Skip to main content

Global IoT and M2M Solutions Market Growth Trends

The Internet of Things (IoT) and machine to machine (M2M) solutions market continues to evolve, showing growth in all world regions and vertical industries. A variety of hardware and software vendors are helping to propel the emerging technology and associated use cases to new heights.

As an example, the market for cellular IoT gateways, routers and modems is expanding, according to the latest worldwide market study by Berg Insight. More than 3.4 million cellular IoT gateways were shipped globally during 2018, at a total market value of approximately $921 million.

Growing at a compound annual growth rate (CAGR) of 18.5 percent, annual shipments are expected to reach 8 million in 2023.

IoT Gateway Market Development

Cellular IoT gateways are standalone devices intended for connecting machines to a wireless communication network. These include general-purpose cellular gateways, routers and modems that are enclosed in a chassis and have at least one input/output port.

Note that trackers, telematics devices and other specialized IoT devices were excluded from this particular market study.

North American vendors dominate the cellular IoT gateway and router market. According to the Berg assessment, Cradlepoint, Cisco, Sierra Wireless, CalAmp and Digi International are the largest vendors worldwide.

Combined, these five vendors generated close to $500 million in annual revenues from cellular IoT gateway and router sales during 2018, accounting for a market share of 53.3 percent.

Other key vendors include Multitech Systems, Systech and Encore Networks in the U.S. market, InHand Networks, Robustel and NetComm in the Asia-Pacific region, and HMS Networks, Advantech B+B SmartWorx, Matrix Electrónica, NetModule, Eurotech, Westermo and Option in Europe.

The European and Asia Pacific markets are fragmented with a large number of small and medium-sized players that generate annual revenues in the range of $3–10 million.

The North American market is dominated by a handful of major vendors, largely due to entry barriers in the form of mobile network carrier certifications required for cellular devices in the region.

"North America experienced the fastest growth globally during 2018, driven by deployments in the public safety, transportation and retail sectors," said Fredrik Stalbrand, senior analyst at Berg Insight.

The region has experienced a transition in vendor merger and acquisition (M&A) activity in recent times. The reported M&A activity has been low over the past decade but has increased significantly since the beginning of 2018.

Outlook for IoT Gateway Market Growth

Berg analysts point to examples of recent deals such as Lantronix’ purchase of Maestro Wireless Solutions in July 2019, and most recently Digi International’s announced the acquisition of Opengear in November 2019.

In Europe, Westermo acquired the remote access specialist Virtual Access in November 2019, expanding the company’s presence in the public utility sector.

"Several players continue to have inorganic growth as a strategy and further consolidation can be expected among IoT gateway vendors in 2019–2020," concluded Mr. Stalbrand.

Popular posts from this blog

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Global Public Cloud Spending to Reach $1.35T

Most digital transformation is enabled by cloud solutions. Worldwide spending on public cloud services is forecast to reach $1.35 trillion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). Although annual spending growth is expected to slow slightly over the 2023-2027 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.9 percent. "Cloud now dominates tech spending across infrastructure, platforms, and applications," said Eileen Smith, vice president at IDC . Public Cloud Services Market Development IDC believes that most organizations have adopted the public cloud as a cost-effective platform for hosting enterprise applications, and for developing and deploying customer-facing solutions. Looking forward, the cloud computing model remains well positioned to serve customer needs for innovation in application development and deployment -- including as data, artificial intelligence