Hardware revenues from M2M/IoT gateway devices are expected to grow to $1 billion in 2021, according to a report from ABI Research.
Gateway devices, which enable connections between clouds or enterprise networks and M2M or IoT, will be more and more necessary as industries adopt IoT Technology in greater numbers. In the commercial and industrial applications, gateways are expected to have double digit growth over the next five years.
Gateways are particularly useful in industries with long hardware replacement cycles, where they can be attached to existing assets and enhance their installed base without having to disrupt 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,” said Eugenio Pasqua, research analyst at ABI Research.
North America is the leading region when it comes to the M2M/IoT gateway market, accounting for more than 40 percent of the global revenues in 2014. Several companies with consistent business in M2M/IoT routers and gateways, such as CalAmp, Digi International, MultiTech, and Systech Corporation are all based in the United States.
Europe and the Asia-Pacific markets follow North America, but the Asian-Pacific market is poised to exceed North America’s revenues and shipments in the next five years.
The complete report on the IoT/M2M market can be found at ABI Research.
Filed Under: Industrial automation