Fog Computing Market size is set to grow by USD 4.08 billion from 2024-2028, Exponential increase of iot due to rise in communication between verticals boost the market, Technavio

NEW YORK, Aug. 12, 2024 /PRNewswire/ -- The global fog computing market size is estimated to grow by USD 4.08 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 70.51%  during the forecast period. Exponential increase of iot due to rise in communication between verticals is driving market growth, with a trend towards deployment of industry 4.0 infrastructur.  However, competition from low-cost centralized and general-purpose computing infrastructure  poses a challenge. Key market players include ADLINK Technology Inc., Aikaan Labs, Amazon.com Inc., Arm Ltd., AT and T Inc., Atos SE, Cisco Systems Inc., Crosser Technologies, Dawn Acquisitions LLC, Dell Technologies Inc., General Electric Co., Hitachi Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., Schneider Electric SE, Telefonaktiebolaget LM Ericsson, Terawe Corp., Thoughtworks Holding Inc, and Toshiba Corp..

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Market Driver

Industry 4.0, the latest industrial revolution, integrates connected automation systems and technologies such as cyber-physical systems, IoT devices, cloud computing, and cognitive computing. These technologies enable large-scale automation in factories, relying on principles like machine interconnection, big data collection, technical assistance, and decentralization. With the increasing adoption of Industry 4.0, the demand for real-time data analysis in manufacturing environments is surging. Fog computing plays a crucial role in processing and implementing data from IoT sensors, actuators, and communication tools in the immediate manufacturing environment. Consequently, the global fog computing market is poised for significant growth as Industry 4.0 practices gain traction. 

Fog computing, also known as edge computing, is a trending technology that brings real-time computing closer to the source of data generation. With the increasing amount of personal information being generated on the internet, network operators are turning to fog computing to reduce internet traffic and improve connectivity. The OpenFog Consortium, a leading industry group, is driving the adoption of fog computing through standardization. Embedded computing design companies, connectivity hardware providers, system integrators, cloud providers, and colocation providers are key players in the fog computing market. Real-time applications in sectors like transportation and logistics, power industry, hydrocarbons, and healthcare are benefiting from fog computing. Smart sensors, edge devices, and the fog computing layer form the foundation of this technology. Fog computing platforms offer customized application software, while controller servers and fog software manage data security. The transportation sector, including transportation systems for aviation, railways, roadways, maritime transport, and self-driving cars, is a major user of fog computing. Applications include monitoring engine idle time, emissions, fuel conservation, and cyber threats. Wearables, cameras, and industrial automation are other areas that can benefit from fog computing. With the advent of 5G networks, augmented reality, and driverless cars, the market for fog computing is expected to grow significantly. 

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Market Challenges

• Fog computing refers to extending centralized computing infrastructure to the edge of the network, providing processing capabilities as a service to devices and applications in real-time. While this can reduce latency and improve efficiency, it faces competition from low-cost cloud computing services, which are widely available on a pay-as-you-go basis. The competitive marketplace offers various pricing and volume options, making it challenging for fog computing to gain significant market share. Setting up fog computing infrastructure requires additional capital spending, network infrastructure, and skilled labor, shifting focus from applications to infrastructure management. Additionally, achieving a minimum service level agreement in a fog computing environment can be difficult due to the decentralized nature of the infrastructure. Furthermore, network nodes such as access points, base stations, routers, switches, and gateways can be utilized for fog computing operations, increasing competition from low-cost centralized and general-purpose computing infrastructure.
• The Fog Computing market is experiencing significant growth as businesses seek to address the challenges of smart home storage, high-speed data analytics, and decentralized computing in various sectors like cloud, machine learning, artificial intelligence, smart home, connected vehicles, smart energy, smart manufacturing, connected health, securities and emergencies, and more. Fog Computing provides real-time analysis in a fog environment, reducing the need for constant data transfer to the cloud. However, it presents new challenges such as cyberattacks, hardware requirements, and network bandwidth. Fog Computing solutions include routers, switches, sensors, gateways, and microdata centers. The Open Fog Consortium is driving the development of hybrid IT infrastructures, including fog nodes, IP video cameras, and ERP models, to address the needs of Industry 4.0. Policy controls, procedures, physical security measures, authentication, IP address, energy efficiency, network privacy, and wireless connectivity are crucial considerations for implementing fog computing solutions.

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Segment Overview 

This fog computing market report extensively covers market segmentation by  

1. Component 
• 1.1 Software
• 1.2 Hardware
2. Application 
• 2.1 Utilities
• 2.2 Healthcare
• 2.3 Transportation
• 2.4 Industrial
• 2.5 Others
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Software-  The Fog Computing market is growing as businesses seek to reduce latency and bandwidth usage by processing data closer to the source. Fog Computing, also known as Edge Computing, allows for real-time analysis and decision making. Companies in manufacturing, healthcare, and transportation are adopting Fog Computing to improve efficiency and enhance customer experience. This decentralized computing infrastructure brings data processing power to the edge, enabling faster response times and reducing reliance on cloud resources.

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The Global Healthcare Cloud Computing Market is experiencing rapid growth, driven by the increasing adoption of telemedicine, electronic health records (EHRs), and big data analytics in healthcare. This market is expected to expand significantly due to the need for scalable, cost-effective solutions that enhance patient care and streamline operations. Similarly, the Global Edge Computing Market is on the rise, fueled by the demand for real-time data processing in sectors like healthcare, manufacturing, and IoT. Both markets are pivotal in driving innovation and efficiency across industries.

Research Analysis

Fog Computing Market: A New Era of Real-time Data Processing and Connectivity Fog Computing, also known as Edge Computing, is revolutionizing the way data is processed and analyzed in our increasingly connected world. By bringing computing power closer to the source of data generation, Fog Computing enables real-time interactions and reduces latency for smart devices, smart grids, smart buildings, smart cities, automotive networks, and more. Fog Computing leverages 5G technology and Software-Defined Networks to facilitate connectivity for an expanding array of connected devices, including smartphones, tablets, wearables, cameras, sensors, and edge devices.

Market Research Overview

Fog Computing Market: A New Frontier in Real-time Data Processing Fog Computing, also known as Edge Computing or Extended Cloud, is a decentralized computing infrastructure that brings data processing closer to the source of data generation. This architecture is becoming increasingly important in our interconnected world, where smart devices, smart grids, smart buildings, smart cities, automotive networks, and connected devices require real-time interactions and high-speed data analytics. Fog Computing relies on a network of fog nodes, including routers, switches, sensors, gateways, and microdata centers, that act as intermediaries between edge devices and the cloud.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Component
• Software
• Hardware
• Application
• Utilities
• Healthcare
• Transportation
• Industrial
• Others
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio