What is IoT Gateway?

The Internet of Things (IoT) is a vast network of interconnected devices, like sensors and smart machines, that collect and share data. The insights from the analysed data can be used to automate tasks, optimise processes, and reduce costs, changing how your business operates.  

Consider a warehouse that utilises a network of IoT devices. Connected systems track inventory levels in real-time, eliminating manual checks and potential errors. Environmental sensors monitor temperature fluctuations and adjust settings, ensuring optimal storage conditions for products. Security sensors send alerts when motion is detected in a restricted area.  

But with so many devices collecting data, things can get complicated. If each device is directly sending its information to the external network, your network will become overloaded. This is where IoT gateways come in. 

In this guide, we explain what is an IoT gateway and how it ensures the smooth flow of data within your IoT solutions 

What is IoT gateway?

An IoT gateway is a central hub for your connected devices in the IoT network. It is a device or software that collects data from IoT devices, translates it into a common language, and securely sends relevant data to external networks.  

IoT gateways in the IoT architecture

IoT gateways are positioned between IoT devices and external networks in the IoT architecture. This position allows them to manage data flow and ensure efficient communication. 

  • IoT Devices: These are the physical devices collecting data, such as sensors, actuators, and smart machines. These devices often communicate using diverse protocols specific to their function or manufacturer. 
  • External Networks: This includes the cloud, local servers, or other external systems where the collected data is sent for analysis, storage, or action. 

Why do we need an IoT gateway?

An IoT gateway plays a crucial role in managing data traffic. By acting as a bridge between IoT devices and external networks, it efficiently collects data and translates it into a standardised format. This ensures quick and seamless communication between IoT devices and the cloud or server.  

The gateway also helps reduce network strain. By pre-processing the collected data and performing basic analytics at the edge, it reduces the overall data volume before transmission. This saves valuable bandwidth and minimises storage costs on the cloud or server, ensuring an efficient flow of information within your IoT network. 

How does an IoT gateway work?

Now that you know what an IoT gateway is and why it’s important, here’s how IoT gateway works:  

Data collection  

The gateway gathers data from all your connected devices. These devices are continuously generating and sending data specific to their function, such as temperature readings from environmental sensors or inventory levels from smart tags on shelves.  

Protocol translation

IoT devices may use different communication protocols. The gateway will essentially act as the translator, converting all incoming data from each device into a standardised format. This ensures when the data is sent, it can be understood by the external network.  

Data pre-processing  

Hundreds of IoT device sensors can be sending updates every second. While valuable, not all data is equally important for immediate analysis. The IoT gateway will pre-process the data, ensuring that only the most relevant information reaches the cloud or server. This prevents overloading the system, reduces storage requirements, and ensures faster data-driven decision-making.  

This pre-processing can include:  

  • Filtering: Removing irrelevant information like timestamps or device IDs, focusing only on the core data needed for analysis. 
  • Scaling: Adjusting data values to a consistent range for easier interpretation in the cloud. For example, temperature readings could be in Celsius or Fahrenheit. Scaling ensures all data is converted to a consistent range for easier interpretation in the cloud. 
  • Basic Analytics: The IoT gateway performs simple calculations on the data at the edge. This reduces the amount of raw data sent and allows for more focused analysis in the cloud. 

Data transmission

The processed and secured data is then securely transmitted to the cloud or server. Here it can be used for further analysis, storage, or triggering actions based on the information received. 

Are IoT gateways secure?

IoT gateways include security features to ensure a secure IoT infrastructure. This includes data encryption, which protects sensitive information during the transmission between devices and the cloud. The gateways can also have access controls, preventing unauthorised users from accessing the data.  

Certain IoT gateways can also validate certificates, which enables them to verify the identities of the devices or servers connecting to the network. This additional security measure ensures only authorised devices can communicate and exchange data within your network, reducing potential security risks. 

FAQs about IoT gateways


What is the difference between IoT proxy and IoT gateway?

An IoT gateway collects data from devices, translates protocols, and securely sends the data to the external network. An IoT proxy focuses on managing traffic flow within the network, filtering data and acting as an intermediary between devices and the internet. 

What is the difference between IoT devices and gateways?

IoT devices are sensors and actuators that collect and act on data. Gateways manage the data traffic between these devices and the cloud.  

How do I connect to IoT gateways?

Connecting to an IoT gateway involves configuring the gateway to communicate with your devices. This setup includes setting network parameters and security credentials. Once configured, devices can send data to and receive data from the gateway securely.