IDC Expects the LTE Router/Gateway Market Reach $1.9 Billion by 2020

A new report from international data corporation (IDC) presents IDC’s projections for the global LTE router/gateway market in 2018–2022. Before that IDC has released a forecast of 5G operators’ network infrastructure in November 2018. While LTE networks have existed in the market for years, LTE is gaining more and more attention as a reliable provider. LTE router and gateway will grow rapidly

 

New enterprise applications need better networks and need cost-effective ways to connect to the cloud. “According to the critical mission of network connectivity, the application-driven economy will continue to change the way enterprise architectures network. As a result, we expect corporate network, IT and IoT practitioners to rely on LTE routers as an incremental connectivity option more than ever” says Rohit Mehra, IDC’s Vice President of network infrastructure.

 

IDC believes LTE router/gateway vendors can benefit from these trends. IDC sees some leading vendors starting to distance themselves from revenue and growth metrics.

IDC observed three major applications that LTE Router/Gateway vendors are seeking to solve:。

Branch connections: products designed for fixed, field functions are typically integrated with LTE, WiFi, and cable functions.

In addition, solutions usually include enhanced security features (for example, firewalls, threat management).

Software-defined components provided from the cloud enable enhanced management and coordination.

Mobile connectivity: mobile LTE routers are typically deployed on vehicles, rail systems or other “moving objects” that require connectivity.

One emerging application is public safety networks, where cellular connections can meet the requirements of critical communicate missions.

IoT/M2M: These applications can act as a gateway, often providing basic functions such as protocol transformation, and also can include the advanced capabilities found in branching and mobile solutions.

 

Globally, IDC expects the LTE router/gateway market grow from $804.2 million in 2018 to $1.9 billion in 2022, with a compound annual growth rate (CAGR) of 27.4%.

Regionally, North America still is the largest consumer of LTE routers/gateways at present, but the Asia-pacific region, including Japan and China, will grow fast in the following years which thanks to the continuous expansion and intensification of the region’s macro LTE networks.