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

Global EV Charging Revenue to Exceed $300B

During 2022, fuel prices increased very quickly, partly due to a number of macroeconomic reasons. In fact, the effects of the global COVID-19 pandemic are still impacting fuel prices, with many oil refineries having reduced capacity due to a prior fall in demand. Those significant events and other trends have created a demand for a growing variety of Electric Vehicles (EVs). While EVs have existed for decades, they really became a viable option for more consumers during the past five years. However, although EVs are suitable for some buyer needs, their usability is constrained by the current availability of battery charging infrastructure. EV Charging Market Development According to the latest worldwide market study by Juniper Research, revenue from electric vehicle charging will exceed $300 billion globally by 2027 -- that's up from $66 billion in 2023. Regardless, the Juniper analysis found that fragmentation in battery charging networks is restricting further EV adoption in some

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak