Industry: Semiconductor Electronics
Published Date: January-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 231
Report ID: PMRREP33648
The global IoT routers market is forecast to expand at a CAGR of 7.4% and thereby increase from a value of US$2.3 Bn in 2023, to US$3.8 Bn by the end of 2030.
|
Attributes |
Key Insights |
|
market Size (2023E) |
US$2.3 Bn |
|
Projected Market Value (2030F) |
US$3.8 Bn |
|
Global Market Growth Rate (CAGR 2023 to 2030) |
7.4% |
|
Historical Market Growth Rate (CAGR 2018 to 2022) |
6.0% |
Internet of Things (IoT) routers play a pivotal role in the burgeoning landscape of interconnected devices facilitating seamless communication between diverse IoT endpoints. These routers are designed to efficiently manage the flow of data between IoT devices, ensuring secure and reliable connectivity.
The aim of IoT routers is to establish a robust and scalable network infrastructure that can handle the increasing volume of data generated by IoT devices. They serve as a gateway, enabling devices to transmit and receive data while providing security features to safeguard sensitive information. The rapid proliferation of IoT devices across various industries is a key driver for the IoT routers market. As organizations embrace IoT for enhanced operational efficiency, the demand for robust and scalable networking solutions, including routers, continues to rise.
Opportunities abound in the integration of advanced features such as edge computing and improved security protocols into IoT routers. Additionally, the advent of 5G technology further amplifies the potential of IoT routers by enabling faster and more reliable connectivity, opening avenues for innovation and growth in the market.
Surge in IoT Adoption Across Industries
The rapid proliferation of IoT devices across various industries stands as a primary driver propelling the IoT routers . Industries such as manufacturing, healthcare, transportation, and smart cities are increasingly deploying IoT devices to enhance operational efficiency, monitor assets, and collect valuable data. As these deployments grow in scale and complexity, the demand for efficient and secure communication infrastructure, where IoT routers play a crucial role, experiences a significant uptick. The surge in IoT adoption reflects the need for reliable connectivity solutions, contributing to the expansion of the IoT routers market.
In addition, the evolution of connectivity requirements, driven by emerging technologies like 5G, edge computing, and low-power wide-area networks (LPWAN), represents another key driver in the IoT routers market. The demand for faster data transfer, reduced latency, and increased network capacity necessitates advanced routers capable of meeting these evolving connectivity needs. IoT routers, equipped to handle diverse communication protocols and ensure seamless connectivity, become instrumental in supporting the next generation of IoT applications. This driver underscores the market's responsiveness to technological advancements and the ongoing transformation in connectivity standards.
One significant restraint influencing the IoT routers is the pervasive concern regarding security and the escalating risk of cyber threats. As the number of connected devices increases, so does the potential attack surface for cybercriminals. IoT routers, serving as crucial components in managing data traffic and communication between devices, become prime targets for malicious activities.
The interconnected nature of IoT ecosystems makes them vulnerable to unauthorized access, data breaches, and various cyberattacks. The IoT routers faces challenges in addressing these security concerns effectively, as any compromise in the integrity of data transmission or unauthorized access to connected devices can have severe consequences.
An opportunity for significant revenue growth in the IoT routers lies in the integration of advanced security protocols. As security concerns pose a notable challenge, the market can capitalize on the demand for routers equipped with robust encryption, authentication, and intrusion detection systems. Manufacturers and developers have the chance to enhance the security features of IoT routers, making them resilient against evolving cyber threats.
By adopting state-of-the-art security measures, such as end-to-end encryption and secure boot mechanisms, IoT routers can instil confidence in businesses and consumers alike, fostering increased adoption across various industries. This strategic focus on security features can position IoT routers as reliable guardians of data integrity within expanding IoT ecosystems.
Moreover, another avenue for revenue expansion in the IoT routers market involves addressing the growing need for scalability and interoperability across diverse IoT applications. The market can seize this opportunity by developing routers that can seamlessly integrate with a wide range of IoT devices and platforms.
As IoT deployments span various industries, including healthcare, smart cities, agriculture, and industrial automation, routers that offer enhanced interoperability become essential. By providing scalable solutions that can adapt to the unique requirements of different IoT environments, manufacturers can cater to a broader customer base. This adaptability ensures that IoT routers remain versatile and capable of supporting the evolving landscape of connected devices, driving market growth through increased adoption and application diversity.
As IoT ecosystems become more complex, the demand for routers with advanced analytics and decision-making capabilities is rising. Analysts predict a surge in the development of intelligent IoT routers that can autonomously manage and optimize data traffic, enhance security protocols, and provide valuable insights for efficient IoT operations.
Another pivotal trend is the focus on edge computing. With the proliferation of IoT devices generating massive amounts of data, the need for decentralized processing at the edge of the network is becoming critical. Analysts anticipate a shift towards IoT routers designed to support edge computing functionalities, enabling quicker data processing, reducing latency, and enhancing overall system efficiency. This aligns with the broader industry movement towards edge-centric architectures to meet the evolving demands of diverse IoT applications.
Furthermore, analysts emphasize the role of 5G technology in shaping the future of IoT routers. As 5G networks become more widespread, IoT routers are expected to leverage the higher bandwidth and lower latency offered by 5G to enhance connectivity for IoT devices. This is particularly relevant for applications requiring real-time data transmission, such as autonomous vehicles and smart city infrastructure.
Supply-side Dynamics
The supply-side dynamics of the IoT routers market are characterized by a continuous quest for innovation and technological advancements. Key players in the market are heavily invested in research and development activities to introduce routers with enhanced capabilities, such as improved security features, higher data processing speeds, and compatibility with emerging communication technologies. This dynamic landscape fosters a competitive environment where companies strive to differentiate themselves through cutting-edge product offerings.
Additionally, partnerships and collaborations between IoT router manufacturers and technology providers contribute to the development of comprehensive solutions that cater to the evolving needs of diverse industries. In the largest country manufacturing IoT routers, supply-side dynamics are influenced by a combination of factors such as technological expertise, infrastructure capabilities, and regulatory frameworks. The country's robust manufacturing ecosystem enables the efficient production of IoT routers at scale, contributing to global supply chains.
Government initiatives supporting technological innovation and digital infrastructure development further enhance the supply-side capabilities. Additionally, collaborations between local manufacturers and international technology leaders play a crucial role in shaping the country's position as a major supplier of IoT routers, ensuring a steady and diverse supply for the global market.
Which Router Type Category is Expected to Contribute the Largest Revenue Share?
Sales of Industrial Routers Dominant
Industrial routers emerge as the dominant category due to their pivotal role in powering critical IoT applications in various sectors such as manufacturing, energy, and healthcare. Industrial routers are designed to withstand harsh environments and offer robust connectivity solutions, ensuring seamless communication between IoT devices in industrial settings.
Additionally, In the rapidly evolving landscape of the IoT routers market, cloud-based routers emerge as the fastest-growing category. These routers facilitate the seamless integration of IoT devices with cloud platforms, enabling businesses to harness the power of cloud computing for data storage, analytics, and real-time processing.
What is the Most Preferred Connectivity Type Among End Users?
4G/5G to be the Sought-after Connectivity Type for its High-Speed Data Transmission
The dominant category is 4G/5G connectivity, playing a pivotal role in powering high-speed and reliable communication for IoT devices. As the demand for faster data transmission and low-latency communication intensifies, 4G and 5G connectivity emerge as the preferred choice for connecting IoT routers. The capability of these networks to deliver significantly higher data speeds and reduced latency is crucial for applications requiring real-time data exchange, such as autonomous vehicles, smart cities, and industrial automation.
Additionally, LPWAN connectivity emerges as the fastest-growing category. LPWAN technologies, such as LoRaWAN and NB-IoT, are gaining prominence for their ability to provide connectivity to low-power IoT devices over long distances. This makes LPWAN particularly suitable for applications in remote and energy-constrained environments, such as agriculture, smart utilities, and asset tracking.
Which is the Top End-use Industry?
Manufacturing Sector Responsible for the Highest Demand Generation
Manufacturing industry is the dominant category, representing the sector creating the highest demand for IoT routers. Manufacturing industries heavily rely on IoT technologies to enhance operational efficiency, monitor equipment health, and streamline production processes. IoT routers play a crucial role in connecting and managing a myriad of IoT devices on the factory floor, facilitating data exchange for predictive maintenance, process optimization, and quality control.
In addition, the fastest-growing category is smart cities, reflecting the increasing deployment of IoT routers in urban environments. Smart cities leverage IoT technologies to enhance public services, improve infrastructure management, and optimize resource utilization. IoT routers play a pivotal role in establishing connectivity for a diverse range of applications, including smart traffic management, environmental monitoring, and public safety.
Europe at the Forefront with Government Initiatives, and Supportive Regulations
Europe is emerging as a dominating region in the IoT routers market due to proactive government initiatives and supportive regulations. The European Union (EU) has been at the forefront of promoting digitalization and IoT adoption across various sectors. Initiatives such as the Digital Single Market (DSM), and the European Commission's focus on advancing IoT technologies create a conducive environment for the growth of the market. The EU's commitment to fostering innovation and ensuring data privacy aligns with the requirements of IoT deployments, encouraging the widespread use of IoT routers.
Smart City Projects Catalyse Adoption Across South Asia, and Pacific
South Asia, and Pacific present significant opportunities for manufacturers in the IoT routers market, driven by the Government initiatives promoting smart city development in South Asia, and Pacific open doors for IoT router manufacturers. As governments invest in creating connected ecosystems, manufacturers can position themselves to provide the essential connectivity infrastructure required for smart city projects.
Leveraging these opportunities requires a proactive approach in aligning with government policies, participating in public-private partnerships, and contributing to the realization of the region's smart city visions. Manufacturers that can offer scalable, secure, and cost-effective IoT router solutions stand to benefit from the growing emphasis on smart urbanization in South Asia, and Pacific.
Prominent organizations, including C&D Technologies Inc., Trojan Battery, Crown Battery Manufacturing Co., and East Penn Manufacturing Co. Inc. are at the vanguard of this sector, The IoT routers market is characterized by intense competition, with key players strategically positioning themselves to gain a competitive edge. Competitive intelligence plays a pivotal role as companies continually assess market trends, competitor activities, and emerging technologies.
Manufacturers leverage this intelligence to make informed decisions on product development, pricing strategies, and market positioning. Moreover, understanding customer needs and preferences is essential, prompting businesses to tailor their offerings for specific industries such as healthcare, manufacturing, transportation, and smart cities.
In the dynamic landscape of the IoT routers , a robust business strategy is crucial for sustained success. Companies focus on developing versatile routers that address the unique connectivity requirements of diverse applications. Emphasis is placed on creating scalable solutions that align with the evolving needs of the Internet of Things ecosystem. Strategic collaborations and partnerships are common as companies seek to enhance their product portfolios and expand their global reach.
New Product Launch
Advantech introduced a new digital commerce platform, IoTMart International, to facilitate cross-border online business services. This platform complements Advantech's existing distribution model. It is specifically designed to cater to the diverse requirements of different customer segments, particularly focusing on the needs of small and medium-sized customers.
Market Impact: This platform's focus on catering to the diverse needs of small and medium-sized customers suggests an effort to broaden market access and strengthen Advantech's position in the competitive landscape, potentially driving increased sales and market penetration.
(Source: Advantech)
NTT Ltd, a company specializing in IT infrastructure and services, and Cisco joined forces to create and implement collaborative solutions that effectively aid the sustainability objectives of major organizations. By utilizing NTT's Edge as a Service portfolio and Cisco's IoT capabilities, the combined efforts of the two companies will deliver real-time data analysis, heightened security measures, better decision-making processes, and reduced operational expenses through predictive maintenance, asset tracking, and supply chain management capabilities.
Market Impact: The collaboration between NTT Ltd and Cisco to develop sustainable solutions leveraging NTT's Edge as a Service and Cisco's IoT capabilities has significant implications for the IoT routers market. This partnership positions both companies to offer comprehensive, cutting-edge solutions, enhancing their market competitiveness and potentially driving demand for advanced IoT router technologies.
(Source: NTT Data)
Microchip Technology Inc. introduced its inaugural lineup of automotive-qualified Ethernet PHYs to offer automotive original equipment manufacturers (OEMs) reliable Ethernet solutions. This family of devices, namely LAN8670, LAN8671, and LAN8672, provides 10BASE-T1S capabilities and holds AEC-Q100 Grade 1 qualification.
Market Impact: This move addresses the specific needs of automotive OEMs, contributing to the market's evolution toward reliable and robust Ethernet solutions for IoT applications in vehicles.
(Source: Microchip)
|
Attribute |
Details |
|
Forecast Period |
2023 to 2030 |
|
Historical Data Available for |
2018 to 2022 |
|
Market Analysis |
US$ Million for Value |
|
Key Regions Covered |
|
|
Key Countries Covered |
|
|
Key Market Segments Covered |
|
|
Key Companies Profiled |
|
|
Report Coverage |
|
|
Customization & Pricing |
Available upon request |
By Router Type:
By Connectivity Type:
By End Use:
By Region:
To know more about delivery timeline for this report Contact Sales
The market is anticipated to grow at a CAGR of 7.4% by the end of the projected period.
The IoT routers market size was valued at US$2.3 billion in the end of 2023.
In 2023, the US held the largest market share.
Some of the prominent players in this market are C&D Technologies Inc., Trojan Battery, Crown Battery Manufacturing Co., East Penn Manufacturing Co. Inc., S. Battery Manufacturing Company, and Johnson Controls International Plc.
By connectivity type, the LPWAN segment is expected to grow at the fastest pace during the forecast period.
