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While both manage data traffic, an IoT gateway does much more than a traditional router. It translates multiple IoT protocols (like MQTT, Modbus, and Zigbee), processes data at the edge, and enables real-time automation. Routers simply direct traffic between devices and the internet. Gateways add intelligence, filtering, and security—making them essential for managing thousands of IoT devices in complex environments like factories, farms, and smart cities.