IoT Routers Trends and Forecast
The future of the global IoT routers market looks promising with opportunities in the industrial automation, transportation, medical, smart grid, and ATM markets. The global IoT routers market is expected to reach an estimated $6.8 billion by 2030 with a CAGR of 18.2% from 2024 to 2030. The major drivers for this market are growing number of internet users, increasing adopting IIOT for remote monitoring, and on-going development of smart city projects.
• Lucintel forecasts that, within the type category, 4G/LTE connectivity will remain a larger segment over the forecast period due as it is widely available and provides good coverage, thus making them ideal for a variety of IOT applications.
• Within the application category, industrial automation is expected to remain the largest segment due to rising demand for remote monitoring and control of machinery and equipment, and for data collection and analysis, and predictive maintenance.
• In terms of region, APAC will remain the largest region during the forecast period due to increasing demand for IOT devices and solutions in a variety of industries, such as medical, transportation, and industrial applications.
Gain valuable insights for your business decisions with our comprehensive 150+ page report.
Emerging Trends in the IoT Routers Market
The internet of things (IoT) routers market is rapidly evolving as technology advances and the demand for seamless connectivity across various applications increases. Emerging trends in this market reflect the growing need for enhanced performance, security, and integration with new technologies. These trends are driven by the expansion of smart infrastructure, the rise of industrial automation, and the proliferation of connected devices. Understanding these trends is crucial for stakeholders to capitalize on opportunities and address challenges in this dynamic sector.
• Integration with 5G Technology: The integration of 5G technology into IoT routers is a significant trend, driven by the need for higher data transfer rates and lower latency. 5G-enabled IoT routers provide faster and more reliable connectivity, supporting the increasing data demands of smart cities, industrial automation, and advanced consumer applications. This trend enhances the performance of IoT systems, enabling real-time data processing and improved network efficiency. As 5G networks continue to roll out globally, the adoption of 5G-compatible IoT routers will become more prevalent, driving innovation and expanding use cases.
• Edge Computing Capabilities: The incorporation of edge computing capabilities into IoT routers is gaining momentum as businesses seek to process data closer to the source. Edge computing reduces latency by handling data processing locally rather than relying on centralized cloud servers. This trend is crucial for applications requiring real-time responses, such as autonomous vehicles and industrial automation. IoT routers with edge computing support enable faster decision-making and reduce data transmission costs, making them ideal for environments where quick and efficient data processing is essential.
• Enhanced Security Features: As cyber threats become more sophisticated, enhanced security features in IoT routers are increasingly important. This trend includes the implementation of advanced encryption, secure boot processes, and real-time threat detection mechanisms. IoT routers with robust security measures help protect sensitive data and ensure the integrity of connected networks. With the rising number of connected devices and the potential for security breaches, investing in IoT routers with comprehensive security features is crucial for safeguarding against cyberattacks and ensuring reliable operation.
• Support for Low Power Wide Area Networks: The growing use of Low Power Wide Area Networks (LPWAN) technologies, such as LoRaWAN and NB-IoT, is influencing the design of IoT routers. LPWAN provides long-range connectivity with low power consumption, making it suitable for applications like smart agriculture, smart metering, and environmental monitoring. IoT routers supporting LPWAN enable efficient communication for devices that need to operate over extended distances with minimal energy use. This trend caters to the needs of IoT deployments in remote or rural areas where traditional connectivity options are limited.
• Focus on Scalability and Modularity: Scalability and modularity are becoming key considerations in IoT router design as the number of connected devices continues to grow. Routers that offer modular components and scalable features can adapt to varying network demands and expand as needed. This trend is particularly relevant for large-scale IoT deployments in smart cities and industrial settings. By providing flexible and scalable solutions, IoT routers can support diverse applications and accommodate future growth, making them more versatile and cost-effective for enterprises and service providers.
The new developments in the IoT routers market point to the creation of more sophisticated technologies and solutions for connectivity and data management. The future of IoT routers is influenced by several factors, including 5G integration, edge computing, security enhancements, LPWAN capability, and an emphasis on scalability and modularity. These trends are indicative of the growing demand for faster, more reliable, and secure connection services, thus establishing IoT routers as a necessity within the ever-growing Internet of Things.
Recent Developments in the IoT Routers Market
The IoT routers market is rapidly evolving, driven by the increasing demand for connectivity solutions that support a growing number of connected devices across various applications. Recent developments in this sector reflect advancements in technology, enhanced performance capabilities, and a focus on addressing new challenges and opportunities in the Internet of Things (IoT) ecosystem. These developments are shaping the market landscape and setting new standards for connectivity, security, and efficiency.
• Integration of 5G Technology: The integration of 5G technology into IoT routers represents a major development, driven by the need for higher data speeds and reduced latency. 5G-enabled routers provide significant improvements in connectivity, supporting more devices simultaneously with faster data transfer rates. This advancement is critical for applications that require real-time data processing, such as autonomous vehicles and smart city infrastructure. As 5G networks continue to expand, IoT routers equipped with 5G capabilities will become increasingly prevalent, offering enhanced performance and future-proofing for a wide range of IoT applications.
• Advancements in Edge Computing: The adoption of edge computing within IoT routers is transforming how data is processed and managed. Edge computing allows data to be processed locally on the router, rather than being sent to centralized cloud servers. This reduces latency, improves response times, and decreases the load on network infrastructure. Edge-enabled IoT routers are particularly beneficial for applications that require immediate data analysis, such as industrial automation and smart grid management. This development enhances the efficiency and speed of IoT systems by enabling faster decision-making and reducing reliance on distant data centers.
• Enhanced Security Features: With the increasing number of connected devices, security has become a major focus in IoT routers. Recent developments include the incorporation of advanced security features such as robust encryption protocols, secure boot processes, and real-time threat detection. These enhancements help protect sensitive data and prevent unauthorized access to IoT networks. As cyber threats continue to evolve, IoT routers with improved security measures are essential for safeguarding against potential vulnerabilities and ensuring the integrity of connected systems and devices.
• Support for Low Power Wide Area Networks (LPWAN): IoT routers are increasingly supporting Low Power Wide Area Network (LPWAN) technologies, such as LoRaWAN and NB-IoT. LPWAN provides long-range connectivity with minimal power consumption, making it ideal for applications in remote or hard-to-reach areas. This development is significant for use cases such as smart agriculture, environmental monitoring, and smart metering, where devices need to operate efficiently over extended distances. By integrating LPWAN capabilities, IoT routers offer greater flexibility and coverage for a wide range of IoT applications.
• Increased Focus on Scalability and Modularity: The demand for scalable and modular IoT routers is growing as the number of connected devices and the complexity of IoT deployments increase. Manufacturers are designing routers that can be easily scaled and customized to meet varying network requirements. This trend allows for more flexible deployments, enabling organizations to expand their networks and add new functionalities without significant overhauls. Scalable and modular routers are particularly useful for large-scale IoT implementations in smart cities and industrial settings, where adaptability and growth potential are crucial.
Recent developments in the IoT routers market highlight significant advancements in connectivity, data processing, and security. The integration of 5G, edge computing, enhanced security features, support for LPWAN, and a focus on scalability and modularity are reshaping the market and addressing the evolving needs of IoT applications. These developments reflect the ongoing evolution of IoT technology, driving improvements in performance, efficiency, and flexibility, and positioning IoT routers as vital components in the expanding Internet of Things ecosystem.
Strategic Growth Opportunities for IoT Routers Market
As industries continue to embrace IoT solutions to improve operations, connectivity, and data management, the IoT routers market presents several strategic growth opportunities. These opportunities arise from the diverse uses of IoT routers, which facilitate interconnectivity across various sectors. The evolution of technology and connectivity is transforming these dynamics, providing new prospects, particularly through advancements in network systems, the need for real-time data processing, and the demand for expanded and secure options. After reassessing their approach, Nakagawa and Mechtilde identified the following growth potentials in the IoT routers market across different usage scenarios:
• Smart Cities: The growth of smart cities presents tremendous opportunities for IoT routers. As cities continue to expand their use of sensors and other digital devices to monitor infrastructure, traffic, and public utility services, the demand for high-performance, reliable IoT routers increases. These routers help reduce bottlenecks caused by multiple devices during data collection and communication for intelligent applications, such as intelligent transportation, smart lighting, and environmental monitoring. As investments in smart city projects grow globally, there is a need for IoT routers designed for urban environments that can enhance connectivity and improve data management.
• Industrial Automation: IoT routers are essential for providing connectivity between machines, sensors, and control systems in industrial automation. The rise of Industry 4.0 and smart manufacturing has created a need for robust and secure IoT routers that support real-time data processing and machine-to-machine communication. These routers enhance monitoring, predictive maintenance, and process optimization, which lead to higher productivity and reduced operating costs. As automation and IT usage increase across industries, there will be greater demand for IoT routers capable of supporting industrial networking and improving operational efficiency.
• Healthcare and Remote Monitoring: The healthcare market is evolving rapidly with the rise of remote monitoring and telehealth applications, creating significant business opportunities for IoT routers. These routers enable the connection of medical devices, wearables, and patient monitoring systems, facilitating real-time data transfer between patients and healthcare providers. When integrated with healthcare solutions, IoT routers help service providers improve patient care, enhance monitoring accuracy, and enable timely interventions. The growing use of telemedicine and healthcare monitoring systems underscores the need for reliable and secure IoT routers to support the expanding healthcare sector.
• Agriculture and Smart Farming: IoT routers are now integral to smart farming and precision agriculture, where they support the connection of various agricultural sensors and devices. These routers are used in soil monitoring systems, weather forecasting systems, and automated irrigation systems, helping farmers optimize resource usage and improve production. The digitalization of agriculture and the transition to smart farming increase the demand for IoT routers capable of remote data collection and communication in challenging environments. As activity in this sector grows, there is an increasing need for IoT routers that can facilitate the development of advanced and efficient agricultural practices.
• Retail and Smart Logistics: In the retail and logistics sectors, IoT routers enable the interconnection of various systems, including inventory management, point-of-sale systems, and supply chain tracking management. These routers enable faster information flow and provide data analytics to prevent stock shortages, improve sales, and enhance customer experience and overall business operations. In logistics, IoT routers are critical for shipment tracking, condition monitoring, and fleet management. The retail and logistics industries are expected to see increased IoT adoption, leading to a greater demand for IoT routers that can support the expanding scope of applications within these sectors.
A number of important applications present growth opportunities for the IoT routers market, driven by the increasing use of smart devices and the desire for improved connectivity solutions. While initially conceived as communication tools, IoT routers now offer strategic opportunities across smart cities, industrial sectors, healthcare, agriculture, and retail/logistics services. As technology continues to evolve, IoT routers will play a key role in linking these sectors, fostering innovation, and driving market development.
IoT Routers Market Driver and Challenges
The IoT routers market is influenced by a range of factors such as technology, economy, and regulations, all of which both drive growth and present challenges. The performance and integration of IoT routers are affected by changes in technologies, the economies of different regions, and the regulatory frameworks in place. Understanding these drivers and challenges is important for stakeholders as industries continue to adopt IoT solutions for various applications in this era, where opportunities exist but challenges make it difficult to fully capitalize on them.
The factors responsible for driving the IoT routers market include:
• Advancements in 5G technology: The introduction of 5G technology is one of the factors driving the IoT routers market due to the higher data speeds and lower latency that have never been offered before. This, together with the availability of many IoT devices, enables efficient communication between devices, allowing applications that require timely information and more bandwidth. 5G connectivity further improves the capacity of IoT networks by enabling the interconnection of more devices and the handling of larger amounts of data. With 5G infrastructure rapidly expanding around the world, the market for 5G-compatible IoT routers is expected to grow significantly.
• Increased adoption of smart cities and industrial IoT: The increasing implementation of smart city projects and the use of integrated solutions in industrial Internet of Things (IoT) applications creates a greater demand for IoT routers. In smart cities, IoT technology helps improve traffic management and public services, while in industrial IoT, automation and surveillance advance the use of sensors in manufacturing and logistics. IoT routers facilitate the connection and control of numerous devices and sensors used in these areas. As smart city and Industry 4.0 initiatives expand, the demand for IoT routers designed for these integrated technologies will continue to rise.
• Growth in remote monitoring and telehealth: There is an increasing demand for IoT routers in the healthcare industry as it becomes more dependent on remote monitoring and telehealth services. These routers are designed to provide connectivity to medical devices, wearable devices, and remote monitoring systems, enabling telemedicine and instant data transfer. The rise in chronic diseases, an aging population, and a growing focus on healthcare drive consumer demand for IoT routers within the healthcare sector. This presents opportunities for innovation and growth in IoT router solutions tailored to the healthcare industry.
• Restructuring the integration of edge computing: The incorporation of edge computing with IoT routers is enhancing the functionality of these devices by enabling edge data processing. With edge computing, bandwidth is saved because data can be processed where it is being collected, which is critical for time-sensitive tasks, such as in the autonomous vehicle industry or in factory automation. By processing data locally, IoT routers can undertake tasks faster and more efficiently, supporting more complex applications and optimizing network performance. This trend is driving the development of high-end IoT routers with better processing capabilities and functionality.
• Growth in the need for enhanced security: Given the increasing sophistication of cyber threats, there is a growing demand for IoT routers with advanced security features. It is essential to incorporate security measures such as encryption, secure boot, and threat prevention strategies to protect sensitive information and IoT network infrastructure. The proliferation of connected devices and frequent data breaches highlight the need for IoT routers that can safeguard against such attacks. This demand is prompting manufacturers to enhance the security features of their IoT router solutions.
Challenges in the IoT routers market include:
• Security vulnerability and threats from cyber-attacks: One of the most critical challenges in the IoT routers market is managing security vulnerabilities and risks from cyber threats. Since IoT routers are key components in a connected network, they can also be targets for hackers. It is crucial for manufacturers to incorporate features such as encryption and real-time threat detection to prevent unauthorized access and data loss. As new cyber threats continue to emerge, constant updates and security modifications will be required, which poses a significant challenge for both manufacturers and users.
• Interoperability and standardization issues: Another challenge is the lack of standardization, which undermines the IoT routers market. The absence of uniform standards can create interoperability issues when different devices and systems need to communicate and work together. Expanding the capabilities of IoT routers to ensure they are compatible with various devices and protocols is critical for the smooth operation of networks. The lack of common standards can limit the economic development of this relatively new market and complicate the implementation of IoT solutions across different industries.
• High cost of advanced IoT routers: The high cost of advanced IoT routers, especially those with features like 5G capability and edge computing, can be a barrier to market growth. These advanced routers may be affordable only for small to medium-sized enterprises, limiting the speed at which IoT solutions can be deployed. A balance must be struck between the high design requirements needed to support advanced features and the cost of these routers in order to make them accessible for broader use. This challenge calls for innovative strategies to reduce costs while maintaining functionality and value.
The IoT routers market is influenced by the rapid evolution of technologies, the growing number of smart and industrial applications, and the need for efficient security systems and performance enhancements. However, challenges such as security threats, interoperability issues, high costs, and others still need to be addressed to fully realize the benefits of these technologies. Today, effectively addressing these drivers and challenges is of great importance for all stakeholders to take advantage of the future growth of the IoT routers market and ensure the successful implementation and maintenance of connected solutions.
List of IoT Routers Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies IoT routers companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the IoT routers companies profiled in this report include-
• Cisco
• MTX
• Cradlepoint
• Robustel
• Huawei
• Teltonika
• Shen Zhen Azroad Technology
IoT Routers by Segment
The study includes a forecast for the global IoT routers by type, application, and region.
IoT Routers Market by Type [Analysis by Value from 2018 to 2030]:
• 4G/LTE Connectivity
• 5G Connectivity
IoT Routers Market by Application [Analysis by Value from 2018 to 2030]:
• Industrial Automation
• Transportation
• Medical
• Smart Grid
• ATM
• Others
IoT Routers Market by Region [Shipment Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the IoT Routers Market
The internet of things (IoT) routers market is rapidly evolving as businesses and consumers increasingly deploy IoT devices for smart homes, industrial automation, and connected cities. Recent developments in this market reflect technological advancements, growing demand for reliable and high-performance connectivity, and regional variations in adoption and innovation. The IoT routers market is influenced by factors such as advancements in network protocols, increasing investment in smart infrastructure, and the need for enhanced security features. HereÄX%$%Xs an overview of recent developments in the IoT routers market across the United States, China, Germany, India, and Japan.
• United States: In the United States, the market for IoT routers is gaining traction due to the development of 5G technology and the growing usage of smart home and industrial IoT applications. Businesses are investing in powerful routers that offer enhanced connectivity, minimize loss, and increase capacity. The demand for complex data transactions is met through advanced technologies that combine edge computing with other features, including comprehensive security provisions. The U.S. market is also witnessing high demand for IoT routers for deployment in smart city projects, where affordability and strong scalability are required.
• China: The expansion of smart infrastructure and industrial IoT applications in China has made it a dominant player in the IoT routers market. The Chinese government’s policies aimed at building smart cities and providing better network connectivity are creating demand for high-performance IoT routers. Businesses are now focusing on developing AI and machine learning capabilities for routers to improve performance and enhance security. The market is also driven by the growth of 5G technology, as the country plans to deploy IoT routers that will facilitate higher data rates, improve network reliability, and help China achieve its digital transformation strategy.
• Germany: The trend of Industry 4.0 and smart manufacturing in Germany is a major driver of the IoT routers market. The integration of IoT routers in industrial applications where dependable and secure connectivity is needed is on the rise. Progress has also been made in incorporating IoT routers into Industry 4.0 capabilities, such as M2M communication and self-organizing networks. Innovations are also focusing on enhancing the security of IoT routers in Germany due to concerns about data loss or hacking. The demand for dependable and secure connectivity solutions is critical to the operation of architecturally advanced and IoT-dominated industries in Germany.
• India: In India, the IoT routers market is growing as the government’s efforts are directed towards digital transformation and smart city programs. The IoT router market is buoyed by the country’s development plans, which aim to improve urban infrastructure and enhance connectivity. New trends include the introduction of affordable and lightweight routers with low fan noise, especially for urban environments where a high density of connected devices is present. Companies are also developing products targeting the specific needs of India’s large and growing market, such as scalable and energy-efficient networks for the expanding IoT business.
• Japan: The IoT routers market in Japan has undergone significant transformation with technological developments and the widespread adoption of IoT solutions across industries such as healthcare, manufacturing, and transportation. Recent innovations include the deployment of new IoT router designs capable of high data throughput and connectivity. Japan is also focusing on embedding IoT routers within robotics and automation systems. Additionally, in response to concerns about cybersecurity, routers have been developed with enhanced security features to protect sensitive information and ensure operation in mission-critical environments.
Features of the Global IoT Routers Market
Market Size Estimates: Iot routers market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Iot routers market size by type, application, and region in terms of value ($B).
Regional Analysis: Iot routers market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the IoT routers market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the IoT routers market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in this market or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q.1 What is the IoT routers market size?
Answer: The global IoT routers market is expected to reach an estimated $6.8 billion by 2030.
Q.2 What is the growth forecast for IoT routers market?
Answer: The global IoT routers market is expected to grow with a CAGR of 18.2% from 2024 to 2030.
Q.3 What are the major drivers influencing the growth of the IoT routers market?
Answer: The major drivers for this market are growing number of internet users, increasing adopting IIOT for remote monitoring, and on-going development of smart city projects.
Q4. What are the major segments for IoT routers market?
Answer: The future of the IoT routers market looks promising with opportunities in the industrial automation, transportation, medical, smart grid, and ATM markets.
Q5. Who are the key IoT routers market companies?
Answer: Some of the key IoT routers companies are as follows:
• Cisco
• MTX
• Cradlepoint
• Robustel
• Huawei
• Teltonika
• Shen Zhen Azroad Technology
Q6. Which IoT routers market segment will be the largest in future?
Answer: Lucintel forecasts that 4G/LTE connectivity will remain the larger segment over the forecast period due as it is widely available and provides good coverage, thus making them ideal for a variety of IOT applications.
Q7. In IoT routers market, which region is expected to be the largest in next 5 years?
Answer: APAC will remain the largest region during the forecast period due to increasing demand for IOT devices and solutions in a variety of industries, such as medical, transportation, and industrial applications.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the IoT routers market by type (4G/LTE connectivity and 5G connectivity), application (industrial automation, transportation, medical, smart grid, ATM, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Iot Routers Market, Iot Routers Market Size, Iot Routers Market Growth, Iot Routers Market Analysis, Iot Routers Market Report, Iot Routers Market Share, Iot Routers Market Trends, Iot Routers Market Forecast, Iot Routers Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.