Global Fog Computing Market Size, Share, Growth Analysis, By Type(Hardware, Software), By Application(Connected Vehicle, Building & Home Automation) - Industry Forecast 2022-2028

The global fog computing market is segmented on the basis of type, application, and region. Based on type, the market is segmented into hardware and software. Based on application, the market is segmented into connected vehicles, building & home automation, smart energy, smart manufacturing, connected health, securities & emergencies, and others. Based on region, the global fog computing market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Analysis by Type

On the basis of  type fog computing industry is divided into two parts as hardware and software. As more industries are adopting cloud computing platforms, the services industry will expand at a CAGR of over 70%. Professional services reduce the overall cost of operations in organizations by removing the maintenance costs of physical IT infrastructures and staff hiring costs because organizations are moving their whole infrastructure into the cloud. Due to the rising popularity of outsourcing strategic management tasks and responsibilities to outside service providers, the managed services industry will expand at the fastest rate.The hardware consisted of the IP video cameras, routers, switches, sensors, gateways, and microdata center. Software comprised the various ERP models, and other cloud-based service models designed as per customer requirements.

Analysis by Application

Due to the increasing use of fog computing solutions to assist the creation of connected cars, the automotive application segment is predicted to increase at a rate of over 65%. The connected cars show a wide range of connectivity and interactions between cars, access points (such as smart traffic lights and roadside equipment), and access points to other access points. Fog computing has proven to have a number of characteristics that make it the perfect platform for delivering a variety of Smart Connected Vehicles (SCV) services in the areas of low latency, real-time interactions, mobility & location awareness, and traffic support.

In 2021, the fog computing market was dominated by North America. High IoT usage and rising investments in ongoing research on the creation of fog architecture are two important elements influencing the growth of the region. For instance, in the United States, a project has been started that makes it possible for traffic lights to work with linked cars to cut down on travel time. Furthermore, it is anticipated that the early adoption of the technology will result from the presence of multiple players in the area.

In 2021, the Asia Pacific region contributed more than 15% of total income. The sector is expanding as a result of the necessity to take advantage of hybrid IT infrastructures' ability to provide flexibility and agility. Furthermore, the region has seen significant expansion in the use of cloud services in major economies like China, Japan, and Australia, opening up opportunities for the deployment of fog networks. The Make in India initiative of the Indian government is also anticipated to increase the expansion of smart manufacturing, which will increase demand for streaming data to and from the cloud. As a result of an agreement between the Open Fog Consortium and the IoT Acceleration Consortium (ITAC) to work together and test new standards and advancements, the technology is becoming more popular in Japan. Additionally, the country's increasing use of connected cars is anticipated to enhance the demand for effective data management and communication platforms.

Driver

• The data architecture for fog computing advanced with few latency issues, smooth bandwidth operation, and development towards 5G technology. In addition, as the Internet of Things (IoT) evolves into the Internet of Everything (IoE), high-speed data analytics and quicker response times are required, which is a major driver for the fog computing sector.
• Data processing is made possible by fog computing in accordance with the requirements of the application and the available networking and computing resources. Reducing the amount of data that needs to be transported to the cloud, helps to conserve network bandwidth. Without gaining any knowledge, fog computing aids in bandwidth reduction. Their method uses fog nodes to identify and eliminate redundant data. Fog assists in data reduction by eliminating redundant data. Fog computing finds duplicate data and removes the copied data without changing the original data or information.
• The manufacturing sector is the primary focus of Industry 4.0. In order to gain and give a new and improved product or service with a variety of customization, lower cost, and higher productivity, it enables suppliers and manufacturers to make use of technology and the introduction of new technical concepts. This is brought on by systemic data interchange and innovation in cycles. A significant quantity of data is produced during the production and manufacturing processes, and this data needs to be collected and analyzed in real-time. Thus, the real-time analysis provided by fog computing aids in the development of industry 4.0.

Restraint

• Cloud computing and the fog environment are brittle and less secure, thus fog nodes will need to be protected using the same policy controls, procedures, and physical security measures. Existing cloud computing security and privacy measures cannot be easily applied to the fog due to its mobility, heterogeneity, and extensive geo-distribution. The authentication of fog computing devices at numerous gateways is the main security concern. An exclusive IP address is given to each appliance. A malicious person could access data kept on a fog node by using a fake IP address.
• The computing is dispersed in the fog environment and may be less energy-efficient than it would be in a centralized cloud model. Reduced energy use in fog computing is, therefore, a significant challenge and is seen as a market restraint for the technology.
• Network privacy is a significant issue in fog computing because wireless is so pervasive. Fog nodes are placed at the edge of the internet by network operators manually, and there are high maintenance costs. The leakage of personal information while accessing networks is getting attention. End users have easier access to the Fog nodes. Fog nodes, therefore, gather more sensitive data than distant clouds.

The global fog computing market is relatively fragmented, with a high level of competition. Few large players, like, Cisco Systems, Inc., Microsoft Corporation, ARM Holding Plc, Dell Inc., Intel Corporation, Fujitsuz, GE Digital, Nebbilo Technologies, Schneider Electric Software, LLC, Toshiba Corporation, and PrismTech Corporation, now control the market in terms of market share. These industry leaders are extending their customer base across several areas, and many corporations are creating strategic and collaborative initiatives with other start-up enterprises to enhance their market share and profitability.

Top Players in the Global Fog Computing Market

• Microsoft (US)
• IBM Corporation (U.S.)
• Cisco Systems Inc (U.S.)
• AT&T Intellectual Property (U.S)
• Hitachi Ltd. (Japan)
• Verizon Communications Inc. (U.S.)
• PTC Inc. (U.S.)
• SAP SE (Germany)
• Rockwell Automation Inc. (U.S.)
• Schneider Electric SE (France)
• Infosys Limited (India)
• Oracle (US)
• Dell Inc. (U.S.)
• Toshiba Corporation (Japan)
• PrismTech Corporation (U.S.)
• Intel Corporation (U.S.)
• ARM Ltd. (U.K.)
• Fujitsu (Japan)
• LLC (Japan)
• Nebbiolo Technologies (U.S.)

Recent Developments

• In January 2022,

• The Internet of Things (IoT) is being used more frequently as a result of the agility and flexibility of big data solutions, which has increased the amount of digital data generation. This is one of the main reasons businesses and large organizations around the world are adopting fog computing solutions to meet the demand for speedy access to vast amounts of data. These technologies also improve corporate agility by streamlining the production of goods and services that generate income. Additionally, they offer a standard foundation for effective teamwork and communication. As a result, sales of fog computing solutions are increasing relative to cloud computing due to the increased public knowledge of their benefits. Additionally, the need to connect numerous devices to a network and detect dangers, such as malware or possible intrusions, is driving the usage of these technologies. This is due to the growing data security concerns brought on by the increase in cyber threats. The use of fog computing displays for car-to-car connectivity is also benefiting from the trend toward connected and sophisticated automobiles. Furthermore, governments from a number of nations are investing in the creation of smart cities, which is fostering a good outlook for the sector.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our analysis, rising IoT deployment in a variety of industrial verticals, including smart infrastructure, automotive, healthcare, retail, and energy, is one of the main drivers contributing to the growth of the fog computing market. Connected device data is frequently used in a variety of ways, particularly for insight extraction. The fog computing architecture is popular because it integrates cloud resources into the edge of the sting device, cutting down on transmission times and resolving latency difficulties. Fog improves the functionality of such platforms by connecting a wide variety of devices to the cloud, which will drive market development along with the increased adoption of cloud computing platforms. It reduces the drawbacks of cloud computing, such as resource management, latency and frequency problems, and scalability restrictions. Fog technology has quickly replaced cloud technology, allowing for low latency, broad geographic distribution, and a reduced risk of cyberattacks on data routers. These are expected to favourably fuel the development of the worldwide fog computing market. There are some difficulties that will impede the expansion of the market as a whole. The market expansion is being constrained by reasons including a shortage of skilled labor and a lack of standards and processes. Additionally, tough tasks that restrict growth include sophisticated integrated systems and the integration of AI solutions into the current systems. Additionally, the potential for increasing cyber-attacks as a result of network edge extension and decentralized computing leading to complexity in architecture could be a hindrance to the overall growth of the global fog computing market. Nevertheless, corporations are overcoming the difficulties of centralized data processing thanks to technological improvements. The potential for growth for platform providers, cloud service providers, communication technology providers, and system integrators is favorable. The largest market share belongs to North America. The Internet of Things has a lot of promise for use in developed nations like the United States and Canada. The United States and Canada are two of the world's technologically most developed nations. The market in the North American region will benefit from increased investment in ongoing research on the creation of fog architecture.