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

Market Challenges And Opportunities

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.