What Is an IoT Gateway and Why Is It Essential for Industrial IoT?

In modern industrial environments, thousands of sensors, meters, machines and controllers continuously generate data using different communication technologies. Some rely on short-range wireless signals, others use long-range networks and many legacy systems still depend on serial or fieldbus protocols. Connecting this diverse mix directly to the cloud is often complex, inefficient, or simply impossible. This is where the IoT Gateway becomes indispensable.

An IoT Gateway acts as the central bridge between the physical world and digital platforms. It aggregates data from different devices, translates various protocols, performs edge-level processing and securely forwards information to cloud or on-premise systems. In Industrial IoT (IIoT), the gateway plays a critical role in enabling interoperability, scalability, and reliable communication across the entire factory architecture.

As factories move toward Industry 4.0, IoT Gateways provide the computing power and intelligence needed at the edge—supporting real-time monitoring, device management, diagnostics, analytics, and autonomous machine-to-machine (M2M) communication. Without this layer, industrial IoT systems cannot operate efficiently or adapt to changing production requirements.

The following sections break down how IoT Gateways work, their core components, types, and real-world applications—along with examples of leading gateway products, including Daviteq’s out-of-the-box iConnector solution.

Exploring IoT Gateways: Discover the key features and functions of a LoRaWAN Outdoor Gateway by Daviteq, a leader in innovation and expertise.

What Is an IoT Gateway?

An IoT Gateway is a bridging device that connects sensors, meters, machines and controllers to higher-level IT systems such as cloud platforms, SCADA, MES, or industrial databases. In simple terms, it serves as the communication translator and data router between the physical world and digital infrastructure.

IoT architecture diagram illustrating the connectivity between IoT devices, represented by sensors, cameras, and machinery, through an IoT gateway using Zigbee, Bluetooth, and LTE-M. The data is then transmitted via Ethernet and fiber optics to both public and private cloud systems for processing and storage.

Just like a traditional telecommunications gateway links different network technologies (e.g., PPP or HDLC on the WAN with TCP/IP on the LAN), an IoT Gateway performs the same role for IoT environments. It supports a wide range of connectivity options and abstracts the complexity of mixing:

• Short-range wireless protocols such as Sub-GHz, Bluetooth LE, Zigbee, Z-Wave

• Long-range IoT networks including LoRaWAN, Sigfox, NB-IoT, LTE-M, LTE, WiFi

• Industrial fieldbus standards like Modbus RTU/TCP, Profinet, EtherNet/IP, CC-Link

• Modern IoT data protocols including MQTT, CoAP, AMQP, DDS, and WebSocket

Because industrial systems often combine both modern and legacy equipment, the IoT Gateway becomes the single integration point that ensures all devices—regardless of age, vendor, or communication method—can work together.

Beyond simple data forwarding, a gateway typically performs several critical functions:

• Protocol translation to unify heterogeneous devices

• Data aggregation from many sensors into optimized payloads

• Edge computing to pre-process data before sending to the cloud

• Security enforcement, including authentication and encryption

• Device onboarding and metadata management

• Local control logic, depending on the platform’s capabilities

Without this layer, Industrial IoT systems would struggle with interoperability, scalability, latency, and data reliability.

In short, the IoT Gateway is the heart of the IIoT architecture, enabling seamless communication between devices in the field and applications that run in the cloud or on-premise.

How Does an IoT Gateway Work?

An IoT Gateway operates as the intelligence layer between field devices and higher-level IT systems. Its core role is to collect, translate, process, and forward data while ensuring interoperability across heterogeneous devices.

To achieve this, a gateway typically includes two major functional blocks: the Management Part and the Runtime Part. These two components work together to ensure reliable device onboarding, data handling, synchronization, and system stability.

Management Part

The Management Part is responsible for discovering new devices, building their digital representations, and maintaining configuration and metadata throughout their lifecycle. Its key tasks include:

• Device discovery and identification: The gateway continuously scans for new sensors or machines and reads their metadata—such as measurement type, range, or status.

• Virtual instance creation: For every physical device, the gateway creates a virtual instance, offering a uniform, structured way for upper-layer systems to interact with diverse hardware.

• Configuration and parameter control: The gateway can set operating modes, update device states, acknowledge errors, and adjust configurations remotely.

• Metadata synchronization: Whenever the physical device sends updated metadata (battery level, alarm status, calibration states), the gateway refreshes the corresponding virtual instance automatically.

• Information access for external systems: SCADA, MES, and cloud systems can access configuration details, device attributes, and operational states through the Management Part’s standardized interface.

Runtime Part

The Runtime Part is responsible for the day-to-day operation of devices, ensuring continuous data flow, synchronization, and fault-tolerant behavior.

• Event-driven data handling: The gateway processes data based on events—threshold changes, alarms, or periodic sampling—to minimize communication overhead.

• Synchronization of physical and virtual devices: The runtime engine keeps virtual instances fully aligned with real device states, ensuring accurate and up-to-date information.

• Redundancy and fault tolerance: If a physical device fails, the gateway can automatically switch to a redundant device or reconfigure the virtual instance—helping maintain continuous operation in industrial environments.

• Unified access interface: All virtual instances are accessible via a unified API or protocol interface, enabling external systems to read data or issue commands without handling protocol differences.

• Integrated diagnostics (optional sub-function): The Runtime Part often includes diagnostic capabilities to detect faults in devices, communication links, or gateway processes. It triggers alerts and enables troubleshooting to maintain reliability and uptime.

Diagram illustrating the IoT Gateway architecture by Daviteq, detailing the flow of sensor data and context data through management and runtime components, virtual instances, and access points for efficient device analytics and diagnostics.

Main Tasks of an IoT Gateway

An IoT Gateway performs several essential tasks that allow industrial IoT systems to operate reliably, efficiently, and at scale. These tasks go far beyond simple data transmission. Together, they ensure that devices are properly managed, data is processed intelligently, and the overall system remains stable and responsive.

The key tasks of an IoT Gateway include:

• Data Forwarding: The gateway collects raw data from sensors, meters, and machines, then forwards it to SCADA, MES, cloud platforms, or on-premise servers. It may buffer data during network interruptions, group payloads, or compress information to optimize transmission and maintain reliable data flow.

• Gateway Management: As the central integration point in the factory architecture, the gateway must manage its own network interfaces, security settings, firmware versions, and performance. Proper management ensures the gateway remains stable and easily scalable as the system grows.

• Device Management: The gateway enables operators to configure connected devices, update their status, acknowledge errors, and adjust operating modes in real time. This is especially important in large, heterogeneous industrial environments with thousands of devices from different vendors.

• Data Analysis and Edge Processing: Modern gateways incorporate compute power at the edge to analyze data before sending it to the cloud. This may include filtering, validation, threshold detection, statistical analysis, or rule-based decision-making. Edge processing reduces latency, minimizes bandwidth usage, and enables autonomous M2M communication.

• Diagnostics: The gateway continuously monitors device health, network conditions, and system performance. When issues arise—such as sensor failures or communication errors—it generates diagnostic events or alarms, helping maintenance teams react quickly and avoid downtime.

By combining these tasks, the IoT Gateway becomes an intelligent, self-managed, and fault-tolerant component that strengthens the entire Industrial IoT ecosystem.

Kinds of IoT gateways

IoT Gateways come in many forms, but in industrial environments they are commonly grouped into two categories: Out-of-box IoT Gateways and Raw IoT Gateways. Each type serves different use cases depending on the required level of customization, deployment speed, and integration complexity.

• Out-of-box Gateways are designed for quick deployment with minimal engineering effort. They include pre-built software, ready-to-use interfaces, and built-in tools for device onboarding, data visualization, and cloud connectivity. These gateways are ideal for applications such as smart buildings, agriculture, energy monitoring, or any scenario where users want to collect data and send it to the cloud with minimal configuration. Because they come with built-in logic and remote configuration tools, they significantly reduce deployment time and lower the technical barrier for users.

• Raw Gateways, on the other hand, are hardware platforms that require custom development. They provide high flexibility and are often chosen for advanced industrial automation, edge computing, and specialized Industry 4.0 applications. Engineers can install custom firmware, integrate proprietary protocols, and build application-specific logic directly on the device. While Raw Gateways offer powerful customization, they also require more development time, programming skills, and ongoing maintenance.

In industrial IoT architectures, the choice between these two types depends heavily on factors such as required performance, customization needs, time-to-deploy, and whether the system must integrate legacy fieldbus networks or modern wireless sensors.

Comparison between Out-of-box IoT Gateway and Raw IoT Gateway by Daviteq, highlighting ease of use, functional diversity, cloud connectivity, and pricing differences.

Applications of IoT Gateways

IoT gateways serve as the central bridge that connects sensors, meters, and machines to cloud or on-premise platforms. In real deployments, they enable organizations to monitor assets, automate processes, and make informed decisions using in-time data. Daviteq’s gateway ecosystem is applied across multiple industries, especially when combining wired fieldbus devices with long-range wireless sensor networks. Below are the key application areas with concise but detailed descriptions:

Illustration showcasing various applications of an IoT gateway, including remote and hazardous-zone monitoring, facility and equipment monitoring, temperature and humidity monitoring, energy and utility monitoring, and smart greenhouse and agriculture solutions.

Temperature & Humidity Monitoring

Gateways collect continuous temperature and humidity data from wireless or wired sensors installed across warehouses, cold rooms, production areas, and greenhouses. This allows operators to:

• Detect abnormal conditions early before product quality is affected

• Ensure compliance with storage or environmental standards

• Protect pharmaceuticals, food, and electronic components

• Monitor multiple rooms or facilities remotely without manual checks

This application is widely used in logistics centers, food manufacturing, data centers, and agricultural facilities.

Energy & Utility Monitoring

IoT gateways aggregate data from electricity meters, water meters, steam meters, compressed air systems, fuel tanks, and gas flow meters. The collected data helps enterprises:

• Benchmark energy usage across machines or zones

• Identify inefficiencies and reduce energy waste

• Allocate costs accurately for departments or production lines

• Detect abnormal consumption patterns or leakages

• Enable predictive maintenance of utilities

This is essential for factories, commercial buildings, shopping malls, and remote industrial sites.

Smart Greenhouse & Agriculture

Gateways connect to wireless sensors measuring soil moisture, temperature, humidity, CO₂, and light intensity over large cultivation areas. They enable farmers to:

• Optimize irrigation, ventilation, and shading systems

• Maintain stable growing conditions throughout the day

• Monitor multiple houses or fields from anywhere

• Reduce labor by automating routine environmental controls

Models like iConnector can even execute on-site logic to trigger irrigation or fans automatically.

Facility & Equipment Monitoring

By linking vibration, pressure, flow, current, and temperature sensors to a central system, gateways support real-time condition monitoring of critical assets. This allows facilities to:

• Detect early signs of equipment failure

• Apply predictive maintenance instead of reactive maintenance

• Maintain healthy HVAC systems, pumps, compressors, and motors

• Monitor indoor air quality, noise, odors, and environmental risks

This application is crucial in manufacturing plants, hospitals, commercial buildings, and warehouses.

Remote & Hazardous-Zone Monitoring

Daviteq’s Ex d explosion-proof gateways (STHC-X, GWLRWEX) enable safe deployment in high-risk industries such as oil & gas, petrochemical, mining, and fuel storage. They support:

• Monitoring of wellheads, pipelines, tanks, and safety systems

• Long-range wireless LoRaWAN or Sub-GHz sensors across remote sites

• Integration with PLC/SCADA/DCS for mission-critical operations

• Solar-powered standalone setups for inaccessible locations

These gateways ensure reliable monitoring while meeting ATEX/IECEx safety requirements.

Examples of IoT Gateway Products

Daviteq provides a comprehensive portfolio of IoT gateways designed for industrial environments, ranging from multi-fieldbus iConnector devices to long-range LoRaWAN gateways for large-scale sensor networks. These products illustrate how different gateway types support different layers of an Industrial IoT architecture.

Multi-Fieldbus Industrial IoT Gateways (iConnector Series)

Daviteq’s iConnector family serves as the central integration point for wired industrial devices such as PLCs, meters, machines, and legacy equipment. All iConnector models share three key characteristics: 3-in-1 functionality (Data Logger + Logic Controller + Internet Gateway), multi-fieldbus support, and no-programming configuration via the Globiots platform.

• STHC – Smart IoT Gateway: A compact, IP67-rated gateway that supports Modbus RTU/TCP, Ethernet/IP, Profinet, and CC-Link, as well as optional Sub-GHz wireless coordinator for connecting large sensor networks. It offers Cellular, Ethernet, or WiFi backhaul options and is widely used in energy monitoring, facility management, warehouse monitoring, and machine health applications.

A Smart Industrial IoT Gateway by Daviteq, designed for seamless connectivity and innovation in varied industrial environments.

• STHC-IO – Smart IoT Gateway with Integrated I/O Module: An enhanced version of STHC featuring built-in I/O ports (4AI/DI, 4DI, 4 relay outputs, 1 PWM output) and wide-range AC power input (85–305VAC). This model connects directly to sensors and equipment without external modules, making it ideal for factory automation, machinery monitoring, and hybrid control-and-monitoring scenarios.

• STHC-X – Ex d Explosion-Proof IoT Gateway: A heavy-duty Ex d ATEX/IECEx certified gateway for hazardous Zones 1/2/21/22. It supports the same multi-fieldbus protocols as STHC, with optional built-in Sub-GHz wireless coordinator, and is designed for oil & gas, petrochemical plants, and fuel storage facilities.

LoRaWAN Gateways (Outdoor / Indoor / Ex d)

Daviteq’s LoRaWAN gateways provide long-range wireless connectivity for distributed sensors used in agriculture, smart buildings, environmental monitoring, utilities, and industrial sites. All models support up to 8 concurrent LoRa channels and comply with LoRaWAN 1.0.3.

• GWLRW – LoRaWAN Outdoor Gateway: An IP67 outdoor gateway supporting Ethernet, LTE, and WiFi. It includes VPN remote configuration, low-power design for solar applications, and communication ranges up to 10 km—ideal for farms, greenhouses, smart cities, and utility metering.

Daviteq's LoRaWAN Outdoor Gateway GWLRAW: A robust and innovative solution for reliable wireless connectivity in outdoor environments.

• GWIND – LoRaWAN Indoor Gateway: Designed for indoor deployment with passive PoE support, optional LTE or WiFi, and high-sensitivity LoRa reception down to –142 dBm. Suitable for smart buildings, factories, hospitals, and indoor environmental monitoring systems.

LoRaWAN Indoor Gateway GWIND by Daviteq: A sleek and efficient solution for reliable indoor connectivity, ideal for IoT applications.

• GWLRWEX – LoRaWAN Ex d Hazardous-Zone Gateway: An ATEX & IECEx certified LoRaWAN gateway for hazardous industrial zones. It supports Ethernet and LTE, integrates a built-in network server and Node-RED, and connects directly to PLC/SCADA/DCS systems—ideal for oil & gas wellheads, refinery facilities, and remote energy sites.

Daviteq's LoRaWAN EX D Gateway (GWLRWEX) exemplifies cutting-edge technology, integrating robust connectivity solutions with expert innovation.

IoT gateways are a foundational element of any Industrial IoT architecture. They bridge the gap between physical devices and digital platforms, enabling organizations to collect in-time data, execute edge processing, manage diverse field devices, and deploy scalable, reliable monitoring systems. Without a gateway, industrial environments would struggle with fragmented communication, incompatible protocols, and limited visibility across critical assets.

Daviteq’s gateway lineup - covering multi-fieldbus iConnector models, long-range LoRaWAN gateways, and explosion-proof variants - demonstrates how a unified connectivity strategy can support everything from factories and buildings to farms and hazardous energy sites. By combining plug-and-play configuration, robust fieldbus integration, and wireless network scalability, Daviteq gateways offer businesses a practical and future-ready path toward digital transformation.

Choosing the right IoT gateway depends on your environment, the devices you need to connect, and your long-term operational goals. With a clear understanding of gateway types and their capabilities, organizations can build reliable, efficient, and intelligent IoT systems that align with both current operations and future expansion.