Gateways Laying Foundation for the Internet of Things, According to New Research by VDC

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IoT and intelligent gateways are becoming the standard solution to bridging device or sensor networks with enterprise applications within brownfield and greenfield environments alike.

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As more and more intelligence is pushed to the edge of IoT networks to enable emerging real-time applications, expect intelligent gateways to proliferate and become the norm supporting connected solutions.

The markets for IoT & intelligent gateway hardware will see strong growth through 2019 as manufacturers and solutions providers push more intelligence to the network edge to enable a sweeping variety of new connected applications and services, according to a new report by VDC Research (click here to learn more). Gateways are becoming fundamental to bridging end-to-end IoT solutions and mitigating the growing complexity produced by emerging wireless technologies and lower-level protocols for various applications. The rapidly developing gateways space is diverging into two distinct hardware classes: IoT Gateways, which are typically optimized for specific industry applications with limited support, and Intelligent Gateways, featuring a flexible software platform enabling the creation or integration of custom/third-party platforms and services. IoT & intelligent gateways will continue to be critical elements in supporting current and emerging connected systems and solutions particularly within the automotive/fleet, energy/power, and industrial automation sectors.

The embedded market has a profound impact and influence on the development of gateway systems. “Gateways present a natural migration path for traditional embedded hardware suppliers of chips, modules, and small-form-factor integrated systems to extend into the IoT domain while still leveraging and improving the value-proposition of current products and offerings,” says VDC analyst Daniel Mandell. “Leading semiconductor technology providers such as Freescale and Intel have undertaken a particular stewardship for supporting the development of gateway systems with new chipsets and reference designs featuring comprehensive connectivity support.”

Gateways are not only bridging sensor and device networks to enterprise applications, they are also setting the table for a variety of new acquisitions, partnerships and collaborations between hardware suppliers and ISVs, MNOs, IoT solution/service providers, and others within the broader IoT ecosystem. The past twelve months have seen a flurry of activity among gateway technology providers such as Advantech, CalAmp, Digi International, and Sierra Wireless. These new acquisitions and partnerships help augment gateway suppliers’ portfolios with more industry-specific support and capabilities while enabling new channels of distribution for other organizations trying to enter the burgeoning IoT space.

About VDC Research
Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies is among the most advanced in the industry, helping our clients make critical decisions with confidence. Offering syndicated reports and custom consultation, our methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets. Located in Natick, Massachusetts, VDC prides itself on its close personal relationships with clients, delivering an attention to detail and a unique perspective that is second to none.

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Daniel Mandell
VDC Research Group, Inc
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