IoT Node and Gateway Market Size & Forecasts 2026-2035, By Segments (Hardware, Connectivity, End-use Industry), Growth Opportunities, Innovation Landscape, Regulatory Shifts, Strategic Regional Insights (U.S., Japan, China, South Korea, UK, Germany, France), and Competitive Dynamics (Cisco, Intel, Huawei, NXP Semiconductors, Texas Instruments)

Market Outlook

IoT Node and Gateway Market size is forecasted to reach USD 1.25 trillion by 2035, rising from USD 351.03 billion in 2025, at a CAGR of more than 13.5% between 2026 and 2035. In 2026, revenue is projected at USD 393.37 billion.

• Base Year Value (2025): USD 351.03 Billion
• CAGR (2026-2035): 13.5%
• Forecast Year Value (2035): USD 1.25 Trillion
• Historical Data Period: 2021-2025
• Largest Region: North America
• Forecast Period: 2026-2035

Key Takeaways

• North America region gained more than 39.1% revenue share in 2025, propelled by early adoption of IoT infrastructure in industrial and consumer sectors.
• Asia Pacific region will expand at around 16% CAGR from 2026 to 2035, fueled by massive investments in smart cities and industrial automation.
• Securing 36.4% of the market in 2025, processor segment was strengthened by critical role in data processing for IoT gateways drives dominance.
• The wi-fi segment recorded 41.2% revenue share in 2025, impelled by high-speed connectivity drives wi-fi adoption in smart homes and offices.
• Achieving 31.2% share in 2025, consumer electronics segment maintained its lead, sustained by high adoption in smart appliances and wearables drives market share.
• Leading organizations shaping the IoT node and gateway market include Cisco (USA), Intel (USA), Huawei (China), NXP Semiconductors (Netherlands), Texas Instruments (USA), Advantech (Taiwan), Dell Technologies (USA), HPE (USA), Sierra Wireless (Canada), Quectel (China).

Market Dynamics

Rising Adoption of IoT Nodes and Gateways in Manufacturing and Logistics

The increasing adoption of IoT nodes and gateways within the manufacturing and logistics sectors is transforming operational efficiencies and supply chain management. Companies like Siemens have reported significant improvements in production throughput and inventory accuracy through IoT integration, which enables real-time data monitoring and predictive maintenance. This shift is driven by a growing demand for automation and enhanced visibility across supply chains, prompting organizations to invest in IoT solutions that facilitate seamless communication between machines and systems. As established players leverage these technologies to optimize operations, new entrants can capitalize on niche applications, such as specialized sensors or tailored software solutions, to differentiate themselves in a competitive landscape. The ongoing digital transformation in these sectors underscores the necessity for adaptable IoT infrastructures, positioning the IoT node and gateway market for sustained growth as industries evolve.

Integration of Edge Computing Capabilities into Gateways for Real-Time Processing

The integration of edge computing capabilities into IoT gateways is revolutionizing data processing by enabling real-time analytics closer to the source of data generation. Companies like Cisco are actively enhancing their gateway solutions to support edge computing, which reduces latency and bandwidth usage while improving decision-making speed. This trend reflects a broader shift towards decentralized computing models driven by the increasing volume of data generated by IoT devices. As organizations seek to harness actionable insights without the delays associated with cloud processing, opportunities arise for both established firms and startups to innovate in edge solutions. The focus on real-time processing not only enhances operational agility but also aligns with sustainability goals by optimizing resource usage, thereby reinforcing the strategic importance of the IoT node and gateway market in the evolving technological landscape.

Expansion of IoT Infrastructure for Industrial Automation and Smart Grids

The expansion of IoT infrastructure for industrial automation and smart grids is reshaping how energy and manufacturing sectors operate, driven by the need for greater efficiency and sustainability. The International Energy Agency has highlighted the role of IoT in facilitating smarter energy management and reducing carbon footprints, prompting investments in IoT-enabled smart grid technologies. As industries increasingly adopt interconnected systems, the demand for robust IoT nodes and gateways becomes critical for ensuring interoperability and data integrity. This presents a strategic opportunity for both legacy players and new entrants to develop integrated solutions that address the complexities of modern industrial environments. With ongoing regulatory support for green initiatives and a heightened focus on energy efficiency, the IoT node and gateway market is well-positioned to support the transition towards more sustainable industrial practices.

Growth Driver Assessment Framework
Growth Driver	Impact On CAGR	Regulatory Influence	Geographic Relevance	Adoption Rate	Impact Timeline
Rising adoption of IoT nodes and gateways in manufacturing and logistics	3.00%	Short term (≤ 2 yrs)	Asia Pacific, North America	Low	Fast
Integration of edge computing capabilities into gateways for real-time processing	2.50%	Medium term (2–5 yrs)	Europe, Asia Pacific	Medium	Moderate
Expansion of IoT infrastructure for industrial automation and smart grids	1.50%	Long term (5+ yrs)	North America, Europe	Medium	Slow

Industry Restraints:

Regulatory Compliance Challenges

The IoT node and gateway market faces significant hurdles due to stringent regulatory compliance requirements, which can impede innovation and slow market adoption. Regulations surrounding data privacy and security, such as the General Data Protection Regulation (GDPR) in Europe, impose substantial operational constraints on companies developing IoT solutions. These compliance burdens necessitate extensive investment in legal resources and technology to ensure adherence, often diverting capital from research and development. For instance, a report by the International Telecommunication Union (ITU) highlights that over 60% of IoT projects are delayed or abandoned due to complex regulatory landscapes. This not only affects established companies that must navigate existing regulations but also poses a barrier for new entrants lacking the resources to meet these compliance standards. As regulatory scrutiny intensifies, companies will need to prioritize compliance strategies, which may stifle agility and innovation in the sector.

Supply Chain Vulnerabilities

The current geopolitical climate and global supply chain disruptions have created vulnerabilities that significantly impact the IoT node and gateway market. The COVID-19 pandemic exposed critical weaknesses in supply chains, leading to shortages of essential components like semiconductors, which are vital for IoT devices. According to a report from the Semiconductor Industry Association (SIA), the semiconductor shortage has delayed product launches and increased costs, causing many companies to reconsider their supply chain strategies. Established players are facing mounting pressures to diversify suppliers and localize production, while new entrants struggle to secure the necessary components amid fierce competition. The ongoing challenges in logistics and raw material availability are likely to persist, forcing market participants to adopt more resilient supply chain practices. In the near to medium term, these vulnerabilities will continue to shape strategic decisions, potentially slowing the pace of innovation and market growth as companies focus on stability over expansion.

Regional Forecast

North America Market Statistics:

North America captured over 39.1% of the global IoT node and gateway market in 2025, establishing itself as the largest region. This dominance is largely driven by the early adoption of IoT infrastructure across both industrial and consumer sectors, which has fostered a landscape ripe for innovation. The region's strong technological ecosystem, supported by significant investments in digital transformation initiatives, has led to heightened consumer preferences for connected devices and solutions. For instance, the U.S. Department of Commerce has actively promoted policies that encourage IoT development, further catalyzing the market's expansion. As organizations increasingly prioritize sustainability and operational efficiency, North America presents substantial opportunities for growth in the IoT node and gateway market, driven by a combination of regulatory support and evolving consumer demands.

The United States anchors the North American market for IoT nodes and gateways, leveraging its robust industrial base and consumer technology landscape. The early adoption of IoT infrastructure is particularly pronounced in sectors such as manufacturing and healthcare, where companies like General Electric and IBM have pioneered IoT applications that enhance operational efficiency and patient care. Moreover, regulatory frameworks, such as those established by the Federal Communications Commission, have created a conducive environment for innovation, allowing for seamless integration of IoT solutions. As U.S. companies continue to invest in smart technologies, the country not only solidifies its leadership in the regional market but also reinforces North America's overall growth potential in the IoT node and gateway sector.

Asia Pacific Market Analysis:

Asia Pacific emerged as the fastest-growing region in the IoT node and gateway market, registering rapid growth with a CAGR of 16%. This impressive growth can be attributed to massive investments in smart cities and industrial automation, which are reshaping urban landscapes and enhancing operational efficiencies across various sectors. The region's robust technological infrastructure, coupled with increasing government initiatives aimed at promoting digital transformation, has fueled demand for IoT solutions. Furthermore, the shift toward sustainable practices and smart resource management has amplified the need for efficient IoT nodes and gateways, enabling real-time data collection and analytics. Recent reports from the Asia-Pacific Economic Cooperation (APEC) indicate that countries in this region are prioritizing IoT integration to boost economic resilience and competitiveness, making it a fertile ground for investment and innovation in the IoT landscape.

Japan plays a pivotal role in the IoT node and gateway market, driven by its commitment to advanced technologies and smart city initiatives. The country's focus on industrial automation has led to increased demand for IoT solutions, as businesses seek to enhance productivity and optimize supply chains. Japanese companies, such as Fujitsu and Hitachi, are at the forefront of this transformation, developing cutting-edge IoT platforms that cater to both urban and industrial environments. The government’s strategic policies, as outlined by the Ministry of Internal Affairs and Communications, further support the growth of IoT technologies, facilitating collaborations between public and private sectors. This synergy not only enhances consumer trust in IoT applications but also positions Japan as a leader in the region, creating significant opportunities for expansion in the broader Asia Pacific market.

China is another key player in the IoT node and gateway market, characterized by its aggressive investments in smart city projects and technological advancements. The Chinese government has prioritized the development of IoT infrastructure as part of its national strategy, aiming to integrate IoT solutions across various sectors, including transportation, healthcare, and energy. Companies like Alibaba and Huawei are leading the charge in creating scalable IoT ecosystems that cater to the diverse needs of consumers and industries alike. The growing consumer demand for smart home technologies is also driving innovation, as urban populations seek enhanced connectivity and automation in their daily lives. As China continues to push the boundaries of IoT adoption, its advancements contribute significantly to the overall growth of the Asia Pacific region, presenting lucrative opportunities for stakeholders in the IoT node and gateway market.

Europe Market Trends:

Europe has maintained a notable presence in the IoT node and gateway market, characterized by lucrative growth driven by a confluence of technological advancements and evolving consumer preferences. The region's strategic investments in digital infrastructure, coupled with a robust regulatory framework promoting sustainability and innovation, have positioned it as a fertile ground for IoT solutions. The European Union’s Green Deal and Digital Strategy are pivotal, encouraging businesses to adopt IoT technologies for enhanced efficiency and reduced environmental impact. This evolving landscape is evidenced by the European Commission's push for a unified digital market, which is expected to further stimulate investments and consumer adoption in the IoT sector, making Europe a key player in the global arena.

Germany plays a critical role in the IoT node and gateway market, showcasing significant advancements in industrial automation and smart manufacturing. The country's focus on Industry 4.0 has spurred demand for IoT solutions that enhance operational efficiency and connectivity. According to the Federal Ministry for Economic Affairs and Energy, Germany's investment in digital technologies is projected to exceed €100 billion by 2025, underscoring the commitment to integrating IoT across various sectors. This investment strategy not only boosts local innovation but also positions Germany as a hub for IoT development, creating significant opportunities for regional stakeholders in the European market.

France, similarly, is emerging as a strong contender in the IoT node and gateway market, driven by a growing emphasis on smart cities and connected infrastructure. The French government’s initiative to invest €1.5 billion in IoT technologies by 2023 reflects its commitment to enhancing urban living through digital solutions. The adoption of smart meters and connected public services illustrates the shift in consumer demand towards more integrated and efficient systems. With major companies like Orange and Atos leading the charge in IoT innovations, France not only contributes to regional growth but also enhances Europe’s competitive edge in the global IoT landscape, making it a pivotal market for strategic investments.

Regional Market Attractiveness & Strategic Fit Matrix
Parameter	North America	Asia Pacific	Europe	Latin America	MEA
Innovation Hub	Advanced	Developing	Advanced	Nascent	Nascent
Cost-Sensitive Region	Low	Medium	Low	High	High
Regulatory Environment	Supportive	Neutral	Supportive	Neutral	Neutral
Demand Drivers	Strong	Strong	Strong	Weak	Weak
Development Stage	Developed	Developing	Developed	Emerging	Emerging
Adoption Rate	High	High	High	Low	Low
New Entrants / Startups	Dense	Dense	Dense	Sparse	Sparse
Macro Indicators	Strong	Stable	Strong	Weak	Weak

Segmentation Analysis

 

Analysis by Hardware

IoT node and gateway market is dominated by the Hardware segment, which captured a commanding 36.4% share in 2025. This leadership is primarily driven by the critical role processors play in data processing for IoT gateways, enabling efficient and effective data management. The increasing demand for advanced processing capabilities reflects a shift towards smarter, more interconnected devices, aligning with consumer preferences for enhanced functionality and performance. Reports from the International Telecommunications Union highlight the growing integration of IoT in various sectors, reinforcing the importance of robust hardware solutions. Established firms and emerging players alike can leverage this segment's growth by investing in innovative processing technologies, positioning themselves strategically within the evolving landscape. With ongoing technological advancements and the rising trend of digital transformation, the Hardware segment is expected to maintain its relevance in the near to medium term.

Analysis by Connectivity

IoT node and gateway market is significantly influenced by the Connectivity segment, which represented more than 41.2% of the market share in 2025. Wi-Fi's dominance in this segment is primarily attributed to its high-speed connectivity, driving widespread adoption in smart homes and offices. This trend aligns with the growing consumer demand for seamless internet access and the proliferation of smart devices, reflecting broader societal shifts towards digital living. The Wi-Fi Alliance has noted increasing consumer preferences for reliable and fast connectivity solutions, further cementing Wi-Fi’s critical role in the IoT ecosystem. Both established companies and startups can capitalize on this momentum by innovating in Wi-Fi technologies and enhancing user experiences. As the demand for connected devices continues to rise, the Connectivity segment is poised to remain a vital component of the IoT landscape in the foreseeable future.

Analysis by End-use Industry

IoT node and gateway market is significantly shaped by the End-use Industry segment, which held a substantial 31.2% share in 2025, largely driven by the consumer electronics sector. The high adoption of IoT technologies in smart appliances and wearables underscores the increasing consumer interest in connected devices that enhance convenience and efficiency. According to the Consumer Technology Association, this trend is indicative of a broader cultural shift towards smart living, where technology seamlessly integrates into daily life. Companies that focus on developing innovative consumer electronics can create strategic advantages by tapping into this growing market. As advancements in technology continue to evolve, the End-use Industry segment is expected to remain relevant, driven by ongoing consumer demand for smarter, more integrated solutions.

Report Segmentation
Segment	Sub-Segment
Hardware	Processor, Sensor, Connectivity IC, Memory Device, Logic Device
Connectivity	Bluetooth, Wi-Fi, ZigBee, Z-Wave, Others
End-use Industry	Aerospace & Defense, Agriculture, Automotive & Transportation, BFSI, Consumer Electronics, Healthcare, Oil & Gas, Retail, Others

Competitive Landscape

Key players in the IoT node and gateway market include Cisco, Intel, Huawei, NXP Semiconductors, Texas Instruments, Advantech, Dell Technologies, HPE, Sierra Wireless, and Quectel. These companies have established themselves as influential entities through their extensive portfolios and technological advancements. Cisco, for instance, leverages its networking expertise to enhance connectivity solutions, while Intel is recognized for its robust semiconductor innovations that power various IoT applications. Huawei’s global reach and investment in R&D position it as a formidable competitor, complemented by NXP Semiconductors' focus on secure connectivity. Texas Instruments emphasizes low-power solutions, whereas Advantech is known for its edge computing capabilities. Dell Technologies and HPE bring their enterprise solutions into the IoT space, while Sierra Wireless and Quectel focus on cellular connectivity, catering to diverse market needs.

The competitive environment within the IoT node and gateway market is characterized by dynamic initiatives among the leading players. Collaborations and strategic partnerships are prevalent, enabling companies to enhance their technological capabilities and expand their market reach. For instance, alliances focused on developing next-generation IoT solutions facilitate innovation and responsiveness to evolving market demands. New product introductions are frequently observed, showcasing advancements in edge computing and connectivity technologies, which are essential for addressing the complexities of IoT deployments. Additionally, significant investments in research and development signal a commitment to maintaining competitive advantages, ultimately shaping the landscape of the IoT ecosystem and fostering a culture of continuous innovation.

Strategic / Actionable Recommendations for Regional Players

In North America, fostering partnerships with tech startups focusing on emerging IoT technologies could enhance innovation and market adaptability. Engaging with local universities for research collaborations may also yield fresh insights and talent, further driving product development. In the Asia Pacific region, tapping into the rapidly growing smart city initiatives presents opportunities to deploy tailored IoT solutions, addressing urban challenges while capturing significant market share. Collaborating with local governments and enterprises can facilitate smoother integration into these projects. For Europe, focusing on sustainable and energy-efficient IoT solutions aligns with regulatory trends and consumer preferences. Engaging in consortiums that promote interoperability standards may enhance competitiveness and facilitate broader adoption across various sectors.

Competitive Dynamics and Strategic Insights
Assessment Parameter	Assigned Scale	Scale Justification
Competitive Advantage Sustainability	Durable	Scale, security certifications, and smart city integrations ensure advantages.
Innovation Intensity	High	Advances in 5G, edge computing, and low-power connectivity are significant.
Market Concentration	Medium	Cisco, Intel, and Huawei lead, but startups and regional players fragment the market.
M&A Activity / Consolidation Trend	Active	Acquisitions like HPE’s 2021 5G solutions and Microchip’s 2021 development platform drive consolidation.
Degree of Product Differentiation	High	Nodes and gateways vary by connectivity (Wi-Fi, 5G, ZigBee), edge computing, and security features.
Customer Loyalty / Stickiness	Strong	High switching costs due to integration with IoT ecosystems and long-term contracts.
Vertical Integration Level	Medium	Major players integrate hardware, software, and cloud solutions; smaller firms focus on niche nodes.