Fog Computing Market Size, Share, Growth Analysis, By Type(Hardware, Software), By Application(Connected Vehicle, Building & Home Automation, Smart Energy, Smart Manufacturing), By Region - Industry Forecast 2024-2031

Fog Computing Market size was valued at USD 85.5 million in 2019 and is poised to grow from USD 126.66 million in 2023 to USD 4314.38 million by 2031, growing at a CAGR of 48% in the forecast period (2024-2031).

Fog computing is a decentralized computing framework that facilitates computing, storage, control, and networking services between end devices and computing data centers. It reduces the amount of data required for sending to the cloud, thereby saving network bandwidth and minimizing the response time of the system.

The primary reasons driving the fog computing market include the development in the use of smart devices to support smart grids, smart buildings, smart cities, automotive networks, and software-defined networks as well as the rising demand for connected devices among end users. The growth of the connected fog computing market is accelerated by the rise in demand from the automotive industry, which makes connected fog computing an ideal platform for delivering a variety of smart connected vehicles (SCV), safety, mobility and location awareness, traffic support, real-time interactions, low latency, and safety. The emergence of 5G technology also has an impact on the fog computing market. The role of fog architecture plays in the advancement of virtual reality, which is AI, where the majority of information recovery and processing is forwarded to related devices, including smart home storage, and the cloud, among others. Additionally, government initiatives to support the advancement and their deployment in fog computing, the development of the internet of everything (IoE) from the internet of things (IoT), the growing demand for high-speed data analytics and quicker response times, and the increase in research and development activities in the fog computing sector all have a positive impact on the market. Future profitable potential for the companies in the fog computing industry is also expanded by advancements and widespread use of cloud computing, machine learning, and artificial intelligence.

On the other hand, challenges that are anticipated to impede the fog computing industry include a lack of technological expertise and understanding as well as the absence of common standards. Fog computing industry challenges include the complexity of design brought on by decentralized computing and worries about the possibility of cyberattacks as a result of the expansion of network edges.

US Fog Computing Market is poised to grow at a sustainable CAGR for the next forecast year.