New market intelligence data from ABI Research predicts that hardware revenues from M2M/IoT gateway devices used in commercial and industrial applications will have double digit growth over the next five years and eventually break US$1 billion in 2021. As adoption of industrial IoT technologies keeps growing, gateways are emerging as a critical component to address the increasing requirements and challenges of these applications, and consequently experiencing growing market traction.

See ABI Research’s M2M/IoT Routers and Gateways report:

“Any M2M/IoT application deploying end-nodes that lack direct backhaul connectivity require gateways to enable communication with an enterprise network or a cloud environment,” says Eugenio Pasqua, Research Analyst at ABI Research. This is the case for many commercial and industrial applications, particularly in sectors characterized by long hardware replacement cycles, where gateways can enhance the existing assets and address their installed base without disrupting their operations. “Sectors like industrial automation, utilities and smart cities applications, with replacement lifecycles on the order of 5-20 years, are expected to be among the major adopters of M2M/IoT gateways in the short-term.”

On a regional level, North America currently holds the sceptre as the leading region for this market, with more than 40% of global revenues in 2014. This is also reflected by the presence of several important US-based gateway OEMs such as CalAmp, Digi International, Cisco, MultiTech and Systech Corporation, all with a consistent business in the overall M2M/IoT routers and gateways market. The European and Asian-Pacific markets still lag behind in a tete-a-tete, but the latter is quickly gaining ground and is expected to surpass North America both in terms of revenues and shipments within the next five years.

These findings are part of ABI Research’s new Industrial Internet Research Service, which includes research reports, market data, insights, and competitive assessments.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990.