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Cellular #IoT gateways shipments to touch 8.6 million mark by 2023: Berg Insight

Internet of Things

Cellular #IoT gateways shipments to touch 8.6 million mark by 2023: Berg Insight

In a recent report published by world’s renowned M2M/IoT market research provider Berg Insight, new findings about the market for cellular IoT gateways, routers and modems have been shared. According to this report, around 3.2 million cellular IoT gateways were shipped across the globe during 2017, with a comparative increase of 22 percent from the previous year. Also, annual shipments are expected to shoot up to 8.6 million in 2023 at a compound annual growth rate (CAGR) of about 18.2 percent.

Cellular IoT gateways are primarily standalone devices meant to connect M2M applications to a cellular network.  They include general-purpose cellular routers, gateways and modems that are enclosed in a chassis and have at least one input/output port. However, trackers, telematics devices and other specialized devices are not included in this report.

North American vendors dominate the cellular IoT gateway, router and modem market. Cradlepoint, Sierra Wireless, Cisco and Digi International are the largest vendors in North America, whilst Teltonika is the main manufacturer on the European market. Combined, these five vendors generated close to US$ 375 million in annual revenues from IoT gateway sales during 2017. Other important vendors include CalAmp, Multitech Systems and Encore Networks in the US, InHand Networks, Maestro Wireless, Four-Faith, Robustel Technologies and NetComm Wireless in the Asia-Pacific region, and HMS Networks, Advantech B+B SmartWorx, NetModule, Matrix Electrónica, Eurotech, Gemalto, Sagemcom Dr. Neuhaus, Option and Beijer Electronics Group in Europe. A large number of small and medium sized vendors are active on the European and Asian markets, whilst the North American market is dominated by a handful of major vendors, largely due to entry barriers in the form of carrier certifications required for cellular devices in the region.

“The average selling price for IoT gateways remains notably higher in North America compared to the European and the Asia-Pacific markets, primarily due to a higher share of feature-rich 4G LTE devices in the product mix”, said Fredrik Stålbrand, IoT Analyst, Berg Insight. He adds that the carrier certifications in the US create economies of scale and diseconomies of scope, which has contributed to an industry characterized by several large companies offering standardized devices. “Several vendors are now starting to create strategies for specific vertical markets and have even introduced complete solutions including IoT gateways, peripheral hardware and applications as customers become more demanding in terms of product integration”, continued Mr. Stålbrand. Although the North American market experienced the slowest growth globally during 2017, Berg Insight expects that it will remain the largest geographical market in terms of revenues in the foreseeable future.

An MBA who switched working from managing a retail chain to knit a brighter world of writing. Diligent and assertive, Prachi has a Bachelor's degree in Computer Applications.



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