Shipments of next-gen smart IoT gateways to reach 21.4 million by 2025

IoT gateways are becoming an increasingly important link in the IoT security and device authentication value chain and emerging as a crucial conduit for intelligent operations across the entire IoT.

The new wave of next-generation smart IoT gateways has arrived at an opportune time, enabling a breadth of novel security, intelligence, and authentication operations at the edge, causing IoT vendors to revisit their deployment and management strategies.

According to ABI Research, there will be 21.4 million next-gen smart IoT gateways shipped in 2025.

“Smart IoT gateways are currently caught amid a greater transformative evolution, further enhancing capabilities for gateways, shifting focus toward the edge, and reversing the cloud-centric investment priorities of the past decade,” states Dimitrios Pavlakis, Digital Security analyst at ABI Research.

The characteristics of next-gen smart IoT gateways

The primary characteristics of next-gen IoT gateways include enhanced cybersecurity options, extended connectivity support, edge processing and filtering, authentication and management, cloud services, analytics, and intelligence operations.

These highly demanding technological characteristics have been steadily reaching the core of the implementation lists of IoT implementers, shifting the dynamics of IoT security and pulling focus ever closer to the edge.

“This is not to say that edge-focused IoT gateways will completely replace data servers and cloud computing – far from it. Rather they are set to create a more symbiotic relationship between them while increasing the amount of responsibility towards edge computing and intelligence-gathering operations,” Pavlakis explains.

Turning challenges into well-honed value propositions

The current market demands brought forth by the intense increase of IoT technologies allow gateway vendors to turn challenges into well-honed value propositions. This can include tackling the secure transition of legacy equipment into larger IoT fleets, enable increased visibility, monitoring, and management of IoT devices, aid in the clash between IT and OT in industrial and healthcare systems, and streamline digital security and device management.

The surge of IoT gateways shipments is expected to create a variable penetration rate across different IoT end markets led by innovative gateway vendors like Advantech, Cisco, Kerlink, MultiTech, and Sierra Wireless.

“The data suggest that video surveillance, heavy transport vehicles and equipment, intelligent transportation, and fleet management depict the highest penetration rate for the next-level security and intelligence components for smart IoT gateways, with a clear focus revolving around automotive verticals and data-heavy applications,” Pavlakis concludes.

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