sizable growth over 2021-2027. Growing adoption in home and office scale networks is set to boost segmental growth through the following years.

With respect to component, the market has been bifurcated into memory, MCU, sensor, FPGA, and others. The FPGA sub-segment accounted for nearly 13.5% of the IoT gateway devices market in 2020 and is anticipated to progress at a considerable CAGR over the assessment timeframe. The re-programming ability of FPGA in accordance with specific application requirements is likely to propel segmental demand in the coming years.

From the application perspective, the market has been categorized into automotive & transportation, wearable device, building automation, healthcare, consumer electronics, and industrial. In 2020, the building automation sub-segment held above 14% share in the overall market and is calculated to grow at a robust CAGR through the analysis period. The emerging trend of automated facility maintenance in residential and commercial buildings is speculated to impel segmental expansion by 2027.

In the regional landscape, Latin America accounted for approximately 8% of the global industry revenue in 2020 and is calculated to expand at a notable pace over 2021-2027. Rising deployment of IoT network by telecom providers in the region is anticipated to foster market outlook in the future.