LORA GATEWAY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The LoRa Gateway Market size is expected to reach US$ 6.72 billion by 2030, from US$ 1.02 billion in 2023, at a CAGR of 30.9% during the forecast period.

LoRa gateways are devices that receive data from end devices over long range (LoRa) wireless connections and connect to a cloud platform over IP. They enable low-power, long-range connectivity for internet of things (IoT) applications. The growth in LoRa gateway market is driven by the rising adoption of LPWAN technologies like LoRaWAN for IoT applications across smart homes, buildings, industrial setups and cities.

The LoRa Gateway Market is segmented by connectivity, application, end-user industry, and region. By connectivity, the cellular segment accounted for the largest market share in 2023. Cellular LoRa gateways provide benefits like mobility, ease of deployment and security over public cellular networks. They are being increasingly adopted by logistics companies, among other end-users, for real-time asset tracking over long distances.

LoRa Gateway Market Regional Insights

• North America is expected to be the largest market for LoRa Gateway Market during the forecast period, accounting for over 30% of the market share in 2023. The growth of the market in North America is attributed to increasing adoption of LPWAN technologies across smart city and industrial IoT applications, and presence of major LoRa network providers in the region.
• The Asia Pacific market is expected to be the second-largest market for LoRa Gateway Market, accounting for over 40% of the market share in 2023. The growth of the market in Asia Pacific is attributed to rapid development of smart city infrastructure and growing implementation of IoT solutions in key countries like China, Japan and India.
• The Middle East & Africa market is expected to be the fastest-growing market for LoRa Gateway Market, with a CAGR of over 32% during the forecast period. The growth of the market in Middle East & Africa is attributed to high demand for LoRa gateways for remote asset monitoring in the oil & gas industry and investments in smart city projects across countries like UAE.

Figure 1. Global LoRa Gateway Market Share (%), by Region, 2023

LoRa Gateway Market Drivers

• Increasing adoption of LPWAN technologies for IoT connectivity: The increasing adoption of Low Power Wide Area Network (LPWAN) technologies like LoRaWAN for IoT connectivity is a major driver for the LoRa gateway market. LPWAN technologies provide long range connectivity for IoT devices using low power. LoRaWAN is gaining significant traction as an LPWAN protocol for implementing affordable IoT networks across long distances. LoRa gateways act as a bridge between LoRa end-devices and cloud servers and are critical for enabling LoRaWAN networks. The growing use cases of LPWAN in smart cities, buildings, factories and supply chain is resulting in increased demand for LoRa gateways globally.
• Rapid deployment of smart city infrastructure and projects: Smart city projects are being rapidly deployed across the world with huge investments which is driving the adoption of LoRa gateways. LoRaWAN technology is ideal for implementing smart city applications like intelligent lighting, parking, waste management due to its long range connectivity. Smart cities are leveraging LoRa gateways and LoRaWAN networks for real-time data collection from IoT sensors, meters, assets across the city. The rollout of massive smart city projects in China, India, and Gulf countries is resulting in large-scale procurement of LoRa gateways.
• Increased need for affordable, long range asset monitoring: There is an increased need for cost-effective, long range asset monitoring across utilities, manufacturing, logistics sectors which is fulfilled by LoRa gateways. LoRa gateways enable affordable connectivity for sensors, meters and trackers located across widespread infrastructure over long distances. Companies are adopting LoRa gateways and LoRaWAN networks for remote monitoring of sites, vehicles, deliveries and equipment. LoRa gateways eliminate the need for costly cellular or satellite connectivity for rural asset monitoring applications.
• Growth in adoption of LoRaWAN networks: The increasing implementation of LoRaWAN protocol globally across industries is fueling the adoption of LoRa gateways. LoRa Alliance initiatives to standardize and promote the LoRaWAN protocol have resulted in rollouts across cities, utilities and industries. Private companies are partnering with LoRa network providers to deploy LoRa gateways and develop LoRaWAN-based solutions. The expansion in the LoRaWAN ecosystem and easy integration with cloud platforms is driving demand for LoRa gateways.

LoRa Gateway Market Opportunities

• Integration of LoRa gateways with 5G networks: The integration of LoRa gateways with 5G networks offers significant opportunities for market growth. LoRa gateways can be used to connect LoRa end-devices to 5G networks combining the benefits of long range LoRa connectivity and high bandwidth 5G. This allows implementation of 5G use cases like industrial automation involving real-time control over LoRa connections. Companies have already started developing 5G LoRa gateway solutions indicating strong prospects.
• Incorporation of edge computing capabilities: LoRa gateways integrated with edge computing capabilities provide improved response times and reduced costs. LoRa data can be processed and analyzed at the edge by gateways before transmitting critical information to cloud servers. This is extremely beneficial for industrial automation and real-time analytics use cases. Vendors are already offering edge-capable LoRa gateways and their adoption will accelerate with 5G and AI integration.
• Adoption in environmental monitoring applications: LoRa gateways present an excellent opportunity for large-scale environmental monitoring applications by municipalities and organizations. LoRa-based sensors can collect real-time data on air/water quality, waste levels, pollution, etc. and transmit to LoRa gateways kilometers away. This enables creating environmental monitoring networks over cities, forests and water bodies for conservation and climate action. Trials have already begun indicating a promising market segment.
• Smart grid deployment in developing countries: Developing nations which lack legacy connectivity infrastructure are poised to adopt LoRa gateways for establishing smart grid capabilities. LoRa gateways along with smart meters can enable real-time collection of electricity usage data across regions. This supports initiatives around improving access, reliability and billing processes. Government sponsored smart metering projects can potentially drive large-scale adoption of LoRa gateways in developing economies.

LoRa Gateway Market Trends

• Development of hybrid LoRa gateways: LoRa gateway vendors are increasingly developing hybrid LoRa gateways that can support multiple LPWAN technologies like NB-IoT, LTE-M along with LoRaWAN. This provides benefits like supporting diverse IoT devices, redundancy, and reduced costs for organizations implementing LPWAN. Hybrid LoRa gateways also allow smooth migration from one LPWAN technology to another based on use case requirements.
• Use of solar-powered LoRa gateways: Solar-powered LoRa gateways are witnessing increasing popularity owing to their use cases in outdoor environments, remote locations where grid power supply is limited. Solar-powered LoRa gateways are ideal for monitoring infrastructure like pipelines, stations, assets in rural areas. They eliminate the need for expensive fiber cabling and lower operational costs. Vendors are now offering commercial solar-powered LoRa gateways to capitalize on this trend.
• Innovations in IoT sensors and modules: Advances in IoT sensors and modules compatible with LoRaWAN are expanding the capabilities of LoRa gateways. Sensors with integrated LoRa connectivity can transmit data like temperature, motion, sound, air/fluid quality over long distances to LoRa gateways. Innovative sensors like gas leak detectors, dual camera modules, etc. allow building innovative LoRaWAN solutions through LoRa gateways.
• Use of LoRa gateways for indoor asset tracking: While LoRa gateways are largely used in outdoor settings, new opportunities are emerging in using them for indoor asset tracking in warehouses, facilities covering up to 2 km range. LoRa gateways can locate assets, cartons, containers tagged with LoRa-based trackers indoors where GPS lacks precision. This enables automation and real-time visibility in inventory and warehouse management via LoRa gateways.

LoRa Gateway Market Restraints

• Interoperability issues between different LoRaWAN networks: Interoperability issues between LoRaWAN networks deployed using gateways from different vendors poses challenges for large scale adoption. Lack of standardized interfaces between different LoRa gateway hardware and network servers limits roaming capabilities for LoRa end-devices across networks. This restraint needs to be addressed through collective efforts by LoRa Alliance and member organizations.
• Concerns regarding security and data privacy: LoRaWAN networks used by LoRa gateways have experienced some security flaws like spoofing attacks in recent years. There are also concerns around data privacy as LoRa data is transmitted unencrypted over radio waves. These security-related concerns may prevent highly regulated industries like healthcare, finance from adopting LoRa gateways. More robust cybersecurity measures are required to accelerate adoption.
• High initial deployment costs: While hardware costs of LoRa gateways have reduced considerably, large-scale deployments covering cities or regions can be capital intensive. Significant upfront investment is required for hardware, network infrastructure, platform integration and installation services. Securing budgets for this initial infrastructure investment is a key challenge impacting adoption by municipalities and utilities.

Recent Developments

New product launches

• In January 2023, Kerlink launched the Wanesy Management Center, a new platform to operate and manage LoRaWAN infrastructures more efficiently. The platform enables improved quality of service and reduced costs.
• In March 2022, TEKTELIC introduced the Kona Site Connector, a cellular LoRa gateway for large-scale IoT deployments across smart cities, utilities and enterprises. The gateway provides plug-and-play connectivity.
• In May 2021, Cisco launched two new industrial routers with embedded LoRaWAN capabilities, IR1835 and IR1833, enabling connectivity for utilities and manufacturing use cases.

Acquisition and partnerships

• In September 2022, Sierra Wireless partnered with Emirates Telecommunications Group Company to provide managed IoT services in UAE based on LoRaWAN technology.
• In June 2022, Comcast acquired control of LoRaWAN network provider Senet to expand its machineQ IoT platform and connectivity options.
• In November 2021, Orange partnered with Actility to deploy LoRaWAN-based IoT networks for customers globally, starting with French and Spanish enterprises.

Figure 2. Global LoRa Gateway Market Share (%), by Connectivity, 2023

Top companies in LoRa Gateway Market

• Semtech Corporation
• Cisco Systems, Inc.
• Huawei Technologies Co. Ltd.
• Comcast Corporation
• Hewlett Packard Enterprise
• NETGEAR, Inc.
• TEKTELIC Communications Inc.
• Kerlink
• Embit S.R.L.
• IMST GmbH
• Aaeon Technology Inc
• Laird Connectivity
• Multi-Tech Systems, Inc.
• Loriot SAS
• Link Labs, Inc.
• Senet, Inc.
• WI-SUN Alliance
• Actility S.A.
• The Things Industries B.V.
• Libelium Comunicaciones Distribuidas S.L

Definition: The LoRa Gateway Market refers to the global market for gateways based on Long Range (LoRa) wireless technology that enables long range connectivity for internet of things (IoT) devices and applications. LoRa gateways act as a bridge between end devices using the LoRaWAN protocol and the cloud servers, receiving data from sensors over unlicensed spectrum and connecting to the internet over IP. The market has gained traction with the growth in LPWAN adoption across smart cities, buildings, factories and supply chain. The launch of low-cost, ready-to-use LoRa gateways by vendors like Semtech, Cisco and Huawei is driving adoption across smart metering, asset tracking, agricultural monitoring, logistics and industrial automation applications. With declining hardware costs and investments in LoRaWAN network buildouts globally, the LoRa gateway market is expected to grow significantly over the next decade.

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