Fog Computing Market , By Solutions, End Use, Application - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2017–2025
Requirement of managing service offerings at the network edge to enhance the efficiency and avoid the network bottlenecks, is expected to propel the growth over the forecast period.
Proliferation of IoT and internet enabled devices has led to exponential increase in data generation and access requirement at the end user leading to significant increase in the traffic generated. Traffic patterns vary based on the user inclination, however, they are concentrated in the metropolitan areas across the globe. Inadequacy of the cloud and internet networks to efficiently manage the data stream across its regional expanse also adds to the requirement of infrastructure in the proximity of the users. Advent of connected technologies such as connected homes, buildings, smart energy, connected factory operations, connected vehicles, and OTT content are among the prominent factors anticipated to fuel the demand for fog computing methodologies to avoid the network bottlenecks.
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Fog Computing Market Taxonomy:
On the basis of solutions, the global fog computing market is classified into:
On the basis of end-use, the global fog computing market is classified into:
Building & Home Automation
Transportation & Logistics
Security & Emergencies
Others (Smart Environment and Retail)
On the basis of applications, the global fog computing market is classified into:
Smart Traffic Lights
Decentralized Smart Building Control
Software Defined Networks
Low latency requirement and high scalability for real time applications are expected to provide high traction to the fog computing market
Mission critical applications such as cloud robotics, fly-by wire aircraft control, and automotive anti-lock brakes require real time data processing. Control and management of the operations is directly dependent on the information collected by the sensors and the control system feedback. Event of the control system being run on cloud may negatively impact the sense-process-actuate loops or unavailable due to communication failures. However, low latency requirement of the fog computing can be used to perform the control system processing making the real-time reaction feasible. This methodology primarily aims at processing the incoming data in proximity to the data source itself and reduces the burden on the cloud processing, thus addressing scalability requirements, owing to increasing number of endpoints.
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Software segment contributed to around 65% revenue of the fog computing market, is expected to remain the dominating revenue segment through the forecast period
Overall IT components costs have witnessed substantial decline over the past few years, in conjunction with considerable advancement leaps in the processing and compactness over the past few years. Connectivity costs have witnessed consistent price reductions with the advent of fast communication technologies such as 3G, 4G, and LTE. Software as a Service (SaaS) and the usability of these in analytics, e-commerce, collaboration, and other business functions has witnessed increased penetration at exponential rates. Thus, software solution segment is expected to dominate the market over the forecast period.
The U.S. dominated overall fog computing market share, owing to the high adoption in the country
Major investment in the R&D activities in the region, primarily in the automotive segment is expected to fuel the industry growth. The government has introduced a number of initiatives to revolutionize the automotive technologies, so as to reduce the number of road accidents and fatalities. Introduction of V2V communication, and V2I communication (or V2X) technologies are few of the initiatives in the process, which is expected to provide considerable growth prospects over the forecast period. The exponential rate of urbanization and industrialization in the Asia Pacific countries such as China, India, Indonesia, Thailand, Malaysia, South Korea, and Japan are expected to provide growth opportunities to key players in the market.
Key players operating the fog computing market include Microsoft Corporation, ARM Holdings PLC, Cisco Systems, GE Digital, Intel Corporation, Schneider Electric Software LLC, and Fujitsu Ltd.
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