Skip to main content

IoT Gateway Shipments to Reach 64M Units by 2021

Telecom service providers are exploring the applications for the Internet of Things (IoT), as an extension of their network access offerings. Demand for IoT gateways, which manage and control complex connected environments by aggregating and transmitting sensor data, are on the rise.

According to the latest worldwide market study by ABI Research, IoT gateway shipments will grow to exceed 64 million units in 2021.

Home automation and security market components will likely account for over 50 percent of all IoT gateway shipments over the next five years. But it's the mobility and transportation segments -- as well as industrial and infrastructure -- that are forecast to generate the most revenue for vendors and service providers.

IoT Gateway Market Development

"The home automation and security market relies on gateways for aggregating and orchestrating communications between an increasing variety of home sensors and cloud services," said Dan Shey, vice president at ABI Research.

However, ABI analysts believe that this segment will only represent around 30 percent of the market’s five-year value. This is because gateways in the home do not have the same requirements for ruggedness, antenna design, and processor requirements as gateways used in industrial and commercial settings.

The higher priced, albeit lower volume, sectors are mobility and transportation, as well as industrial and infrastructure. Emerging IoT gateway opportunities in fleet management are small, but growing.

Companies such as Omnitracs, PeopleNet, and Sierra Wireless and are offering gateways for multi-application communications in fleet vehicles, such as critical event reporting, fault monitoring, and navigation.

The industrial and infrastructure market segment, meanwhile, relies on many traditional markets like smart grid and video surveillance.

Outlook for IoT Software and Services

Looking ahead, this segment will also benefit from new higher growth markets through applications in the smart cities and manufacturing or process industries.

"There are many traditional names that have been serving the M2M and IoT gateway market for years, such as CalAmp, Cisco, Cradlepoint, Digi International, Eurotech, and Sierra Wireless," according to Shey.

But these big name players are just a small share of the total supplier base, which includes both branded and white label vendors. According to the ABI assessment, within this growing IoT market, consolidation is not expected anytime soon and suppliers are increasingly turning to software and services to differentiate.

Popular posts from this blog

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic