Industrial Multiprotocol Gateways Market, Global Outlook and Forecast 2025-2032

MARKET INSIGHTS

Global industrial multiprotocol gateways market was valued at USD 3,217 million in 2024 and is projected to reach USD 6,369 million by 2032, exhibiting a CAGR of 10.5% during the forecast period. The market is dominated by key players including Cisco, Ruijie Networks, and Advantech, which collectively hold approximately 20% market share.

Industrial multiprotocol gateways are critical connectivity solutions that enable seamless communication between industrial devices using different protocols such as Modbus, PROFIBUS, Ethernet/IP, and others. These devices act as protocol translators, facilitating interoperability in industrial IoT (IIoT) environments across manufacturing plants, energy grids, and smart city infrastructure. The market segmentation includes 3G, 4G, and 5G industrial gateways, with applications spanning smart factories, energy systems, agriculture, and urban infrastructure.

Growth is driven by accelerating Industry 4.0 adoption and expanding IIoT deployments. However, cybersecurity concerns and interoperability challenges pose restraints. Recent technological advancements, including edge computing integration and 5G compatibility, are creating new opportunities. For instance, in Q1 2024, Siemens launched new industrial gateways with enhanced security features for critical infrastructure applications, reflecting the industry's focus on addressing evolving connectivity demands.

MARKET DYNAMICS

MARKET DRIVERS

Industrial IoT Adoption to Accelerate Demand for Multiprotocol Gateways

The rapid expansion of Industrial Internet of Things (IIoT) deployments is driving significant growth in the multiprotocol gateway market. As manufacturers increasingly connect legacy equipment with modern cloud platforms, multiprotocol gateways serve as critical interoperability solutions. With over 70% of industrial facilities still utilizing legacy protocols like Modbus and Profibus, gateways that bridge communication between older systems and IP-based networks are becoming essential. These solutions enable real-time data collection and analytics across heterogeneous industrial environments, supporting predictive maintenance and operational efficiency improvements that can reduce downtime by 30-50%.

5G Network Rollouts to Enhance Industrial Connectivity Capabilities

The global deployment of 5G networks is creating substantial opportunities for next-generation industrial gateways. With 5G Industrial Gateway solutions offering ultra-low latency (<1ms) and high bandwidth (up to 20Gbps), manufacturers are upgrading their infrastructure to support advanced applications like augmented reality maintenance and autonomous mobile robots. The ability of multiprotocol gateways to convert various fieldbus protocols to 5G connectivity is particularly valuable in smart factories, where different generations of equipment must interoperate seamlessly. Market projections indicate that 5G-enabled industrial gateways will capture over 35% market share by 2028.

➤ Industry leaders like Cisco and Advantech have recently launched 5G-ready industrial gateways with built-in protocol conversion capabilities, signaling strong market momentum.

Furthermore, government initiatives for industrial digitalization, such as Industry 4.0 programs across Europe and smart manufacturing incentives in Asia, are providing additional tailwinds for gateway adoption. These policies are driving plant modernization efforts that typically include communication infrastructure upgrades using multiprotocol solutions.

MARKET CHALLENGES

Cybersecurity Risks Pose Significant Adoption Barrier

While industrial multiprotocol gateways enable connectivity, they also introduce cybersecurity vulnerabilities at critical network boundaries. The convergence of OT and IT networks through gateways expands potential attack surfaces, with industrial networks now facing over 3,000 unique cyber threats annually. Many existing gateway solutions lack robust security features, leaving industrial control systems exposed to potential breaches that could cause production disruptions or safety incidents.

Other Key Challenges

System Complexity
The growing number of industrial protocols (50+ in common use) creates integration challenges for gateway manufacturers. Maintaining compatibility across protocol versions while ensuring deterministic performance requires ongoing R&D investments that strain smaller players.

Lifecycle Management
Industrial equipment often remains operational for 15-20 years, requiring gateway vendors to support legacy protocols long after they become obsolete in other sectors. This extended support burden impacts profitability and resource allocation for next-generation development.

MARKET RESTRAINTS

High Implementation Costs Slow Adoption in SMB Sector

The total cost of deploying industrial multiprotocol gateways presents a significant restraint, particularly for small and medium businesses (SMBs). Complete solutions including hardware, software, and integration services can range from $5,000 to $50,000 per installation, with ongoing maintenance adding 15-20% annually. This pricing puts comprehensive gateway solutions out of reach for many SMBs that represent over 60% of industrial enterprises globally.

Additionally, the shortage of personnel trained in both industrial protocols and modern networking creates implementation bottlenecks. Most industrial automation technicians lack the IT skills needed to properly configure and maintain multiprotocol gateways, forcing expensive third-party service engagements that further increase adoption costs.

MARKET OPPORTUNITIES

Edge Computing Integration to Create New Value Propositions

The convergence of multiprotocol gateways with edge computing capabilities presents a high-growth opportunity. Modern industrial gateways are evolving into edge nodes that can perform local data processing, reducing cloud dependency while maintaining protocol translation functions. This hybrid approach addresses both latency requirements (<20ms for critical applications) and bandwidth constraints in remote locations. Leading vendors are now embedding AI inference capabilities directly into gateway hardware, enabling real-time analytics at the network edge.

Emerging applications in smart energy and smart cities are creating additional demand. The global smart meter market alone, which relies heavily on protocol conversion gateways, is projected to exceed 250 million annual installations by 2025. As utilities modernize grid infrastructure and municipalities deploy IoT-enabled city services, multiprotocol gateways will play an increasingly vital role in connecting diverse field devices to centralized management systems.

Segment Analysis:

By Type

5G Industrial Gateway Segment Leads Due to High-Speed Connectivity and IoT Integration

The market is segmented based on type into:

• 3G Industrial Gateway

• 4G Industrial Gateway

• 5G Industrial Gateway

By Application

Smart Factory Segment Dominates with Growing Industry 4.0 Adoption

The market is segmented based on application into:

• Smart Factory

• Smart Energy

• Smart City

• Smart Agriculture

• Others

By Communication Protocol

Modbus Protocol Segment Holds Significant Share in Legacy Industrial Systems

The market is segmented based on communication protocol into:

• Modbus

• PROFIBUS

• EtherNet/IP

• CAN Open

• Others

By End-Use Industry

Manufacturing Sector Accounts for Major Market Share with Automation Trends

The market is segmented based on end-use industry into:

• Manufacturing

• Energy & Utilities

• Transportation

• Oil & Gas

• Others

COMPETITIVE LANDSCAPE

Key Industry Players

Technological Innovation Drives Market Competition as Companies Expand Industrial IoT Capabilities

The global industrial multiprotocol gateways market exhibits a fragmented but highly competitive structure, with Cisco Systems, Ruijie Networks, and Advantech collectively holding approximately 20% market share in 2024. Cisco maintains market leadership through its robust enterprise networking solutions and partnerships with industrial automation providers, while Ruijie Networks demonstrates strong growth in Asia-Pacific markets with cost-competitive offerings.

Advantech has strengthened its position through vertical-specific gateway solutions for manufacturing automation and energy management applications. The company's recent acquisition of industrial communication specialists has further expanded its protocol conversion capabilities. Similarly, Sierra Wireless continues gaining traction with its cellular-enabled gateways supporting 4G/5G industrial IoT deployments.

Mid-sized players like Hirschmann and Digi International are carving out specialized niches—Hirschmann in ruggedized gateways for harsh environments and Digi in edge computing-enabled devices. Several Chinese manufacturers including Shenzhen Hongdian and King Pigeon are expanding internationally with competitively priced 5G-compatible gateways, intensifying price competition in developing markets.

Strategic initiatives across the board focus on three key areas: enhanced cybersecurity features to address industrial network vulnerabilities, support for emerging industrial Ethernet protocols, and integration with cloud platforms. Over 60% of major vendors launched new gateway models with built-in AI capabilities for predictive maintenance applications in 2023-2024, reflecting the market's shift toward intelligent edge devices.

List of Key Industrial Multiprotocol Gateway Companies Profiled

• Cisco Systems, Inc. (U.S.)

• Ruijie Networks Co., Ltd. (China)

• Advantech Co., Ltd. (Taiwan)

• Sierra Wireless, Inc. (Canada)

• Hirschmann Automation and Control GmbH (Germany)

• Digi International Inc. (U.S.)

• Shenzhen Hongdian Corporation (China)

• King Pigeon Hi-Tech Co., Ltd. (China)

• Hignton Communications Co. (China)

• AAEON Technology Inc. (Taiwan)

• Top-iot Technology Co. (China)

• Four-faith Communication Technology Co. (China)

• RAISECOM Technology Co., Ltd. (China)

• InHand Networks, Inc. (U.S./China)

• Teltonika Networks (Lithuania)

• Kyland Technology Co., Ltd. (China)

INDUSTRIAL MULTIPROTOCOL GATEWAYS MARKET TRENDS

5G Integration Reshaping Industrial Connectivity Standards

The rapid adoption of 5G technology in industrial automation is fundamentally transforming the multiprotocol gateway market, driving demand for high-speed, low-latency solutions. Recent deployments of private 5G networks in smart factories have demonstrated throughput improvements of up to 10x compared to 4G LTE, with latency reduced to sub-10 millisecond levels. Manufacturers are now integrating edge computing capabilities directly into gateways, allowing real-time data processing for predictive maintenance and machine vision applications. This convergence of OT and IT networks is accelerating the phase-out of legacy serial protocols in favor of IP-based industrial Ethernet solutions.

Other Trends

Cybersecurity as Competitive Differentiator

With industrial networks facing 300% more cyberattacks since 2020, gateway manufacturers are embedding advanced security features including hardware-based encryption and zero-trust architecture. The market has seen a 45% increase in adoption of TPM 2.0 modules in industrial gateways over the past two years, as organizations prioritize device authentication and data integrity. This trend aligns with stricter regional regulations like the EU's NIS2 Directive, which mandates cybersecurity requirements for critical infrastructure operators.

Edge AI Driving Next-Generation Gateway Capabilities

The integration of AI coprocessors in multiprotocol gateways has emerged as a key differentiator, with leading vendors offering models capable of running lightweight ML algorithms locally. A recent industry survey showed 68% of plant managers prefer gateways with built-in anomaly detection rather than cloud-based alternatives. This distributed intelligence architecture reduces bandwidth requirements by up to 60% while enabling faster response times for time-sensitive industrial control systems. Manufacturers are particularly adopting these solutions for vibration analysis in rotating equipment and quality inspection on production lines.

Regional Analysis: Industrial Multiprotocol Gateways Market

North America
The Industrial Multiprotocol Gateways market in North America is driven by rapid Industry 4.0 adoption and significant investments in industrial automation, particularly in the U.S. and Canada. With over 35% of manufacturers implementing smart factory solutions, demand for protocol conversion devices that bridge legacy systems with modern IIoT networks remains strong. Cisco and Sierra Wireless dominate the competitive landscape, leveraging their expertise in industrial networking. Regulatory support for cybersecurity in critical infrastructure further accelerates gateway deployment, though high implementation costs continue to challenge SMEs. The region accounts for approximately 28% of global market revenue, with 5G gateways gaining traction for low-latency applications.

Europe
Europe's mature manufacturing sector and stringent data protection laws shape its gateway market dynamics. Germany leads in adoption due to its Industrie 4.0 initiatives, while France and the U.K. show increasing demand for energy-efficient solutions. The EU's emphasis on interoperability standards (e.g., OPC UA) drives innovation in multiprotocol solutions, with companies like Hirschmann and Advantech expanding their portfolios. However, complex compliance requirements and fragmented industrial standards across countries create integration hurdles. Water and wastewater management applications are emerging as key growth segments alongside traditional manufacturing use cases.

Asia-Pacific
As the fastest-growing region with a projected 12.3% CAGR, Asia-Pacific thrives on China's aggressive industrial digitization and India's expanding smart cities program. Local players like Ruijie Networks and Shenzhen Hongdian compete effectively on price-performance ratios, though quality concerns persist. Japan and South Korea exhibit strong preference for high-reliability gateways in automotive and electronics manufacturing. While 4G solutions currently dominate, 5G gateways are gaining momentum – especially in China where 60% of new industrial deployments incorporate 5G readiness. The challenge lies in addressing diverse protocol ecosystems across thousands of SMEs.

South America
Market growth in South America remains moderate, constrained by economic instability and limited industrial modernization budgets. Brazil leads adoption, particularly in mining and oil/gas sectors where ruggedized gateways are essential. Argentina shows potential in agritech applications, though currency fluctuations impact foreign supplier margins. While basic protocol conversion solutions are prevalent, demand for advanced cybersecurity features is rising due to increasing connectivity risks. Local partnerships are becoming crucial for global players, with companies like Digi International expanding distributor networks to serve the region's price-sensitive customers effectively.

Middle East & Africa
The MEA market presents a dichotomy – Gulf nations are aggressively deploying industrial gateways for smart city and oilfield automation, while African adoption remains nascent outside South Africa. The UAE leads in 5G gateway trials for industrial use, supported by government digital transformation agendas. Israel's thriving tech ecosystem contributes innovative cybersecurity-enhanced gateways. However, the broader region faces challenges including limited technical expertise and reliance on imported solutions. Long-term growth potential exists in water management and renewable energy applications as infrastructure development accelerates across the region.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Industrial Multiprotocol Gateways Market?

-> The global industrial multiprotocol gateways market was valued at USD 3,217 million in 2024 and is expected to reach USD 6,369 million by 2032.

Which key companies operate in Global Industrial Multiprotocol Gateways Market?

-> Key players include Cisco, Ruijie Networks, Advantech, Sierra Wireless, Hirschmann, and Digi International, among others.

What are the key growth drivers?

-> Key growth drivers include Industry 4.0 adoption, smart manufacturing expansion, and increasing demand for IoT connectivity solutions.

Which region dominates the market?

-> Asia-Pacific is the fastest-growing region, while North America holds significant market share.

What are the emerging trends?

-> Emerging trends include 5G gateway adoption, edge computing integration, and AI-driven protocol conversion.