Fog Computing Market To Cross USD 700 Mn By 2024
With the growing infiltration of technology, cloud computing platforms are becoming immensely crucial to businesses, driving the expansion of Fog computing market, according to a new report. Fog computing, also known as fog networking or fogging, is defined as a decentralized computing infrastructure in which data, compute, storage and applications are distributed in the most logical, efficient place between the data source and the cloud.
Fog computing essentially extends cloud computing and services to the edge of the network, bringing the advantages and power of the cloud closer to where data is created and acted upon. As the cloud computing platforms come with certain challenges, the adoption of Fog computing solutions in the enterprise sees a steady growth [Read the full report here].
While extending the cloud near the edge devices that generate and act on data, Fog computing solutions provide myriad benefits to the businesses like increased business agility, rapid innovation, affordable scaling options while being cost effective. It also extends better security, deeper insights, and privacy control and brings down the operating cost by conserving the network bandwidth and locally processing the data rather than transferring it to the cloud platform.
The swelling of the Fog computing market can be accredited to the paradigm shift in the U.S. healthcare reimbursement systems which altered from fee-for-service model to the outcome-based reimbursement model. This development would instigate healthcare organizations to go for IoT devices to lower their power consumption, enhance operational efficiency, reduce cost, and improve overall performance of business.
Fog computing facilitates the analysis of data at the edge of devices for which its adoption among the healthcare organizations is predicted to increase. Next to healthcare is manufacturing sector which is being envisaged to hold huge potential for the Fog computing solutions. The credits for this can be given to the proliferating demand for process automation in the manufacturing sector to gain an edge over competitors. Also, fog computing solutions elevates the operational efficiency by imparting actionable insights and real-time monitoring of the operations, which is estimated to increase the adoption among manufacturing plants.
Cloud computing platforms are being increasingly adopted by various parts of the countries, Asia Pacific being the fastest growing market for Fog computing. Evolving smart infrastructure programs like Indian government’s smart city development initiative, Digital India program and Make in India campaign are providing a huge market to Fog computing industry. The industry is predicted to surpass $700 million by 2024.
The report suggests that fog computing market will be benefited by the growing adoption of IoT and M2M devices. IoT is gradually bringing every object in the internet environment, and as the billions of devices get connected to internet, it will become difficult to use centralized servers. Furthermore, there are several applications of the IoT devices in healthcare and energy & utilities sector that require low latency, and any delay in transferring data can hamper the performance. This give rise to the requirement of decentralized computing to scale up the operations. Fog computing is the decentralized computing model that works on the concept that computing of latency sensitive applications can be done on the edge nodes that exist between cloud devices, which reduces the latency and provides enhanced Quality of Service (QoS) and Quality of Experience (QoE).
However, security, reliability, and fault tolerance issues associated with the fog computing market model is estimated to be one of the major constraints in the growth of the industry. As it integrates large volume of data from multiple service providers, users, and distributed networks, it is difficult to maintain the security and makes it more vulnerable to cyber-attacks and data theft. Besides, evolution of IoE (Internet of Everything) and 5G technology is estimated to develop numerous growth opportunity for the growth of the fog computing market.
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