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

The LoRa gateway Market size was valued at US$ 1.02 Bn in 2023, and is expected to reach US$ 6.72 Bn by 2030 growing at a compound annual growth rate (CAGR) of 30.9% from 2023 to 2030.

LoRa gateways are devices that receive data from end devices over long range (LoRa) wireless connections and connect to a cloud platform over Internet Protocol (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 Low Power Wide Area Network (LPWAN) technologies like LoRaWAN for IoT applications across smart homes, buildings, industrial setups and cities.

The LoRa ateway market is segmented into 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

• Asia Pacific: Asia Pacific market is expected to be the 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 due to rapid development of smart city infrastructure and growing implementation of internet-of-things (IoT) solutions in key countries like China, Japan, and India.
• North America: North America is expected to be the second-largest market for LoRa gateway market during the forecast period, accounting for over 25% of the market share in 2023. The growth of the market in North America is due to increasing adoption of LPWAN technologies across smart city and industrial IoT applications, and presence of major LoRa network providers in the region.
• Europe: The Europe market is expected to be the fastest-growing market for LoRa Gateway Market, with a CAGR of over 18% during the forecast period. The growth of the market is to high demand for LoRa gateways for remote asset monitoring in the oil & gas industry and investments in smart city projects across countries like U.A.E.

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

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LoRa Gateway Market: Analyst’s Viewpoint

The LoRa gateway market is expected to experience significant growth over the forecast period driven by the widespread adoption of IoT applications across various industries. Increasing deployment of low power wide area networks (LPWANs) by using the LoRa protocol is enabling more cost-effective interconnectivity for devices in utilities, smart cities, and industrial sectors. This will continue spurring demand for LoRa gateways that can relay information between end-devices over long ranges. Furthermore, ongoing infrastructure investments by governments globally to support smart city initiatives are creating new opportunities for gateway vendors.

However, lack of standardization among LoRa protocols from different vendors poses a challenge and risks fragmenting the market. Connectivity issues originating from inconsistent protocols could restrain networking capabilities. Gateway providers must overcome this through partnership with other stakeholders to develop more uniform standards. Potential spectrum limitation also remains a concern, especially in densely populated areas with a high concentration of IoT devices. This may require gateways to adopt technologies like frequency hopping spread spectrum to enhance network capacity.

Asia Pacific region dominates the LoRa gateway market due to rapid digital transformation of industries and smart city projects underway in China, South Korea, India, and other developing nations. North America is another major revenue generator where LoRaWAN is gaining widespread usage in sectors like oil & gas and logistics.

LoRa Gateway Market Drivers

• Increasing adoption of LPWAN technologies for IoT connectivity: 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 by 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 and India 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, and 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: 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. For instance, in July 2023, the LoRa Alliance, the leading association advocating for the open LoRaWAN standard for low-power wide-area networks (LPWANs) in the internet of things (IoT), emphasized the significant expansion of LoRaWAN in the Asia Pacific (APAC) region. Within the initial six months of 2023, millions of sensors were deployed, with notable projects emerging in China, Japan, Korea, and India. As LoRaWAN networks continue to advance, their accessibility is broadening, further propelling the growth. In response to the region's robust activity, the LoRa Alliance plans to host its upcoming LoRaWAN Live event in Tokyo, Japan, scheduled for October 11-12, 2023.

LoRa Gateway Market Opportunities

• Integration of LoRa gateways with 5G networks: 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 artificial intelligence (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, and others by transmitting 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. In May 2022, the Things Industries, an international provider of LoRaWAN network server solutions, partnered with Connexin, IoT and smart technology firm, to secure a contract for Severn Trent Water's smart metering initiative. The undertaking involves the installation of 150,000 smart meters throughout Coventry and Warwickshire in England. Connexin will execute the deployment, utilizing Itron's smart meters in conjunction with The Things Industries' LoRaWAN Network Server, known as The Things Stack.

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 due to their use cases in outdoor environments and remote locations where grid power supply is limited. Solar-powered LoRa gateways are ideal for monitoring infrastructure like pipelines, stations, and assets in rural areas. They eliminate the need for expensive fiber cabling and lower operational costs. Vendors are 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, and others allow building innovative LoRaWAN solutions through LoRa gateways. For instance, in July 2022, MachineQ, an affiliate of Comcast, unveiled its LoRaWAN®-certified MQflex multi-sensor device. This enterprise-level MQflex, along with various other LoRaWAN-certified devices, showcased at the LoRaWAN® World Expo organized by the LoRa Alliance in Paris, France, from July 6-7. As highlighted by the LoRa Alliance, LoRaWAN boasts the highest number of certified LPWAN (low-power wide-area network) sensors available in the market, marking a 34% surge in 2021. The expo will feature several of these devices, emphasizing this significant milestone.
• 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 Global Positioning System (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 by 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. On the other side, advancements in technology and increased collaboration among member organizations are gradually paving the way for more seamless integration and enhanced roaming capabilities for LoRa end-devices.
• Counterbalance: By fostering an environment of cooperation, innovation, and shared standards, the industry can navigate interoperability challenges and unlock the full potential of LoRaWAN technology, ensuring its scalability, reliability, and long-term success in diverse applications and environments.
• Concerns regarding security and data privacy: LoRaWAN networks used by LoRa gateways have experienced some security flaws like spoofing attacks. 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. Furthermore, as the demand for secure and reliable IoT connectivity grows across sectors, including healthcare and finance, there's heightened emphasis on integrating robust cybersecurity measures tailored to meet stringent regulatory requirements and industry standards.
• Counterbalance: By prioritizing security innovation, transparency, and collaboration, the industry aims to build trust among stakeholders, mitigate risks, and pave the way for broader adoption of LoRaWAN technology across diverse and highly regulated sectors.
• 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. As the IoT ecosystem continues to evolve and scale, economies of scale, competitive pricing models, and funding opportunities, such as grants, public-private partnerships, or revenue-sharing arrangements, may become more accessible, thus mitigating the financial burden on stakeholders.
• Counterbalance: By adopting a strategic and phased approach to deployment, leveraging collaborative funding models, and emphasizing the long-term value proposition of LoRaWAN technology, municipalities and utilities can navigate budgetary constraints and unlock the transformative potential of IoT for their communities.

Recent Developments

New product launches

• In November 2023, Elecrow provides quick turn PCB assembly and low cost PCB manufacturing, introduced a new LoRaWAN device this month, leveraging semtech technology and showcasing a compact mini PCIe design. This device is tailored for diverse IoT applications, including smart city infrastructure and industrial automation, among other uses.
• In February 2023, TEKTELIC Communications, a prominent supplier of internet of things (IoT) offerings such as sensors, IoT gateways, and comprehensive IoT solutions, unveiled its latest KONA Photon LoRaWAN® gateway at the Mobile World Congress held in Barcelona, Spain.
• In October 2021, Kerlink, an expert in internet of things (IoT) solutions, unveiled its latest LoRaWAN indoor gateway. This innovation aims to assist smart cities, factories, warehouses, and property owners in effortlessly accommodating the increasing array of connected sensors and devices within the expansive IoT landscape.

Acquisition and partnerships

• In December 2023, Lesira-Teq, a prominent South Africa based original equipment manufacturer recognized for its cutting-edge smart water meters, has entered a strategic collaboration with Comsol Networks (PTY) LTD, a frontrunner in South Africa's IoT network sector. In this significant partnership, Lesira-Teq will oversee the management of Comsol's public LoRaWAN network in South Africa, leveraging the ThingPark platform from Actility.
• In February 2021, Everynet BV teamed up with Actility, a leading global entity in IoT connectivity, to ensure smooth network integration between Everynet's robust national networks and Actility's IoT platforms worldwide. This alliance seeks to expand LoRaWAN® coverage, benefiting both companies' existing and prospective clients.

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

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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